§ Mr. McQuarrieasked the Secretary of State for Scotland what representations he has received from the farming industry in Scotland on the cuts in capital grants; and what action he proposes to take on the matter.
§ Mr. John MacKayMy right hon. and noble Friend the Minister of State recently met the president of the Scottish National Farmers Union. In addition, representations have been received from a number of branches of the union and from a small number of farmers and agricultural contractors. These representations will be borne in mind in drawing up the scheme to implement the EC farm structures policy, currently being negotiated in Brussels.
§ Mr. McQuarrieasked the Secretary of State for Scotland if he will now restore to farmers in the less favoured areas the capital grants to their former level for draining, fencing and re-seeding; and if he will make a statement.
§ Mr. John MacKayNo. The Government fully acknowledge the importance of these activities but consider that the revised rates of grant, allied to the good rate of return which, for example, sound drainage provides, still provide a worthwhile incentive.
§ Mr. McQuarrieasked the Secretary of State for Scotland if he will estimate the loss to farm incomes for the current year of the capital grants cuts made by Her Majesty's Government on the farming industry; if he will estimate the combined effect of these cuts together with the higher level of interest rates on the industry; and if he will make a statement.
§ Mr. John MacKayThe changes in the capital grant schemes announced in December 1984 are expected to provide savings of £5 million in Scotland in 1985–86. They carry no direct implicationfor farm incomes. The overall effect of the changes on future investment levels or costs cannot at present be estimated.