§ 16. Mr. James Hamiltonasked the Secretary of State for Foreign and Commonwealth Affairs what recent discussions have been held in the European Community Foreign Affairs Council regarding a supplementary budget later in the current year; and if he will make a statement.
§ Mrs. ChalkerThe most recent discussion was during the Council of Finance Ministers held at the same time as the Foreign Affairs Council, on 10 March. I refer the hon. Member to the statement made by my hon. Friend the Minister of State, Treasury in reply to a question from my hon. Friend the Member for Nottingham, East (Mr. Knowles), on 14 March.
§ Mr. HamiltonHow could the Foreign Secretary and his colleagues have underestimated Common Market spending by so much that a supplementary budget is necessary? Does the Minister not agree that Community spending is now out of control? What about the budget discipline that we have heard so much about?
§ Mrs. ChalkerIt is not that Community spending is out of control, unless certain nations, and that excludes this country, press for unrealistic agriculture budgets. What the Commission will be proposing in a supplementary budget this year will be a provision of about 450 mecu. to increase our 1985 abatement. It has also said that it will propose a supplementary provision for agriculture, which arises from the fall in the dollar-ecu rate. In our view, the correct response should be to seek savings in the agriculture budget and in that way reduce the surplus. We should then be in a far better position not to require such a repetition of events.