On land, yes. That qualification makes some difference, but it is not a major difference. I believe the farmers will pay considerably more in rates. The Government are paying £1,775,000 more in respect of three-tenths of the rates raised on the total valuation. Surely, if the Government are paying more, the farmer will also have to pay more? If one takes the grants given by the Government over the years, one finds they have increased considerably and the burden of rates was such that the Government were compelled to meet it to some extent. Otherwise, there would have been such a political and public outcry the Government would have been brought down.
This is rather like a sop to Cerberus. It is also very like patching the hole in the political dyke so that the Government will be in a position to state that they are helping the farmer to some extent with his rates. What are the facts? The last major change occurred in the financial year 1962-63 when the Government gave 25 per cent and remission on valuations over £20. In that year the amount paid by the Government was £8,530,000. This year it will be £11,197,000. In 1962-63, the Government raised the 25 per cent to 30 per cent. If one takes the total payments of rates by farmers, it is extremely difficult to pursue the computation but it will be found that farmers this year will pay something in the order of £4 million more than last year. One has to take a great many estimates and find what will be the average increase in the £ in rates. Even taking into account the Government's £1,775,000, I believe it can be proved that the farmer will pay £4 million more this year as compared with last year and it can be proved that the farmer paid an additional £6 million in rates since 1962-63.
What are the causes? The first thing one has to remember is that rates in relation to a farmer are quite different from rates in relation to anybody else. A man with an income of £700 or £800 does not pay income tax, if he has a wife and child. On the other hand, a farmer with an income of £700 or £800 pays rates, not only on his house and outbuildings, the use of which he enjoys, but also on his land. I like to refer to this as part of his stock-intrade. Whether he has 13 children or none, whether or not he is married, he must pay this impost. In equity, it would appear quite impossible to justify the continuation of various items, such as health, coming within rates expenditure.
The figures I have mentioned are quite conservative. They will probably be exceeded. We on this side of the House maintain that the farmer will pay an extra £4 million in rates this year and that he has paid since 1962-63 an extra £6 million in rates. This is a very serious matter because of its disastrous effect on agricultural expansion. It is because of that we on this side of the House prefer to be conservative in our criticisms. It is impossible for the Minister to controvert the figures I have given. They are correct.
What are the causes? It can quite properly be argued that a farmer uses the roads more than the urban or town dweller does. From that point of view, it can, perhaps, be argued that more should be charged against him from the point of view of roads. The idea 50 years ago was that the rates paid for the roads and small items such as the very restricted medical services, the county homes, and home assistance. Since then the pattern has changed completely. The rates now have to pay 50 per cent of the cost of health services. A farmer, earning £700 or £800, with five or six children, would, if he were an employed person, pay neither PAYE nor any other sort of tax. As a farmer, he must pay rates regardless of family commitments. It is our policy that the cost of health services, outside of hospitalisation, should not fall upon the rates. This would result in reducing the rates by something like 4s. in the £. There is no more justification for a situation in which a man, who would not have to pay income tax, or any other sort of direct taxation, has to pay rates, and that without any consideration at all, for his responsibilities to the children God has blessed him with.
I have given the relevant figures. They are conservative. If the Minister wants to play politics—I am sure he does not—he may throw back at me something which may apparently put my figures awry. One must take into account that you have the primary grant varied from three-fifths to 80 per cent and the secondary grant over £20 valuation changed from 25 per cent to 30 per cent. These changes were, of course, forced upon the Government because of the fantastic impost of rates. I describe this as a sop to Cerberus. This is the action of the man who puts the piece of rag in the hole in the dyke in the hope that it will hold the water in. There is no hope for any alleviation in rates until there is a major change in policy. One of the changes should be the removal of the health charges, outside of hospitalisation, from the rates.
This Estimate is necessary to patch the hole in the dyke. From that point of view we accept it. It is not evidence of solicitude on the part of the Government for the farmers. It is not evidence of the Government's solicitude for the farmer in the position in which he finds himself in relation to rates. This is a political expedient. The Government have to do this because of the increasing burden falling on the farmers since 1962-63.