11.
asked the Minister of Agriculture, Fisheries and Food if he is satisfied with the prospects for the beef producing sector of the United Kingdom agriculture industry.
Yes, Sir.
Will the Minister bear in mind the serious problems that the beef industry is suffering through distortions in the common agricultural policy? It needs a long period of profitability, stability and certainty to restore confidence and rebuild herds.
I appreciate the problems that the beef industry has been facing, but we have carried through three devaluations of the green pound and just before Christmas we announced substantial increases in hill livestock compensatory amounts, which should indicate to beef producers in this country that we believe that there is a good future for beef production.
Does the Minister accept that the increase in costs for beef farmers over the past two years are way in excess of revenue, even taking account of the changes that he has referred to, and that those increases have eroded the benefits that they might have had from European schemes? Those schemes encouraged some farmers to move from milk to beef.
I appreciate that beef producers have had to face in- creasing costs, along with other producers. That is why we have carried through measures that we believe will help them. We are concerned about the livestock sector generally and we shall continue to follow policies to support it.