§ Mr. David HeathTo ask the Chancellor of the Exchequer if he will make a statement on the effect on the British rebate under the Fontainebleau Agreement of the implementation of the Agenda 2000 proposals for co-financing the Common Agricultural Policy in the event of(a) an increase in overall support to British agriculture and (b) an increase in agricultural support provided from UK domestic funds. [71648]
§ Ms HewittCofinancing of the CAP would not affect overall support to agriculture, in the UK or other member states. It would increase support provided directly by member states, but reduce the support provided by the EC.
Any increase in agricultural support from UK domestic funds would, of itself, have no effect on the UK rebate. Any such increase which resulted from cofinancing would be more than matched—even after the abatement—by a reduction in UK contributions to the EU. The Commission has estimated (in its report on Own Resources) that cofinancing of 25 per cent. of CAP direct aids would reduce the UK net contribution by £146 million in 2006.