HC Deb 27 January 1994 vol 236 cc406-8
4. Mr. Martyn Jones

To ask the Minister of Agriculture, Fisheries and Food how many farm holdings in the less-favoured areas she considers to be full-time commercial businesses.

9. Mrs. Helen Jackson

To ask the Minister of Agriculture, Fisheries and Food how many farm holdings in the less-favoured areas she considers to be full-time commercial businesses.

The Minister of State, Ministry of Agriculture, Fisheries and Food (Mr. Michael Jack)

There are 11,764 in England and 10,901 in Wales.

Mr. Jones

Is not the farm business survey a poor measure of the actual incomes of farms in less-favoured areas such as mine? Should not the Minister try to rectify that, because farms in my area have a much lower income, probably closer to £7,000 a year, than the £19,000 or £20,000 shown in the survey?

Mr. Jack

I thought that the hon. Gentleman might ask his question from the Front Bench, so, in anticipation, I welcome him to his new role and I join my right hon. and hon. Friends in expressing sadness that the forensic skills of the hon. Member for Workington (Mr. Campbell-Savours) will be lost to us.

The survey to which the hon. Gentleman referred was agreed by all farming organisations to be based on a truly representative sample of farm incomes. I looked carefully to see whether, in its constituent elements, proper and due weight had been given to all types of full-time farming and I was satisfied that the sample did just that.

Mrs. Jackson

Does the Minister agree that, if there is some doubt about the figures, cuts in the hill livestock compensatory allowance are unjustified? Is he aware that in my constituency alone at least 30 hill farmers depend on that allowance to make ends meet and to keep their farms going, and that they are extremely concerned about the proposed cuts in allowances, which are not justified on these mistaken figures?

Mr. Jack

I first remind the hon. Lady that, had it not been for the Government, in 1985, extending hill livestock compensatory amounts to the full range of less-favoured areas, the farmers to whom she refers would not be receiving any benefit. The figures of which I am certain are the £550 million of direct subsidies that will go to the cattle and sheep producers in the less-favoured areas and the rise in real terms by one third of farmers' incomes in 1992–93. I am equally certain that, in 1993–94 there will be a further increase of 28 per cent. in those incomes.

Sir Jim Spicer

The sectors about which my hon. Friend has been talking are receiving subsidy, but what about those that: do not receive subsidy? In particular, what about the pig industry, which is facing a major crisis and in which many hundreds of our producers will be going out of business unless something positive is done by the United Kingdom Government, alongside all that is being done, often in an underhand way, within the EC?

Mr. Jack

I am certainly aware of some of the concern that is felt—in particular, the concern about subsidies from the French Government—and that concern is being taken up.

I am also aware of the pig industry problem. It is very cyclical, but our pig producers are among the most efficient in the Community. Developments such as the signicant reduction in interest rates are benefiting those in the pig production industry as well as hill farmers.

Mr. Peter Atkinson

Is my hon. Friend aware of the growing anxiety among hill farmers in my constituency that the payment of HLCAs and ewe premium will be linked, in some way, with a substantial reduction in sheep stocking levels on the hills? Will my hon. Friend assure me that, if he uses that weapon, it will be linked with a headage payment, so that we can continue to guarantee the livelihood of hill farmers?

Mr. Jack

I am glad that my hon. Friend has raised that point. I became aware of its significance recently, when I visited Cumbria and discussed with regional representatives some of the problems that poor moorland management can cause in regard to grazing land.

As my hon. Friend will know, all farmers in receipt of HLCAs have received a code of good upland management. He will also know that over-grazing is a major problem. When such matters are drawn to our attention, however, a report dealing with all the aspects will be requested from the Agricultural Development Advisory Service. That report will be discussed with sheep farmers, in particular, before any action is taken.

Mr. Llwyd

There have been huge cuts in HLCA support for less-favoured areas. Has it occurred to the Minister that—by coincidence or otherwise—many of those areas are also environmentally sensitive? Is it not time to consider extending environmentally sensitive area status throughout the United Kingdom? There is certainly a valid case for extending it throughout wales.

Mr. Jack

The hon. Gentleman cannot have listened to what I said. The decision on HLCAs took into account the substantial increases in farmers' total income, as I made clear a moment ago when I read out the figures. Some £550 million is spent on direct subsidies for cattle and sheep farmers in less-favoured areas.

The hon. Gentleman will know that six more environmentally sensitive areas are to be announced this year, bringing the total to 15 per cent. of the entire United Kingdom land area. We take our responsibilities very seriously. Moreover, in addition to the subsidies that I mentioned, further payments associated with ESAs will benefit precisely the hill farmers whom the hon. Gentleman has in mind.