HC Deb 17 April 1985 vol 77 cc247-8
3. Mr. Wallace

asked the Secretary of State for Scotland when he last met representatives of the Scottish National Farmers Union to discuss the impact of the reduction of agricultural capital grants.

The Secretary of State for Scotland (Mr. George Younger)

My right hon. and noble Friend the Minister of State discussed this subject with representatives of the National Farmers Union of Scotland both on 10 January and at the union's annual general meeting on 8 March.

Mr. Wallace

Does the Secretary of State accept that a cut in capital cuts for agriculture will have a worrying effect not only on farmers but on small contractors in many rural areas who do the fencing and drainage work? There will be an effect on the whole rural economy. If, because of a reduction in the number of applications for grant, the saving in the present financial year is more than was originally budgeted for, will the right hon. Gentleman review grant rates later in the financial year?

Mr. Younger

We review the matter frequently anyway. Agriculture receives a massive amount of Exchequer support. The hon. Gentleman mentioned the capital grants figures. Last year, help to agriculture in Scotland was augmented by the doubling of the suckler cow premium, the enhancement of hill livestock compensatory allowances in the Highland Board area and the extension of the less favoured areas. I appreciate the hon. Gentleman's point about contractors being affected by changes in rates of grant, but the matter must be put in perspective. The amounts of grant are still very high in comparison with any other industry. For instance, there is a grant of 70 per cent. for field drainage in less favoured areas. That is a most generous rate of grant.

Mr. Corrie

If my right hon. Friend meets the NFU in the near future, will he discuss the ridiculous suggestion that milk quotas should be transferred from Scotland to any other country within Great Britain? It is vital that every litre of milk quota allocated to Scotland should stay in Scotland. I hope that my right hon. Friend will be able to assure us that that will be so.

Mr. Younger

That matter is under consideration, and I shall of course discuss it with my colleagues.

I should like to correct a figure that I gave a few moments ago. The figure for field drainage grant is 50 per cent., not 70 per cent.