§ Mr. LlwydTo ask the Minister of Agriculture, Fisheries and Food what representations his Department has received on the subject of offering financial assistance to new entrants into fanning in the last three years; and if he will make a statement. [2528]
§ Mr. BoswellA number of suggestions have been made to the Department for supporting new entrants to farming. These include modifications to the taxation regime, lower interest rates, quota allocation arrangements and the introduction of assistance under EC regulation 2328/91. This measure enables member states to provide assistance in the form of installation premia or interest rate subsidies on loans for new farms; it has not been taken up in the United Kingdom. We believe that such measures are more appropriate in cases where member states' inheritance laws may lead to the breaking up of agricultural holdings and hence the need for additional infrastructure investment to maintain viability. In the UK, holdings tend to pass intact from one generation to the next. Our recent deregulatory steps on tenancy reform, in the Agriculture Tenancies Act 1995, are designed to encourage new entrants to farming, and have been widely welcomed across the industry.