Crown land

Part of Orders of the Day — Agriculture Bill – in the House of Commons at 7:15 pm on 17 April 1986.

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Photo of Mr Richard Livsey Mr Richard Livsey , Brecon and Radnor 7:15, 17 April 1986

Before I deal with new clause 4, I, too, should like to congratulate the Minister of State and his wife, who have done so well in producing their child so soon. I sympathise with the Minister of Agriculture, who has been suffering from influenza this week. Although he is not in the House, I am glad that his voice held out long enough to explain the complexities of new clause 4. It was extraordinary that he had to plead for silence in order to explain its complexities. If he found it difficult to explain the new clause, how are right hon. and hon. Members expected to understand it, and how can those outside Parliament be expected to accept it? The unacceptability of new clause 4 is to be found in the first line of paragraph 6(1) of the new schedule and in the calculation of quota in paragraph 6(4).

The definitions of standard quota depend on a formula that is to be put forward in a statutory instrument. A formula that is based upon 4,500 litres per cow and upon a stocking rate of 1·9 cows per hectare and which also takes account of rental value of the land, does not stand up to examination. The Minister says that the formula allows for flexibility, but I believe that it is set in concrete. The attraction of new clause 6 is that it is much more open-ended. It provides a much fairer basis for arbitration.

If the Minister's fonnula were used for a standard quota, in certain circumstances a tenant could be left with almost nothing. The legislation must be seen to be fair. This proposal is not the same as that of February. The formula is inequitable in its approach to the farmer on marginal land when compared with, say, grade 2 land. There are 37,000 dairy farmers in England and Wales. Many of them are farming on marginal land, not on high quality land. The Minister's formula will militate against those farmers who, because they are farming on marginal land, already operate at a disadvantage.

The Minister referred to the position before the introduction of milk quotas in 1984. Production was then 10 per cent. higher than it is now. This formula means that the tenant's quota will now be even lower. The Minister's arbitration proposals are very restrictive and will probably tie the hands of the arbitrator. The Royal Institution of Chartered Surveyors is critical of this proposal. A tenant could end up with only 25 per cent. of the quota, which would be inequitable. The hon. Member for Milton Keynes (Mr. Benyon) said that if new clause 6 were agreed to, it would result in a tax on landlords. However, he neglected to say that, because the quota is attached to the value of the landlord's land, its value is greater. Therefore he does not lose to such a great extent.