§ 2. Mr. Andrew WelshTo ask the Secretary of State for Scotland what are his latest estimates of farm incomes in Scotland; and what financial steps he is taking to ensure the future viability of the agricultural industry.
§ Mr. LangLatest estimates of farm incomes in Scotland were published by my Department on 21 January and details were placed in the Libraries of both Houses.
I keep the financial health of the Scottish agricultural industry under regular review and will take what measures are necessary to ensure that the industry is able to compete effectively and to maintain its vital contribution to our rural areas.
§ Mr. WelshIs the Minister truly aware of the extent of the crisis currently facing the Scottish agricultural industry, with farm incomes at their lowest levels in real terms since the second world war, high interest rates, rising costs and a record number of farmers leaving the industry? Given that whatever threatens agriculture also threatens every rural community in Scotland, why has there been no main payment of the hill livestock compensatory amount —HLCA—to the much troubled livestock industry? Why is there no emergency package to prevent the modern-day clearances of the hills and upland areas of Scotland? When will the Government act for agriculture?
§ Mr. LangI certainly acknowledge that some sectors of the agricultural industry are going through a period of considerable financial difficulty. The Government are keen to respond to that—our record is one of good response. The hon. Gentleman mentioned the HLCA and, in 1990, £48 million was paid to 18,000 Scottish producers. We are keen to deal with HLCA as soon as we can and I hope that the form will be going out within the next few days.
§ Sir Hector MonroMay 1 thank my right hon. Friend for the help that he has given to farmers through the large increase in the suckler cow subsidy and through the advance payment of the sheep annual premium? Does he appreciate, however, that the cash flow of many farmers in the hills in particular depends upon the payment of the HLCA? I hope that he will be able to announce the figures soon and that that payment will be made as soon as possible.
§ Mr. LangI understand and share my hon. Friend's concern on this matter. He rightly drew attention to the sheep annual premium scheme—we were able to accelerate payments of that premium this year—and to the suckler cow premium scheme where we raised the level to the highest rate permitted in the less-favoured areas. I also acknowledge the need to get the funds out to the farmers as quickly as we can.