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Mr. Byers: There are a number of ways in which we can address those environmental concerns. My hon. Friend will be pleased to hear that, early next year, the Government will publish our strategy on sustainable development. That will outline our aims, as well as measures already in place, and will highlight what further action might be undertaken to achieve our objectives. Those objectives will make it clear that we believe that economic development must take place in a sustainable way to ensure a better quality of life for everyone, both now and for future generations.
We recognise that what matters is not just the quality but the level of growth. The debate has shown that the tax system clearly has an important role in underpinning sustainable development. Our strategic approach was outlined in our statement of intent on environmental taxation, published at the time of the Budget in July 1997. How and what the Government tax sends clear signals about which economic activities we believe should be encouraged or discouraged. Just as work should be encouraged through the tax system, environmental pollution should be discouraged.
I listened with interest to several hon. Members--including my hon. Friend the Member for Peterborough and the hon. Member for East Worthing and Shoreham (Mr. Loughton)--who mentioned the need to establish a green tax commission, something that was proposed by the Environmental Audit Committee in its response to the pre-Budget report. A number of European countries have such a commission, but the experience is variable--it works well in some countries, and not so well in others. We are keeping under review the possibility of establishing such a commission. We do not want duplication. There are many organisations doing valuable work in this area, and we shall need to look carefully to see whether a green tax commission can play a valuable role.
My hon. Friend the Member for Chatham and Aylesford (Mr. Shaw) referred to the harmonisation of VAT on the renovation of empty properties. We keep all tax matters under review--that is the nature of any Government. It will be for my right hon. Friend the Chancellor of the Exchequer to decide whether any
changes will be made in that direction. I am sure that my right hon. Friend will look with interest at my hon. Friend's comments.
The hon. Member for Witney (Mr. Woodward) raised the two main issues, in my view. First, he referred to the difficulty caused by the Government consulting so much. We make no apologies for that. This is one of the areas where we need to take people with us and to explain the direction in which we wish to go. By doing that, we can command broad and popular support for our proposals. Secondly, the hon. Gentleman referred to hypothecation. We judge each case on its merits, and we will look carefully at each proposal. Once again, we have noted with interest the hon. Gentleman's specific proposals this morning.
It would be a mistake to believe that taxation is the only way in which we can address environmental issues. Clearly, a key part can be played by taxes, but they are not always the solution to every environmental problem. Environmental taxation must meet the general test of good taxation. It must be well designed to meet its objectives without undesirable side effects. It must keep deadweight compliance and administrative costs to a minimum, and care must be taken with regard to implications for the competitive position of UK companies in international markets.
The hon. Member for East Worthing and Shoreham was critical of the Government's spending commitments, which he felt did not address sufficiently environmental concerns. I wish to give the House an example of how the spending--£40 billion for schools and hospitals over the next three years, with which the Conservative party disagrees--can be used to address environmental concerns.
The House will know that the Government have started a large-scale programme of capital investment in our schools and £30 million has been allocated for improvements in energy management, including the replacement of heating systems. Decisions have just been taken to allocate to some 891 schools some of the money. It is estimated that they will achieve average savings on fuel costs of 20 per cent., with further savings on maintenance costs. This should, in total, amount to more than £2 million in savings a year which can be ploughed back into the individual schools. It is not merely pupils who will benefit. There will be a reduction of 44,000 tonnes in the level of carbon dioxide emissions due to the programme, which is the equivalent of 23 million average car journeys, or a reduction of 24,700 in the number of cars--a real contribution that can be made.
The Government will consider the issues in the round. We will study taxation and other measures that can be taken to improve our environment. We intend to do that with people--to consult and move forward on an ambitious agenda that will be based, not on dogma but on putting the national interest first. On the basis of those principles, I commend our approach to the House.
Mr. Deputy Speaker (Sir Alan Haselhurst):
Order. We now move on to the debate on the pig and livestock industry.
