Farm Incomes (Hansard, 8 March 1990)

§ 7. Mr. Cran
To ask the Minister of Agriculture, Fisheries and Food if he will make a statement on the current level of farm incomes.

§ Mr. Gummer
We estimate that in 1989 farm incomes increased by 16 per cent. over the low levels of 1988. There were, of course, considerable variations between various types of farming and various regions.

§ Mr. Cran
I welcome the Government's determination to eliminate the green pound gap by 1992. Does my right hon. Friend agree, however, that a case can be made for faster action, to enable the farmers of east Yorkshire to begin to invest now and to take advantage of the opportunities that the internal market will undoubtedly present? Fixed capital investment in the agricultural sector fell by more than 40 per cent. in the six years to 1989: in any other industry that would be regarded as disastrous.

§ Mr. Gummer
My hon. Friend will know that the offer on the table is "one third, one third, one third", leading eventually to the elimination of the green pound. We do not think that that is enough; I agree with my hon. Friend that faster progress must be made. I also agree that the green pound needs to be eliminated if British farmers are to take full advantage of the single market. That is why we remain adamant that there must be no green pound once that market comes into line.

§ Mr. Molyneaux
When the Minister met the combined farmers' unions of the United Kingdom recently, was he able to give them an assurance that he would do his best to ensure that the beef sector in particular was placed on an even footing with its European rivals, especially in view of the present high interest rates?

§ Mr. Gummer
I told the unions what I have told the House on several occasions—that the aim of the battle that I am conducting with our European Community colleagues is to receive an answer that will substantially reduce the gap for United Kingdom producers. I use the word "battle" because I believe that we must fight hard. No other country gains any advantage from the change to a smaller gap; every other country gains an advantage from the change to a wider gap. Any hon. Member who thinks that this is not a battle has clearly never gone in for negotiation.

§ Mr. Marland
Does my right hon. Friend agree that dairy farmers' incomes are now enormously higher than any of them would have imagined a few years ago? Will he take this opportunity to confirm that his excellent scheme for the extra 1 per cent. of milk quota, 50 per cent. of which is to be given to the small farmers, has been accepted by the European Community?

§ Mr. Gummer
I am happy to say that, after several discussions, the Community has accepted the overwhelming majority of our proposals for the extra I per cent. I shall be able to announce the details in the week beginning 12 March, which means that the quota will be allocated before 31 March, to the benefit of producers as a whole. The one part of the scheme that will have to wait is the part that we are still discussing—new entrants.