Common Agricultural Policy (Hansard, 28 October 1993)

§ 5. Mr. Mackinlay
To ask the Minister of Agriculture, Fisheries and Food what will be the cost of the common agricultural policy to the United Kingdom in 1994.

§ Mrs. Gillian Shephard
The United Kingdom contributes to the EC budget as a whole, not to parts of it. Expenditure on CAP in the United Kingdom in 1993–94 is estimated to be £2.5 billion.

§ Mr. Mackinlay
Does the Minister recall her speech to the Royal Society for the Protection of Birds on 10 August, in which she announced a number of new environmental measures as part of the CAP reform package—in particular, the expansion of environmentally sensitive areas? Will she undertake that there will be no delay in implementing those measures, and no cuts in projected expenditure on the promotion of such measures following this year's Budget?

§ Mrs. Shephard
I do, indeed, recall my speech to the RSPB on that very pleasant occasion. I also recall that I spoke of the excellent contribution that ESAs make to environmental protection and sensible and profitable farming—the whole being tailored to the needs of local areas. The hon. Gentleman will be aware that all aspects of all spending in all Departments are being closely examined at the moment by the Departments in conjunction with the Treasury. I can say no more than that at this stage.

§ Sir Ralph Howell
Does my right hon. Friend regard the fact that the harvest fell from 22 million tonnes to 19 million tones—11 per cent.—in 1993 as success or as failure? Bearing in mind the heavy imports of foodstuffs into this country, what will be the implications for the balance of payments?

§ Mrs. Shephard
Part of the aim of the CAP reform package is to limit production by using set-aside to reduce expenditure on costly intervention and storage, which I know that my hon. Friend abhors. I consider an 11 per cent. reduction in production this year as a success for set-aside.

§ Mr. Strang
May I put it to the Minister that the Opposition regard it as quite indefensible that next year we shall be spending about £2 billion on intervention buying, adding to the food mountains? Does the right hon. Lady agree that expenditure on intervention buying should be cut and that some of the money should be used to encourage farmers to farm in a more environmentally sensitive way? Is she aware that any public expenditure review cut in the increased £30 million allocation that she announced under the agri-environment regulations will be bitterly resented by everyone who has the future of the countryside at heart?

§ Mrs. Shephard
I think that the hon. Gentleman and I agree that the cost of the CAP remains too high. I should have thought that he would also agree that the CAP reform package cuts prices and therefore brings the industry closer to the market, that it reduces intervention and that it places increased emphasis on benefits to the environment—all effects which I should have thought he would welcome.