HC Deb 10 April 1968 vol 762 cc1339-40
1. Mr. Noble

asked the Secretary of State for Scotland what will be the increased cost to Scottish farmers from the increases in petrol and vehicle licence duties imposed in the Budget.

The Under-Secretary of State for Scotland (Mr. Norman Buchan)

I would refer the right hon. Gentleman to the Answers my right hon. Friend gave on 25th March to the hon. Member for North Angus and Mearns (Mr. Buchanan-Smith).—[Vol. 761, c. 224.]

Mr. Noble

In view of the considerable increases which will have to be met by Scottish farmers in this way and other ways as a result of the Budget, has the right hon. Gentleman considered whether the farming community will be able to carry these costs until next year, which will be the first chance it will have of recuperation under the Price Review? Will he also consider whether any further action is needed by the Government if the farming community is to fulfil its functions?

Mr. Buchan

There is no reason to believe that the farming community will be unable to fulfil its functions. All these matters will be considered in the usual way at the annual Price Review next year.

26. Mr. Brewis

asked the Secretary of State for Scotland what estimate he has made of the increase of costs in the agricultural industry as a result of the Budget measures.

Mr. Buchan

I estimate that in a full year the increase in costs to farmers in Scotland as a result of the Budget measures will amount to about £700,000.

Mr. Brewis

Is it not the case that these costs are mostly extra transport costs, which will affect the remote areas to a greater extent? Will the hon. Gentleman try to increase the 100-mile limit in the Transport Bill to at least 200 miles?

Mr. Buchan

I think that that is a matter which should properly be directed to my right hon. Friend the Minister of Transport, and in the presence of my right hon. Friend the Leader of the House I should not like to bring this into the field of agriculture, but the total figure is as I gave it, and will be part of the consideration at the Annual Price Review.

Mr. MacArthur

Does the hon. Gentleman's estimate allow for the 50 per cent. increase in S.E.T. which farmers will have to carry for three months as an enforced interest-free loan to the Government?

Mr. Buchan

I know the point which the hon. Gentleman is making. This is the overall estimate of the position.

Mr. MacArthur

Including S.E.T.?

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