§ 1. Mr. WallaceTo ask the Secretary of State for Scotland what representations he has received from the farming industry regarding the future of beef production in Scotland.
§ The Minister of State, Scottish Office (Mr. Ian Lang)My right hon. and learned Friend received a number of representations recently about that matter from the National Farmers Union of Scotland and other interested bodies.
§ Mr. WallaceAlthough last week's price agreement brought some welcome relief to the beef industry, interest rate increases over recent months more than cancels it out. The Minister may be aware that beef producers in my own constituency are concerned that the new beef premium should be paid on farm; that in specialist beef herds it should be extended to include heifers; and that the suckler cow premium should be increased—which is something that the United Kingdom Government can do off their own back, because it does not have to be negotiated. What progress has been made with each of those three measures?
§ Mr. LangI welcome the hon. Gentleman's remark that the scheme has been well received by beef farmers. The green pound devaluation and the phasing out of monetary compensatory amounts will certainly be beneficial. As to the headage payment, I am sure that the hon. Gentleman acknowledges that the 90 limit is an improvement on the proposed limit of 75 and on the limit of 50 that previously applied in other countries. I understand the problems of farmers in Orkney. My right hon. and learned Friend and my right hon. Friend the Minister of Agriculture, Fisheries and Food have undertaken to review the practicability and cost-effectiveness of moving to an on-farm basis for slaughter. Meanwhile, prices are holding up well, including those for heifers.
§ Sir Hector MonroIn view of the overall fall in hill farmers' income in recent years, will my hon. Friend particularly bear in mind the headage payment on beef? It would be much better if the 90 limit, which we welcome, were paid for cows on farm rather than at slaughter. Will my hon. Friend do everything possible through the proper channels to ensure that the suckler cow premium is raised to the maximum limit?
§ Mr. LangMy hon. Friend will have heard my reply to the hon. Member for Orkney and Shetland (Mr. Wallace). I particularly note his comment about the suckler cow premium. I, like him, think that it is a good deal for farmers, adding about £15 million to £20 million to farm incomes in Scotland at low cost to the taxpayer and at negligible expense, in terms of prices, to the consumer.