§ Lord Rankeillourasked Her Majesty's Government:
Whether they have completed their review of the economic conditions in the hill and upland areas and whether they will make a statement on the rates of hill livestock compensatory allowances and assisted scheme conditions for 1989.
§ The Parliamentary Under-Secretary of State, Ministry of Agriculture, Fisheries and Food (Baroness Trumpington)My right honourable friend the Minister of Agriculture, Fisheries and Food and my right honourable friends the Secretaries of State for Scotland, Wales and Northern Ireland have now completed the annual review of the economic conditions in the hills and uplands.
The review has shown that the average net farm income 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 474WA year. They recognise that the support provided through HLCAs is of fundamental importance in maintaining the hill and upland communities and in providing environmental benefits, and they will continue to give particular assistance to farmers in the LFAs. However, against the generally improving economic background in the LFAs, my right honourable friends 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 right honourable friends know that many LFA producers are concerned about the impact on them of the proposed changes in the EC sheepmeat and beef regimes. They understand these concerns and, while they cannot predict the outcome of the current EC negotiations, they will certainly have the special interests of the LFA livestock sector very much in mind in these negotiations.