§ Lord Stodart of Leastonasked Her Majesty's Government:
What was the outcome of the Council of Agriculture Ministers' meeting held in Brussels on 24th and 25th February; and whether they will make a statement.
§ The Earl of SwintonThe Council had an initial discussion of the Commission's proposals on agricultural prices and related measures for 1986–87. My right honourable friend the Minister of Agriculture, Fisheries and Food pointed to the increasingly serious problems confronting the common agricultural policy1156WA and the need for firm measures to deal with them. In general my right honourable friend commended the Commission's determination to place the main emphasis on action through price. But he expressed concern about the proposal to exceed the financial guideline for agricultural expenditure. He made clear his very strong objections in particular to those aspects of the proposals which would differentiate the level of support under the policy to the disadvantage of larger farmers.
The Council adopted, subject to the opinion of the European Parliament, three measures to improve agriculture in particular disadvantaged areas. One of the areas benefiting will be the islands off the northern and western coasts of Scotland (except the Western Isles, which have already been the subject of a similar measure). Provision is made for expenditure on the Scottish measure of 62.5 million ecu over five years, to which the Community will contribute 25 million ecu. This covers improvement of farm structures and infrastructure, improvements in farm houses, assistance for farm tourism and craft industries and management payments for farmers undertaking environmental agreements.
The Council reached an agreement in principle, with Belgium dissenting, on measures enabling starch and sugar to be made available at preferential prices for use in a range of industrial products. The intention is, on the one hand, to encourage these products to be manufactured within the Community rather than outside and, on the other, to ensure reasonable terms of competition between sugar and starch. My right honourable friend obtained an assurance that the arrangements for starch could be extended to certain food products, provided they met the agreed criteria.