§ 15. Mr. Speedasked the Minister of Agriculture, Fisheries and Food what estimate he has now made of the effects of the Budget on the agricultural industry.
§ Mr. Cledwyn HughesI estimate that the Budget measures are likely to add about £1,000,000 to the direct costs of agriculture in a full year.
§ Mr. SpeedWhile thanking the right hon. Gentleman for that Answer, may I ask him if he really believes that the Budget, taken with the recent Price Review and the present level of interest rates, will help British agriculture in its import-saving rôle?
§ Mr. HughesI calculate that the Budget will not have any effect on the 1388 import-saving targets that we have set for agriculture. The hon. Gentleman specifically referred to interest rates. He will be aware that interest on loans for business purposes is still chargeable against income tax.
§ Sir W. Bromley-DavenportIs it fair that a good farmer who is overdrawn at the bank can no longer obtain tax relief on loans made on his overdraft while a bad farmer who has allowed his buildings to fall down is allowed to get tax relief for capital improvements?
§ Mr. HughesIf the hon. and gallant Gentleman will let me have the details of any specific cases of which he knows—
§ Sir W. Bromley-DavenportRead the Finance Bill.
§ Mr. Hughes—I will certainly look into them. In my view, the number of bad farmers in Britain is a very small percentage of the total. The good farmers are making good progress and, as I said, they will still get tax relief on the interest on loans for business purposes.