HC Deb 16 March 2000 vol 346 cc498-500
9. Mr. Huw Edwards (Monmouth)

What plans he has to apply for agrimonetary compensation for livestock farmers. [113377]

The Minister of Agriculture, Fisheries and Food (Mr. Nick Brown)

A total of £397 million in agrimonetary compensation has already been paid over the past 3 years, of which £227 million has gone to beef and sheep farmers. Up to £132 million will be paid this year and next, of which £93 million will be to beef and sheep farmers. No decision has yet been made on whether to pay further compensation.

Mr. Edwards

I am grateful to my right hon. Friend for that answer. Does he agree that the high level of sterling partly reflects the Government's sound management of the economy, but that it is greatly disadvantaging the farming community, for whom agrimonetary compensation is one of the key measures that could help in the present crisis? Will my right hon. Friend work with the Prime Minister and Ministers at the Treasury and do all that he can to maximise the amount of agrimonetary compensation that can be paid to UK farmers?

Mr. Brown

My hon. Friend is right to point to the reasons why the policy instruments are in place. His remarks highlight why the Government have already made such extensive use of them. I cannot announce any further extension today of the use that the Government are making of the agrimonetary regime. My right hon. Friend the Prime Minister has made it clear that we are keeping the issue under review.

Mr. Nicholas Winterton (Macclesfield)

I fully support the request made by the hon. Member for Monmouth (Mr. Edwards). I met the Macclesfield and district branch of the National Farmers Union on Saturday morning in an extremely well-attended but very sober three-hour meeting. Throughout my time in the House, I have never known livestock farmers to be more depressed. Will the Minister take seriously his hon. Friend's request, which is endorsed in all parties, that agrimonetary compensation should be used to the maximum to help British farmers to overcome a uniquely serious crisis? I make a special plea from the Conservative Benches. Will he and the Prime Minister please respond?

Mr. Brown

The Prime Minister has very carefully not closed the door on making further use of that instrument, of which we have already made extensive use. My meetings with farmers, particularly livestock farmers, have exactly the character that the hon. Gentleman described. He is right to say that the livestock sector is going through difficult times. There are particular problems in the dairy sector, but the agrimonetary regime alone does not provide sufficient money to deal with those current difficulties.

Mr. Simon Thomas (Ceredigion)

Notwithstanding those comments, does the Minister accept that his Government have made less use of the agrimonetary compensation scheme than have other European Governments, and that there is an opportunity to make greater use of it? If the problem is the Fontainebleau agreement, negotiated by the previous Government, does he accept that that should not stand in the way of helping some of the most deprived rural areas, such as my constituency where farm incomes have fallen by nearly 140 per cent. in the last year?

Mr. Brown

The hon. Gentleman is right to make the case for his constituency, but I do not accept what he says about the relative use of the agrimonetary regime. As he correctly points out, we are constrained by the Fontainebleau agreement, negotiated by the last Conservative Government. I can say confidently to the House that we are making more use of the compensatory regime for farmers than the last Government did, because they did not draw down a single penny.