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1.43 pm

The Minister of State, Northern Ireland Office (Sir John Wheeler): I congratulate the hon. Member for South Down (Mr. McGrady) on securing this debate and on the manner in which he has presented this important subject. I notice that the hon. Member for East Londonderry (Mr. Ross) is also in his place, and is taking an interest.

Before going into the details, I shall touch on the five points that the hon. Gentleman raised. He asked for an inquiry into the way in which the scheme was devised and set up. As he understands, that is a matter for my noble Friend, Baroness Denton of Wakefield. I shall certainly draw his remarks to her attention. The need for an inquiry depends on how the scheme was set up, which I shall deal with in a moment.

The hon. Gentleman also suggests the admission of late applicants. One of the difficulties, to which he has already alluded, is the fact that the scheme is inevitably limited by the amount of cash available. I am sure that he will wish to consider that. He suggests finding other sources of funding. Drawing an extra pound from me, as the Minister responsible for finance, is, alas, very difficult. Whether

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my noble Friend is able to find extra capacity in her tight budget is a matter for her. The hon. Gentleman also asked for proper advice and other matters to be considered.

To help the hon. Gentleman, I shall deal with some of the details of the scheme. The farm and countryside enhancement scheme was formulated by the Department of Agriculture for Northern Ireland as part of its portfolio of schemes under the European Union special support programme for peace and reconciliation. That programme was designed to help the areas of Northern Ireland that had suffered most from violence over the previous 25 years.

Herein lies the difficulty, which I think the hon. Gentleman will readily comprehend. He reproved the Government for the test of violence. It is not within the gift of the United Kingdom Government to change that requirement, because the scheme was devised under the European Union peace and reconciliation programme, which specifically targeted those areas that had suffered most from violence. That is a requirement of the peace scheme. The Government's hands are therefore tied: any scheme devised under that programme had to be targeted to meet that requirement.

The farm and countryside enhancement scheme was targeted on the basis of a unique violence indicator, which combined Royal Ulster Constabulary regional statistics on violence with a deprivation index. That was possible on a district council level, and, as a result, 14 district council areas became eligible for the scheme.

It is acknowledged that other district council areas, and areas within other district councils, have also suffered from violence. However, the programme has a specific targeting requirement, and it was not possible to open the scheme to the whole of Northern Ireland. The scheme is additional to the range of grants and subsidies available throughout Northern Ireland through a number of national and European funded programmes to support the farming community.

The hon. Gentleman mentioned that the scheme is known as FACES, although my face is not particularly red as I account for it. It provides financial incentives and training for farmers in countryside management, and has the overall objective of enhancing rural tourism through environmental improvement. Eligible farmers will be involved in landscape enhancement, protection and restoration of heritage features, water quality improvements, innovative agri-improvement projects and a rural training programme. Department of Agriculture officials will carry out a farm audit for each applicant and agree a plan of action. The financial incentives are attractive, at 60 to 80 per cent. grant rate, but considerable commitment is required from participating farmers in their role as custodians of the rural environment.

The hon. Member for South Down mentioned the publicity for the scheme, and its early closure. The scheme was opened on 27 January with a press release from my noble Friend Baroness Denton of Wakefield, who is Minister of Agriculture in Northern Ireland. The announcement followed a long period of scheme development, during which farming and environmental interest groups were extensively consulted. That consultation may have given rise to the rumour mill that gave advance notice of the scheme, but the views and many of the ideas put forward by those groups were included in the formulation of the scheme.

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As the hon. Gentleman told the House, the scheme was announced by the normal press release, which was followed by radio and television coverage on 28 and 29 January. Staff in the Department of Agriculture at all six county agricultural offices received 184 applications on 28 January, 897 on 29 January, and 1,451 on 30 January, giving a total of 2,532.

By 30 January, it was clear that the volume of applications could easily exhaust the available budget of £4.25 million. It was, unfortunately, necessary to close the scheme immediately and without notice. Any time extension would have created insurmountable financial difficulty for administration of the scheme, because it was limited by the amount of money that was available.

Some 740 further applications were received and date-stamped on 31 January, but it was made clear to applicants that the scheme had been closed. Given that 2,532 applications have already been received, it is highly unlikely that any of the 740 can be considered for assistance. I appreciate that many people will be disappointed that they have not been able to take advantage of the scheme. With a finite budget, that was unavoidable.

