HC Deb 25 April 1984 vol 58 cc726-7
57. Mr. Maxton

asked the Secretary of State for Foreign and Commonwealth Affairs what new initiatives he is taking within the Community to ensure the resolution of matters relating to the financing of the Community discussed at the Foreign Affairs Council on 27 March.

Mr. Rifkind

We are continuing, in discussions within the Community, to build on the progress made at the March European Council to resolve the remaining differences and to reach a settlement that we can commend to the House.

Mr. Maxton

The Minister has already made it clear that the negotiations will continue. For how long will they continue, and when will Britain get the money that is due to it? If we are not to receive that money, will the Minister now answer the question of my hon. Friend the Member for Carrick, Cumnock and Doon Valley (Mr. Foulkes) about what action he will take to ensure that the money is paid?

Mr. Rifkind

The hon. Gentleman will be aware that many of the issues that were on the agenda for the Stuttgart negotiations have already been substantively and satisfactorily concluded. The only significant outstanding issue is that of British budget contributions. The gap between the United Kingdom and other member states is relatively narrow, but the matters still to be resolved are important. We have made it clear that the matter must be seen as a package. There can be no agreement on or consideration of own resources or other parts of the package until the outstanding issues have been resolved.

Mr. Teddy Taylor

As Britain now has a manufacturing trade deficit of £20 million a day with the Common Market, as our contributions are now more than £2 million a day, and as we are just about to inflict grave damage on British agriculture because of the enormous problems of the continental CAP, have the Government turned their mind entirely against the possibility of once again seeking an EFTA arrangement with the Common Market?

Mr. Rifkind

My hon. Friend will be aware that not only have imports from the Community increased during the past 10 years but that our exports to the Community have increased dramatically, which has had a beneficial effect on employment. The Government do not believe that an EFTA-type arrangement is appropriate. We are full members of the Community. We wish to see reforms in the Community and that is what the present negotiations are all about.

Mr. Robin Cook

Does the Government's opposition to an increase in the resources of the Community include opposition to the latest proposal by the Commission for a loan of £280 million from Britain to cover the excess expenditure on agriculture? Do the Government accept that it would be plain daft for Britain to lend fresh money to a body that has yet to pay the rebates due to us? Can the Minister assure the House that the Government will not pre-empt a decision of the House on own resources by agreeing to this loan, which must be repaid out of the increased own resources, before the House has had an opportunity to decide whether it accepts that increase in own resources?

Mr. Rifkind

We have not yet received a formal request from the Commission for a loan such as that to which the hon. Gentleman referred. My right hon. Friend the Minister for Agriculture, Fisheries and Food had entered into the minutes of the Agriculture Ministers' meeting a statement to the effect that if any overspend arose from that agricultural settlement, the United Kingdom expected the cost of the overspend to be met within the existing budgetary provisions of the Community for the current financial year.