HC Deb 14 November 1984 vol 67 cc679-82
60. Mr. Gould

asked the Secretary of State for Foreign and Commonwealth Affairs whether the Foreign Affairs Council has decided on a definite date for the introduction of the new system of increased own resources for EEC member states.

Sir Geoffrey Howe

No, Sir.

Mr. Gould

Will the Foreign Secretary give an assurance that, long before the introduction of any increase in own resources, he will make a clear statement to the House that the preconditions he has set for the reform of the CAP and the budget have been met, and that the House will have a full opportunity to debate those issues?

Sir. Geoffrey Howe

The hon. Gentleman can be assured that, before any proposal for increased own resources is presented to the House, there will be opportunities for debating it. In considering that matter we shall continue to attach importance to effective implementation of the Fontainebleau-Brussels agreements on the need for budget discipline and continued progress in securing the necessary reforms of the common agricultural policy which were set in hand on 31 March.

Mr. Marlow

Will my right hon. and learned Friend set about scrubbing that aspect of the Fontainebleau agreement to do with the increase in own resources? The Government's justifications for an increase in own resources are the accession of Spain and Portugal, which has been deferred even further into the future, and the reduction in agricultural expenditure, which will not occur. That has been confirmed by the fact that the agricultural levy cannot even be applied properly in France. If my right hon. and learned Friend reads Old Muckraker in "Private Eye", he will discover that we are being done for an extra £100 million a year for selling Common Market surpluses of gram from our country.

Sir. Geoffrey Howe

My hon. Friend will not be in the least surprised to know that I cannot give him any such assurance. Provided the conditions to which we have repeatedly drawn attention are fulfilled—the House will have a opportunity to consider them—we shall, in due course, bring forward a proposal to increase own resources.

Mr. Loyden

Does the Foreign Secretary agree that the system of food from own resources linked to a common agricultural policy generally is obscene? My hon. Friend the Member for Bolsover (Mr. Skinner) has said that it rings rather hollow for Conservative Members to talk about the problems of the Third world, which, incidentally, were not discovered in 1984, but which were the inheritance of imperialism and colonialism. It is the height of obsecenity that food should mount up in Europe while millions of people in Africa and other parts of the Third world are starving.

Sir. Geoffrey Howe

I cannot begin to share the hon. Gentleman's view that the common agricultural policy is obscene, or anything like it. The common agricultural policy was conceived to achieve a number of objectives, all of which are important — first, the production of ample food resources in Europe; secondly, the achievement of reasonable prices; and, thirdly, the achievement of both those aims in a fashion that protects the living standards of those who work in the agricultural community. All those objectives have been achieved, but, unfortunately, they have involved the production of surpluses in some commodities at high cost to the taxpayers. There is nothing unique about that in the common agricultural policy. Agricultural protection policies in, for example, the United States cost similar amounts. The task of controlling agricultural subsidies and producing a sensible agricultural policy is bound to take time, and that is why we want to reform, but not destroy, the common agricultural policy.

Mr. Maclennan

Has the Foreign Secretary made plain to the French Government directly the wholly unacceptable nature of their refusal to implement the arrangements for the milk quota?

Sir Geoffrey Howe

We have made it plain to all the Community Governments that implementation of the quota regime established as a result of decisions taken on 31 March is of fundamental importance. It is, in fact, crucial that that regime should be observed throughout the Community.

Mr. Budgen

What hope is there of general reform of the CAP when the first tentative steps towards reform through the super levy are being evaded or delayed by West Germany, France and Italy?

Sir Geoffrey Howe

It is plainly necessary and essential to press for the full implementation of the super levy, as agreed, as a foundation for that stage of the reform.

Mr. Robin Cook

Has the Foreign Secretary noted the statement by French officials that they agreed to this week's statement on budget discipline because it allowed sufficient flexibility to continue with the CAP? As France is patently making no effort to control its extravagant and growing agricultural surpluses, why should the House agree to increase own resources to continue to subsidise those surpluses?

Sir Geoffrey Howe

Because the formulation on budgetary discipline which is coming close to agreement and endorsement is an undertaking that will bind the Council. It is an obligation that will also bind the Commission. It will serve to fulfil the need for effective implementation of the Fontainebleau conclusions.