§ 1.45 p.m.
§ Lord KIRKHILL rose to move, That the draft Winter Keep (Scotland) (Revocation) Scheme 1975, laid before the House on 9th December, be approved.
1618§ The noble Lord said: My Lords, I beg to move that the Winter Keep (Scotland) (Revocation) Scheme 1975, the draft of which was laid before your Lordships' House on 9th December 1975, be approved. The Winter Keep (Scotland) Scheme 1975 provides for the payment in Scotland only of annual grants based on the acreage of certain specified crops grown for the winter feeding of livestock as an optional alternative to winter keep headage payments on livestock eligible for hill cattle or hill and upland sheep subsidy payments.
§ The need to revoke the Scheme follows from the adoption last April of the European Economic Community's Directive on less-favoured areas, the background to which was explained on Monday when your Lordships considered and approved the Hill Livestock (Compensatory Allowances) Regulations 1975, which provide for the implementation of the compensatory allowances provisions of the Directive in the United Kingdom in place of the hill cow and hill sheep subsidy payments. There is no provision for the payment of compensatory allowances on crops grown in the areas of the United Kingdom which have been approved as eligible for the purposes of the Directive. The payment of winter keep acreage grants must therefore be stopped when the Directive is implemented. To do other wise would be illegal and would set at risk the substantial contribution—amounting to about £12 million for 1976—which the United Kingdom stands to obtain from Community funds towards the cost of paying the livestock compensatory allowances. Your Lordships will note that the Revocation Scheme safeguards those winter keep acreage payments which are due in respect of 1975, but which may not yet have been paid.
§ Your Lordships will wish to know the effects of the Scheme for farmers who have been claiming these acreage payments. About 1,800 farmers opted to take acreage grants instead of livestock headage supplements in 1975; of those, about 1,100 carry adult stock and will be eligible for payments under the Hill Livestock (Compensatory Allowances) Regulations at the full rate, inclusive of winter keep headage grants; some farmers may find that the limitations on the payments they can receive under the Regulations is more severe than 1619 under the Winter Keep Scheme, but in the majority of cases the difference, I am assured, will be marginal. The remaining 700 have enterprises that are based mainly on the rearing of young cattle which are bought-in: they have few or no adult livestock which would qualify for compensatory allowances.
§ My Lords, I had hoped that I would have been able to present your Lordships with alternative proposals for providing support for these farmers but I have to say that these are not yet finalised, although under active consideration. I can assure your Lordships, however, that it is our firm intention to continue to assist these farmers for a further period, and proposals to this effect will be submitted to your Lordships early in the New Year. My Lords, I beg to move.
§ Moved, That the Winter Keen (Scot land) (Revocation) Scheme 1975, be approved.—(Lord Kirkhill.)
Lord CAMPBELL of CROYMy Lords, we are grateful to the noble Lord. Lord Kirkhill, for having explained this Scheme. As I understand it, it is made necessary because changes in our system are needed in order to fit in with the procedures of the EEC. My understanding is that overall in Scotland the effect financially will he virtually very little. The noble Lord has explained how in losing winter keep in one way farmers become eligible for payments of grants in others, and he has also told us that there are further proposals which the Government are working out, which they are not yet ready to put forward. No doubt we shall have an opportunity of seeing them and discussing them later. All I would ask the noble Lord at this point is whether I am right in thinking that the effect of this Scheme and the explanation he has given is that there is a change in the system but that overall the farming community in Scotland will find itself in much the same position and no worse off.
§ Lord KIRKHILLMy Lords, I can confirm that the general assessment of the current situation is as the noble Lord, Lord Campbell of Croy, has just elucidated. My advice is that the change in regulations will have in the main a marginal effect. Unquestionably, there are a number of farmers who will be 1620 somewhat disadvantaged as against the present position. but, of course, I gave an assurance that the Government are working on proposals to alleviate that difficulty. These proposals, of course, I again give the assurance, will be brought before your Lordships for your attention in the New Year.
§ On Question, Motion agreed to.