Food Surpluses (Hansard, 24 July 1986)

§ Mr. Teddy Taylor
asked the Minister of Agriculture, Fisheries and Food, pursuant to his answer of 21 July, Official Report, column 1, why provision is being made for an increase of 0.75 per cent. in the cost of storing common agricultural policy surpluses in 1986 over 1985; and if he will make a statement.

§ Mr. Gummer
Intervention stocks of certain products have increased in 1986. As part of the price fixing settlement, however, the Council agreed to reduce the Community's contribution to the costs of storage. Taken together these factors result in an increase in overall provision.

§ Mr. Teddy Taylor
asked the Minister of Agriculture, Fisheries and Food, pursuant to his reply of 21 July, Official Report, column 1, why the provision made in the revised European Economic Community budget for the storage and withdrawal, respectively, of food surpluses in the current year has been reduced from the provision made in the original budget for the current year as set out in his answer to the hon. Member for Southend, East on 17 February, Official Report, column 3; what factors were taken into account in reducing these provisions; and if he will make a statement.

§ Mr. Gummer
The principal reason for the reduction in the 1986 budget provision for intervention storage is the cut in Community reimbursement of storage costs, which was agreed by the Council after the original budget had been adopted. In addition, the forecasts of stock levels of cereals have been reduced. These changes more than offset the effects of higher estimated stocks of other products. The lower provision for withdrawals reflects a revised forecast of expenditure on fruit and vegetables, taking account of market and monetary developments.

§ Mr. Teddy Taylor
asked the Minister of Agriculture, Fisheries and Food if he is satisfied that the provision made in the revised European Economic Community budget for the storage and withdrawal, respectively, of food surpluses covers all contingencies which can be reasonably forecast; what contingency plans have been made for spending excesses following the decision on the revised budget for the current year; and if he will make a statement.

§ Mr. Gummer
The provision for EAGGF guarantee expenditure in the new budget corresponds closely to the Commission's latest estimate of requirements this year. If any shortfall occurs payments which would otherwise be made in December will be deferred to 1987.