§ Mr. Lyellasked the Minister of Agriculture, Fisheries and Food whether, in making cost-benefit appraisals for land drainage improvement schemes, the gross profit margin for the farming enterprise is computed at prices which contain an element of Government subsidy; or whether any such subsidy element is disregarded.
§ Mrs. FennerMarket prices rather than shadow prices are used in making appraisals for land drainage improvement schemes for both cost and benefit.
§ Mr. Lyellasked the Minister of Agriculture, Fisheries and Food whether, in carrying out cost-benefit appraisals for land drainage improvement schemes, yields allowed for are theoretical yields or actual average yields, having regard to the soil type, region and normal productivity of local farmers.
§ Mrs. FennerYields used are those normal for the locality.
§ Mr. Lyellasked the Minister of Agriculture, Fisheries and Food whether, in the carrying out of cost-benefit appraisals for land drainage improvement schemes, any allowance is made for the likely cost of additional flood protection.
§ Mrs. FennerNo. Research has shown that an increase in field drainage decreases flood risk.
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§ Mr. Lyellasked the Minister of Agriculture, Fisheries and Food whether cost-benefit appraisals for land drainage improvement schemes allow for the length of time over which scheme benefits are taken up, having regard to the need, where relevant, for additional field drainage works; and if so, what period of time is typically allowed for such works to be carried out.
§ Mrs. FennerYes. The improvements in drainage carried out by farmers that are taken into account may extend over a period of up to 20 years.
§ Mr. Lyellasked the Minister of Agriculture, Fisheries and Food whether he is satisfied that cost-benefit appraisals for land drainage improvement schemes are carried out in such a way as to ensure that such schemes as are approved represent good value for money for the United Kingdom.
§ Mrs. FennerYes.
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§ Mr. Lyellasked the Minister of Agriculture, Fisheries and Food whether, in carrying out cost-benefit appraisals for land drainage improvement schemes, any adjustment is made to take account of the price of crops, such as potatoes and sugar beet, which are subject to producer quotas.
§ Mrs. FennerNo. Many of the calculations are in practice subject to a wide range of variability and it is therefore impractical for the appraisal of land drainage projects to attempt to go into this degree of detail on any of the many variables involved.
§ Mr. Lyellasked the Minister of Agriculture, Fisheries and Food whether, in carrying out some of the cost-benefit appraisals for land drainage schemes, any attempt is made to determine the level of flood risk at which it is profitable for the farmers affected to invest in improvements.
§ Mrs. FennerYes.