HC Deb 25 February 2004 vol 418 cc271-2
4. Andrew George (St. Ives) (LD)

What recent discussions he has had with Welsh Assembly Secretaries on common agricultural policy reform. [155771]

The Parliamentary Under-Secretary of State for Wales (Mr. Don Touhig)

My right hon. Friend has regular meetings with the First Secretary, and I meet the Assembly Secretary for Environment, Planning and Countryside to discuss a variety of issues. Indeed, we have a video conference planned for tomorrow.

Andrew George

I thank the Minister for that response, but is he aware of the impact of operating two agricultural support systems across the board? What assessment has he made of the potential market distortions, particularly on the Welsh border and also for cross-border farms? In his discussions with Welsh Assembly Secretaries, has he discussed how long the historic payments will be able to continue, because surely the transitional period must come to an end?

Mr. Touhig

My colleagues in the Welsh Assembly have undertaken a detailed analysis of the options, and the single farm payment is the one they have chosen. They believe that it is the right one, because it would certainly benefit the majority of farmers who have a large percentage of holdings right across Wales.

The issue of cross-border matters is not yet resolved. Discussions are going on between the Department for Environment, Food and Rural Affairs and Ministers in the devolved Administrations. The Welsh Assembly's decision to go down the single payment route has been roundly welcomed by all the farming unions across Wales. I talked to farmers last week, and they certainly welcomed it.

Albert Owen (Ynys Món) (Lab)

At the heart of CAP reform is a fairer and more equitable distribution of prices and profits. What discussion has my hon. Friend had with his colleagues in DEFRA and the Welsh Assembly Government about the price consumers pay for milk and the price paid to farmers? The current balance means that here is very little investment in the farming industry in Wales, and the consumer is being ripped off.

Mr. Touhig

I understand my hon. Friend's point. As my right hon. Friend the Secretary of State and I travel around Wales, we often meet farmers and members of farmers' unions who complain about the price they are obtaining from the major suppliers—the supermarket sand so on. I understand that farmers' unions have been taking the issue up very strongly, and I know that my hon. Friend is also very concerned about it. We must keep the matter -wider review and make sure that farmers secure a good deal for the milk they produce.

Mr. Roger Williams (Brecon and Radnorshire) (LD)

The mid-term review goes on, but the Department for Environment, Food and Rural Affairs has failed to introduce the fallen stock scheme and has postponed the abolition of the over-30 month scheme. Will the Minister have discussions with his ministerial colleagues in DEFRA about those issues, because Welsh farmers cannot plan for the future?

Mr. Touhig

My impression is that farming in Wales is much more confident than it was a year ago—indeed,farm incomes are increasing. I take on board the point that the hon. Gentleman makes and, of course, I have ongoing discussions with my colleagues in the Assembly who have responsibility for those matters and my colleagues in DEFRA. The matters figure in our discussions at all times