HC Deb 02 February 1984 vol 53 cc388-9
3. Sir Michael Shaw

asked the Minister of Agriculture, Fisheries and Food what is the policy of Her Majesty's Government towards the policy of the European Commission of delaying grant-aid to various sectors of the agriculture industry to save money.

Mr. Jopling

On balance, the Government support the Commission's policy of delaying payment for certain products taken into intervention so as to help contain CAP expenditure within the 1984 Community budget.

Sir Michael Shaw

Does my right hon. Friend acknowledge that it is absolutely essential for many farmers that their grants are paid on the approved and acknowledged dates because their financial situation and cash flow are such that, having made arrangements with their bank managers, it is vital that those arrangements are kept?

Mr. Jopling

I am, of course, aware that these delays in payments will cause difficulty for farmers who would otherwise have received them. The problem is that the cash is just not there. There is a major cash flow problem in the Community, and we had better acknowledge that very soon indeed and do everything we can to get a settlement that will put matters right.

Mr. Kirkwood

Will the Minister direct his mind next Monday and Tuesday at the Council meeting to the question of European development capital grants? Is he aware that there is a great deal of uncertainty on the part of people who entered into farm development schemes over five-year periods and who are threatened with these grants being delayed or withdrawn?

Mr. Jopling

I announced last week that agricultural and horticultural grant scheme payments would be resumed straight away, and I have been able to announce today that grants which were approved before 31 December will progress. I hope that when we can get a roll-over to the structure directive, all the later ones can be paid as well.

Mr. Nicholas Baker

Will my right hon. Friend reconsider the policy of delaying the payment of these intervention grants for up to 90 days? It is clear from his previous remarks that he is aware of the damage that is done to the cash flow of any business by a delay in payments to which that business is entitled.

Mr. Jopling

I appreciate the difficulties to which these delays will give rise, but the Community must save money in the best way that it can, because it is overspending at an alarming rate.

Mr. Robert Hughes

As the Minister has expressed a desire to contain agricultural expenditure, what does he say about the report of the Agriculture Committee of the European Assembly, which is chaired by his friend David Curry, which says that VAT receipts should be increased immediately? Can he not get his act together with his Tory friends in Europe, or is Mr. David Curry flying a kite to the inevitable sell-out that we shall soon get?

Mr. Jopling

I have not seen the report of what Mr. Curry said, but having read many articles written by him I should be surprisd to hear that he does not agree that the financial crisis of the Community must be put right with the greatest expedition.