HL Deb 09 July 1987 vol 488 cc738-9

3.25 p.m.

Lord Bruce of Donington

My 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 what is their attitude to the European Commission's request for further budget to be provided towards the deficit in the Community funds forecast for the current year.

The Secretary of State for Trade and Industry (Lord Young of Graffham)

My Lords, the Government have made it clear on several occasions that there is no question of providing additional resources above the 1.4 per cent. VAT ceiling to cover this year's prospective deficit. The European Council agreed on 29th and 30th June that the prospective overspend in agricultural guarantee expenditure this year should be offset by adjusting the system for advance agricultural payments from the Community budget. The Budget Council has subsequently established a draft supplementary and amending budget to cover the rest of this year's deficit of some £1.5 billion within the 1.4 per cent. VAT ceiling.

Lord Bruce of Donington

My Lords, is the noble Lord aware that part of the 1987 deficit envisaged consists of some £527 million inherited from a deficit on the 1986 budget? Is he further aware that the book-keeping device of postponing payments by some three months in order to achieve a book-keeping balance is one that will deceive very few people and has already been condemned by the Court of Auditors? While the noble Lord is talking of budget discipline—and on this we on these Benches most certainly agree with Her Majesty's Government—is he aware that the 1988 expenditure projected in respect of the CAP is some 17.8 per cent. higher than that for the current year?

Lord Young of Graham

My Lords, there can be few in your Lordships' House who would be unaware of the simple fact that we are striving mightily in order to restore a sense of discipline within the European Community budget.

Lord Mackie of Benshie

My Lords, is the Minister aware that another record crop for cereals in Europe is now forecast? What positive steps are the Government proposing to the Commission and to the Council to stop people growing cereals? Should not the plan already propounded by the Government be forced into effect to pay people to transfer their land into some crop other than cereals?

Lord Young of Graffham

There can be little doubt that the common agricultural policy is in need of reform. That is a matter which is being discussed at almost every meeting of the Community.

Lord Bruce of Donington

My Lords, will the noble Lord take this opportunity of reminding his noble friend the Leader of the House that there is a letter still outstanding from him to me explaining the burden on the British Treasury arising from the 1987 budget? It is always such a pleasure to receive letters from the Leader of the House. If his memory were jogged I should like to hear from him.

Lord Young of Graffham

My Lords, when I next see my noble friend I shall so remind him.