HC Deb 21 April 1983 vol 41 c410
16. Mr. Lennox-Boyd

asked the Minister of Agriculture, Fisheries and Food whether he is satisfied with the current level of expenditure in the European Community on agriculture.

Mr. Peter Walker

Between 1978 and 1982 the common agriculture policy's share of the Community budget fell progressively. I have, however, expressed my concern in the Council of Ministers about the increased rate of agricultural spending that has occurred this year and is forecast for next year.

Mr. Lennox-Boyd

Does my right hon. Friend agree that the problem of increasing expenditure under the common agricultural policy is not just a question of costs but of the increasing possibility of a trade war between the European Community and the United States of America on surplus food exports? I do not wish to anticipate my right hon. Friend's statement later this afternoon, but can he satisfy the House that our colleagues in the European Community have taken the matter on board?

Mr. Walker

Yes, I think that they have. As my hon. Friend knows, a few weeks ago I went to Washington and spoke to American Ministers about this problem. We have obviously discussed this with the Commission. I am glad to say that the last talks between the Commission and the American Government were considered by both sides to be constructive and to have moved in the right direction. However, I share my hon. Friend's view that this is a matter of real concern, which the Commission must tackle.

Mr. Spearing

The Minister spoke of forecasts of next year's expenditure. Is it not a fact that, because of the unknown level of world prices, it is impossible to forecast the expenditure, which could rise beyond the resources of the EC? Will the Minister confirm that those two facts are correct?

Mr. Walker

Yes, it is difficult to forecast. I know how shocked the hon. Gentleman was last year when the expenditure for the CAP turned out to be 1.3 billion ecus less than was forecast.

Mr. Deakins

Will the Minister confirm that he is virtually the only Minister in the EC who wishes to see agricultural expenditure as a share of the Community budget reduced? Does that not show that there is no future for Britain in that organisation, because agriculture will always pre-empt the largest share of Community resources?

Mr. Walker

As long as agriculture is the only marketing scheme in the European Community, it will have a major share of the total expenditure. It is not the case that we are the only country that takes this view. West Germany, Holland and the United Kingdom made a declaration to that effect.