§ Mrs. SpelmanTo ask the Minister of Agriculture, Fisheries and Food if he will assess the advantages of replacing the current HLCA with an area-based instrument for farmers in less-favoured areas. [19357]
§ Mr. RookerUnder current EC rules, compensatory allowances provided to livestock farmers in the less-favoured areas may be paid only per head of eligible livestock. The Commission's proposals in Agenda 2000 indicate that they are considering transforming compensatory allowances into a basic instrument to maintain and promote low-input farming systems. However, replacing HLCAs with an area-based instrument would not, on its own, necessarily fulfil this objective.
The pros and cons of an area-based instrument are one of the issues being addressed in an evaluation of the HLCA scheme in England, being undertaken by Drew Associates and Exeter University on behalf of the Ministry. That report will be published shortly. Other similar studies are in hand in respect of the other constituent parts of the UK. The Government is also considering HLCAs as part of its Comprehensive Spending Review and will further consider the options in the light of the Commission's detailed proposals following Agenda 2000.