HC Deb 19 June 1997 vol 296 cc449-50
11. Mr. David Heath

To ask the Minister of Agriculture, Fisheries and Food what plans the Government have to apply to the European Commission for a full implementation of the compensation package available in respect of agri-monetary revaluation. [2901]

Mr. Rooker

Paying the aid would have significant implications for United Kingdom public expenditure. We are considering carefully the case made by interested parties for payment, but we have until 31 January next year to decide on the matter.

Mr. Heath

Does the hon. Gentleman understand the extent of the difficulties that beef producers, and the dairy sector in the west country particularly, are facing as a result of the previous Government's actions over many years? Does he realise that those problems are being exacerbated by imports and that assistance is required, not some time next year, but now? If the Government do not take the opportunity of using the EU 50 per cent. resources that are available to them, producers will wonder why.

Mr. Rooker

I understand, and we share entirely, the concern of the hon. Gentleman's constituents. We cannot take an early decision on the matter; we have time. I remind the hon. Gentleman and the House that the value of CAP amounts is 9.4 per cent. higher than in January 1992, even taking into account the most recent revaluation of 5 June. The current protection, following the effects of the January and March revaluations of the freeze rates that were used to calculate sterling payments this year, will be worth £400 million over the next two years.