HC Deb 27 October 1986 vol 103 cc42-3W
Mr. Teddy Taylor

asked the Prime Minister what steps have been taken by the European Council to seek to ensure that its decision of 4 December 1984 on the claiming hack in future years of overspending on agriculture above the agreed level of increase, is implemented; and if she will make a statement.

The Prime Minister

1986 is the first year in which the budget discipline conclusions will apply to agricultural spending. They state that in the event of failure to respect the financial guideline the Council shall, during the following two financial years, ensure that, barring unusual developments, agricultural expenditure is brought back within the limits imposed by the guideline. The 1987 draft budget provides 23 becu for agricultural guarantee expenditure which is at the level of the financial guideline.

Mr. Teddy Taylor

asked the Prime Minister what steps have been taken by the European Council to seek to ensure that its decision of 4 December 1984 that agricultural spending should increase only by the natural increase in their own resources base, is implemented; and if she will make a statement.

The Prime Minister

The conclusions of the Council on budgetary discipline which limits the increase in agricultural market support expenditure to no more than the rate of growth of the own resources base, also makes specific provision that account has to be taken of exceptional circumstances. 1986 is the first year in which the Budget discipline conclusions will apply to agricultural spending.

The Ecofin Council on 7 July agreed that the limit on agricultural spending in 1986 could be increased by the amounts which can be justified mainly by the exceptional circumstances of the abnormally large depreciation of the dollar.

The 1987 draft budget provides 23 becu for expenditure on agricultural market support which is at the financial guideline.