§ Lord James Douglas-Hamilton
asked the Secretary of State for Scotland what is the financial benefit likely to be received by the United Kingdom as a result of the EEC directive on hill farming areas; and what Scotland's percentage share will be.
§ Mr. William Ross
The net financial benefit to the United Kingdom depends on the incidence of actual expenditure under the directive in each of the member States, the rate of FEOGA contribution and the rate of United Kingdom contribution to the EEC budget. On the basis of the Commission's proposals, which have still to be approved by the Council of Ministers, on the areas to be aided and the rate of FEOGA refund on compensatory allowances, the United Kingdom would receive about 29 per cent. of the total FEOGA contributions provisionally estimated by the Commission over the next three years.
The FEOGA contribution over this period towards eligible United Kingdom expenditure is estimated at some £20 million to £25 million per annum, of which about £10 million would be related to eligible expenditure in Scotland.