News story

31st October 2001

"Government Lets Down Local Farmers" Says MP

Northavon MP Steve Webb has condemned today’s decision by the Government not to support arable farmers by claiming European support funds. The system, known as “agrimonetary compensation”, exists to compensate farmers for the fact that the subsidies they receive are counted in Euro’s but are paid out in their home currency. Where, as in the UK, the domestic currency has appreciated against the Euro, this means that the real value of the subsidy falls. National governments are allowed to claim compensation for their farmers in such cases, and October 31st was the last day on which the UK government could claim. Now, however, Margaret Beckett, Secretary of State for Environment, Food and Rural Affairs, has announced in a Parliamentary written answer that the Government will not be taking up the available funds.

Northavon MP Steve Webb has already met local farmers who were concerned about this issue and had backed a Commons motion calling on the Government to claim the cash. He had also written to Margaret Beckett urging her to support arable farmers in this way.

Steve Webb said:

“This announcement is a further blow to local farmers. Farming incomes are at record lows and the rise in the value of Sterling has put extra pressure on farm incomes. I am dismayed that the Government has refused to claim this compensation”.



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