Common Agricultural Policy (Hansard, 6 March 1981)

§ Mr. Peter Walker

The proposals on structure, which form part of a wider package still subject to agreement by the Italian Government, include amendments to the existing directives together with some new regional schemes. Of the amendments to the existing structure directives the main ones are:—

(a) To Directive 72/159 (Modernisation of Farms) to lower the income threshold to the farm development scheme, to increase the existing limits on the amount of aid per labour unit subject to an overall limit per farm, to replace some limitation on development aid to farmers with more than 100 per cent. of the comparable income and to enable special help for young farmers.
(b) To restrict aid to dairy farmers with development plans to the amount of investment needed to increase the number of cows to a 210 maximum of 60. Farms which already have herds larger than this will be permitted aid under a development plan on investment sufficient to increase the herd size by not more than 15 per cent. National aid to dairy farmers will not be permitted except to those too small to qualify for a development plan and whose investment would not increase the herd size beyond 40 cows per farm.
(c) To replace the existing financial limits on investment in pig production. In future aid will be limited to the amount of investment needed to attain 550 pig places. If, however, 550 pig places will not provide a comparable income for 1.5 labour units the Commission may authorise aid on a larger investment, but not more than sufficient to achieve 1,000 pig places.

There are three regional schemes of interest to the United Kingdom.

(a) A regulation designed to stimulate agricultural development in the less-favoured areas of Northern Ireland. Aid will be provided for the improvement of land and farm roads. Aid will also be provided for farm improvement plans to be carried out by beef cattle and sheep producers whose farms are too small to satisfy the target income test under Directive 72/159. Estimated total cost of the scheme is around £85 million. FEOGA reimbursement will be at rates up to 40 per cent.
(b) A regulation under which aid will be provided for improving facilities in Northern Ireland for the storage, treatment or processing of animal feed (including facilities located at ports). The European Community may re-imburse 50 per cent. of the cost of aided projects and some £3–4 million has been set aside by FEOGA for this purpose over the next four years.

Projects must be in receipt of United Kingdom aid of at least 10 per cent.

(c) A regulation providing for an integrated development programme for the Western Isles of Scotland (the Outer Hebrides). The United Kingdom Government will provide about £20 million of aid over five years for measures to improve agriculture, operations to improve the marketing and processing of agricultural products, to improve fisheries infrastructure and to develop fish farming. 40 per cent. of the expenditure under this programme will be reimbursed by FEOGA.

The other regional measures involve integrated development programmes for the French Department of Lozere and for the Belgian Province of Luxembourg; aid for cattle, sheep and goatmeat production in the hill areas of Italy; aid for the development of agriculture in the French Overseas Department; and aid for the improvement of rural infrastructure in certain less-favoured areas of the Federal Republic of Germany. The rate of FEOGA reimbursement for all these measures is 40 per cent. except that the schemes for Belgium and Germany will be reimbursed at the rate of 35 per cent. and 30 per cent. respectively.