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Mr. Wardle: Bearing in mind what the hon. Gentleman has just said, what does he think the climate change levy will do to the competitiveness of those growers?
Mr. Borrow: If the hon. Gentleman will allow me to continue with my speech I shall deal with various issues.
During my time in Parliament, agricultural debates have been dominated by livestock issues, perhaps reasonably given the particular problems of that sector. However, in the villages of Hesketh Bank and Tarleton in my constituency horticulture has long been a major employer, and, although there has been consolidation within the industry, a number of key issues need to be addressed. One concerns the Government's taxation policy.
If the Government levy a tax they must be clear whether it is to generate income or to tackle a problem. I remain unconvinced that increasing the pesticides tax will have the desired effect of reducing the amount of pesticides used, rather, it is only likely to increase the amount of cheaper pesticides used at the expense of better and more environmentally friendly pesticides. It is important that MAFF and the Treasury should decide
whether the purpose of the proposed pesticides tax is to increase tax revenue or to tackle an environmental problem.
The climate change levy poses a particular problem. In order to compete abroad, growers need to be able to heat their glasshouses. If a levy is imposed, it will do a great deal to unbalance the level playing field. Growers in my constituency have said time and again that they would welcome a free market, because that is what they are used to, but they want fairness in the EU in terms of the pressures on them as producers compared with those on the competition. They have suffered significantly from competition from Spain and Holland in recent years and they have pointed out to me examples of where the tax and support regimes in those countries differ from those in the UK. Those issues need to be tackled by the Government.
Twenty-five years ago, horticultural production was largely dealt with through the wholesale market system and the town of Preston had one of the strongest wholesale markets in the UK of market gardening produce. However, much production now goes straight from the grower to the supermarket, which creates an imbalance in the market. Although the industry is beginning to tackle that issue, and has done so quite successfully in certain sectors, we need a better marketing strategy and a coming together of producers, perhaps through the co-operative system, if the horticultural sector is to compete and even up that part of the playing field.
There is a direct role for the Government in the horticultural sector, as in other sectors, and they could help it to market itself, not only in the UK, but in the rest of Europe. One of the problems with UK agriculture is that it has always aimed at the domestic market rather than competing in Europe. Every other EU country sells a significant amount of agricultural production outside its domestic market, but the UK does not. We need to seize the opportunity. If we are to make beef a premium product, there is scope in the horticultural sector for achieving the same status and competing for a niche market across Europe. The Government should recognise the need to do that and perhaps give more attention to the horticultural sector.
I am concerned about the extent to which training and education in the agricultural sector is becoming dominated by classroom teaching in colleges. Myerscough college, which is in the constituency of my hon. Friend the Member for Lancaster and Wyre (Mr. Dawson), has a base in Hutton in my constituency. It is a fine college and I visit it regularly, but we need to recognise that a lot of agricultural training needs to be carried out on the job and on the farm and we need the right training to be available locally. It is wrong to assume that people can travel 20 or 30 miles to an agricultural college to do all their training. That is a myth--it will not work.
In my constituency, Lancashire Growers, which is a consortium of farming businesses, has put together a training agency. It has done excellent work over the years, but I am concerned about the extent to which such industry-based training agencies are being sidelined and not recognised as being important. The danger is that more training will go from the farm into the classroom. There is a role for both, but if we are not careful we will fail to recognise the importance of farm-based training. That could happen because the agricultural sector tends to be dominated by small companies and their opportunities
for putting their case to the Government are limited compared with those of larger companies. The same is true of any sector of the economy, but it is particularly so in agriculture.
Mr. William Thompson (West Tyrone):
I welcomethe opportunity to highlight yet again the particular agricultural difficulties that we experience in Northern Ireland.
I am glad that the House as a whole now recognises the serious state of the whole agriculture industry in the United Kingdom. Many Members have drawn attention to difficulties in their areas. We in Northern Ireland have those difficulties as well; indeed, we have them to a greater extent, in terms of percentage and the fact that we have more farmers per head of population. A total of £572 million has been removed from the Province's economy over the past five years, and the annual total farm income has plummeted by 75 per cent. to £82 million in that period. The agri-food industry in Northern Ireland is its largest single industry, accounting for 10 per cent. of civil employment and 7 per cent. of gross domestic product.
