§ Mr. Hicksasked the Minister of Agriculture, Fisheries and Food if he will make a statement on the outcome of the 1980 annual review of Agriculture.
§ Mr. Peter WalkerA White Paper on the 1980 annual review is presented to Parliament today. This shows that, despite a record cereals harvest and very good sugar beet crop—which we now know will give us a record output of beet sugar—net product in agriculture in 1979 fell some 3½ per cent. below the 1978 level. A contributory factor was the harsh weather in the early part of 1979. This, and rising labour costs, also affected aggregate net income, which fell by some 5½ per cent. The volume of new fixed investment was maintained at about the level of the previous year.
The results of the annual review reflect the policies adopted by the previous Government who, by their green pound policy, deprived farming of resources which it was in their power to give. After taking office in May there was not time for our policies to have much impact during 1979. Since then we have taken a number of significant steps to improve producers' incomes. We have announced three devaluations of the green pound, two increases in the price of milk and a substantial increase in the hill livestock compensatory allowances. The devaluations, combined with the strength of sterling, have removed the discrimination against British agriculture that has taken place over recent years. The industry is now in a position to compete fairly in the European market.