asked the Secretary of State for Scotland what representations he has received concerning increases in hill livestock compensatory allowances for producers on grade B and grade C land; and what response he has made.

Shortly after my announcement on 18 December on this matter, I received representations from the National Farmers Union of Scotland. In my announcement I said that, consequent upon the green pound devaluation in May 1986, the maximum of 101 European currency units payable per livestock unit increased in value from £62·48 to £64·19, and that the hill livestock compensatory allowance supplements payable on cows on B and C grade land within the Highlands and Islands Development Board area would be correspondingly increased from 1 January 1987. Producers in these areas are therefore now, as before, receiving the maximum amount permitted under the relevant EEC regulation.I had a meeting with the president of the union on 5 January 1987, in the course of which he expressed the view that further green pound devaluation was justified in this regard. I made it clear that this question would be considered along with other agrimonetary matters in the course of discussion around the annual price fixing.