Oral Answers to Questions

Nia Griffith Excerpts

Thursday 3rd February 2011 Commons Chamber

[Mr Paice]

I do not think that my hon. Friend is right to attribute the rise in arable income to the single farm payment. It is because the price of wheat today is more than double what it was a year ago. As my right hon. Friend the Secretary of State said earlier, our approach to the common agricultural policy is about trying to drive up productivity and competitiveness and to stop wasting money in areas in which it should not be spent. That is why we want to see a greater proportion of the funding spent on pillar two, in which we can actually aid competitiveness.

[Nia Griffith (Llanelli) (Lab)]

Can the Minister tell us what talks he has had with Treasury colleagues about encouraging the banks to lend more to farmers? Farmers in my constituency are suffering considerable difficulties and finding that banks are changing terms and conditions and refusing to accommodate their needs in any way.

[Mr Paice]

The hon. Lady is not alone in having constituents with those problems, and of course they are not restricted to farmers. As she will know, my right hon. Friend the Chancellor has already made a number of statements on the subject, including about ways in which he can press the banks to be more open with their lending and perhaps charge less for it.