Welsh Affairs

Part of the debate – in the House of Commons at 7:03 pm on 28 February 1991.

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Photo of Mr Richard Livsey Mr Richard Livsey , Brecon and Radnor 7:03, 28 February 1991

That is a timely intervention, because there are 31 soldiers from the Brecon area currently serving in the Gulf. It is sad that the Army proposes to close clown its headquarters in Wales and amalgamate it with the Army in the north-west and in the midlands. That is wholly unacceptable to the people of Wales and to the army in Wales.

Lieutenant-General Sir Peter de la Billiere was general officer commanding Wales only two years ago. I know him extremely well. He is an outstanding soldier who has done a brilliant job, with the allies and the coalition in the Gulf, by winning the battle of Desert Storm. It is sad that, according to the Ministry of Defence's proposals, we shall not have a GOC Wales of major-general status. Apparently, we shall have a headquarters based in Shrewsbury. In view of the Army tradition in Wales, that is wholly unacceptable. It impinges on recruitment, on the status of the Army in Wales and also on employment.

I implore the Secretary of State to get in touch with the Secretary of State for Defence and put to him, fairly and squarely, the strong feeling in Wales about the disbanding of the Army base. After all, we come from the area from which the archers of Agincourt went with Henry V to win a great battle. The area has a tradition that goes back many centuries, and that must not be stopped in its tracks. The loyalty must be maintained. Why is it that Scotland will retain its GOC at the rank of general, but Wales will not? It will go down to brigadier level, but that is wholly unacceptable and means a loss of status. I suggest to the Secretary of State that there is no better time than the present to make representations to the Ministry of Defence. I am sure that he will be supported by General Sir Peter de la Billiere.

I shall now deal with the economy, which the right hon. Member for Llanelli (Mr. Davies) mentioned. Interest rates, especially, have had a devastating effect on the Welsh economy—one has only to consider mortgage holders and their misery. People are having to sell their houses and go into other accommodation, whether private or—if they are extremely lucky—from the meagre resources that still just about exist in local authorities.

Interest rates have also impinged very much on small business in Wales, especially in rural areas. Shops, post offices, garages, pubs, agricultural engineers and many others have suffered greatly and, indeed, some have closed. That is a result of a combination of high interest rates and the uniform business rate. When that is applied to the farming community, farm incomes are devastated.

I was glad that the Secretary of State underlined the importance of farming. Great initiatives are required to save the day, especially for the Welsh family farm. The Aberystwyth university farm management survey shows that upland farms of about 175 acres had an income of about £2,000 in the last year costed. Farms of 175 acres and above had incomes of about £4,000. No one can live on those incomes, least of all a young son coming into the business. In my constituency, even single sons are leaving the family farm and trying to find alternative employment. In many cases, they find that employment outside Wales.

There is a need for environmental support and for social support for the farms of Wales. The Secretary of State mentioned hill livestock compensatory allowance payments. Last night, we had a debate in the House on those payments. The Secretary of State said that an extra £37 million went into those payments. I must tell him that, in 1988–90 in Wales, total farm incomes went down by 41 per cent. or by £32 million, which is close to the figure of £37 million. There is a standstill in Government support, yet farmers have devastatingly low incomes.

The HLCA increases have been said to be 14 per cent., but if the Secretary of State reads Hansard for last night, he will see that the capping of HLCAs at £62·48 per hectare, when the allowance can go up to £77·33 per hectare, restricts farmers who have been more efficient in stocking rates, with which the Ministry of Agriculture, Fisheries and Food has also mucked around.