§ Mr. William Rossasked the Minister of Agriculture, Fisheries and Food what would be the cost per year if the present extensions to the less favoured areas were approved by the European Economic Community Commission provided the present level of benefits to farmers was maintained.
§ Mr. Peter WalkerThe European Council of Ministers has yet to consider the United Kingdom case for extending its less favoured areas (LFAs) and it cannot be assumed that the case will be accepted as it stands. Moreover, the Government have consistently made it clear from the initiation of the marginal land survey that any extension of the LFAs in the United Kingdom which might eventually be agreed by the Council of Ministers carries with it no Government commitment to provide additional aids from public funds to the extended areas. In these circumstances any assessments of possible benefits are purely hypothetical.
However, if it were assumed that the proposed extensions were approved and the farmers in those areas were to receive the same level of benefits as farmers in existing LFAs, at current rates of livestock compensatory allowance and capital grants, the additional cost per year might be in the region of £16 million to £18 million.