I assure the hon. Member that all applications will be carefully scrutinised by Department of Agriculture officials to ensure their authenticity and eligibility, and to ensure that there is no duplication with other schemes. Only plans that make a tangible contribution to the aims of the scheme, and which are completed satisfactorily, will be approved and funded by the scheme. The scheme will be closely and continuously monitored and evaluated.

While I acknowledge the disappointment felt by some, I am pleased by the uptake, and I look forward to seeing the results of the scheme for one of Northern Ireland's greatest assets--its rural environment.

Mr. McGrady: I appreciate that the Minister is trying to be helpful, but he has not addressed the injustice created by the situation. The scheme is predicated on terrorism. If that is the only criterion for the allocation of the resources for peace and reconciliation, the 12 additional district councils cannot qualify for that funding. The announcement was made on 28 January and the scheme closed on 30 January, and it was promoted by a lovely, glossy magazine. Within that time scale, how

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could that magazine be distributed and understood, and how could applications be made? Is the magazine now just waste paper? Who received it, and when?

Sir John Wheeler: I am grateful to the hon. Gentleman for his further points. Extensive consultation about the nature of the scheme was carried out by the Department of Agriculture, but he has rightly identified some of the shortcomings of the scheme. He also mentioned the leaflet that has been printed, published and distributed.

The hon. Gentleman called for an inquiry into the scheme. I undertake to draw his remarks to the attention of my noble Friend Baroness Denton, and I will seek to ensure that she inquires into the matter carefully.

The scheme was limited by cash, and it is always difficult to administer such schemes. There have to be some criteria that are understood publicly and to which people can respond with confidence. The Department of Agriculture, through its consultative arrangements, sought to achieve that, but the hon. Gentleman has a point about how the scheme was publicised by the press release and radio and television coverage.

I also understand the frustration that people felt when they realised that their applications would not be examined because they had not been made before the cut-off point. However, I cannot promise to reverse the scheme, because we have commitments to those who successfully applied.

I will invite my noble Friend Baroness Denton to consider the methodology used to set up the scheme and the lessons that can be learned to improve such schemes in the future. There may be implications for European peace and reconciliation funding which, by its nature, ties the hands of the United Kingdom Government. The Government are limited in their ability to spend that money, which originally came from the taxpayers of the United Kingdom, practically and sensibly for the benefit of the people of Northern Ireland in the special circumstances they face.

I take the hon. Member's comments seriously. They were honourably meant, and clearly presented. I will ensure that the matter is pursued in the way I have described.

It being two minutes to Two o'clock, the motion for the Adjournment of the House lapsed, without Question put.

Sitting suspended, pursuant to Standing Order No. 10 (Wednesday sittings), till half-past Two o'clock.

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Oral Answers to Questions

TRADE AND INDUSTRY

Sanctions (Libya)

1. Mr. Dalyell: To ask the President of the Board of Trade what representations he has received from British firms about the effect on British industry of sanctions against Libya. [15021]

The Minister for Competition and Consumer Affairs (Mr. John M. Taylor): We have had representations from various British firms involved in major projects and general trade with Libya, but they have not necessarily been directly related to the UN sanctions.

Mr. Dalyell: Will the Minister take advantage of the presence in London today of Madeleine Albright to raise with her the basic issue--the cause of all the trouble--the UN sanctions, in the light of the fact that James T. Thurman, the forensic expert, is now accused by his own colleagues of fabricating forensic evidence? Should we not talk to the Americans about this?

Mr. Taylor: The President of the Board of Trade has no plans to see the American Secretary of State in the immediate future but there are meetings with American diplomatic representatives from time to time. On the next occasion, the President will certainly bear in mind the points that the hon. Gentleman has made.

Mr. John Marshall: Does my hon. Friend agree that Gaddafi's regime is one of the most evil in the world, and has sought to destabilise the middle east and attack western democracies? Should not we deny it the means of prosperity and the means of our own destruction?

Mr. Taylor: I would certainly shortlist Gaddafi's regime as among the most wicked. As my hon. Friend knows, the United Kingdom has kept scrupulously to the United Nations position. The United Nations is not content with the American position, which goes further. We reject the United States' attempt to impose sanctions on its allies in respect of trade that is lawful in the eyes of the UN.


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