HC Deb 17 July 1985 vol 83 cc306-7
9. Mr. Maclennan

asked the Secretary of State for Scotland if he will place in the Library a copy of his speech delivered at the Royal Highland Show on 17 June.

Mr. John MacKay

No speech was delivered, but my right hon. Friend answered some questions asked by representatives of the press.

Mr. Maclennan

When, in those summarised remarks, the Secretary of State accepted that the Government still intended to support the farming industry, he was greeted with total incredulity. Does the Minister realise that, since the announcement of the capital grant cuts of a week ago, with reductions from 70 to 30 per cent. in the less favoured areas, in grants available for re-seeding, fencing and drainage, the Government will be regarded as completely opposed to the interests of farming in 87 per cent. of the areas covered?

Mr. MacKay

I think that I answered the hon. Gentleman's point about 30 and 15 per cent. still being fairly high levels of grant, which we believe will keep up agricultural investment. On the livestock compensatory allowances the Government spent £37.9 million; on the beef premium scheme we spent £22.4 million; on the Buckler cow premium scheme £9.4 million; and on the sheep variable premium scheme £23.9 million. I suggest that the hon. Member takes a more balanced view.

Mr. Michael Forsyth

Had my right hon. Friend the Secretary of State been able to make a speech at the Royal Highland Show, would he have taken the opportunity to respond to the remarks by the chairman of the Countryside Commission, who has expressed considerable concern that tax avoidance schemes are resulting in the development of large-scale commercial forestry operations in Scotland? These are threatening fishing and tourist interests, and are resulting in inflated land values which threaten the future of hill farming. As he did not have an opportunity to make such a speech, will he undertake to investigate this matter?

Mr. MacKay

I shall not attempt to say what my right hon. Friend would have said if he had made a speech. Forestry has an important role to play in the countryside. I accept that forests must be planted in such a way as to be compatible with the interests of agriculture and with the environment in general. For the long term benefit of the country and for employment, the forestry industry has an important role to play.