Mr. Nigel Evans (Ribble Valley):
I am grateful for the opportunity to speak on this subject, and I am sure that hon. Members will forgive me if I start with livestock before moving to the pig sector. I am also grateful for the support that I have received from a number of my colleagues, including some who are unable to be here but who have contacted me on the subject.
The debate is timely, coming only two days after the announcement by the Minister of Agriculture, Fisheries and Food of an aid package. Farming is in crisis, and it is the worst depression in the industry since the 1930s. Some farmers are leaving the industry because they cannot see any light at the end of the tunnel, and some are leaving because they have no choice as they are going bankrupt. The majority of farmers are staying in the industry, but getting poorer. Any savings that they have been able to build up through a number of years of hard and long toil have been eaten away and, for some, overdrafts are increasing daily to dangerous levels.
Put simply, the prices paid for animals have decreased dramatically in the past two years. In some cases, farmers are paid less for their animals now than they were 20 years ago. I do not know whether any other industry is facing similar difficulties. Part of the problem is that consumers do not appreciate the fact that that is happening. One farmer told me that 18 months ago he was paid between £1.10 and £1.20 a kilo for his cattle, but now it is between 75p and 80p. For lamb, the price used to be £1.10 to £1.30 and now it is 65p a kilo.
However, consumers visiting the larger supermarkets do not appreciate the fact that such dramatic falls have taken place. Farmers are being bled dry and consumers are being ripped off. Current supermarket prices are a conspiracy to clobber the producer and cheat the shopper. It is about time a new deal was struck for British farmers and consumers, and if our supermarkets are not going to do that job, who will? Lower prices in the shops would at least encourage increased consumption by more people. That is not the answer to all the industry's problems, but one can imagine the anger and frustration of farmers whose incomes have declined dramatically in the past two years when they see others maintaining or even increasing their margins.
The National Farmers Union has predicted that incomes will fall by a further 67 per cent. this year. Clearly, the situation is not tenable. For farmers to be told that aid will help them in the short term is no comfort when the crisis is long term--it has been going on for two years for many farmers. Obviously, banks have become concerned and relationships between farmers and bankers are strained. The banks will not carrying on lending when they see no prospect of a return.
I understand that the Minister of Agriculture, Fisheries and Food will be meeting bankers to discuss the farming crisis, for which I am grateful. Perhaps the Minister can tell us today what his right hon. Friend will say to the bankers when they meet. What fresh hope of an improvement in the plight of farmers can be given to bankers to help them sustain farmers through this crisis?
The majority of my contribution will concentrate on pig farming, but I wanted to put that part of the sector into the context of an industry that is reeling. The £120 million
of aid announced on Monday is better than nothing, but that is as much as I can say about it. Will the Minister ensure that that money gets through to farmers as quickly as possible, because those with overdrafts see their bank managers weekly and will need to put it in the bank as soon as possible?
Mr. James Gray (North Wiltshire):
Does my hon. Friend agree that one of the most noticeable features absent from the announcement on Monday was that, whereas £48.3 million is being made available for the beef industry, not one penny is to go to the pig and poultry industries? Does he not think that that is a disgrace?
Mr. Evans:
The pig industry has a distinct problem, but the crisis is hitting all sectors of farming. While the Government are targeting certain areas, the pig and poultry industries, which are also reeling from the same sort of problems as the rest of the industry, are getting no support. My hon. Friend is right about that, and I will be interested to hear what the Minister has to say about the rest of the sector in his reply.
Ben Gill of the NFU stated that the £120 million will
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"act as a short-term safety net for some farmers teetering on the brink of financial collapse."
Also, interest rates have increased and the extra costs that farmers have incurred as a result more than swallow up the aid package announced on Monday. Frankly, for many farmers the aid package is not only too little but too late. We need a new approach to the industry--one that will give it greater security for the future--and a new attitude on the part of the Government.
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