HC Deb 14 March 1960 vol 619 cc917-8
27. Colonel R. H. Glyn

asked the Minister of Agriculture, Fisheries and Food what proportion of the increased efficiency of the agricultural industry in the year 1959–60 is due to the injection of new capital; how much new capital has been invested in farming by landlords, tenants and owner-occupiers in each of the last five years; and what is the total capital sum now invested in British agriculture.

Mr. John Hare

It is difficult to say what proportion of the increased effi- ciency of the agricultural industry in 1959–60 can be attributed to the injection of new capital. New capital investment in agricultural equipment and buildings in the United Kingdom in each of the years 1955 to 1958 was £104 million, £95 million, £106 million, and £125 million, respectively, and is provisionally estimated for 1959 at £135 millon It is equally difficult to give a firm estimate of the total capital sum now invested in British agriculture.

Colonel Glyn

Would my right hon. Friend agree that the increasing efficiency of the industry is largely made possible by these substantial injections of new capital, and will he bear in mind that the so-called net income of the industry consists of reward of farmers' manual and managerial labour plus interest on this capital? Is my right hon. Friend satisfied that, after allowing a reasonable return for farmers' managerial and manuel work, there is a sufficient income in the industry to provide an adequate return on this greatly increased capital?

Mr. Hare

These are matters which are taken into account in the Price Review. I think my hon. and gallant Friend is quite right to point out the very considerable sums of money involved in capital fixed equipment in the agricultural industry.