HC Deb 12 December 1991 vol 200 cc545-8W
Mr. Barry Jones

To ask the Minister of Agriculture, Fisheries and Food what studies have been undertaken by his Ministry covering the relative effectiveness of set-aside schemes as against conventional subsidies in connection with the problem of surplus production; and if he will publish them.

Mr. Curry

Set-aside was an integral part of the 1988 package of agricultural stabilisers which introduced important price cuts for arable crops. It would be misleading to assess the 1988 scheme in isolation from this context.

In 1989 the Department commissioned Reading university to undertake a socio-economic evaluation of the set-aside policy. This included a simple comparison of the Exchequer costs of set-aside with the estimated marginal disposal costs saved on production forgone for the first year of the scheme. The study did not seek to assess the effectiveness of the scheme in the light of the wider considerations outlined above.

Reading university will be publishing its findings early next year.

Dr. David Clark

To ask the Minister of Agriculture, Fisheries and Food if he will list, in chronological order, the changes, amendments or extensions to the set-aside scheme that have been made since its introduction in 1988; and if he will make a statement.

Mr. Gummer

The set-aside scheme was implemented in Great Britain through the Set-Aside Regulations 1988. These regulations have been amended three times.

The main changes introduced by the Set-Aside (Amendment) Regulations 1989 were to

  1. (i) extend the definition of arable crops covered by the scheme
  2. (ii) amend the definition of arable land to allow land in bare fallow to count towards the base area
  3. (iii) permit temporary grassland to be set-aside in certain circumstances
  4. (iv) stipulate that the set-aside area may not exceed the total area of relevant arable land registered for the reference period
  5. (v) add a definition of grazing land
  6. (vi) allow the appropriate Minister to authorise the application of inorganic fertilisers on set-aside land in certain circumstances.

The main changes introduced by the Set-Aside (Amendment) Regulations 1990 were to

  1. (i) introduce a new grazed fallow option
  2. (ii) introduce new environmental management conditions and extend the range of environmental features to be protected under the fallow options and increase the relevant grants to reflect this
  3. (iii) reduce the level of grant payable when more than 100 hectares and more than 75 per cent. of the base area are fallowed
  4. (iv) allow a modest level of flexibility in the amount of land set-aside annually under the rotational fallow option.

The Set-Aside (Amendment) Regulations 1991 amended the definition of less-favoured areas for the purposes of the scheme.

Dr. David Clark

To ask the Minister of Agriculture, Fisheries and Food if he will give the numbers of landowners in England who are currently receiving annual payments under the set-aside scheme of(a) between £5,000 and £9,999, (b) between £10,000 and £19,999, (c) between £20,000 and £29,999, (d) between £30,000 and £39,999, (e) between £40,000 and £49,000, (f) between £50,000 and £59,999, (g) between £60,000 and £69,999 and (h) £70,000 and over.

Mr. Gummer

For set-aside participants who joined in the first two years of the scheme, the number of set-aside agreements recorded centrally in England is: under £5,000—1,378, and over £5,000—840. The figures break down as follows:

Annual payment Number of agreements
Less than £5,000 1,378
£5,000—£9,999 444
£10,000—£19,999 267
£20,000—£29,999 76
£30,000—£39,999 25
£40,000—£49,999 15
£50,000—£59,999 3
£60,000—£69,999 4
£70,000 and over 6

These figures include payments to both landowners and tenants. Information on the payments to landowners alone and to participants who joined in the third year of the scheme is not readily available and could be provided only at disproportionate cost.

Mr. Ron Davies

To ask the Minister of Agriculture, Fisheries and Food if he will place in the Library a standard copy of each of the separate items of correspondence sent from his Department to applicants entering into the set-aside scheme; and if he will ensure that such correspondence includes all letters from initial acknowledgement to final payment.

Mr. Maclean

I have today placed copies of all the standard forms and letters in the Library.

Dr. David Clark

To ask the Minister of Agriculture, Fisheries and Food how many set-aside schemes have been monitored by(a) aerial survey and (b) ground inspection; and if he will make a statement.

Mr. Gummer

It is not my Department's policy to publish detailed information about its inspection arrangements as this could seriously impede effective enforcement.

A combination of aerial photography and satellite imagery is used to check the base year registration details for a significant proportion of applications each year. In addition the intention is to make a physical inspection of all set-aside land at least once during the course of a five-year agreement. Additional inspections would be carried out where this was judged necessary.

The European Commission is anxious to extend the use of remote sensing as an enforcement mechanism. My Department is currently considering a joint trial with the Commission to assess the scope for using this technique more widely.

Dr. David Clark

To ask the Minister of Agriculture, Fisheries and Food if he will conduct a review into the way in which set-aside applications are processed; and if he will make a statement.

Mr. Gummer

Our systems are kept under continual review.

Dr. David Clark

To ask the Minister of Agriculture, Fisheries and Food what proportion of set-aside applications are monitored and inspected prior to approval; what mechanism is used; and if he will make a statement.

Mr. Gummer

All set-aside applications are checked to ensure that they have been properly completed and that the proposal to set land aside meets the relevant conditions of the scheme. Physical site inspections, aerial photography and satellite imagery are used as appropriate to confirm that the land concerned is eligible and was down to arable crops in the qualifying base year. In the five-year set-aside scheme, my Department also aims to carry out a physical inspection at least once during the period of the set-aside agreement. Under the temporary one-year set-aside scheme, a proportion of the land entered into the scheme is subject to physical inspection. It would not be appropriate to publish full details of these arrangements as this could seriously impede effective enforcement.

It is my Department's policy to recover grant, in whole or in part, if a deliberate breach of the rules is identified at any stage during the period of a set-aside agreement.