HC Deb 25 October 1984 vol 65 cc797-8
6. Mr. Kirkwood

asked the Minister of Agriculture, Fisheries and Food whether there are now adequate funds in the European Economic Community agriculture budget to guarantee the requirements of the 1984 price fixing agreed in the Brussels price review 1984.

Mr. Jopling

The draft 1984 supplementary budget, which is now under consultation in the European Parliament, is based on estimates of expenditure requirements to the end of the year which take account of the effects of the price-fixing settlement.

Mr. Kirkwood

Will the Minister assure us that in any event adequate financial resources will be available for British agriculture for the rest of the calendar year and that there will be no recurrence of the arbitrary measures taken last year to try to save money, which had the effect of destabilising markets and withdrawing support from agriculture in Britain?

Mr. Jopling

My belief at the moment is that there is not likely to be a significant shortfall, provided that the draft supplementary budget is adopted.

Mr. Teddy Taylor

If there is a carry-over of spending for the 1984 budget, how does my right hon. Friend think the Common Market will be able to afford the huge budget provided for 1985, which includes provision of £120 million a week for storing, dumping or destroying surplus production?

Mr. Jopling

I remind my hon. Friend that, at the end of 1984, funds ran out. Many colleagues who represent agricultural constituencies will remember that many grants and aids in the last months of 1984 were deferred until the money came in in 1985. If the draft supplementary budget is adopted, I hope that we will not have serious difficulties.

Mr. Robert Hughes

Is there not a 700 million ecu deficit in this year's budget which is to be carried over into next year's budget? How will that money be found and how can the right hon. Gentleman repeatedly say that agricultural spending is under control?

Mr. Jopling

I have said repeatedly that we have made a giant first step in getting common agricultural policy spending under control. The steps that we took earlier this year to reduce the amount of milk going into intervention throughout the Community was a major step. The prices of most agricultural products were reduced and we imposed guarantee thresholds across a broad spectrum of agricultural produce. We have made giant steps towards putting spending in order, although I readily acknowledge that there is much left to do.