Agricultural Support

HC Deb 21 May 1981 vol 5 cc412-3

14. Sir Anthony Meyer

asked the Minister of Agriculture, Fisheries and Food how much is spent annually, expressed as a percentage of gross domestic product, on agricultural support by the European Economic Community, the USA and Japan.

Mr. Peter Walker

Such comparisons are difficult to make, but the Commission has recently published figures suggesting that annual expenditure on agriculture is 1 to 1.5 per cent. of gross domestic product in the Community and the United States of America and 5 per cent. in Japan. The figure for the Community includes both national and Community expenditure.

Sir Anthony Meyer

Is it not clear from those figures that all the talk about the crippling cost of the CAP is ballyhoo? Is it not of greater importance to concentrate on correcting the absurdities, many of which have been exposed during today's Question Time, rather than trying to destroy a policy that clearly is essential if effective European co-operation is to continue?

Mr. Walker

It is important that where there is unnecessary wastage of expenditure, such as the cost of unnecessary surpluses, it is in the interests of Europe to take action. It is good that the proportion of the Community budget connected with the CAP has come down from more than 80 per cent. to 69 per cent. since the Government took office.

Mr. Maxwell-Hyslop

Does not my right hon. Friend agree that in world terms it is absolute nonsense to speak of food surpluses when a large proportion of people in the world have far too little food? Does it not make good sense to support food production, especially in countries such as ours which have to import about half the food that they eat?

Mr. Walker

It is correct that there are food shortages world-wide. It is important to increase world food production. However, it is also important to understand which products we should increase and which we should reduce. I see no point in having a substantial surplus of dairy products in Europe that, basically, nobody wants.

Mr. Jay

Is there not some distinction between support designed to keep down consumer prices and support designed to hold them up?

Mr. Walker

I am sure that the right hon. Gentleman rejoices because the Government have doubled the butter subsidy, the sheep premium scheme and the beef premium scheme.