§ Mr. Mylesasked the Minister of Agriculture, Fisheries and Food whether he has completed his review of hill livestock compensatory allowances; and if he will make a statement.
§ Mr. Peter WalkerThe Government recognise the fundamental importance to United Kingdom agriculture of the hill areas and have been determined to build up confidence among hill farmers. I am therefore very glad to be able to inform the House that the review which my 225W right hon. Friends and I have carried out this autumn, in conjunction with the farmers unions, has shown that, following the improvement noted last year, there has been a further significant improvement in the situation of the hill farming industry.
The decline in the number of hill cows has slowed down and there are signs that it may be levelling out, while hill sheep numbers continue to show a significant increase. Incomes in real terms are now almost back to their best-ever levels. An important factor in this welcome recovery of both income levels and confidence has been the substantial increases made by this Government in the hill livestock allowances which, including the suckler cow premium, are now over 80 per cent. higher than they were in 1979.
The outlook for the hill livestock producers continues to be relatively favourable and the Government are determined to sustain the confidence of the hill farmers. I am pleased to announce, therefore, that the rates of compensatory allowance for 1983 are to be maintained at their present record high levels.