§ 5. Mr. Kennedyasked the Secretary of State for Scotland if he will make a statement on the current situation within Scottish agriculture.
§ Mr. John MacKayLast year good weather conditions and improved efficiency contributed towards the significant recovery in Scottish farm incomes.
It is too early to predict income levels for 1985.
§ Mr. KennedyIs the Minister aware that the new capital grants scheme which has just been announced by the Government has already been described by the president of the National Farmers Union in Scotland as a further attack on United Kingdom farm competitiveness? As some of the more marginal smaller farmers in Ross-shire are going to the wall, will he explain why the cuts which have been announced in the new scheme go far beyond what was anticipated or expected by Europe?
§ Mr. MacKayThe new scheme, which gives grant rates of 30 per cent. for the less favoured areas and 15 per cent. for other areas, provides meaningful levels of assistance which will allow adequate investment in farming.
§ Mr. Bill WalkerMy hon. Friend will be aware that barley is important to Scottish agriculture. He will also realise that it is an essential ingredient in the manufacture of Scotch. When distilleries close, that affects the market for barley. Is my hon. Friend aware that Arthur Bell and Sons is the only company in Scotland which has been opening distilleries? Will he advise Mr. Ernest Saunders of Guinness that hon. Members on both sides of the House are interested in the current problem, which is of importance to us all?
§ Mr. MacKayMy hon. Friend has rather ingeniously introduced matters that are rather far from agriculture. I shall leave the matter at my boundary of responsibility by confirming that barley makes splendid whisky.