HC Deb 07 December 1983 vol 50 cc317-8
55. Mr. Maxton

asked the Secretary of State for Foreign and Commonwealth Affairs what mechanism is proposed by Her Majesty's Government to control the increase in expenditure on the common agriculture policy.

Sir Geoffrey Howe

Our proposals for the control of agricultural spending were explained by my right hon. Friend the Minister of Agriculture, Fisheries and Food in the debate in the House on the common agricultural policy on 1 December. My right hon. Friend the Prime Minister will be making a statement to the House later today on the outcome of the European Council in Athens at which this subject was discussed.

Mr. Maxton

Since France and other EC countries will not accept even the most minor changes to the common agricultural policy, how on earth does the Foreign and Commonwealth Secretary expect them to accept the major changes which the Government and the House expect? If that is the position, will the Government create a major constitutional crisis in Europe, or will they, yet again, accept a humiliating climb-down?

Sir Geoffrey Howe

The conclusions of yesterday's proceedings make it absolutely plain that there is no question of the Government agreeing to a humiliating climb-down on this or any other issue. There was widespread recognition throughout the Athens negotiations of the need to ensure fundamental reforms of the CAP. We had before us a French document recognising the need for the control of Community expenditure. The topic was under discussion. Unfortunately, the will did not go far enough to secure sufficiently effective control. That is one of the reasons why we were not prepared to accept that conclusion.

Mr. Beaumont-Dark

Would not one of the best mechanisms to control the CAP be to stop paying farmers for growing food that we do not want at prices that we cannot afford?

Sir Geoffrey Howe

That is a shrewd and perceptive observation. Effective control on agricultural surpluses — directed, for example, to milk — was one of the matters on which we and several other states were prepared to agree, but on which agreement did not spread sufficiently far in Athens yesterday.

Mr. Ioan Evans

As the CAP has meant a scandalous destruction of fruit, vegetable and dairy mountains, when will the Government make a stand, not only on the issue of increasing own resources, but on stopping any resources entering the Common Market until this matter is sorted out?

Sir Geoffrey Howe

The hon. Gentleman must appreciate that agricultural protection regimes in other countries, apart from those in the European Community, often have unintended effects of the type he described. That is one of the reasons why our stand is directed to securing effective control of the growth of agricultural expenditure and a proper regime within the Community to tackle precisely the problems that the hon. Gentleman has in mind.

Mr. Teddy Taylor

Is the my right hon. and learned Friend aware that, while most hon. Members accept that the Government have performed a great service by stating they believe that CAP expenditure should be contained and controlled, many of us who listened to the 1 December debate and all the statements have not the slightest idea of precisely how the Government think that the capping, containing or restraining should be performed?

Sir Geoffrey Howe

My hon. Friend should re-study the speech made by my right hon. Friend the Minister of Agriculture, Fisheries and Food in that debate. The essence of the approach is that there must be a proper limit on expenditure on the agricultural policy, accompanied by effective policies, which would include a strict price policy and changes in the other regimes to ensure that no methods remained open whereby surpluses continued to grow along the lines about which we have complained.

Mr. Robin Cook

If the Government are committed to obtaining effective control over agricultural expenditure, why is the Chancellor of the Exchequer budgeting for a 50 per cent. increase in expenditure on agricultural intervention?

Sir Geoffrey Howe

There is no sign of what the outturn of the negotiations will be. The House should be in no doubt after last week's debate that one of the conditions for a successful conclusion of the Stuttgart-Athens agenda is the achievement of effective control on the growth of agricultural spending.