HC Deb 02 July 1969 vol 786 cc404-5
5. Mr. J. E. B. Hill

asked the Minister of Agriculture, Fisheries and Food what is his current assessment of the financial position and prospects of the agricultural industry on capital and on income account.

Mr. John Mackie

Assessments were given in the Annual Review White Paper. I see no purpose in a reassessment now when firm data cannot be available and when it is too soon to judge how the year as a whole may turn out.

Mr. Hill

Is it not abundantly clear that agriculture is faced with an absolutely unprecedented financial crisis? In those circumstances, if the Government cannot give any positive help, why is it proposed to do positive harm by penalising the maintenance of agricultural land and buildings? Can the Minister say what he is doing, together with his right hon. Friends, to dissuade the Treasury Ministers from pursuing Clauses in the Finance Bill which will do positive harm to agriculture?

Mr. Mackie

I agree that in certain cases and in certain areas farmers are facing financial difficulty, but it is not absolutely clear that this is the case in agriculture as a whole. If the hon. Member goes to parts of the country other than his own, he will know that some areas are looking remarkably well. There are high prices for stock and everything else. As to capital investment, the hon. Member should look at the figures, which have risen from £167 million in 1963 to last year's £211 million. So there is no lack of investment.

Mr. Stodart

Is the Minister entirely unaware that farming income fell substantially last year, and that credit is extremely difficult to get, and extremely expensive if it can be got? If the hon. Gentleman still believes in the expansion programme, how is it to be financed?

Mr. Mackie

As I have been trying to point out to the hon. Gentleman and to his hon. Friends, if they know of any case where expansion will be restricted by lack of genuine credit for a creditworthy farmer and will let us know, we will look into it.