§ 2. Mr. Gerald Howarth (Aldershot)What assessment he has made of the impact of proposed changes to the hill livestock compensatory allowances on hill farmers' incomes. [103772]
§ The Minister of State, Ministry of Agriculture, Fisheries and Food (Ms Joyce Quin)There will be some changes in support between producers but the impact will vary according to their individual circumstances. The changes are being introduced gradually so that producers have time to adjust, but we believe they are part of the positive agricultural and rural development strategy outlined by my right hon. Friend the Minister in his statement to the House on 7 December 1999.
§ Mr. HowarthI am sure that the Minister will recognise that Aldershot is not over-endowed with hills, 409 let alone hill fanners, but my family have fanned the hills of the borders of Scotland for centuries. Is the Minister aware of the serious crisis that is affecting hill farmers throughout the United Kingdom? Their incomes are forecast to fall to a mere £2,000 and only 15 per cent. of hill farmers are aged under 40. The industry has also been hit severely by the huge rises in petrol and diesel taxes. Will she confirm that the Government will not reduce the level of financial support to those custodians of our remote rural heritage until such time as average incomes have returned to acceptable and adequate levels? If so, will she set out what she considers those levels to be?
§ Ms QuinI welcome the hon. Gentleman's interest in the important question of hill fanning, despite the fact that hill farmers are not numerous in Aldershot. I hope that he will recognise that the Government have shown commitment to hill fanning through the measures that we have taken. Indeed, the maintenance of the £60 million increase in the hill livestock compensatory allowance this year is a clear example. The measures that we have announced recognise the environmental and social role that hill farming plays in our countryside as well as the important question of the livelihoods of hill farmers.
§ Mr. Barry Jones (Alyn and Deeside)What new research has my right hon. Friend initiated into the future of the communities on the upper slopes? Does she acknowledge the great difficulties in growing meat on those hill sides, which are cold, wet and sour, and where family farms are now at considerable risk? Does she agree that the greater problem is the very communities on the uplands, not least in Wales? What new initiatives can be taken, bearing in mind that it is obvious that the Ministry wishes to help?
§ Ms QuinI thank my right hon. Friend for his question. We have pursued the issue in several ways—partly by direct support and partly through the consultation that the Ministry undertook on the future of the hill farming sector and payments to hill farmers. We believe that the proposals that we made strike a good balance between economic and environmental considerations and we are aware that great concern is felt throughout the House, my right hon. Friend's constituency and the country that we get those considerations right.
§ Mr. David Curry (Skipton and Ripon)Does the Minister accept that her consultation paper was a tribute to the literacy of British farmers? Does she agree that the amount available for the scheme in England is falling from £42 million to £27 million? Does she further agree that if she really wants to gain environmental benefits from the scheme it will eventually have to be differentiated according to land cover and the carrying capacity of the land? Otherwise, one flat rate scheme will simply be replaced by another and the Minister's aims will not be delivered.
§ Ms QuinThe latter point is a serious and important one, and I assure the right hon. Gentleman that we are well aware of those considerations. The consultation process was worth while because of the responses that we received. Indeed, the written consultation was only part of the process, because we also had consultations about the implementation of Agenda 2000 generally in meetings 410 throughout the country with hill farmers and others. We are determined to keep that dialogue going. What is being proposed is only one element of the support for hill farming. As the right hon. Gentleman will know, most of the subsidy that goes to hill farmers will continue as livestock payments.
§ Mr. Russell Brown (Dumfries)Can my right hon. Friend confirm that the cost to taxpayers in direct payments to hill farmers is some £700 million a year? Despite that sum, hill farmers are still in a difficult situation. Is not it time that we looked again at the way in which supporting hill farmers has not been as helpful as we would have expected and hoped it to be and that we tried to make that support more effective?
§ Ms QuinI can confirm the figure that my hon. Friend quoted, which shows that hill farmers receive a large amount of financial support. However, I should also like to commend to the House the direction in which Government policy is moving. In the negotiations in which we have taken part we have achieved some success in changing the thrust of common agricultural policy support, away from direct payments and towards more general rural development. Our proposals in relation to the UK will help hill farming change the basis of its finance and support in the future.
However, given the severity of the current depression in agriculture, we must accept that such measures must be introduced gradually to avoid tremendous disruption.
§ Mr. Patrick McLoughlin (West Derbyshire)The Government are very proud of their introduction of the national minimum wage, but most hill farmers earn nothing like that amount. They farm some of the most difficult areas of our countryside, which would be a lot poorer without their stewardship. They ask me what their future will be: how would the Minister respond to that question?
§ Ms QuinThe answer is that the Government are providing substantial levels of support for such farmers, as the hon. Gentleman knows as well as I. We are delighted to have introduced the national minimum wage. The Conservative party opposed that, but perhaps the hon. Gentleman is a dissident on the issue. However, we have also supported the continuation of minimum arrangements for agricultural workers.