§ Mr. McQuarrieasked the Secretary of State for Scotland if he will indicate the percentage increase in bank borrowings by Scottish farmers in the years 1979 to 1986 showing each year separately; and if he will make a statement.
§ Mr. John MacKayEstimates of bank borrowings by Scottish farmers are based upon a survey of the major clearing banks undertaken by the Department of Agriculture and Fisheries for Scotland in May each year. It is thought that a small part of the rise between 1983 and 1984 was the result of a change in classification procedure. The percentage changes are as follows:
Percentage 1979 + 40.5 1980 + 34.9 1981 + 20.2 1982 + 6.4 1983 + 11.5 1984 + 11.7 1985 + 6.6 1986 + 9.9 Despite the disastrous weather conditions of 1985, the rise in borrowings recorded at May 1986 was lower than that seen in 1983 or 1984 and well below that for the years 1979 to 1982. This is partly due to the fact that the rate of inflation has been brought down to a much lower level. It is expected that the improved harvest of 1986 will result in a lower rate of increase in borrowings at May 1987. The Department of Agriculture and Fisheries for Scotland will continue to monitor these trends closely.