HC Deb 22 March 1978 vol 946 cc550-2W
Mr. Bryan Davies

asked the Minister of Agriculture, Fisheries and Food if he will make a statement about the consequences for agriculture of the flooding and severe weather this winter.

Mr. John Silkin

Gales and floods followed by blizzards between November and February this winter have caused widespread damage to agriculture and horticulture throughout Great Britain. The direct damage was mainly to fixed equipment and livestock. Loss of income on milk sales and future yields from livestock and crops will also be substantial. Farmers have also lost stock-in-trade such as feedingstuffs, and suffered damage to their homes and domestic goods.

I should like to pay tribute to local authorities and to the Defence Services for their efforts to relieve distress. As announced on 20th February, in a Press Notice issued by my Department, the Government propose to meet the appropriate part of the cost of the arrangements made to drop fodder to livestock at risk.

The full extent of all the agricultural damage cannot be known for some time. Fortunately, much of it has been minor in relation to the operations of individual farming enterprises, but some farmers and growers have suffered very severe losses. My advisory staff have been in touch with farmers and growers from the outset to help them assess the damage and make plans to get back into production. It is clear that the most severe losses have been on land affected by sea water and to farm buildings, glasshouses, fences and roads and to breeding animals.

The Government have been considering what help could be given to the industry in these circumstances. It is, of course, a firm principle that the Government do not pay compensation for losses due to natural hazards, especially in food production where the weather is a factor to be taken into account every year.

The Agriculture Ministers acting jointly have already made an order providing on a temporary basis 50 per cent. grants toward the restoration of land affected by flooding. I hope that Parliament will approve this after the recess. On the same basis, we now propose some increased rates of grant in respect of expenditure incurred since 1st November 1977 resulting from the abnormal weather conditions. We propose that grant at the rate of 60 per cent. of approved expenditure should be made toward the cost of replacing and reconditioning farm buildings and glasshouses, compared with rates of between 20 per cent. and 40 per cent. under the existing capital grant schemes; grants of 50 per cent. in the lowlands and 70 per cent. in the hills toward the restoration of farm fences, roads and river banks, against 20 per cent. to 50 per cent. at present; and in Scotland to raise the rates of grant for arterial drainage works to 75 per cent. and 85 per cent.—from 60 per cent. and 70 per cent.

It is expected that the additional cost to the Exchequer will be up to £4 million over two years and will be contained within existing planned totals. Supplementary Estimates will, if necessary, be presented in due course. The new grants will make a major contribution towards the necessary investment in the businesses worse affected.

So far as losses of livestock are concerned, the Presidents of the National Farmers' Union and of the National Farmers' Union of Scotland have indicated that farmers intend to institute measures of self-help, including a fund for contributions towards especially heavy losses of livestock. The Government welcome this initiative on the part of the industry and will be prepared to help with the verification and payment of claims according to agreed criteria for assistance. The Government are prepared to make available some of the money offered by the EEC Commission to this fund and are, in the meantime, in con- sultation with the Farmers' Unions preparing more precise estimates of the losses incurred.