HC Deb 24 March 1994 vol 240 c415
14. Mr. Peter Ainsworth

To ask the Minister of Agriculture, Fisheries and Food if she will make a statement about the trend in farm incomes over the past year.

Mrs. Gillian Shephard

Over the past two years, farm incomes have shown a significant recovery in real terms. That is welcome news and I hope that it will be recognised as such.

Mr. Ainsworth

I am grateful to my right hon. Friend. Does she accept that that is indeed welcome news to farmers in my constituency of East Surrey? Does she further accept that low inflation and low interest rates provide the ideal circumstances to allow the farming industry, like every other industry, to succeed?

Mrs. Shephard

My hon. Friend is correct. The substantial fall in interest rates, which is a direct result of Government policy, has made an important contribution to the increase. As a result, farmers' interest payment; have fallen by £240 million in the past year.

Mr. Skinner

Does the Minister agree that the common agricultural policy costs every family in Britain £28 a week and that the set-aside scheme has gone up by 28 per cent., which has increased farm incomes? Why cannot the farm workers receive a good proportion of that, instead of being given only 1.5 per cent?

Mrs. Shephard

As I think I have told the hon. Gentleman before, I welcome him to the fold of prudent spenders. I am delighted that he supports the Government's attempts to reduce the cost of the common agricultural policy. The hon. Gentleman must also take pleasure from the fact that the recent wage rises for agricultural workers were agreed by both sides of the industry, as I have already told the House.

Dame Elaine Kellett-Bowman

Is my right hon. Friend aware that, rather than using organophosphorous dips, as suggested in the answer to Question 3, a simple injection of Ivomec, which controls scab, lungworm and roundworm, would improve the income of sheep farmers?

Mrs. Shephard

I agree with my hon. Friend that Ivomec makes a suitable alternative to OP dips. She will know of the trouble to which we have gone to make the use of such dips safe for those who are obliged to use them.