HC Deb 09 March 1983 vol 38 cc832-3
64. Mr. Leighton

asked the Secretary of State for Foreign and Commonwealth Affairs what response to his proposals for the future of European Community regional and social policies has been made by other European Community Foreign Ministers.

Mr. Hurd

The response to our ideas for improvement has been reasonably encouraging. Proposals for a new regional fund regulation embody the principle of concentration on areas of greatest need. The Commission has announced a study of how the Community can help overcome urban decline and proposals for a revised social fund, stress the training needs of young people.

Mr. Leighton

Do not those funds have an intimate connection with Britain's quest for more equitable budget contributions? Did not the right hon. Member for Sidcup (Mr. Heath) think that they would compensate us for the excessive payments that we make to the agriculture fund? With the enlargement of the Community will not Britain be in deficit, even on the regional and social funds? Is not the prospect for the coming year further bitter wrangling and haggling? What is the Government's policy?

Mr. Hurd

I do not agree. The British share of the social fund increased from £130 million in 1979 to £257 million last year. Our share of the regional fund increased from £163 million in 1979 to £250 million last year. I hope that the hon. Gentleman is satisfied with that solid progress.

Mr. Russell Johnston

Nevertheless, is not the point made by the hon. Member for Newham, North-East (Mr. Leighton) valid? If the regional and social funds are to have any effect a large amount will have to be spent in the countries that will join the Community. How can the Minister expect an improvement in the regional and social funds without an enlargement of the budget?

Mr. Hurd

There has been the improvement in the British receipts from the two funds that I illustrated. We hope that the two funds will be further increased. We believe that the finance can be found by pulling back and restraining the rate of growth of agriculture expenditure.

Mr. Marlow

What evidence does my right hon. Friend have to make him believe that the European Community is more efficient in its expenditure on regional and social policies than Her Majesty's Government?

Mr. Hurd

The performance of both the funds, and the attitude of Ministers in successvie British Government to them, show that they play a useful part in supplementing what we do ourselves.

Mr. Heifer

Has the right hon. Gentleman read the speech by Commissioner Tugendhat at yesterday's European assembly in which he said that it is likely that CAP spending next year will be 20 per cent, above what it is this year and that it will be virtually impossible to give Britain an adequate refund on its budget contributions? How can we talk in terms of money being available, for the social fund, for example, if we are to be faced with added burdens in relation to the overall contribution?

Mr. Hurd

Commissioner Tugendhat was drawing the Parliament's attention, rightly, to the fact that agriculture spending needs to be brought under control and that there are risks of it increasing, after a period when it has been held relatively steady. He was right to do that, and that is why my right hon. Friend the Minister of Agriculture, Fisheries and Food is taking a stern line in the present price-fixing discussions.