§ 16. Mr. Joplingasked the Minister of Agriculture, Fisheries and Food whether the proposed removal of investment grants on tractors and harvesters will be taken into account at the next Price Review.
§ Mr. John MackieInvestment grants are not relevant production grants, and are therefore not included within the value of the guarantees.
§ Mr. JoplingWill the Minister tell us when the investment grants on tractors and combines are to end, and what is to be put in their place? We still have not been told.
§ Mr. MackieThe hon. Member is a member of the committee which is discussing the subject, and this will be decided after the committee has made its findings.
§ Mr. GodberThe hon. Gentleman's answer somewhat surprised the House. Does it mean that farmers will get no reimbursement of the loss of this £5 million or more that they will sustain on investment grants?
§ Mr. MackieThe right hon. Gentleman knows well, and my right hon. Friend made it clear on the Second Reading of the Bill, that this money is to be spread over grants as a whole, and not tied to tractors and combine harvesters.
§ 24. Mr. Stodartasked the Minister of Agriculture, Fisheries and Food what had caused the decline between the estimate for 1969–70 of £10.3 million of investment grants, given last March in Command Paper No. 3965, and the figure in November of just over £5 million.
§ Mr. John MackieThere has been no decline. The estimate of £10.3 million to which the hon. Member refers relates to all agricultural investment grants.
§ Mr. StodartIs it not a pity that the Secretary of State for Scotland did not make that clear when he made the comparison? Is the hon. Member aware that in the first ten months of the year there has been a decline of no less than 37 per cent. in the number of combine harvesters bought? Is not this a glaring example of the red light flashing at the Government's deplorable policy?
§ Mr. MackieNo, Sir.
§ 25. Mr. Kenneth Lewisasked the Minister of Agriculture, Fisheries and Food what will be the saving in cost of the proposed removal of investment grants to farmers for agricultural machinery.
§ Mr. John MackieNone, Sir, apart from possible savings in administrative costs.
§ Mr. LewisIs there not fear among farmers that the Government intend to save money in this respect? Does not the Minister appreciate that after a bad season, with a high Bank rate, farmers cannot afford any reduction in what they already get in these investment grants?
§ Mr. MackieI am not blaming the hon. Member, but some of his colleagues are giving this impression. If they would not ask such leading questions on the subject, farmers would not be misled.
§ Mr. GodberIf the Minister is concerned about farmers being misled, will he address himself to the point that the 422 Government made the change from investment grants? Investment allowances were well understood and appreciated by farmers. We now have an excuse put forward for removing the grants altogether. Is it not therefore reasonable that farmers should misunderstand if the Government keep changing their attitude without giving adequate explanation?
§ Mr. MackieI am sure that farmers listen as much to what we say as the right hon. Member does.