§ Mr. SpeedTo ask the Minister for Agriculture, Fisheries and Food if he has now completed his assessment of what aid he can give hard fruit growers, crop growers and others affected by the recent storms in southern and eastern England; and if he will make a statement.
§ Mr. MacGregor[holding answer 27 November 1987]: Since the occurence of the storm of 15/16 October I have been involved in assessing the extent and nature of the damage on the basis of information from ministerial visits, from the industry and from official sources. Following this assessment we have decided to introduce special storm damage compensation arrangements to help meet the cost of some of the destruction wrought by the storm of 15/16 October. These will apply to two areas where insurance is not normal commercial practice. First, for orchards I am introducing a flat rate payment of £2 per tree for the replacement of certified stock or or its imported equivalent of any trees in commercial orchards which were destroyed or severely damaged in the storm. Because of the possible shortage of nursery stock, growers will be allowed until 31 March 1990 to complete work. Second, I can now confirm, further to my statement of 27 October, that grant rates of 60 per cent, will be offered for the replacement of storm-damaged hedges, windbreaks and traditional stone walls. Grants will also be available for replacement of shelter belts. Where at least 50 per cent, of the trees in the shelter belts are broadleaved grant will be at 60 per cent, in other cases grant of 30 per cent, will be available. Where individual trees in a shelter are being replaced the grant will be determined by the nature of the trees. Farmers and growers will have until 31 March 1989 to complete work and submit claims.
For this second category I initially explored the possibility of special rates of grant under the agricultural improvement scheme. However, I have now chosen instead to make arrangements for both this sector and for orchards in the form of a separate storm damage recovery scheme. This will give a flexibility which will benefit recipients in a number of ways. For instance, eligibility for aid will not be affected by grant already received, nor by the size of the enterprise, nor by the application of investment ceilings. Moreover, certain restrictions of coverage — such as the requirement to plant only particular varieties of orchard trees—can be waived in a separate scheme. Finally, it enables farmers and growers to concentrate on the urgent question of straightforward replacement of damaged items without the complications of meeting general farm improvement criteria.
Prior notification of intended works will need to be given by 31 March 1988. Copies of associated documentation will be made available shortly in the Library of the House. Approval for these arrangements 412W will be sought in a Supplementary Supply Estimate for class IV, vote 3 and will rest solely on the authority of the Estimate and the Appropriation Act.
Third, in the glasshouse sector I recognise that growers who have a plan currently in force under the AIS scheme may face problems meeting the closing date of 30 November 1988 because of setbacks caused by the storm and lack of availability of materials and labour. I am therefore proposing to extend the date of submission of grant claims for those with existing plans for six months to the end of May 1989.
I recognise also that as a result of the storm damage holders of agriculture improvement plans will be unable to continue with their investment programmes in the form in which they were originally approved. I have therefore issued instructions to ensure that the rules can be administered flexibly in these cases in recognition of the force majeure circumstances.
I have already made it clear that insurance in the glasshouse sector is the normal rule, and there is no way in which the Government can seek to make equal those who have not insured with those who have done so. I would, however, draw growers' attention to the favourable rates of aid available for heated glasshouse replacement under the agriculture improvement scheme. Growers will be aware that these grants would have been expected to fall back after 30 November 1988, when the derogation permitting the current favourable arrangements expires, to the standard 25 per cent, and 15 per cent, rates within a ceiling of £50,000. I have decided instead to fix rates for replacing heated glasshouses at 45 per cent, and 35 per cent, within a ceiling of £74,000. These arrangements, which will apply initially for a year, are at the highest levels currently permitted under EC Regulation 797/85. Growers who as a result of the storm need to undertake extra works, including site clearance as well as rebuilding, for which they could not have planned stand to derive considerable benefits from these adjustments.
I am very much aware of the difficulties that many have faced as a result of the storm. These measures, which are designed particularly to cover areas where insurance is not practicable will be of real benefit to those worst affected. I would like to express my admiration, and that of my colleagues, for the resilience and industry they are displaying in surmounting these difficult circumstances.