HL Deb 21 July 1987 vol 488 cc1267-9

2.52 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 proposals they propose to make to the Economic and Finance Council of the European Communities in order to secure the imposition of annual cash limits on the Commission's "compulsory" (or "obligatory") expenditure.

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

My Lords, the agricultural guideline limit within the Community's existing budget discipline agreement provides for expenditure on agriculture to grow no faster than the Community's own resources base. As the recent European Council recognised, the guideline needs to be reinforced by changes in the agricultural regulations to enable the Commission to keep the level of expenditure within the budget provision. The Government have suggested some ideas for stabilisers to restrain expenditure in individual commodity regimes.

Lord Bruce of Donington

My Lords, I thank the noble Lord for that reply. Is he aware of the view, which has been expressed by the Commission itself, that the existing phrase "a budget discipline" covers a complete farce lacking any control whatever over the financial expenditure of the Community?

Is the noble Lord further aware that almost immediately following Fontainebleau it was agreed by the Council of Ministers that the Economic and Finance Council members should always be present with the agricultural ministers when price fixing took place? Is he also aware that when, on the last occasion, the finance ministers absented themselves, the Agricultural Council was left free from the financial constraints that would otherwise have applied in determining agricultural price levels?

Lord Young of Graffham

No, my Lords, I am not aware that the present regime is a farce. I am aware that there are difficulties: that is why we have suggested stabilisers. This is a Community-wide problem and it must be dealt with by the Community as a whole.

Lord Mackie of Benshie

My Lords, the noble Lord mentioned the proposed schemes. I assume he was referring to the excellent Ministry of Agriculture proposal for a voluntary set-aside scheme without which we shall never reduce the surplus of cereals. Can the noble Lord say what progress has been made in putting that scheme forward?

Lord Young of Graffham

My Lords, the specific Question referred to the concept of stabilisers which I hope will come into being in order to limit specific commodity over-production. It is a very difficult problem; one that must be addressed by all members of the Community. We must look at mechanisms whereby gross over-production of farm produce within the Community can be redressed in a sensible and sustainable way.

Lord Molloy

My Lords, would the Minister not agree that while a question of this calibre concerns the entire Community, someone has to initiate new ideas? I recall during my years in Europe that Britain initiated many things. Do the Government intend to do any initiating on this particular problem?

Lord Young of Graffham

My Lords, that is exactly what we have been doing at the last two councils.

Lord Bruce of Donington

My Lords, before the noble Lord pursues the matter further, will he please consult his right honourable friend the Prime

Minister whose views on this aspect would appear, on the face of it, to coincide more with mine than with his?

Lord Young of Graffham

My Lords, the noble Lord must form his own conclusions. They are not mine.