HC Deb 02 June 1980 vol 985 cc1020-2
3. Mr. Hooson

asked the Secretary of State for Wales what is his latest information on the net income derived from sheep and beef rearing in Wales; and whether he will make a statement.

Mr. Nicholas Edwards

For the year ending February 1979, the farm management survey for Wales shows an average net income of £7,686 for hill and upland farms concentrating on sheep rearing, £7,835 for hill and upland farms with mixed cattle and sheep enterprises, and £4,855 for lowland mixed cattle and sheep farms. The survey results for 1979–80 are likely to show a reduction in net income mainly because of lower returns from the sheep sector.

Mr. Hooson

Since we are facing a reduction in income in the most recent year obviously my right hon. Friend will pin his hopes largely on a successful European settlement. May we also expect that he will be closely monitoring the clear squeeze between inflation on the one hand and the reduced revenue being experienced, particularly, by sheep and beef breeders?

Mr. Edwards

It would, of course, be wrong for me to anticipate the statement to be made by my right hon. Friend later today. I can say that if the agreement reached by the Agriculture Ministers were agreed by the European Governments collectively it would be of considerable benefit to both sheep and cattle breeders in Wales.

Mr. D. E. Thomas

Can the Secretary of State give an assurance to the sheep farmers of Merioneth, and throughout Wales, that the present system of income support for the sheep industry will not be sold out in any European deal and that the traditional form of the guaranteed price which has served the sheep industry so well will be maintained?

Mr. Edwards

I do not wish to anticipate the statement that will be made in the House this afternoon. However, I think that from what the hon. Gentleman has seen of the agreement among the Agriculture Ministers he will understand that that agreement could be of considerable benefit to Welsh sheep producers.

Mr. Alec Jones

Can the Secretary of State give some idea of the progress being made in the survey of marginal land and give an assurance that the survey will not be held up by any reduction of staff in the agricultural department of the Welsh Office?

Mr. Edwards

On the contrary, by transforming the capital grant arrangement we are making the staff available to proceed with the survey. But it is a complicated matter, particularly in England, where the ground is not distributed in so convenient a form as in Wales around the hill line and the survey will take considerable time. However, we are undertaking a number of pilot schemes on the Welsh border to see whether certain methods can be adopted which will speed up the whole survey.