Common Agricultural Policy (Hansard, 19 June 1997)

§ 12. Mr. Lansley
To ask the Minister of Agriculture, Fisheries and Food if he will make a statement on the renegotiation of the common agricultural policy. [2902]

Dr. John Cunningham
The need for CAP reform is widely recognised and is a major priority for the Government. A redirection of the CAP away from high prices and production controls is essential if EU agriculture is to remain competitive and dynamic in the face of the liberalisation of world trade and the effects of EU enlargement.

§ Mr. Lansley
In response to an earlier question, the Minister of State said that he was not in favour of modulation. Will the Minister go further and say that he will reject any proposal for CAP reform that incorporated modulation?

Dr. Cunningham
I can go further still and say that I will reject any proposals that come up under the CAP that would disadvantage British farmers.
On modulation, to which I am totally opposed, I would not want a scheme to be introduced that discriminated unfairly against the UK generally and our efficient large farmers in particular.

§ Mr. Pike
I recognise that my right hon. Friend has quite rightly identified the problems of enlargement in relation to the CAP, but what discussions are the Government having with those nations that might join the EU at some future date, such as Poland and Romania, whose agricultural economies would have a grave effect on the CAP's future?

Dr. Cunningham
That is principally a matter for my right hon. Friend the Secretary of State for Foreign and Commonwealth Affairs. Those matters are being discussed not only by my right hon. Friend the Foreign Secretary but by my right hon. Friend the Prime Minister in the context of the intergovernmental conference and the wider debate about EU enlargement, which we support.

§ Mrs. Ewing
Given that not much progress seems to have been made on the issue of EU enlargement at the Amsterdam summit, and that reform of the CAP has to a great extent hinged on that issue, will the right hon. Gentleman advise the House, especially those of us who represent agricultural communities, how negotiations and discussions will take place? Enlargement is linked with the development of structural and regional funds, particularly for less-favoured areas. The issue is important to all of us who represent rural constituencies. I would like to hear Government Front Benchers send the message today that negotiations and discussions will take place in a positive fashion.

Dr. Cunningham
If the hon. Lady is asking for an assurance that we will adopt a positive approach to discussions and negotiations on EU enlargement, I can give her that without hesitation. Not to be able at the same time to seek fundamental reforms of the CAP would be damaging for us and, in the long term, the EU's structure would become unstable because an enlarged union would not be able to finance the current CAP.