HL Deb 20 December 1988 vol 502 cc1317-9

7.31 p.m.

Baroness Trumpington rose to move, That the scheme laid before the House on 16th November be approved [1st Report from the Joint Committee].

The noble Baroness said: My Lords, the purpose of this instrument, together with the Agriculture Improvement (Amendment) (No. 2) Regulations 1988, is to provide a special range of grants to assist with the improvement of both the quality and marketing of flower production on the Isles of Scilly.

Perhaps I could set the scene a little before turning to the detailed provisions of the instruments. The Isles of Scilly are designated as a less favoured area. However, their designation is unique in the United Kingdom. They have been designated not because they are a hill area but because of their relative isolation and distance from mainland markets. As your Lordships will know, however, our principal measures for assisting less favoured areas are hill livestock compensatory allowances. Although these are available to farmers in the Isles of Scilly, they are not of much benefit to them because agriculture there is very largely geared towards horticulture, particularly bulb and flower production, for which the islands are so well known.

We have explored with the EC Commission various ways of offering additional assistance to farmers and growers on Scilly. Sadly, despite all our efforts, these did not bear fruit. We have not, however, given up. The growers on Scilly have shown great determination and confidence in their own future. With our help and that of the Duchy of Cornwall and the Horticulture Development Council it has been possible to put together a special research programme designed to produce new and earlier flowering varieties of Soleil d'Or and Paper Whites. If successful, this will lengthen the season and broaden the appeal of narcissus from Scilly in the market-place.

The project has already begun at the Trenoweth experimental sub-station on St. Mary's. The greater part of the cost is being paid—and enthusiastically paid—by the growers themselves. The Duchy has also made a generous contribution, as has the Horticulture Development Council, which has also agreed to manage the project. To complement this effort, we have decided to introduce a five-year programme of enhanced capital grants targeted on investments which will help the growers maximise the benefits of the research work. That is what the scheme before us today, together with the associated regulations, is about.

These statutory instruments amend the Agriculture Improvement Scheme to enable farmers and growers on Scilly to claim grant on items contained in the schedules to the SIs. The general rules on eligibility, financial ceilings and so on remain as under the Agriculture Improvement Scheme but with one small but important exception. This is that we shall not be applying any ceiling to the amount of investment in shelter hedges which can qualify for grant. This is in recognition of the fact that in the winter of 1987 severe frost damage was caused to the pittosporum shelter hedges which are such a feature of the landscape of the Scillies and which are of course essential to the continuation of flower production there.

As noble Lords who have been to the Isles of Scilly will know, they are very beautiful; but they are also very windy. The strong, salt-laden winds coming in from the Atlantic would make it impossible to grow anything were it not for the tall shelter hedges around each small field. As a result of the severe frosts, most now need replacing. We do not expect people to he spending unlimited amounts of money on this item alone, but the relaxation of the financial ceilings should be helpful to those who are already at or near the ceilings after investing in other items. In this respect, the arrangement will be comparable to that we were able to offer under the Storm Damage Recovery Scheme for the replacement of hedges and other environmental features.

Finally, there may be one aspect of all this which is puzzling noble Lords. Why are we debating amendments to a scheme which, as my right honourable friend the Minister has already announced, has been closed to new applications from 29th November? As your Lordships will be aware, this closure is as a precursor to a new grant scheme—namely, the Farm and Conservation Grant Scheme—which we hope to introduce in February. However, I must point out that the instruments covering the closure of the scheme—which will be the subject of a separate debate at a later date—specifically exempted the measures we are debating today. In other words, we made provision in the closure orders for the special grants for growers on Scilly to continue throughout the period when the AIS is closed to most applications. We shall also be incorporating those special grants in our new scheme. I apologise to the House for going into these complex details but I thought it important to get the position clearly stated on the record.

When my right honourable friend the then Minister of State announced in the summer to farmers and growers in the Isles of Scilly that we proposed to introduce a package of enhanced grants to help horticulture on Scilly, he got a warm reaction. Since then, my officials have discussed the proposals in some detail with local representatives and I should like to pay particular tribute to the energetic part which the local NFU has played over the years, despite many disappointments along the way. The result of all this effort is the instruments before us today. I am sure that they will prove of real benefit and I trust that the new grants will be quickly taken up. I am convinced that flower production in the Isles of Scilly faces a promising future and that these new measures will help to secure it. I commend the instrument to the House.

Moved, that the scheme laid before the House on 16th November be approved [1st Report from the Joint Committee]—(Baroness Trumpington.)

Lord Gallacher

My Lords, perhaps I may first of all thank the noble Baroness for explaining in such detail the purpose of the order which we are considering this evening. We on this side of the House warmly support the order, not merely in its own right but in particular the thinking that lies behind it. I should like to take the opportunity of associating myself with the remarks she made about the work of the local branch of the NFU in this regard.

As the Minister rightly said, although the Isles of Scilly are for many of us an ideal place of retreat, from the point of view of horticulturists they have their difficulties—not least the wind and also the distance factor in marketing. It is in those circumstances particularly that these improvement grants will be welcomed by the horticulturists and growers on the island.

In addition, in recent years horticulturists and growers have faced competition, which is facing many growers in this country, from air freightage which allows countries enjoying much more favourable climates at greater distances to be first in the market here. That is a problem with which the growers in the Isles of Scilly are undoubtedly very familiar.

I was also pleased to hear the noble Baroness say that we shall have an opportunity of looking at the orders closing the existing scheme, because there are many points arising out of the closures and their replacement which are of concern to us. But that as the noble Baroness said, is a matter for another time. We warmly support the order.

On Question, Motion agreed to.

Viscount Long

My Lords. I beg to move that the House do now adjourn during pleasure until 8.30 p.m.

Moved accordingly, and, on Question, Motion agreed to.

[The Sitting was suspended from 7.40 to 8.30 p.m.]