To ask the Minister of Agriculture, Fisheries and Food what is the level of payments permitted under European Economic Community less-favoured areas directive; what are the current rates of hill subsidies and payments; and what conclusions he has reached on his policy in this matter.

The EC structures regulation (797/85, as amended) currently provides the framework for measures to support farmers in the less-favoured areas. The principal form of support is the system of hill livestock compensatory allowances, though there is also provision for other measures such as enhanced rates of capital grant