Capital Grants Scheme

7.

Sir Raymond Gower
asked the Secretary of State for Wales what representations he has received concerning the reductions recently announced in the new capital grants scheme; and what estimate he has made of the effects of these reductions in lowland and upland farming areas of Wales, respectively.

Mr. Nicholas Edwards
I have received five representations against the reductions in grant rates announced on 8 July. The changes made to the farm capital grant schemes have also been raised at my meetings with the farming unions in Wales.It is estimated that in a full year savings of up to £5·7 million could result from these changes. This would be approximately £4·6 million in the upland farming areas of Wales and £1·1 million in the lowland.The agriculture improvement scheme, introduced on 1 October, will continue to provide financial support for a wide range of farm improvements and will help farmers who wish to diversify into tourism or craft works.