Joint Committee on Statutory Instruments Thirty-Second Report


Memorandum by the Ministry of Agriculture, Fisheries and Food


1. This Memorandum is submitted to the Joint Committee on Statutory Instruments in response to their letter of 8 November 2000 in which they ask for an explanation of the following point:

    "Notices (6) to (12) to Column 3 of the Schedule to this instrument appear to require a deduction from the relevant figure in that column which in each case results in a negative annual income figure. In such cases is the net annual income to be treated as zero, is the unit of land to be treated as producing a net annual loss equivalent to that figure, or is something else intended?"

2. The amounts referred to at notes (6) to (12) to column 3 are estimates of the arable area payments appropriate to each crop. The rates of arable area payments differ between crops. In the extreme minority of situations where a crop is grown but an area payment is not made, the area payment is deducted and this may result in a negative value indicating a net annual loss, equivalent to that figure. On the vast majority of crop areas, however, no such deduction shall be required.

13 November 2000

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