I propose to take Questions Nos. 11 and 170 together.
The set-aside element of Common Agricultural Policy Reform must be viewed in the context of the problem of increasing market imbalances between supply and demand which had developed in the cereals sector.
The disposal of surplus stocks was placing an intolerable burden on the Community budget and threatened the future of the Common Agricultural Policy and farming. Community intervention stocks of cereals stand at a record 32 million tonnes.
Some corrective action was inevitable and the alternative to the measures agreed would have resulted in a sharp reduction in farm incomes without compensation. The impact which this would have on the rural community is obvious
The use of land set aside as an effective means of curtailing production was unanimously agreed as part of the Common Agricultural Policy reform by all member states of the Community.
I am aware of the concerns expressed by farmers and environmentalists about the effects of set-aside on the countryside. For this reason my Department has laid down management rules for set-aside land with a view to maintaining the land in good agricultural condition while at the same time respecting the environment.
In the near future the Council of Agriculture Ministers will discuss an EC Commission reflection paper on possible developments in arable land set-aside. Among the proposals to be discussed is the possiblity of non-rotational set-aside as well as a 20 year set-aside scheme which is aimed specifically at improving the rural environment. These measures would have beneficial consequences for the environment. I am of course, fully prepared to consider the views of interested groups in this matter.