Common Agricultural Policy Costs (Hansard, 17 May 1991)

§ The Minister of State, Ministry of Agriculture, Fisheries and Food (Baroness Trumpington)
My Lords, planned Exchequer expenditure on common agricultural policy measures in the UK is about £1.9 billion for the 1991–92 financial year. In addition, the Exchequer pays towards CAP expenditure elsewhere in the Community through the UK's net contribution to the EC budget. The cost of the CAP in future years is an issue that will be considered in forthcoming negotiations.

§ Lord Boyd-Carpenter
My Lords, I thank my noble friend for that interesting Answer, and for the horrific figure that she gave. Is it not a little disappointing that after it has been the commonly expressed view throughout this country that the common agricultural policy requires to be cut down to size, my noble friend is still not able to announce a reduction for next year?

§ Baroness Trumpington
My Lords, the Government's firm view is in total agreement with my noble friend that the costs of the CAP must be kept under strict control. A legally binding guideline ceiling on expenditure will therefore continue to be essential. The Government will also aim to ensure that CAP reform reduces overall costs.

§ Lord Mellish
My Lords, what is the purpose of the common agricultural policy? What good does it do Britain?

§ Baroness Trumpington
My Lords, all farmers benefit from the market support system provided by the CAP. Therefore UK farmers benefit.

§ Baroness Phillips
My Lords, why do we have to suffer the import of terrible apples such as golden delicious while our own marvellous apples such as cox's and others are restricted in growth? What common sense is there in that?

§ Baroness Trumpington
My Lords, it is not my understanding that our delicious, superb cox's are restricted in growth. However, it is a free market.

§ Lord Stoddart of Swindon
My Lords, how can the noble Baroness state that the common agricultural policy benefits British farmers when their net incomes in real terms have gone down? Many have gone out of business. Is it not a fact that on present trends, the cost 1856 of the common agricultural policy to the British taxpayer, far from reducing as the noble Lord, Lord Boyd-Carpenter, wishes, will increase over the next few years?

§ Baroness Trumpington
My Lords, with regard to the trend in the UK net contribution to the cost of the CAP, it is not possible to give separate figures for the UK contribution to the costs of the CAP. However, Government policy is to limit that as much as possible by pressing for restraint on the overall costs of the CAP and maintenance of budget discipline and by opposing CAP measures which would discriminate against the UK.

§ Lord Mulley
My Lords, in her characteristic way, will the noble Baroness candidly ask the Commission to spend a little more time dealing with these agricultural matters rather than looking around for every other aspect that they can harmonise and new schemes to introduce?

§ Baroness Trumpington
My Lords, I assure the noble Lord that my colleagues spend an enormous amount of time and do a very great deal of work on the agricultural policy and on maintaining Britain's fair share.

§ Baroness Elles
My Lords, does my noble friend agree that there are vast opportunities for the export of British food products throughout the European Community? Would it not be a good idea if farmers started marketing and packaging their excellent produce in order to take advantage of that factor rather than encouraging consumers in this country to import from other European countries?

§ Baroness Trumpington
My Lords, I can only say "Hear, hear" in answer to my noble friend.

§ Lord Gallacher
My Lords, does the noble Baroness agree that at present in order to contain the costs of the common agricultural policy in future years, Commissioner MacSharry has tabled proposals for the restructuring of the CAP which, if implemented as they stand, will neither save the British taxpayer money nor confer any benefit whatever on British agriculture.

§ Baroness Trumpington
My Lords, the Commission approved the MacSharry paper setting out the broad principles and framework for CAP reform on 31st January. The paper was published on 1st February and was discussed at the Agricultural Council on 4th-5th February. At discussion in the Agricultural Council it was clear that a significant number of other member states shared UK reservations about the Commission's ideas. The Commission is considering those views. Discussion on the reform paper is likely to resume in the summer after the 1991–92 price package has been agreed.

§ Lord Dormand of Easington
My Lords, I' use the Minister's words. She stated that the Government are continually trying to restrain the costs of the CAP. That may be correct. However, we have heard that stated many times. Will she give the House details 1857 about exactly what is being done with regard to that restraint, bearing in mind that the CAP costs every family in this country £18 a week.

§ Baroness Trumpington
My Lords, the 1991–92 price fixing proposals have been discussed three times by agriculture Ministers and once by finance Ministers. Discussions at all those councils have revealed that the majority of member states would prefer to see the guideline raised to accommodate the costs of German unification, thereby removing the need for savings in 1991. The Commission, with full support from the UK and the Netherlands, is resisting any change to the guideline. The next meeting is scheduled for 20th-21st May, when the presidency is expected to table compromise proposals.

§ Lord Williams of Elvel
My Lords, is it not the case that the Common Agricultural Policy and its effects are a major stumbling block to the negotiations of the Uruguay Round of GATT? What can the Government tell the House about a possible reform of the policy to allow that round to succeed, which is desperately important?

§ Baroness Trumpington
My Lords, the EC offer is part of a complex negotiation. Changes in the CAP will depend upon the final agreement. There is no question of dismantling the CAP or of completely abandoning particular policies. They should lead to freer market conditions but not to complete exposure to world market forces. That should lead to lower expenditure which in turn would be in conformity with GATT proposals.

§ Lord Boyd-Carpenter
My Lords, will my noble friend go a little further and give the House some encouragement by indicating that for the good reason advocated by the noble Lord, Lord Williams of Elvel, and from the point of view of the control of public expenditure, the Government will make a determined effort in the near future to enforce a reduction in the expenditure on the CAP?

§ Baroness Trumpington
My Lords, negotiations are proceeding. I cannot give my noble friend any more encouraging remarks while those negotiations proceed.