§ Mr. LevittTo ask the Minister of Agriculture, Fisheries and Food what rates of aid will be paid to beef and sheep producers as a result of the package announced on 22 December; and if he will make a statement. [27628]
Dr. John CunninghamI indicated in my statement that consultation with the Commission would be necessary. The Commission was not able to approve my proposals for an increase in HLCA rates for one year only, but Commissioner Fischler has co-operated with me in devising an acceptable alternative which maintains the overall value of the package at £85 million and divides 591W the benefit between sheep and beef producers as I had originally proposed. I shall now therefore be utilising £85 million of the EU compensation available to off-set the effects of sterling green rate revaluations. £72.5 million will go to suckler cow producers on the basis of their 1996 claims; £12.5 million will go to sheep producers on the basis of their 1997 ewe premium claims. The latter sum will be drawn from compensation to be calculated in respect of the livestock headage payments whose rate is determined each year by the green rate applying on 1 January.
For suckler cows, the rate of aid will be £44.20 per head. Precise figures for sheep will be determined shortly but I expect them to be around 50p per head at the basic rate and 73p per head in the LFA.
I will separately be laying an order maintaining HCLA rates for 1998 at their 1996 levels.