HC Deb 21 April 1983 vol 41 cc399-400
1. Mr. Skinner

asked the Minister of Agriculture, Fisheries and Food whether the forecast expenditure under the common agricultural policy has increased since the date when he last answered oral questions on the subject; and if he will make a statement.

The Minister of Agriculture, Fisheries and Food (Mr. Peter Walker)

There has been no further change in the forecast expenditure for the United Kingdom compared with the answers I previously gave.

At the meeting of the Council of Ministers this week it has been indicated that the budget for the Community will require a supplementary budget later this year.

Mr. Skinner

Will the Minister confirm that only a few days ago the other Tory Commissioner Tugendhat, said that agricultural expenditure was getting out of control? Which Tory Minister or Commissioner must hon. Members believe?

Mr. Walker

Unfortunately, there is only one Tory Commissioner, so there is no difficulty in deciding who to believe.

Mr. Nelson

Will my right hon. Friend confirm that a major switch that has taken place in common agricultural policy funding is from funding surpluses of more temperate products, such as milk and dairy produce, to more Mediterranean products such as olive oil and wine? Does he consider there is a case for more regional co-responsibility for financing the surpluses of Mediterranean produce, which are consuming a larger proportion of the CAP budget?

Mr. Walker

The possibilities of that are interesting and important. There are two major reasons for the major increases. First, the 1982 growing year for virtually all products in the Community was outstandingly good. Production was much higher than anticipated. Secondly, the currency exchange rate agreements that took place in March, at which several countries demanded substantial revaluations and devaluations of their currencies, enabled them to make green currency changes that are costly to the Commission.

Mr. Buchan

I do not wish to anticipate the right hon. Gentleman's statement. He cannot just say that there will be an additional budget statement. The House must know how much. I trust that he will give the House that information this afternoon. If the right hon. Gentleman is unable to distinguish between a Tory Minister and a Tory Commissioner, can he distinguish between the Tory Commissioner and the Tory Daily Telegraph, which stated this morning that farm prices are 35 per cent. above last year's figure?

Mr. Walker

I am quite certain the Daily Telegraph did not say that farm prices are 35 per cent. up——

Mr. Buchan

Spending.

Mr. Walker

One of the major reasons for the increase in farm spending is the revaluation of currencies. I would hate to be in any way politically biased, but several Socialist economies have demanded large revaluations.