§ Sir Hector MonroTo ask the Minister of Agriculture, Fisheries and Food whether he and his right hon. Friends have completed their review of the economic conditions in the hill and upland areas; and if he will make a statement on the rates of hill livestock compensatory allowances and associated scheme conditions for 1989.
§ Mr. MacGregorMy right hon. Friends and I have now completed the annual review of the economic conditions in the hills and uplands.
The review has shown that the average net farm incomes of livestock producers in the United Kingdom's less favoured areas have improved over the last two years, in some cases considerably. This situation owes much to the Government's support measures, including hill livestock compensatory allowances which are likely to top £115 million this year. We recognise that the support provided through HLCAs is of fundamental importance in maintaining the hill and upland communities and in providing environmental benefits, and we shall continue to give particular assistance to farmers in the LFAs. However, against the generally improving economic background in the LFAs, my colleagues and I have decided that the rates of hill livestock compensatory allowance for 1989 should remain at the current levels and that there should be no change in the associated conditions.
My colleagues and I know that many LFA producers are concerned about the impact on them of the proposed changes in the EC sheepmeat and beef regimes. We understand these concerns and, while we cannot predict the outcome of the current EC negotiations, we shall certainly have the special interests of the LFA livestock sector very much in mind in these negotiations.