§ 2. Mr. WigleyWhat steps he has taken during the past four weeks to improve the economic prospects and cash-flow position of farmers in Wales; and if he will make a statement. [33427]
§ The Parliamentary Under-Secretary of State for Wales (Mr. Win Griffiths)We recognise that the current problems have created serious difficulties for the industry. The beef export ban is a major factor that we continue to pursue vigorously. The right hon. Gentleman will know that we have recently secured a major breakthrough in lifting the ban in Northern Ireland, which is the first step toward the resumption of trade in United Kingdom beef. On 25 February, we announced that about £70 million will be paid by the Government in meeting the costs of BSE-related schemes for specific risk material controls and the new computerised cattle tracing system for Great Britain. That is in addition to the £85 million we have pledged in aid to livestock farmers to help to counter the effect of the strength of the pound. On Monday, my right hon. Friend the Secretary of State announced a study into ways in which we can speed up common agricultural policy payments to farmers.
§ Mr. WigleyIn welcoming the progress made in respect of the export of beef from Northern Ireland to Europe, may I press the Minister to say what prospects there are of making progress in exporting beef from Wales on the basis of a date-based scheme? What is he doing to press that issue in Brussels, and when does he expect to be achieved?
§ Mr. GriffithsWe are obviously keen to see the beef ban lifted across the United Kingdom and in Wales, and we are pressing the case strongly in Brussels. I hope to take the opportunity at the next Council meeting at the end of this month to put the case for Wales strongly in Brussels.
Mr. Alan W. WilliamsI congratulate the Minister and his fellow Welsh Office Ministers on their part in putting pressure on the Ministry of Agriculture, Fisheries and Food and the Commissioners in Brussels. The progress that has been made in respect of certified herds will bring great relief to farming in Wales, because beef exported from Northern Ireland will expand demand for beef across Britain. May I echo the point in respect of beef from cattle born after August 1996? We are quite certain that feed was clean after August 1996, so will the Minister exert maximum pressure for the lifting of the ban on that beef as well?
§ Mr. GriffithsMy right hon. Friend the Secretary of State has discussed this issue often and regularly with my 1273 right hon. Friend the Secretary of State for Northern Ireland, and we are continuing to press as strongly as we can for steps to be taken to get the beef ban lifted as a whole. However, my hon. Friend will appreciate that we have a great deal of ground to make up because of the bad taste left in Brussels by the way in which the previous Government handled the issue.
§ Mr. EvansWhen will the Minister recognise the depth of the crisis facing farmers and their associated suppliers? The crumbs of comfort that he has announced shrink in comparison with the problems they now face. Their incomes have been cut by a half this year and are still declining. There have been cuts in the hill livestock compensatory allowance, and deadweight limits and lower prices in the over-30-months scheme. Beef on the bone has been banned and now there is the threat to ban green top milk. Yesterday's Budget was a further slap in the face for farmers, with 4.4p a litre on petrol, in addition to the steep 4p increase in July. Finally, the pound is still strong today, which is not helping farmers. How many more farmers is the Minister prepared to see go bust before they get some real action from this complacent Government?
§ Mr. GriffithsIt is a pity that Conservative Members did not take sufficient interest in the BSE crisis when it first broke, because, if they had, we would not be in this situation. The Government wish that we had not had to start from this point, but unfortunately, the previous Government left us in a pit about 500 m deep, out of which we are now pulling ourselves. Yesterday's Budget was generally welcomed by farmers on "Fanning Today", which was broadcast at 6.30 am today. I suggest that the hon. Gentleman gets up a bit earlier so that he becomes better informed.