HL Deb 12 December 1966 vol 278 cc1441-3

2.47 p.m.

THE EARL OF DUNDONALD

My Lords, I beg leave to ask the Question which stands in my name on the Order Paper.

[The Question was as follows:

To ask Her Majesty's Government whether, in view of the acute economic conditions which the Highland farmers are facing now and which will worsen during the winter, they will consider making an ex gratia payment before Christmas to farmers who are endeavoring to winter their weaned calves.]

LORD HUGHES

My Lords, my right honourable friend is aware that hill farmers, particularly in the Highlands, are having a difficult year, and it was for this reason that he recently announced that an advance payment of hill sheep subsidy of 15s. per ewe would be made. The position of hill farmers will be most carefully considered at the coming Annual Review, taking account of all the information available, including the results of the special survey which my right honourable friend is undertaking in conjunction with the National Farmers' Union of Scotland.

THE EARL OF DUNDONALD

My Lords, I thank the Minister for his reply, which basically concerns sheep. I should like to ask the Minister whether he is aware that at the Highland sales this year prices offered for weaning calves were about £15 lower than normal, which means that the farmer rearing store cattle received, if he sold, about 50 per cent. of the value he would have received in the normal year for an average calf. Further, may I ask the Minister whether he would not agree that, because of these appalling prices, a large number of farmers decided not to sell and are now faced with higher feeding costs, aggravated by the selective employment tax and also the inability of the banks to extend to them the credit which they need to buy winter feed this year, and that the position at the moment is critical?

LORD HUGHES

My Lords, in the first instance I cannot accept the reference to selective employment tax as having other than the most marginal effect on this position. In so far as the hill farmers with cattle rather than sheep are concerned, I would agree that they have not, of course, benefited in the same way as those who are concerned with sheep. But I would remind the noble Earl that hill farmers with cattle have now in the main received payment of the hill cattle subsidy and will also be receiving payment of the calf subsidy.

THE EARL OF DUNDONALD

I thank the noble Lord for his answer to my supplementary question. With great respect, I would ask him whether it is not the fact that selective employment tax adds to the cost of every service in the country, and when one is sending cattle to the market in Scotland and having to ship them back to the islands would he not agree that selective employment tax is adding to these costs?

LORD HUGHES

My Lords, I think it would be inappropriate in reply to this question to enter into a detailed answer in connection with selective employment tax other than to reiterate what I have already said, that it has only a marginal effect on this particular problem.

THE EARL OF DUNDEE

My Lords, when the noble Lord mentions advance payment of 15s. per ewe, does that mean 15s. in addition to the ordinary ewe subsidy which a short time ago was agreed on for three years, or does it mean part of this normal subsidy being paid a little sooner?

LORD HUGHES

My Lords, an advance payment is entirely what it is stated to be. It is an advance payment.

THE EARL OF DUNDEE

My Lords, the noble Lord is aware, surely, that two years ago the payment of 18s. per ewe was fixed for three years? If I am wrong about that I am sure he will correct me. Is this part of the 18s. which is being paid a little sooner, or is it in addition to the 18s.?

LORD HUGHES

This is an advance payment on account of the sum which will be payable in the light of what is determined at the next Price Review.