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Mr. Tyler: I am following carefully what the Minister is saying, but will he acknowledge that the change in the number of ewes that are eligible in the disadvantaged areas results in a cut? It cannot be interpreted in any other way. I ask him to confirm that that was not required by any direction from Brussels.

Mr. Boswell: I am grateful to the hon. Gentleman for mentioning that point, as it has caused confusion.

As I think I have already made clear, the background to the announcement of a reduction in the stocking limit was precautionary, and it enabled us to allow the autumn review, which was reaching its conclusion, to consider the level at which the amount on payments in respect to the ewes in the disadvantaged areas should be fixed. As we have not announced the figures, because we need to await the announcement of the sterling ecu rate on 1 January, the hon. Gentleman's concern, although strongly felt and genuinely intentioned, is somewhat premature.

In the measures, including the rates that were announced by my right hon. Friend on 28 November, it is clear that the overall aim was to consider the economy in general--notably in respect of maintaining tight control of public expenditure and continuing to reduce the public sector borrowing requirement. Those are important parts of our programme and I do not resile from them in any respect.

Equally, it should not be forgotten that hill farmers, too, stand to benefit from the measures to reduce taxation and to control inflation which were announced in the Budget. Therefore, against the background of a difficult expenditure round, I am pleased that we were able to work hard to maintain the rates of HLCA at 1995 levels, as I have described to the House tonight.

Question put and agreed to.

11 Dec 1995 : Column 815



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