§ Mr. Deakinsasked the Chancellor of the Exchequer what is the latest annual cost to the United Kingdom of the recent European Economic Community Agriculture Council decision that the financing of disposal of certain surplus Common Agricultural Policy stocks should be borne by national budgets for a period until repayments can be made from the European Economic Community budget; when this procedure was approved by European Economic Community finance ministers; what provision exists in the Public Expenditure White Paper for these costs; and if he will make a statement.
§ Mr. BrookeIn the context of the package of economy measures agreed by the Agriculture Council in December, the Commission indicated that it would subsequently bring forward a proposal to defer reimbursement to member states in respect of losses on the disposal of 1 million tonnes of butter from intervention stocks in 1987 and 1988. Reimbursements are to be made in four equal instalments starting in 1989, by which time the Commission expect that their cost will be more than offset by savings to the Community budget from the reductions in milk production agreed in December. In the meantime, the member states' financing costs will be reimbursed.
The Commission estimates that deferring reimbursement in this way will reduce EC budget expenditure in 1987 and 1988 by about 2,185 million ecu. The cost to the United Kingdom in postponed receipts from the Community budget is estimated to be broadly neutral, the delay in reimbursement being balanced by a saving in our contributions to the Community budget.
The Council of Agricultural Ministers on 9–10 February approved the necessary regulation, subject to the views of the European Parliament. The subject was also discussed at the Council of Economic and Finance Ministers on 9 February.