HC Deb 25 April 1984 vol 58 cc727-8
58. Mr. Marlow

asked the Secretary of State for Foreign and Commonwealth Affairs if he will now make a statement on the likely levels of expenditure by the Community for 1983, 1984 and 1985, respectively.

Mr. Rifkind

The Community budgets for 1983 and 1984 provide for expenditure of about £14.7 billion in each year. The preliminary draft budget for 1985 will be published in June.

Mr. Marlow

Further to the question of the hon. Member for Livingston (Mr. Cook), will my hon. Friend state categorically that we will not agree to any loan to the European Community this year, the effect of which would be to allow for an increase in agricultural expenditure, which Her Majesty's Government are against, and which would also be a device for securing that our rebate would not come back to us but would be swallowed up as a loan, or at least the bulk of it?

Mr. Rifkind

Our view remains that if budgetary problems arise later in this financial year steps should be taken to reduce expenditure.

Mr. Deakins

In the opinion of the Government, have the problems of controlling agricultural expenditure in the Community now been satisfactorily resolved?

Mr. Rifkind

The agriculture decisions taken some weeks ago represent an important step forward in that, for the first time, the Community took decisions that will make a material contribution towards reducing surpluses and apply other methods of controlling the disagreeable aspects of the CAP. We would not suggest that, as a consequence, the CAP will be exactly as we would wish it, but we believe that for the first time decisions have been taken that will bring agricultural expenditure under control so that it will represent a decreasing share of Community expenditure. That has been a major British objective for many years.

Mr. Yeo

Is my hon. Friend aware that, when the Government are rightly exercising strict control over most forms of public spending, the people of Britain find it very hard to understand on what grounds an increase in own resources of the EEC can be justified?

Mr. Rifkind

My hon. Friend will be aware that the United Kingdom Government and almost all Governments within the Community, including the French Socialist Government, seek to control public expenditure. We have emphasised that it would be wrong for the Community to expect different criteria to apply to its own expenditure from those set by national Governments.

Mr. Robin Cook

Perhaps I can assist the Minister by clarifying the Government's attitude to the proposed loan. The request has not been formally received by the Government, but we all know of the Commission's decision last week. Are the Government saying to the House that when that application is formally received by the Government they will reject an application for fresh money from Britain?

Mr. Rifkind

We shall respond to a formal request from the Commission when that is received. The Government have already said that if there is overspend during the current financial year, that will have to be met by economies in existing budgetary provisions.