§ 70. Mr. Andrew WelshTo ask the Secretary of State for Scotland if he will make a statement on the effect of interest rate levels on Scottish farmers.
§ Mr. Michael ForsythMy right hon. and learned Friend is well aware of the concerns of Scottish farmers about interest rates. We estimate that interest payments by Scottish farmers in 1988 were only slightly higher than in 1987. What happens in 1989 will depend upon the course of interest rates and the level of farmers' indebtedness.
The Government believe that, despite problems caused by short-term movements in interest rates, keeping inflation under control must remain our top priority since farming stands to benefit as much as other sectors of the economy from low inflation.