HC Deb 26 July 2000 vol 354 cc1095-7
2. Mr. Nicolas Winterton (Macclesfield)

if he will make a statement on trends in farm incomes in Wales. [130877]

The Parliamentary Under-Secretary of State for Wales (Mr. David Hanson)

The Government and the National Assembly for Wales have taken all appropriate steps to assist Welsh farmers to achieve a sustainable agricultural industry. I am hopeful that the Agenda 2000 common agricultural policy reforms, coupled with the rural development plan for Wales and the industry's own resilience and coherent approach to rural development in Wales, will result in an improved level of farm incomes in Wales.

Mr. Winterton

We have been told by my hon. Friend the Member for Ribble Valley (Mr. Evans) that the First Secretary of the Welsh Assembly is present today, for which we are very grateful. Will the Minister give his view on why the Welsh Agriculture and Rural Development Secretary, Christine Gwyther, has been dismissed? Does the hon. Gentleman not agree that that is important, because the farming crisis in Wales is particularly acute? Average hill farming incomes have fallen this year to just over £2,700. What will the hon. Gentleman do about this crisis, which affects much of rural wales?

Mr. Hanson

I am sure that the hon. Gentleman will realise that decisions on the Assembly Cabinet are rightly and properly a matter for the First Secretary, and that it is not for me to comment. However, jointly, the Assembly—with Christine Gwyther in position—my right hon. Friend the Minister of Agriculture, Fisheries and Food and I secured at the No. 10 Downing street summit an extra £14.7 million in Wales for less favoured areas, an extra £10.6 million agrimonetary compensation in Wales and an additional £2 million to be spent on business advice to farmers. That is in stark contrast to the BSE party.

Mr. Richard Livsey (Brecon and Radnorshire)

Thank you for calling me, Madam Speaker. We send our very best wishes for your retirement from these Benches.

I was very pleased that the Secretary of State was at the Royal Welsh show yesterday, presenting my constituent, Mr. John Davies, with a farmer of the year award. However, will the Minister note that there are appallingly low incomes in farming in Wales at present, which are below the national minimum wage? Will he do everything possible, in co-operation with the First Secretary of the Assembly, to ensure that farming incomes increase? In particular, will he note that the agricultural budget for hill livestock compensatory allowances has been cut for next year?

Will the hon. Gentleman also note that the Welsh Development Agency has abolished rural business grants? That is a very serious matter—we suspect that those rural grants are being used for match funding for objective 1 areas. Does the hon. Gentleman agree that that is scandalous for the areas that are affected?

Mr. Hanson

There is certainly a partnership between the National Assembly and the British Government to help to support and develop farm incomes. My right hon. Friend the Secretary of State visited the Royal Welsh show yesterday; my right hon. Friend the Minister of Agriculture, Fisheries and Food is there today; and I am going tomorrow. We shall listen to farmers and work in conjunction with the devolved administration to ensure that we support farmers and help them to develop and improve their incomes. The Government have given more than £19,000 of direct subsidy, on average, to each farm in Wales. That is a positive step by the Government. We shall do what we can to help to support farmers.

Mr. Huw Edwards (Monmouth)

Does my hon. Friend agree that Welsh farmers will benefit from the Government's success in securing objective 1 funding, that Wales is benefiting from the success in agrimonetary compensation that has been achieved following the Downing street summit and that, under the previous Government, not a penny of objective 1 funding or agrimonetary compensation was secured from Europe?

Mr. Hanson

My hon. Friend is absolutely right: objective 1 was secured by the Labour Government, and it will benefit rural areas. The nationalists said that they could not do that; the Tories would not do it; but Labour did it.