HC Deb 20 January 1998 vol 304 cc802-3
3. Mr. Swinney

When he last met representatives of the Scottish farming industry to discuss farm income levels. [21714]

The Parliamentary Under-Secretary of State for Scotland (Mr. Calum Macdonald)

Ministers meet the National Farmers Union of Scotland on a regular basis. My right hon. Friend the Secretary of State last met representatives of the union on 16 December. My noble Friend Lord Sewel last met them on 5 January, when farm incomes, among other issues of concern, were discussed.

Mr. Swinney

I welcome the Minister to his post. He will be aware of the TSB agricultural study, which was published yesterday and which shows that 94 per cent. of farmers believe themselves to be less prosperous this year than last year, that there has been a collapse in agricultural investment and that there is poor confidence in the hill and livestock sectors.

What measures is the Minister taking to secure European Union support for the lifting of the export ban, either through the computerised traceability scheme or through the date-based scheme? When does he expect the first beef from Scotland to be sold in Europe, alongside beef from Northern Ireland?

Mr. Macdonald

I acknowledge that farmers are going through a very difficult period in comparison with earlier years. As the hon. Gentleman knows, the lifting of the export ban is being pursued in a number of ways. There is the certified herd scheme—the work on computerisation is proceeding as fast as possible—and there is the new date-based scheme, which we are pursuing in parallel with the European Commission.

Mr. Home Robertson

I welcome my hon. Friend—who represents the most rural constituency in Britain—to his important responsibilities.

When my hon. Friend meets representatives of farmers in Scotland, will he explain that the blockade at Stranraer carried out by people such as John Cameron is likely to make it rather more difficult to resist similar blockades against Scottish food exports in the future? Will he join me in paying tribute to Sandy Mole for his excellent record of responsible leadership of the National Farmers Union of Scotland in recent years? As a member of that union, may I also pay tribute to the Government for their excellent initiatives to restore public confidence in Scottish beef, both at home and abroad, and to support the vital hill farming sector?

Mr. Macdonald

I am grateful to my hon. Friend for his comments. I entirely agree with him about the unfortunate nature of the events in Stranraer and elsewhere, which did not help the case at all. I also associate myself with my hon. Friend's remarks about Mr. Sandy Mole, with whom we had a very good working relationship. I hope that we shall continue to have that good working relationship with his successors.

Mr. Ancram

I, too, congratulate the Minister on his appointment, and wish him well in his responsibilities. I am, however, surprised and somewhat disappointed that his right hon. Friend the Secretary of State is not responding to this question. Does he really not appreciate the seriousness of the crisis facing farming, and the damage that is now being done to agriculture by the high rate of sterling and the green pound? Will he disown his noble Friend Lord Sewel because of his view that farmers have been treated generously in the past, and should stop complaining now? Will he also take action urgently to rescue an industry that is vital to Scotland's rural economy, but is currently in danger of going to the wall?

Mr. Macdonald

I certainly agree that the industry is vital, and that it faces difficult pressures. That is why the Government have indeed taken action. We have announced an £85 million package, a full third of which will go to Scottish farmers who—as the right hon. Gentleman knows—are facing a particularly difficult time

Mr. Ancram

That simply is not good enough. Such complacency is endemic in the Minister's Government at present, and does no service to agriculture in Scotland.

Does the Minister not understand that financial help is now urgently needed, as is compensation for the high value of the green pound? The help that was given earlier has already been overtaken by extra charges. No other country in Europe would not have triggered the compensation mechanism in such circumstances. Will the Minister and his colleagues wake up and do something for the farmers of Scotland?

Mr. Macdonald

Let me directly compare the assistance that we have provided with the assistance provided last year. Last year, the right hon. Gentleman's Government provided £60 million of extra assistance to deal with the Bovine Spongiform Encephalopathy crisis, but they made no further provision for the following year. We have provided £85 million to respond to farmers' current difficulties.