HL Deb 13 November 1979 vol 402 cc1237-9WA
Lord STANLEY of ALDERLEY

asked Her Majesty's Government:

How much time normally passes between application for grant and Ministry of Agriculture approval to start work on (i) the Farm Capital Grant Scheme, and (ii) the Farm and Horticultural Development Scheme; what types and number of checks have to take place before such approval; and what purpose is achieved by each of these checks.

Earl FERRERS

In both the Farm Capital Grant Scheme and the Farm and Horticulture Development Scheme there are some items for which prior approval of applications is required and some for which it is not. In the latter case the applicant can begin when he wishes. Grant under the Farm and Horticultural Development Scheme is however payable only on items which form part of an approved development plan. In respect of work for which prior approval is required, under both schemes the applicant may, once he has made an application, ask for urgent work authority, which enables him to start work on his investment without prejudice to the subsequent decision on payment of grant.

Every case is different and the time taken to consider an application can depend on whether it contains all the information required as well as on the size and complexity of the investment and its general character. On average most applications are approved or rejected within two months of receipt. When an applicant applies for urgent work authority this is generally given within seven days of application.

Before prior approval is given to applications for grant under the Farm Capital Grant Scheme, checks are made to establish that the farm is equipped with buildings and capable of yielding a sufficient livelihood (except in the case of certain land improvements); that the investment is of a capital nature and for the purposes of an agricultural business; that the work proposed is technically suitable for its purpose and of reasonable cost; and that any implications for conservation or amenity are taken into account.

Under the Farm and Horticulture Development Scheme the EEC Directive (72/159) requires further tests to be applied. The applicant must be experienced in and mainly dependent upon agriculture. The farm business must yield an average labour income lower than the average nonagricultural income (the "comparable income"); and there must be a development plan calculated to increase farm labour income to at least the "comparable income" over a period of up to six years.

The purpose of the checks in all cases is to ensure that public money is properly spent in accordance with the statutory requirements and the rules of the schemes.