HC Deb 22 January 1987 vol 108 cc1017-8
6. Mr. Moynihan

asked the Minister of Agriculture, Fisheries and Food what estimate he has made of the effect on farm incomes and food prices of de-rating agricultural land and buildings.

Mr. Donald Thompson

I estimate that in broad terms the value to the farming industry of the derating of agricultural land and buildings might amount to some £430 million. However, if agriculture was brought into the rating system the effect on farm incomes, and on food prices, might be very different, as this would depend on the response of individual farmers to such a massive additional burden.

Mr. Moynihan

Will my hon. Friend confirm that any policy that sought to rate or tax agricultural land, as evidenced by the policies of the Opposition parties, would substantially increase the cost of food to the consumers, which should be a matter of importance to every hon. Member in this House?

Mr. Thompson

I confirm that if agricultural land were to be rated or taxed in the ways that the alliance say there would be an additional burden, lower profits, more unemployment and higher food prices.

Mr. Allen McKay

Would the Minister care to give an assessment of the effects of de-rating in Lewisham, East?

Mr. Thompson

The people of Lewisham are eating more cheaply because agricultural land in this country is not yet rated.

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