In 1997, the average net farm income was only £3,093, 75 per cent. of farms had a net income of less than £10,000, and 38 per cent. of farms made a loss. Farm incomes in Northern Ireland are falling at twice the rate of those in the United Kingdom. There is clearly a tremendous problem in Northern Ireland. The banks are owed some £520 million--not to mention what the feed suppliers are owed.
The Minister recently received a deputation from Northern Ireland, and I welcome that. Someone mentioned tea and sympathy; we were certainly given tea, and indeed we were given sympathy. Moreover, we were given promises that something might happen, and that something might be said today. Of course, something has been said. We find that there is to be £5 million for marketing, and that a greater incentive is to be provided in regard to labelling. Although those developments are welcome, however, they are not adequate to deal with the problems of the Province.
There is still a big problem in the beef industry, although the ban has been lifted. Because of strict procedures, very few cattle are available for export. It would be helpful if the beef on the bone ban were lifted as well. The Minister says that the advice from the hygiene point of view is that it can be lifted; indeed, he says that he would lift it if he had the support of the environmental authorities and the Parliament and Assembly in Scotland and Wales. I say this to the Minister: lift the ban immediately. If he does so, he will surely find that Scotland and Wales will follow suit very quickly. They could not possibly continue the ban in their countries if it had been lifted here. The ban has been a
stick to beat our backs with. The French Government say, "They have banned their own beef; if they do not eat their beef, why should we buy it?"
I sympathise with what the hon. Member for Beverley and Holderness (Mr. Cran) said about the pig industry. He expressed precisely the feelings in my own constituency. Although his comments related to pig farmers and the pig industry in his constituency, they apply equally in mine. Unfortunately, however, the pig price in my constituency is between 10p and 15p less than it is on the mainland. We also have additional costs in importing grain and in pig production generally.
I had hoped that Ministers would today announce that they are doing away with the offal disposal regulations. Such action would make a significant difference to many pig farmers, providing them with another 5p to 6p in the sale of each pig. Although it would not enable farmers to make a profit, it would help them to pay for the meal being consumed, and allow some of them to stay in business until the day comes--we hope that it will come--when they are able to make a profit.
When we met the Agriculture Minister, he told us that he will approach the Spongiform Encephalopathy Advisory Committee. He said that again today. We want to know when he will do that and when we will see some action. We have promises, but we want action.
Many farmers in my constituency, especially pig farmers, have made great capital expenditure to build new premises to meet the new regulations banning tethers and crates. Farmers have gone to banks and borrowed money, but now are unable to pay back interest or capital. They are desperate.
If the Government introduce safety regulations that are different from those applying elsewhere in Europe, farmers should be entitled to Government compensation for the additional expenditure. When pig farmers come to me, they simply say, "All we want is a level playing field." It is all right having a common market and doing everything in common, but an uneven playing field negates the argument in favour of such a market. On behalf my pig farmers, I plead for a level playing field.
The incidence of BSE in Northern Ireland is the lowest in the United Kingdom. This year, we have had only five cases. The Republic of Ireland has twice as many cases of BSE as Northern Ireland, but, unlike Northern Ireland, it is able to export cattle. Northern Ireland should also be able to export. We should be recognised as an area with a low incidence of BSE, so that many of the restrictions may be lifted. Although I realise that such a move may not go down well in some parts of Britain, given our very low incidence of BSE, there is a strong argument for it.
The Government have agreed to request the provision of £129 million that is available from the European Union's agrimonetary compensation scheme in 2000 and 2001. The United Kingdom also has the option of providing a matching amount, but, to date, there has not been such a commitment. Even if all possible funds were made available, that would still result in a decrease in the levels of all CAP premium payments in Northern Ireland. I ask the Government to provide the £120 million matching funds in 2000 and 2001.
I understand that a proportion of the agrimonetary compensation agreed in 1997--
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