HC Deb 21 March 1979 vol 964 cc1490-2
46. Mr. Madel

asked the Secretary of State for Foreign and Commonwealth Affairs when he expects next to visit Brussels on official European Economic Community business.

Dr. Owen

On 8 May for the Foreign Affairs Council.

Mr. Madel

Will the Foreign Secretary say in detail what he plans to do in the coming weeks to get the German Government to weaken the grip of the German farmers' union on the common agricultural policy?

Dr. Owen

One of the best things that Conservative Members can do is support the Government when they fight for these interests, particularly at the present time when the German press is supporting the British Government's stand, and when even the German farm Minister, Mr. Ertl, makes a statement to the Bundestag that he realises that we have reached the tolerable limit. It would be helpful if the Conservatives could also show some enthusiasm for this point of view.

Mr. Madden

Against what timetable are the Government seeking fundamental changes in the CAP and the budget contributions? Will the Foreign Secretary say whether the comments that we heard today from the right hon. Member for Cambridgeshire (Mr. Pym) indicate that criticism and abrasiveness on the Opposition Benches are fast becoming fashionable?

Dr. Owen

We have made substantial progress on the CAP. We still have a long way to go, but we are making progress. The contribution to the budget will be much harder to negotiate, but I believe that as the Community gets nearer to the limit of its own resources, and as VAT has to be looked at, there will be an increasing recognition that the burden currently carried by the United Kingdom is unfair, unreasonable and not in the interests of the Community as a whole.

Mrs. Kelletf-Bowman

The Foreign Secretary referred earlier to measures to alleviate unemployment, but he totally ignored the regional fund. Bearing in mind the need for a better balance in the European Community's budget between agricultural spending and spending on other vital matters, such as regional policy, will he explain why, when the European Parliament put through an improvement in the regional fund, the British Government decided to backtrack on that, to the great dismay of the North-West in particular, which, with other regions, would have benefited very substantially from the improvement?

Dr. Owen

The Government have consistently supported an increase in the regional fund. What we are not prepared to do, and what we are pledged to the House not to do, is to transfer power from this House to the European Assembly without the full permission of the House. The power to fix the budget, which would be involved if the European Assembly could increase the regional fund to the extent it was trying to do, would be the start of a major transfer of power from this House to the European Assembly. Just going for a narrow financial gain when there is a major constitutional issue at stake would serve the interests of the House very ill.

Mr. Fernyhough

Is it not true that when the negotiations for us to enter the EEC were undertaken the large carrot held out to us was that the regional fund would be £1,500 million? Is it not also true that, once the EEC made us its captive, the £1,500 million came down to £250 million? Will my right hon. Friend press the EEC to give us the carrot that was promised, but not given, before we make any further subventions to the Community?

Dr. Owen

It was envisaged that the share of the Community budget voted to agriculture would come down from about 78 to 50 per cent. One way of doing that was by reducing the cost of the CAP and by increasing the amount of resources devoted to the regional fund and to the social fund. Therefore, it is very important to work on all three elements—increasing resources, ensuring that they are spread to those less prosperous members of the Community and cutting down on the costs of the CAP.

Mr. Hurd

Would we not get on a bit better if the Government recognised that Conservatives have consistently supported the Commission's proposal for a price freeze this year on certain foods? We have consistently sought that. Is it not also a fact that we do not get very far in protecting our interests in Europe by sending Ministers there who are building their political careers on discrediting Europe?

Dr. Owen

It really is time that the hon. Member began reading the German newspapers. If he read the Frankfurter Allgemeine, for example, he would see that it says that we should not be made the scapegoat when the real sinners are the German farmers. Other German newspapers—

Mr. Hurd

What has that got to do with it?

Dr. Owen

What the hon. Member does not seem to understand is that what undermines this country more than anything is the constant carping criticism of the British Government. It is very interesting that the only thing the hon. Member can claim is that he supports the Commission. Why does he not support his own Government?