§ Mr. Buchanasked the Secretary of State for Scotland if he is in a position to make a further statement about the assistance which will be given to local authorities and farmers who have suffered losses as a consequence of the storms and floods this winter.
§ Mr. MillanScotland suffered severely from both flooding in the south and exceptionally heavy snow in the Highlands during this winter. The full extent of the damage caused by the storms will not be known for some time. Until the losses incurred by various sections of the community in the areas affected have been accurately assessed, it is not possible to decide how to allocate the financial assistance which can be made available.
Nevertheless, it is already clear that some local authorities have incurred heavy additional expenditure in dealing with the storms and their aftermath. I have already announced that I shall give local authorities a special grant of 75 per cent. on additional costs over a reasonable threshold. The grant will be paid on expenditure which exceeds the equivalent of 2.27 times the standard penny rate product for the authority—or the actual rate product if it is higher. This is the figure which, in terms of the burden on the individual ratepayer in 1977–78, is equivalent to the threshold of a 1p rate product which is being applied to local authorities in England and Wales.
I recognise that, despite this help, some authorities will have to bear exceptionally heavy costs and may require extra assistance. The Government have considered carefully how best to use the assistance which has been promised by the EEC. They have concluded that it should he used partly to give further assistance to those authorities which have exceptionally heavy costs to bear, even after the special 75 per cent. grant, and partly to assist farmers who have suffered severe losses of livestock.
Although the full extent of agricultural damage is not yet known, much of it has been relatively minor. Some farmers, however, have suffered considerable damage or loss. This has mainly been livestock, fences and floodbanks—the last especially in the Borders. It is, of course, 555W a firm principle that the Government do not pay compensation for losses due to natural hazards, especially in food production where the weather is a factor to be taken into account every year; nor do they cover insurable risks. Nevertheless, the Government have concluded that assistance should be given to those farmers who have suffered substantial losses.
Acting jointly with my right hon. Friend the Minister of Agriculture, Fisheries and Food, I have already made an order providing on a temporary basis 50 per cent. grants towards the restoration of land affected by flooding. I hope that Parliament will approve this after the recess. On the same basis, I now propose that grants at the rate of 60 per cent. of approved expenditure should be made toward the cost of replacing and reconditioning farm buildings, compared with rates of between 20 per cent. and 40 per cent. under the existing capital grant schemes; grants of 50 per cent. in the lowlands and 70 per cent. in the hills toward the restoration of farm fences, and roads, against 20 per cent. to 50 per cent., at present; and to raise the rates of grant for arterial drainage works in Scotland to 75 per cent. and 85 per cent.—from 60 per cent. and 70 per cent. This will be a major contribution toward necessary investment in the businesses worst affected.
So far as losses of livestock are concerned, the Presidents of the National Farmers Unions have indicated that farmers intend to initiate measures of self-help, including a Great Britain fund for contributions toward especially heavy losses of livestock. The Government welcome this initiative and the Agriculture Departments are ready to help with the verification and payment of claims according to agreed criteria for assistance. A contribution to this fund will be made out of the assistance made available by the EEC. Meantime, my officials, in consultation with the National Farmers Union of Scotland, will prepare more precise estimates of the losses incurred.