§ Mr. Barry JonesTo ask the Secretary of State for Wales if he will make a statement on the prospects for beef farming. [69539]
Mr. Jon Owen JonesThe long term future of the beef sector will depend to a large degree on the outcome of the negotiations on the Agenda 2000 proposals. If the current proposals are agreed, they will provide for a significant reduction in beef prices together with an increase in direct payments to producers to compensate for the reduction in prices. This will provide the sector with the opportunity to become more market orientated and may boost consumption. It is clear that reform of the regime is essential in the light of the structural surplus that currently exists in the beef sector. In the continuing negotiations on the Agenda 2000 proposals we will be seeking to ensure that all member states play their part in bringing beef production into line with consumption. I believe that, with planning and re-valuation of their costs structure, Welsh beef producers, where they can utilise their natural advantages such as an abundance of grass, good breeding stock and a wealth of technical expertise at their disposal, should be in a position to succeed.
An industry-led Action Plan for the Lamb and Beef sectors will be published shortly, with the support of the Welsh Office and the Welsh Development Agency.
In future this will become the responsibility of the National Assembly.