§ 3. Mr. David Heath (Somerton and Frome)If he will make a statement on future payments of agrimonetary compensation. [151386]
§ The Minister of State, Ministry of Agriculture, Fisheries and Food (Ms Joyce Quin)Last week, my right hon. Friend the Minister of Agriculture announced that he intends to draw down —171 million in agrimonetary compensation for the beef, sheep and dairy sectors, including all of the —156 million in optional compensation. The cost of that to the United Kingdom taxpayer is —129 million. This latest allocation of agrimonetary compensation is in addition to the —629 million already paid since 1997.
§ Mr. HeathMay I wholly welcome the drawing down of agrimonetary compensation? I observe, however, that the spin that suggests that it is a response to foot and mouth disease is unhelpful. The money was already necessary and was asked for long before the foot and mouth outbreak.
I have two particular questions. First, in respect of the distribution of agrimonetary compensation this year, what is the qualifying date for payments made on a headage basis, and will it be affected by any slaughter policy for foot and mouth? Secondly, and more difficult, will the money be provided for dairying according to quota held or quota used, and will that delay the process?
Finally, what will replace the current agrimonetary compensation system when it runs out this year? What moves have the Government made to establish an alternative process within the European Union?
§ Ms QuinThe hon. Gentleman asks about five questions in his so-called supplementary question. We are informing farmers about a number of issues. Entitlement relates to the current holding and to the current circumstances of farmers in the different sectors concerned. I hope that he will welcome the fact that my right hon. Friend the Minister secured European Commission agreement to make the payments to farmers much earlier than they would usually have been made. Of course, the foot and mouth disease informed our decision on the allocation of the money. Every time we have decided whether to pay out such money, we have had to consider conditions in agriculture and in the sectors that are entitled to such payments. For that reason, foot and mouth disease is an important part of the background to the compensation, especially as so much of the bill for agrimonetary payments is paid by the British taxpayer, despite the fact that they are called European payments.
§ Mr. Huw Edwards (Monmouth)The farmers of Monmouthshire do not often pay compliments to Agriculture Ministers, regardless of their party, but they are currently paying particular compliments to my right 402 hon. Friend the Minister of Agriculture and his colleagues for the way in which they have drawn down agrimonetary compensation and handled the foot and mouth epidemic. Will my right hon. Friend consider other measures that would help the movement of ewes in lamb, including those that are on tack, to enable such sheep to be brought back home in order to lamb at this difficult time?
§ Ms QuinI very much welcome my hon. Friend's comments, which accord with those made to us by farmers and farmers' organisations throughout the country.
On his final point we are trying to consider the matter as sympathetically as possible while ensuring the strictest controls to prevent the movement of the disease. He will know that my right hon. Friend the Minister of Agriculture plans to say something further about that later today.
§ Mr. Michael Jack (Fylde)The Minister might be aware that some sections of the livestock industry have not been able to benefit from agrimonetary compensation. Their problems are typified by the call that I received from Mr. Tom Fare a pig farmer in my constituency. He told me that although the licensing scheme introduced by the Minister of Agriculture thankfully ensures that he is now able to market some of his pigs, he is at the mercy of a marketplace that he feels is not working to the advantage of pig farmers. He also worries about the additional costs associated with slaughter at this difficult time. Will she and the Minister of Agriculture consider those circumstances, especially with regard to those who do not benefit from agrimonetary compensation?
§ Ms QuinThe right hon. Gentleman makes an important point about which Ministers have obviously been concerned. He knows the European system well and is aware that agrimonetary compensation is available to some livestock producers, but not all of them. That is why we have brought forward money that was available under the pig industry restructuring scheme to try to help pig farmers. He made the important point that we have started some movement—albeit limited—of animals to slaughter in order to help farmers, including pig farmers. Obviously, we must keep the situation constantly and sympathetically under review.
§ Mr. Tim Yeo (South Suffolk)Yesterday, the Chancellor referred to a great many people and industries in his Budget speech, but he announced nothing new for farmers or farming. Will the Minister of State confirm that agrimonetary compensation is specifically designed to compensate British farmers for the weakness of the euro? It was needed long before the outbreak of foot and mouth disease was confirmed two weeks ago. Will she also confirm that agrimonetary compensation is an inadequate response to the financial damage caused by foot and mouth disease?
§ Ms QuinAgrimonetary payments are part of the response, but the Government are introducing a range of measures on foot and mouth disease. I appreciate that, on the whole, the Opposition have supported them, but they have a short memory about agrimonetary payments. They did not make such payments when in government; perhaps they believe that we have forgotten all the arguments that farmers directed against them in the late 403 1980s about amounts of compensation and their failure to revalue the green pound in the way in which farmers wanted. We have not forgotten, even if the hon. Gentleman has.