HL Deb 04 April 1979 vol 399 cc1976-7WA
Lord O'HAGAN

asked Her Majesty's Government:

To what extent the cost of British membership of the EEC is affected by the level of British dependence on imports of food.

Lord STRABOLGI

Membership of the EEC raises the balance-of-payments cost of our food imports and our earnings from exports—directly in the case of trade with other member States, and indirectly in the case of trade with non-EEC countries, in the form of import levies and duties which constitute part of our contribution to the EEC budget and the export subsidies which are financed from the budget. An increase in the United Kingdom's self-sufficiency in food production would in itself be likely to reduce that part of the net balance of payments cost of membership which arises from trade with other member States. Our net contribution to the budgetary cost of dealing with production in other member States which could no longer be exported to the United Kingdom would have to be taken into account.