§ Mr. KirkwoodTo ask the Secretary of State for Scotland if he will make a statement on the reasons for the miscalculation in the statistics showing the amount of cereal production in Scotland for the years between 1989 and 1991.
§ Sir Hector Monro[holding answer 25 October 1993]: There has been no miscalculation in the amount of cereal production in Scotland between 1989 and 1991. The European Commission recently agreed that the original base areas, provided on 16 September 1992, for the arable area payments scheme introduced this year should be adjusted in the light of information from claims submitted under the new scheme. This technical adjustment, between the less favoured area and the non-less favoured area base areas, did not alter the total base area originally provided.
§ Mr. KirkwoodTo ask the Secretary of State for Scotland (1) what are the estimated losses per hectare that will result from miscalculation of statistics from farmers in the non-less favoured areas for cereals, oilseed rape, peas and beans and set-aside land;
(2) if he will make a statement on the increase in the amount of land to be set aside next year; and whether compensation is to be paid on the additional areas set aside.
§ Sir Hector Monro[holding answer 25 October 1993]: Officials are working with the EC Commission to determine the revised rates of payment under the arable area payments scheme. These revised rates result from the adjustment in the distribution of land between the less favoured area (LFA) and the non-less favoured area (non-LFA) and from the overshoot in cropping in the non-less favoured area.
An announcement on the revised rates and on next year's additional set-aside requirement will be made as soon as possible.
§ Mr. KirkwoodTo ask the Secretary of State for Scotland what steps he has taken to ensure that the632W European Commission is aware of the effects of the changes as a result of the miscalculation of statistics for cereal production in Scotland; and what assurances he has had that the EC will not seek to exact penalties by way of further areas of set-aside in the coming year.
§ Sir Hector Monro[holding answer 25 October 1993]: As soon as it became apparent from the claims submitted this year under the arable area payments scheme that an adjustment to the base area figures orginally submitted to the EC Commission was necessary, my right hon. Friend personally pressed the Commission to agree to a technical adjustment of the Scottish base areas. The Commission has now agreed to the necessary technical adjustment of the LFA and non-LFA elements within Scotland's total base area; and my right hon. Friend and I are most grateful to the Commission for agreeing to that re adjustment.
There remains an overshoot in the non-LFA area which reflects an increase in cropping in that area. The EC regulations governing the arable area payments scheme stipulate that the effect of this overshoot is to reduce arable aid payments within the non-LFA area proportionately in the current year and to increase the set-aside requirement in the coming year by the percentage by which the regional base has been exceeded, that increase being uncompensated.
My right hon. Friend and I fully recognise that any penalty will be unwelcome to arable farmers. We cannot, however, vary the total Scottish base area, which reflects data already formally submitted to the Commission; nor can we adjust the area base control regime in mid-stream. The Scheme is designed to penalise areas in excess of base areas on which aid is claimed; and we cannot simply wish away the problem of over-cropping and the resultant additional one-year set-aside requirement.