§ Mr. Austin Mitchellasked the Prime Minister, following the agreement at Fontainebleau, by how much the amount spent under the common agricultural policy will increase in the current year and in 1985; whether the increase is expected to lead to increases in output; and whether the quantity of surplus agricultural products exported to third countries is expected to increase.
§ The Prime MinisterExpenditure on the common agricultural policy will not increase as a result of the decisions taken at Fontainebleau though it will vary according to world crops, European crops and world prices. Discussions on a draft supplementary Community budget for 1984 proposed by the European Commission and on a preliminary draft Community budget for 1985 are still continuing in Brussels. The level of output depends on a number of factors including prices. I am glad to say 237W that common prices were reduced on average at this year's agricultural price fixing. The volume of exports depends crucially on output.
§ Mr. Deakinsasked the Prime Minister what proportion of the proposed increase in value added tax own resources to the Common Market is required for the common agricultural policy costs of admission of Spain and Portugal.
§ The Prime MinisterNone of the proposed increase in VAT own resources has been specifically allocated to the common agricultural policy costs of the accession of Spain and Portugal. The Commission has estimated that enlargement of the European Community to include Spain and Portugal might eventually involve a net addition to the Community budget of 0.1 to 0.2 per cent. of the 1 per cent. harmonised VAT base. No estimates of the gross cost have been published.