Reform

HC Deb 22 December 1982 vol 34 cc942-3

49. Mr. Teddy Taylor

asked the Secretary of State for Foreign and Commonwealth Affairs within what time scale he expects substantial progress on the initiative for reform of the institutions and policies of the European Economic Community he outlined on 24 November,Official Report, c. 848–49.

50. Mr. Leighton

asked the Secretary of State for Foreign and Commonwealth Affairs what progress has been made in reforming the European Economic Community.

Mr. Pym

As I told the House on 24 November, I continue to take the initiative in the Council to press for constructive reform and development. I referred, by way of example, to the development of new policies of benefit to Britain and the Community, in particular coal policy, improvements in the operation of the common agricultural policy, and a fair solution to the budget problem. The reforms that we are seeking will take time to achieve, but some progress is being made.

Mr. Taylor

As Ministers have repeatedly said that a fundamental reform of the CAP is needed, would it not be helpful to have some outline or explanation of how they believe this can be achieved? Now that EC prices are, on average, more than double world prices and the taxpayers of Europe are spending more than £7 million per day to ensure that Third world countries have food at prices cheaper than our own, does my right hon. Friend agree that it is desperately urgent that the House of Commons should have a rough idea of how the Government believe the CAP should be reformed?

Mr. Pym

There have been a number of debates over the years about the ways in which the CAP could be reformed, and the Government's position is well known. Clearly, the problem is that there are nine other member States, all with their own different views.

I hope that my hon. Friend will not mislead the House about food prices. Although there is an element of truth in what he says, without the CAP there would have to be some other means for the Exchequer to support the agriculture industry, which would also prove very expensive, so one must compare the present situation with the alternatives.

Mr. Spearing

With regard to developing institutions, has the right hon. Gentleman seen press reports that the German Government intend, during their Presidency in the next six months, to put the Genscher-Colombo proposals for European union high on their list of priorities? As there is no mandate from the House for European political unity, will he tell the German Government that the proposals are not on for the United Kingdom?

Mr. Pym

We know that the German Government hope to make progress with that plan, which has been debated in the House. A number of paragraphs and chapters still have to be agreed, and I assure the hon. Gentleman that before any such agreement is reached the Government will have to be satisfied that our needs are met.

Mr. Russell Johnston

What is the Government's justification these days for still not joining the European monetary system?

Mr. Pym

Because my right hon. and learned Friend the Chancellor of the Exchequer has not judged the time ripe.

Sir Anthony Meyer

Did my right hon. Friend note the welcome from all parts of the House yesterday, except from the professional anti-Europeans, to the manner in which our right hon. and learned Friend the Chancellor of the Exchequer has handled the incident in the European Parliament? Will he build on this as evidence of the willingness of one European institution to forward the fundamental reform of the workings of the Community?

Mr. Pym

Yes, Sir.

Mr. Ioan Evans

With regard to the operation of the CAP, has the Secretary of State seen the growing evidence of the tremendous waste and destruction of dairy products, vegetables and fruit, some of which was shown in The Sunday Times Magazine recently? What action will he take to prevent payment for this destruction by the British taxpayer, at the expense of the British consumer?

Mr. Pym

The creation of agricultural surpluses in the European Community is one of the problems of the CAP. We have made a number of constructive proposals to try to rectify that and we have been one of the foremost in resisting excessive price increases, as the hon. Gentleman knows. This is an important matter on which we are negotiating all the time to try to achieve the change that will prevent these surpluses being created.