§ 2.59 p.m.
Lord Bruce of DoningtonMy Lords, I beg leave to ask the Question standing in my name on the Order Paper.
§ The Question was as follows:
§ To ask Her Majesty's Government whether they will state what article of the Treaty of Rome or other regulation, directive or decision made thereunder gives authority to the European Commission to cut or withhold amounts payable to individual farmers under the existing regulations in force.
§ Lord HeskethMy Lords, council Regulation No. 729/70 requires the Commission to make advance payments to national intervention bodies to fund their expenditure on EAGGF guarantee section 460 measures. The Commission's ability to make advances depends, however, on the availability of funds in the budget. In 1987 the budget is likely only to be sufficient to cover expenditure to the end of October. The European Council on 30th June agreed that the system of advances should be adjusted in order to keep expenditure within the budget. The details are still to be resolved, but the impact of the changes is likely to fall on national exchequers rather than having any effect on payments to farmers and traders.
Lord Bruce of DoningtonMy Lords, is the noble Lord aware that his Answer is the complete contradiction of a report that appeared in the Conservative Party house journal, the Daily Telegraph, some days ago, which indicated that the Commission is considering making cuts? Furthermore is he aware that his Answer is most satisfactory in another way, in that it appears that the only way of effecting cuts in compulsory expenditure on the EAGGF is simply not to agree with the budget? Will he give the House an assurance that his right honourable friend, when he appears at the Economic and Financial Council on the 13th, will firmly dig in his heels and impose in effect cash limits upon this expenditure, thus justifying completely the assurance of his right honourable friend the Prime Minister that expenditure will be kept under strict control?
§ Lord HeskethMy Lords, I am sure that the noble Lord does not expect me in any way to be in a position to give any form of assurance on behalf of my right honourable friend. I assure him that discussions are continuing on the Commission's proposals for changes in the Community's finances, including an increase in the Community's resources. Any such increase would require the agreement of all member states. The UK, however, has made it clear that we will consider extra resources only if genuine steps have been taken towards reforming the common agricultural policy.
Lord Bruce of DoningtonMy Lords, is the noble Lord aware that the identical assurance was given in another place and to this House immediately after the Fountainebleau conference with no result whatever? Budgetary discipline still has not been maintained. Is he further aware that many of us suspect that after the next conference to which he referred the budget will still remain out of control?
§ Lord HeskethMy Lords, I am sure that many Members of this House are well aware that the Prime Minister received a tremendously adverse press in the rest of Europe for taking such a strong line on 30th June on reforming the finances of Europe.