HC Deb 14 December 1995 vol 268 cc1083-4
1. Mr. Win Griffiths

To ask the Minister of Agriculture, Fisheries and Food what proposals he has to encourage young people to enter hill farming. [4127]

The Minister of Agriculture, Fisheries and Food (Mr. Douglas Hogg)

I have no plans to introduce measures specifically to encourage young people into hill farming. However, the Agricultural Tenancies Act 1995, which came into force on 1 September this year, will encourage landowners to let more land. This has been reinforced by 100 per cent. relief from inheritance tax for land in new tenancies granted on or after 1 September. As the market in let land is freed up, more opportunities will be created for new entrants generally.

Mr. Griffiths

I must tell the Minister that few young farmers will be cheered by his reply. The background to the Government's dealings with farmers in our hill country areas is that the livestock compensatory allowance has been cut or frozen over the last four years, grants in the less-favoured areas have been cut from 50 per cent. to 30 per cent., and farmers have less income than ever before. Instead of possibly making more land available, is not it time for the Government to do something to improve farmers' incomes, which have decreased in my own constituency and in other parts—

Madam Speaker

Order. We have questions to get through today. We do not want statements.

Mr. Hogg

As to the first point about let land, what really troubles young farmers is the knowledge that the hon. Gentleman and the hon. Member for Edinburgh, East (Dr. Strang) introduced legislation in 1976 which did enormous damage to the ability of landowners to let land. They will have been shocked by the Labour party's decision to vote against the Agricultural Tenancies Act 1995, which has done an enormous amount to free up land.

Mr. Thomason

Does my right hon. and learned Friend agree that the best way for young people to enter farming, whether it is hill farming or otherwise, is for them to have the opportunity to have their own tenancies? Does not the Minister find it extraordinary that the Labour party should therefore seek to oppose that very move?

Mr. Hogg

My hon. Friend is entirely right. The 1995 legislation was agreed between all parts of the industry, and the Government would not have introduced it unless it had been so agreed. The Labour party defied informed opinion by voting against the legislation, and that was a disgrace.

Mr. William Ross

Given that the land tenure situation in Northern Ireland is very different from that in Great Britain, does the Minister understand that the real concern of farmers in the hill areas of Northern Ireland has to do with the percentage of their net income that is at present derived from subsidies? What comfort can he give to those people over the long term?

Mr. Hogg

I shall not refer directly to the question of farmers in Northern Ireland because I do not have the necessary expertise; that is more a matter for my right hon. and learned Friend the Secretary of State for Northern Ireland. I can say that, in 1995-96, the real value of farm incomes in the LFAs is expected to rise by 4 per cent. On the value of direct subsidies coming into LFAs in the United Kingdom, there has been a steady increase from 1993—and, it is anticipated, until 1996—in the real value of direct subsidies to livestock farmers. Incidentally, hill livestock compensatory allowances form only a relatively small part of the overall direct subsidies to livestock farmers.