HC Deb 25 April 1984 vol 58 cc725-6
56. Mr. McTaggart

asked the Secretary of State for Foreign and Commonwealth Affairs what proposals he is considering for applying the funds which are due to the United Kingdom as its rebate from the European Community.

Mr. Rifkind

The draft regulations put forward by the Commission after discussion with Her Majesty's Government provide for Community contributions to United Kingdom public sector projects, measures and schemes in the field of employment, energy and transport.

Mr. McTaggart

I thank the Minister for his reply. Will he give the House an assurance that he will seek urgently to ensure that all the outstanding funds from the European Community come to the United Kingdom, and that those funds are applied to help the people in my constituency who have witnessed their homes being flooded out twice this year already by the River Cart bursting its banks?

Mr. Rifkind

I assure the hon. Gentleman that it is our objective to ensure an early payment of these funds. The United Kingdom has submitted a list of projects to the Commission, including a number of projects in Scotland in the three sectors to which I referred. I cannot comment at present on whether the suggestion that the hon. Gentleman has made is included in the projects.

Mr. Nicholas Winterton

Will my hon. Friend consider applying some of the funds that will be available from the rebate due to this country to help the dairy farmers of this country, who have been placed in the most impossible position by the agriculture package that was agreed in Brussels? Will he give this assurance and recognise that if he does it will be no more than the assurances that have been given to many other industries, such as steel and coal, which have been subjected to restructuring within the European Economic Community?

Mr. Rifkind

The funds to which my hon. Friend refers, and the purposes for which they are to be used, have already been determined. As to the position of dairy farmers, a comprehensive statement was made by my right hon. Friend the Minister for Agriculture, Fisheries and Food. We are very conscious of the genuine difficulties that will be faced by dairy farmers in the United Kingdom. However, I think that most thoughtful dairy farmers will appreciate that it was not possible for the Community to continue in the way that had been experienced over the past few years, particularly with regard to the over-production of milk.

Mr. Foulkes

Before deciding how to spend the money, does the Minister agree that we have to get the rebate? Does he recall that his right hon. and learned Friend the Foreign Secretary has repeatedly assured the House that, if the money is not paid, the Government will safeguard British interests? Since it is now 25 April and the money has not yet been paid, will the Minister tell the House and the public exactly what is being done to safeguard British interests with regard to this rebate? If, as I suspect, nothing is being done, when will he be able to tell the House what is going to be done? Surely the British electorate will not be allowed to go to the polls on 14 June without knowing what decisive action the Government are to take on this important matter'?

Mr. Rifkind

The hon. Gentleman is well aware that the prime objective of Her Majesty's Government is the successful completion of the post-Stuttgart negotiations. With regard to any measures that may be taken to try to facilitate the payment of the funds to which the hon. Gentleman has referred, any action that may be contemplated will take into account the effect that that will have on these negotiations. The success of the negotiations remains our main objective.

Mr. John David Taylor

Are these projects in Scotland, Northern Ireland and the other regions of the United Kingdom being held back until the rebate is released by the Community to the United Kingdom?

Mr. Rifkind

I am not certain of the detailed effects that the delay will have. I suggest that the right hon. Gentleman addresses these questions to the relevant Ministers concerned with energy, employment and transport matters. We certainly hope that there will be no delay, but I cannot give the right hon. Gentleman an absolute guarantee to that effect.