§ Lord Walstonasked Her Majesty's Government:
Whether they have completed their review of the economic conditions in the hill and upland areas and whether they will make a statement on the rate of hill livestock compensatory allowances and associated conditions for 1987.
§ Lord BelsteadMy right honourable friends have now completed the annual autumn review of economic conditions in the hills and uplands.
The Government continue to recognise the fundamental importance of the livestock sector to the less favoured areas of the United Kingdom and, following the average increase of 11 per cent in the 1986 compensatory allowances, total HLCA payments are currently running at about £110m a year. The 1986 increase in rates, and the special aid of about £16.9m paid to those livestock farmers most seriously affected by last year's exceptionally bad weather conditions, have contributed significantly to the returns of farmers in the LFAs.
Although my right honourable friends recognise that some sectors and some areas are doing less well than others, the economic outlook for hill and upland livestock producers generally is very much better than it appeared this time last year. Moreover, producers with beef cows and sheep in the LFAs will benefit from the green rate devaluations which have just been agreed. In the light of the review, and having regard to the public expenditure position, my right honourable friends have decided that the rates of hill livestock compensatory allowance should be maintained at their presents levels for 1987, and that the associated conditions should also remain unchanged.