§ Mr. LidingtonTo ask the Secretary of State for Environment, Food and Rural Affairs what assessment she has made of the risks of market distortion if Scotland or Wales were to apply a different policy from England in respect of the decoupling of livestock support payments. [132632]
§ Margaret BeckettFull decoupling of livestock subsidies frees producers to farm in response to market demands. It ensures that resources may be released to undertake more profitable activities rather than being constrained to activities which generate low value added, in order to be eligible for subsidy. The removal of the constraint on producers' choice allows them to alter their activities in order to generate increased incomes or, if they wish, to continue with their current production patterns.
These benefits to producers are independent of any action in other parts of the UK because full decoupling removes the constraints on their business decisions but does not force them to change their activities. It is in producers' best interests in one part of the UK to benefit from full decoupling irrespective of the choices made in other parts. However, if the whole of the UK does not opt for full decoupling then the overall benefits to the economy will be diminished.