Agriculture Improvement (Variation) Scheme 1988

HL Deb 07 July 1988 vol 499 cc454-6

7.5 p.m.

The Parliamentary Under-Secretary, Ministry of Agriculture, Fisheries and Food (Baroness Trumpington) rose to move, That the scheme laid before the House on 16th June be approved [29th Report from the Joint Committee].

The noble Baroness said: My Lords, with your permission, it would be convenient to consider this instrument together with the Agriculture Improvement (Amendment) Regulations 1988, which are closely related. The instruments make some modest and rather technical changes to our farm capital grants arrangements as they relate to the horticulture and pig sectors. Modest and technical though they may be, however, I know that the glasshouse arrangements in particular will be of considerable benefit to our growers.

I should like to say a few brief words about glasshouses. Glasshouse growers suffered particularly severely as a result of the great storm in October last year. We considered as a matter of urgency what we could do to assist the industry to get through the very difficult time following the storm. My right honourable friend the Minister was able to announce last November that growers who already held an improvement plan would get an extension of six months on the deadline for submission of claims (30th November this year) if they were unable to complete their investment plans on time because of shortage of labour and materials following the storm.

This arrangement, however, is only helpful to growers who already had an approved plan at the time of the storm. That left the case of those who needed to replace damaged facilities or who had been planning to start an investment programme this year. To help them, my right honourable friend the Minister was also able to announce last November that he would be extending for a further year from the end of November 1988 higher rates of grant for heated glasshouses. These will be at 45 per cent. for work carried out under an improvement plan and 35 per cent. for non-plan work with grants for heating systems at 20 per cent. The investment ceiling for this work has, however, had to be reduced to £ 74,000 in line with current EC rules. What the instruments before us today do is to give statutory affect to the substance of my right honourable friend's announcement. Extending advantageous rates of grant for a further year will make an important contribution to alleviating the difficulties faced by glasshouse growers both as a direct and indirect consequence of the storm.

Growers will now become eligible to start submitting applications for grant at the new rates on improvement plans from 1st September. From the same date we shall no longer be accepting applications at the current rates. This will allow for an orderly transition to the new arrangements. However, I should make clear that growers working under the current arrangements who are unable to complete their investments as quickly as expected and get their claims in by the end of November will still be able to qualify for the new grant of 45 per cent. on claims submitted after then, provided, of course, that their investment does not exceed £ 74,000 in value.

Unless your Lordships wish me to continue in depth, it only remains for me to explain to the House that these two instruments apply to Great Britain only. Parallel but separate measures will be taken by the Secretary of State for Northern Ireland. I commend the Agriculture Improvement (Variation) Scheme 1988 to your Lordships.

Moved, That the Scheme laid before the House on 16th June be approved [29th Report from the Joint Committee]. (Baroness Trumpington.)

Lord Carter

My Lords, I should like to thank the Minister for introducing the orders and regulations. I fully understand the requirement to comply with the EC regulations. Regarding the pigs, I have just one small question. The number of pig places referred to in the variation scheme presumably applies to places for fattening pigs. I believe that that is implicit, but I should be grateful if the noble Baroness will confirm that.

As the House will know, pig keepers are having a very bad time at the moment with pig prices and the effect of the drought in America on the prices of feed-corn and proteins. In comparison with their present problems, this amendment is a pin prick.

I understand that the grant rate quoted for glasshouses of 45 per cent. is the most favourable that can be expected under Community guidelines. However, there are some constraints on the application of this scheme. A holding which has already benefited from the present IF scheme will be restricted to the new expenditure ceiling. The one-year extension is not a great deal of time for the planning and the work which must go into providing a new structure. I understand that there are still difficulties in respect of supplying materials and labour after the October hurricane.

To deal with a more general point, and with 1992 only four years away, I should like to point out that anything which affects the competitive position of British horticulture is to be deplored. We have already experienced growers in other member states— for example, Holland— who appear to benefit in possibly unfair ways from subsidies on fuel and so forth. I would welcome the Minister's assurance that our growers will not be put at any competitive disadvantage as a result of these regulations. With those reservations, I have pleasure in supporting the regulations from these Benches.

Baroness Trumpington

My Lords, I should like to answer the noble Lord's queries. The answer to his first question in relation to pig places is that it applies to fattening pigs. As regards difficulties of replacement, the noble Lord may be interested to know that I have received an invitation to visit the glasshouse region around Chichester. I was most encouraged to read that the growers would like me to to see how well things are progressing, except in respect of some of the smaller growers. However, I shall inform myself of the situation when I see what is happening.

With regard to the European connection, I believe that the noble Lord knows as well as I that in the courts the Dutch fuel subsidy was found to be illegal. If the noble Lord has any concrete information about unfair subsidies I should be extremely grateful if he would pass it on to me or to my Ministry.

Lord Carter

My Lords, before the noble Baroness sits down, I believe that the NFU has produced a dossier on unfair practices. I am surprised that the Ministry has not seen it.

On Question, Motion agreed to.