HC Deb 06 March 2003 vol 400 cc954-6
9. Sir Teddy Taylor (Rochford and Southend, East)

What estimate she has made of changes to the cost of the common agricultural policy resulting from the proposed extension of the EU. [101120]

The Secretary of State for Environment, Food and Rural Affairs (Margaret Beckett)

Enlargement to a European Union of 25 is forecast by the Commission to cost?6.3 billion in common agricultural policy direct payments and market support in 2013. This is consistent with the ceilings on agricultural expenditure agreed at the European Council in October 2002.

Sir Teddy Taylor

The common agricultural policy has cost European central funds more than £100,000 million over the past five years, apart from the massive sums spent by member states and the extra costs borne by the consumer. Does not the Secretary of State accept that we will face a nightmare of spending with the extension of the CAP, bearing in mind the enormous potential for extension in countries such as Poland and Romania? Will she say whether there is any real possibility of a fundamental review of the CAP, which we were promised would come before the extension of Europe?

Margaret Beckett

The hon. Gentleman will know that a huge amount of discussion is now under way about reform of the CAP. I accept two of the points that he has made: first, it has long been a very expensive policy for taxpayers and consumers; secondly, it is important that we make sure that we can curtail that expenditure, not least because of enlargement. I assure the hon. Gentleman that the Government continue to work with all the vigour at our command to ensure as much reform as we can conceivably achieve.

Lawrie Quinn (Scarborough and Whitby)

Has my right hon. Friend had an opportunity to make an assessment of the impact of these changes on upland areas such as the North York moors and on less favoured areas where producers are struggling quite a lot now, where the impact could be even worse in terms of a sustainable agricultural system?

Margaret Beckett

I entirely accept my hon. Friend's concern and I know that he speaks for his constituents in such areas in expressing that anxiety. I assure him that a great deal of work is going on all the time to assess the shifting proposals that are being made, as they are developed and expanded, to assess their impact on all areas. In general terms, we believe that the proposals would be beneficial to the farming community, including less favoured areas, as a result of the combined impact of the different measures. I assure my hon. Friend that we keep that under close review.

Mr. Geoffrey Clifton-Brown (Cotswold)

The Secretary of State will be aware that the structure of British farming is that we have larger farms than those on the continent. We therefore stand to lose most from a reform of the CAP. Does she agree that it would be intolerable for British farmers to lose out but for the British taxpayer to continue to pay into the CAP only to subsidise continental farmers who would compete with British farmers in the single market?

Margaret Beckett

First, I entirely accept that the impact of CAP reform, as with the impact of the existing CAP, is different in different member states. The hon. Gentleman is entirely right that we have many larger farms. He will have noticed that, already, the Commission's initial suggestion of a ceiling on payments is no longer in the proposals. I assure him that it is no part of this Government's negotiating objectives to see British farmers suffer at the expense of others.

Mr. James Gray (North Wiltshire)

The expression "no part of this Government's objectives" will be taken as a slightly disappointing reaction by the National Farmers Union and farmers. Does the Secretary of State not accept that 75 per cent. of continental farms receive less than €5,000 a year, but 43 per cent. of British farms are of a size whose subsidy will be heavily slashed under current proposals? Will she not toughen up her stance on this matter? Will she not fight for British farmers who have already been devastated, and many of whom are suicidal?

Margaret Beckett

Mindful of your injunction to give short answers, Mr. Speaker, I answered the point raised by the hon. Member for Cotswold (Mr. Clifton-Brown), which was about the larger farms. I entirely accept the point that the present structure of the proposals, with a franchise that excludes smaller farms, has a differential impact in different member states. We shall continue to fight for a scheme that is fair, both to British farmers and to others, not least because we are the only member state with real experience of a scheme of modulation, and it is only because it is seen to be fair to all that it is accepted at all.

10. Mr. Desmond Swayne (New Forest, West)

What assessment she has made of the impact that the proposed reforms to the common agricultural policy will have upon farmers in the United Kingdom. [101121]

The Secretary of State for Environment, Food and Rural Affairs (Margaret Beckett)

We have undertaken various economic and impact assessments of the Commission's reform proposals. They conclude that, overall, the reforms would have a positive effect on farmers and on farm incomes in the UK.

Mr. Swayne

I find that hard to believe. The July 2002 proposals—the Government's regulatory impact assessment—did not deal with the sheep, beef and pig sectors. Will the report that is now due, consequent on the consultation period that has just ended, put that right?

Margaret Beckett

First, I am sorry that the hon. Gentleman finds the assessments hard to believe, but I assure him that they are available on the Department's website, a great many assessments are being undertaken, and it is not only the Government who believe that such a package of reform could be beneficial to UK farmers. With regard to issues of regulation, we continue to keep under review all of the regulatory approach that we adopt, in an effort, for example, through a whole-farm approach, to reduce and to simplify the regulations that farming faces.

Mr. Wayne David (Caerphilly)

Has there been any assessment of the likely impact of the mid-term review of the CAP on food prices in the United Kingdom?

Margaret Beckett

Well, there will be a varying impact. We do not expect a particularly dramatic impact in the short term, but I assure my hon. Friend that the impact on consumers, taxpayers and farmers is very much part of the assessment that we are making.