HC Deb 25 March 1976 vol 908 cc620-2
18. Mr. MacGregor

asked the Minister of Agriculture, Fisheries and Food what the value of loans made by the Agricultural Mortgage Corporation was in 1974 and 1975.

Mr. Peart

Loans made to the industry by the Agricultural Mortgage Corporation Ltd. during the years ending 31st March 1974 and 31st March 1975 were £47.9 million and £37.9 million respectively.

Mr. MacGregor

Has the Minister seen a recent statement from the managing director of the Agricultural Mortgage Corporation producing devastating arguments about the danger of taking capital out of agriculture, a danger fully reflected in the recent decline of investment shown in the annual price review? In view of this, will the Minister now take steps to impress upon the Chancellor of the Exchequer the urgent need to change the capital taxation on agriculture so as to remove this threat?

Mr. Peart

I am aware of that statement, and I share the concern about the effects of capital taxation. We have had an interdepartmental committee looking at this question. I cannot report on it finally to the House, but I regard it as a serious matter. On the other hand, there has been an improvement in cash flow, and I believe that the package we agreed in Brussels is a good one for the working farmer.

Sir David Renton

But does not the right hon. Gentleman remember that as long ago as last July he told us that he was having this inquiry made by the interdepartmental committee? Will he give us the benefit of its conclusions as soon as possible?

Mr. Peart

I will do so as soon as possible.

Mr. Stephen Ross

Will the Minister tell the House what progress has been made in the EEC towards a land bank structure, such as other EEC countries have, as he well knows that in this country the AMC rates are excessively high?

Mr. Peart

The land bank concept of subsidising credit is not as good as the capital grant system that we have. I was glad to mention in the recent review that we are to have £30 million extra on capital grants.

Mr. Pym

In his desire to provide extra capital for agriculture, will the right hon. Gentleman explain how farmers can be expected to put in hand new schemes before the details of the improved proposals have been announced? How soon will he give full details of the extra help that he intends to provide?

Mr. Peart

I gave the broad picture when I announced my review. I accept that the working farmer needs further detatils, and these will be provided.