HC Deb 29 March 1984 vol 57 cc240-3W
Mr. Austin Mitchell

asked the Prime Minister if she will publish in the Official Report a table showing what each member state receives from the EEC by way of support from agriculture and the amount paid into the EEC for such support expressed as a proportion of its contribution equal to agriculture's share of the total EEC budget.

The Prime Minister

The following table shows member states' receipts in 1982 from the EAGGF and their gross contribution to the Community budget for that year expressed as a percentage of own resources payments. These do not take account of the budget refunds.

Receipts from EAGGF (mecu) Gross contribution as percentage of OR*
Belgium 553.4 5.4
Denmark 580.7 1.9
Germany 2,138.3 26.9
Greece 669.1 1.8
France 3,037.1 20.0
Ireland 588.6 1.0
Italy 2,636.5 11.8
Luxembourg 4.3 0.1
Netherlands 1,457.2 6.9
United Kingdom 1,355.7 24.2
* Own resources of the European Community.

Contributions from member states are to the total of the Community's own resources; it is not therefore possible to give a figure for each member state's contribution as a proportion equal to agriculture's share of the total EC budget.

Mr. Austin Mitchell

asked the Prime Minister what assessment the Government have made of the economic gains and losses of membership of the EEC; and if she will publish the findings in the Official Report.

The Prime Minister

I refer the hon. Member to the fact sheets "Britain in the European Community 1973–83", which the Government published last year to mark the 10th anniversary of the United Kingdom's accession and to the supplement to the October 1982 economic progress report on "The European Community Budget". Copies are in the Library.

Mr. Austin Mitchell

asked the Prime Minister what effect the quotas for milk which were rejected by the Irish Government at the recent summit of the EEC Council of Ministers would have had on milk output in the United Kingdom and other EEC countries in the current and future years; and how this compares with output in 1972.

The Prime Minister

The quota arrangements for the Irish Republic which were rejected at the European Council would not have affected the output levels in the United Kingdom or other Member States. But I do not accept that Ireland could be excluded from the supplementary levy system which is essential to bring the budgetary costs of the milk sector under control.

Mr. Austin Mitchell

asked the Prime Minister whether the EEC Council of Ministers at its recent summit considered imposing further restrictions on imports from third countries by means of discriminatory taxation or oherwise; and, in particular, whether it considered measures which would limit the use of cereal substitutes and vegetable oils.

The Prime Minister

The Foreign Affairs Council decided on 21 February that the opening of negotiations with the United States over the stabilisation of their exports to the EC of cereal substitutes could be considered only as an adjunct to agreement on wider reforms of the common agricultural policy; this remains the position. A number of member states, including the United Kingdom, continue to express strong opposition to any tax on oils and fats.

Mr. Deakins

asked the Prime Minister if she will seek to ensure that there is no role for the European Assembly in relation to future refunds to the United Kingdom as part of any settlement of the problem of the United Kingdom budgetary contributions.

The Prime Minister

Difficulties have arisen with the European Parliament in the past because the Parliament has objected to the ad hoc nature of United Kingdom refunds. Agreement in the Council on a systematic and lasting mechanism for the fair sharing of financial burdens on the lines that we are seeking will, I hope, ensure that such difficulties do not arise in future.

Mr. Austin Mitchell

asked the Prime Minister what account the European Economic Community Council of Ministers at its recent meeting took of national aids to the dairy sector when considering the regime for milk; and whether she will give particulars of these aids.

The Prime Minister

National aids to the milk sector may be paid only within terms agreed by the European Community. It follows that the Council of Ministers took full account of these at its recent meeting when it agreed that, from 1 March 1984, agricultural grant support for investment directly related to milk production should be suspended.

Mr. Austin Mitchell

asked the Prime Minister what estimate was given to the European Economic Community Council of Ministers at the recent summit of the increase in own resources in real terms in the foreseeable future if the value added tax element were not increased; and if she will give particulars.

The Prime Minister

The Commission paper before the European Council estimated that there was likely to be a modest increase in real terms in the VAT yield within the existing 1 per cent. ceiling, but that this would be offset by a fall in real terms in the value of customs duties and agricultural levies. No figure was given.

Mr. Austin Mitchell

asked the Prime Minister what plans were considered by the European Economic Community Council of Ministers at the recent summit for European Economic Community spending in areas other than agriculture; and whether she will publish particulars in the Official Report.

The Prime Minister

The European Council considered a proposal to increase spending in real terms on the structural funds—that is the regional fund, the social fund and the guidance section of the European agricultural guidance and guarantee fund. A number of proposals for new Community policies, or the development of existing policies were also considered. Most of the latter, for example simplification of trade and customs formalities, standards harmonisation, liberalisation of trade in services (notably transport and insurance) would not involve extra Community expenditure.

Mr. Austin Mitchell

asked the Prime Minister what explanation was given to the European Economic Community Council of Ministers at the recent summit regarding the purposes for which the increase in value added tax own resources to 1.4 per cent. was required; what that increase would mean in real terms; how much of the increase would have to be spent on agriculture; and if she will give particulars.

The Prime Minister

The justification for an increase in the VAT ceiling to 1.4 per cent. would rest on the costs of enlargement, some growth in real terms in the structural funds and the development of new Community policies. On the basis of 1984 figures, raising the VAT ceiling to 1.4 per cent. would add some £3,450 million to the Community's present own resources base—an increase of about 23 per cent. The extent to which any increase would be devoted to agriculture would depend on how effectively agricultural spending was curbed. In the absence of overall agreement at the European Council on this point and on the other conditions which we have established, I did not agree to any increase in the Community's resources.

Mr. Gould

asked the Prime Minister whether she has asked for, and secured, the agreement of the other members of the European Economic Community Council to a strict financial guideline for expenditure under the common agricultural policy.

The Prime Minister

The European Council made substantial progress on securing control of agricultural spending by, first, an annual limit on overall expenditure, and, second, a strict financial guideline on agricultural spending.

Mr. Gould

asked the Prime Minister whether she has asked for, and secured, the agreement of the other members of the European Economic Community Council to a limitation on the power of the European Economic Community Assembly to propose increases in spending on agriculture.

The Prime Minister

The power of the European Parliament to propose increases in spending on agriculture is already constrained by article 203 of the treaty, which gives the Council ultimate control over obligatory spending.