HL Deb 18 April 1995 vol 563 cc406-8

4.19 p.m.

The Earl of Lindsay rose to move, That the Scheme laid before the House on 28th March be approved [16th Report from the Joint Committee]

The noble Earl said: My Lords, I present to the House this short uncontroversial instrument which will allow farmers and crofters in Scotland and Wales to obtain grants under the Farm and Conservation Grant Scheme towards the costs of fencing work related to the "waterside habitats" option of the Scottish habitats scheme and the "water fringe" and "coastal belt" options in the Welsh habitats scheme.

This instrument places Scotland and Wales on the same footing as England. A similar instrument for England was approved by Parliament last year. Due to different timescales for the processing of Scottish and Welsh habitats scheme legislation through the European Commission and Parliament, it was not possible to introduce a single instrument at that time covering England, Scotland and Wales. Clearly, the main habitats scheme legislation for each country had to be in place before amendments could be made to the FCGS legislation.

There are various differences between the Scottish and Welsh habitats schemes which reflect the different environmental and conservation priorities for each country. However, the fundamental objectives of the two schemes are the same: to encourage farmers and crofters to establish and manage specific habitats of conservation value. Farmers and crofters can receive area-based payments if they agree to take specified land out of agricultural production for a period of years or allow only limited and controlled grazing, depending on the habitat scheme option selected.

In Scotland, farmers have the option of taking land out of production for 20 years or restricting the use of land to limited grazing, managed in the interests of conservation, for a period of 10 years. In Wales, land can be taken out of production for 10 years, or grazed on a limited basis for the same period. Habitat options available range from watersides, coastal areas and broadleaved woodland through to damp lowland, grassland and marsh communities. Rates of area payments are based on the nature of the habitat option chosen by fanners or crofters. The Scottish Habitats Scheme came into operation in November 1994, and the Welsh scheme started in January 1995.

It was always our intention to make available some form of compensation to farmers who had entered the habitats schemes towards the costs of any necessary fencing of land within eligible waterside or coastal fringe sites. Clearly, there are considerable advantages in denying stock access to such areas in terms of protection of water purity, waterside vegetation and the creation of rich, natural habitats for wildlife. However, no satisfactory means of paying such compensation could be found, since the habitats schemes are based on area payments. We concluded, therefore, that the Farm and Conservation Grant Scheme should form the vehicle for making compensatory payments to farmers who need to fence any land they have entered under the appropriate options in the Scottish and Welsh habitats schemes.

The instrument we are considering today will enable participants in the Scottish and Welsh habitats schemes to obtain grants at the rate of 40 per cent. for fencing works under the appropriate habitats options under both schemes. The rate of grant we are proposing, and which applies already in England, has been pitched deliberately at a high level on the basis that we wish to encourage farmers to participate fully in the habitats schemes. I am confident that the instrument we are discussing will help to achieve this important objective.

Finally, I can confirm that there are no public expenditure implications associated with this instrument. Resources to pay grants for fencing works related to the Scottish and Welsh habitats schemes exist already within the overall public expenditure provision for FCGS. No additional bids are therefore necessary, I commend this instrument to the House.

Moved, That the Scheme laid before the House on 28th March be approved. [16th Report from the Joint Committee].—(The Earl of Lindsay.)

Lord Carter

My Lords, the Minister has explained the regulations extremely clearly and we understand they are being laid because of the delay that he mentioned. We regard the proposals as entirely welcome and from this side of the House we support them.

Lord Mackie of Benshie

My Lords, from the Scots point of view, we too support the payment of grants to assist in the improvement of the habitat. We would much rather have seen the Government restore the payments to hill farmers, which they cut and which were introduced some time ago, but obviously the measure is a sensible move.

I cannot agree that 40 per cent. is a generous subsidy for fencing. Normally one likes to pitch the grant at a rate which will pay for materials so that the remaining 50 per cent. will pay for the farmer's labour in putting up the fencing. However, it is better than nothing. The general level of the scheme is right and proper so we shall not contradict the Minister.

The Earl of Lindsay

My Lords, I am grateful for the support of the noble Lords, Lord Carter and Lord Mackie, for this important instrument. Behind the remarks of the noble Lord, Lord Mackie, about the generosity or otherwise of the 40 per cent. grant, I sense that anything less than 100 per cent. would be seen by him as ungenerous. Nevertheless, I hope that the 40 per cent. grant will be quite significant for those who take up the offer. The instrument will allow the Scottish and Welsh agriculture departments to pay such grants under the Farm and Conservation Grant Scheme for fencing of land to farmers who have entered into the appropriate habitats options in the Scottish and Welsh habitats schemes. I commend the instrument.

On Question, Motion agreed to.