§ 20. Mr. J. E. B. Hillasked the Minister of Agriculture, Fisheries and Food whether he is satisfied with the present rate of capital investment in agriculture; and if he will make a statement.
§ Mr. Cledwyn HughesThe growth of both output and productivity implies a satisfactory rate of investment.
§ Mr. HillIs not much of this investment being forced upon farmers not so much in order to expand but to stay where they are because of the speed of technical change, and may it not follow, therefore, that the actual rate of obsolescence exceeds the permitted rate of depreciation, so that capital troubles are building up for the future? Will the right hon. Gentleman consider that?
§ Mr. HughesI have no evidence of that. The evidence which I have is that good progress is being made. For example, the House may be interested in the figures of gross fixed capital formation in agriculture: taking buildings and works, vehicles, plant and machinery together, in 1962 it was £152 million, and in 1967 it was £183 million. The facts seem to indicate that investment is progressing at a reasonably satisfactory rate.