HC Deb 11 December 1991 vol 200 cc851-2
11. Sir Hector Monro

To ask the Secretary of State for Scotland what increase in financial support is available to farmers in less-favoured areas for 1992; and if he will make a statement.

Mr. Michael Forsyth

Planned programme expenditure on agricultural support in Scotland in 1991–92 was £158 million. Planned expenditure in 1992–93 is £199.5 million—an increase of 26 per cent. The great majority of that support is directed to the less-favoured areas, which include about 90 per cent. of agricultural land in Scotland.

Sir Hector Monro

Does my hon. Friend agree that in recent years the income of farmers in Scotland, particularly those in the less-favoured areas, has fallen substantially? I welcome the recent payment of the suckler cow premium and the ewe premium, but when will the hill livestock compensatory allowance be announced, and will it be increased?

Mr. Forsyth

I agree with my hon. Friend. Farming is in a difficult position and farm incomes have dropped substantially. We increased the HLCAs last year by an average of 14 per cent. I know that my hon. Friend is anxious for a conclusion to be reached for next year, and I hope that it will be possible to do so soon.

As my hon. Friend knows, we have agreed to review the position of hill farming, and I know that the farming union is anxious to assist the Government in recognising the problems facing agriculture.

Mr. Foulkes

Is the Minister aware that when I recently addressed a meeting of the Ayr, Renfrew and Bute Black-Faced Sheep Breeders Association not only was I extremely well received but much concern was expressed about the position of sheep rearers in the area? The association is dissatisfied with Government policy, particularly with the fact that agriculture in Scotland is dealt with by a Minister in the House of Lords. Does the Minister agree that agriculture would be given higher priority and better consideration if it were dealt with by a Minister in this House?

Mr. Forsyth

I hope that the hon. Gentleman did not try to pull the wool over the association's eyes, as he usually does. My noble Friend the Under-Secretary of State addressed a meeting of farmers in my constituency. They were extremely impressed by what he said and were buoyed up by his message that the Government are determined to ensure that the proposals on reform of the common agricultural policy are strongly resisted because they are not in the interests of Scotland's farmers. I imagine that that was one of the matters raised with the hon. Gentleman, and I hope that he was able to assure farmers of the splendid job that my noble Friend is doing for farming in Scotland.

Mr. Andrew Welsh

Does the Minister agree that agriculture is the backbone of the rural economy and that the loss to the Angus economy of more than £1 million due to the closure of Anglia Canners in Brechin is a body blow to agriculture, transport, ancillary industries and the whole community? As that area of high unemployment has now lost 91 full-time jobs and 41 part-time jobs, what action does the Minister intend to take to sort the problem out?

Mr. Forsyth

As the hon. Gentleman will know, much of our agriculture policy is determined at Community level, so the strength of our voice in the Community is important. If the hon. Gentleman had his way and we had an independent Scotland, we would have four votes instead of 10 and our influence in being able to fight for the interests of Scotland's farmers would be less.