§ 38. Mr. Forthasked the Minister of Agriculture, Fisheries and Food if he will make a statement on the expenditure plans for his Department over the next three years in the light of the Chancellor's autumn statement.
§ Mr. JoplingIn the autumn statement the Chancellor of the Exchequer announced that the new planning totals for expenditure on Agriculture, Fisheries and Food are:
£ million 1987–88 1988–89 1989–90 Total 2,550 2,680 2,780 Comprising IBAP and other EC expenditure 11,660 1,780 1,880 Domestic agriculture, fisheries and food 1880 900 900 1Do not sum due to rounding. For 1987–88 and 1988–89 respectively this represents an overall increase on previously planned expenditure of £90 million and £180 million. Much of this increase is accounted for by expected additional expenditure on market support under the CAP. This will be incurred by the Intevention Board for Agricultural Produce, mainly in respect of the cost of taking agricultural produce into intervention. This expenditure is unavoidable under present Community policies although most will be recovered when intervention stocks are sold.
Other expenditure for which Agriculture Departments are responsible will increase by some £50 million in 1987–88 and £60 million in 1988–89 which represents the net effect of a number of changes. The majority of these will result in higher expenditure on capital works. These changes include some £30 million additional local authority expenditure to reflect more closely the level of 787W precept payable to water authorities to fund flood defence works; £6 million in specific grants to water authorities to reduce the risk of flooding from the sea on the east coast and in Seaford, Sussex; and £10 million in 1987–88, but with diminishing sums in the other future years, largely to meet commitments under present capital grants policy.
A detailed commentary on the plans will appear in the public expenditure White Paper to be published early next year.