To ask the Minister of Agriculture, Fisheries and Food if he will make a further statement on the implications for United Kingdom agriculture of the MacSharry proposals; and if he will make a statement.

The GATT round is regularly discussed at the Agriculture Council and I expect it to be considered again at the Council on 30 and 31 March.

The Minister obviously recognises that there is continuing concern, not least in Scottish agriculture, including north of Scotland agriculture, about the likely effect of the MacSharry proposals as presently cast. Does he agree that Scottish agriculture, including north of Scotland agriculture, can hardly have been—

Several Hon. Members:

The Minister gave the wrong answer.

I am happy to apologise.

The hon. Member for Ross, Cromarty and Skye (Mr. Kennedy) asked about the MacSharry proposals. The Commission's proposals for reform of the CAP would discriminate heavily against United Kingdom agriculture. That is why I continue to seek an outcome to the negotiations which is fair for British farmers and encourages, not discourages, efficiency. I hope that the GATT solution will help that as well.

I think that hon. Members on both sides of the House will agree that those two issues are closely connected, but I should like the Minister to say a little more about the specific question that I raised.

Given their less-favoured area status, Scottish and north of Scotland agriculture can hardly be said to have contributed to the problems of CAP overproduction and the related MacSharry implications. What is the Minister's guess in regard to a possible deadline for a conclusion to the MacSharry discussions—not least in the context of the GATT negotiations that must follow?

It is important to secure the GATT solution first, if we are to have one. That must be done within a reasonable period. Until we know what we have signed up to in GATT, it will be difficult to tell how much we must alter the CAP to meet our obligations. Many alterations will have to be made in any event, and there is no question of CAP reform depending on the GATT solution.

The timetable will, I hope, mean a rapid solution to the CAP problem very soon after the achievement of a GATT solution. I hope that it will come about under the Portuguese presidency, and I am working towards that end; but it must be an end that does not discriminate against Scottish farmers or British farmers generally. I shall keep the process going until we achieve a fair solution.

Will my right hon. Friend continue his robust and effective Opposition to the MacSharry proposals? Will he bring home to Ministers on the continent the fact that the headage basis would prove devastating for hill and upland farmers in the United Kingdom and will he do everything possible to make those Ministers see our point of view?

The Spanish, Dutch, Danish and Belgian Ministers have now committed themselves to the view that such discrimination is unacceptable. That is a great improvement, and I hope very much that the Commission will soon understand that headage limits do not reduce overproduction but merely discriminate against some of the poorest parts of the United Kingdom. Some of the farmers concerned—especially those in Scotland, Wales, Northern Ireland and the backbone of England—suffer particularly from the low prices.

Mr. John P. Smith:

Does the Minister realise the damage that the current MacSharry proposals will do to family farms in my Constituency, Vale of Glamorgan? Does he share the concern that I now feel, following my recent meeting with MacSharry, that any MacSharry proposals that include price support will penalise our farmers?

I agree with the hon. Gentleman's comments about the danger of MacSharry's proposals, particularly in areas such as Wales, which are so dependent on farmers who are not big farmers in the general sense of the term but who need the support that they now have. I hope, however, that the hon. Gentleman will explain to the Leader of the Opposition that Welsh farmers could not afford to have their incomes cuts so that the money could be spent on Spanish, Greek and Portuguese farmers. That is what the right hon. Gentleman has said that he would do if he were Prime Minister.