HC Deb 14 December 1988 vol 143 c637W
Mr. Andrew Welsh

To ask the Secretary of State for Scotland if he will estimate the cost effect of interest rate increases since May on the average arable farm in the east of Scotland; and if he will express these figures by acre.

Mr. Michael Forsyth

Overall borrowings by Scottish farmers are somewhat lower than last year, but the position will vary from one type of farm to another.

Mr. Andrew Welsh

To ask the Secretary of State for Scotland what assessment he has made of the effect on the incomes of arable farmers in the east of Scotland of payments of bank and other interest on loans for purchase of inputs up to May 1989.

Mr. Michael Forsyth

I have no information about the extent to which farmers' loans are used for the purchase of inputs.

Mr. Andrew Welsh

To ask the Secretary of State for Scotland what representations he has received from the Scottish farming industry about interest rates rises; and what indications he has of their effect on Scottish farmers.

Mr. Michael Forsyth

My right hon. and learned Friend is naturally very much aware of the concerns of Scottish farmers about the possible implications of increases in interest rates. Higher interest rates are expected to add £3 million to interest payments this year, but, because of a lower level of overall borrowings than a year ago, interest payments in 1988 are likely to be only marginally higher at £97 million than the 1987 level of £96 million.