§ 31. Mr. Teddy Taylorasked the Secretary of State for Foreign and Commonwealth Affairs what progress has been made in the reform of the European Economic Community structures since the summer Adjournment.
§ Mrs. Chalker(I) The Council has established a draft budget for 1987 which respects the guideline for agricultural spending.
(II) The co-responsibility levy designed to curb cereals production which we agreed at this year's agricultural price fixing has come into force. My right hon. Friend the Minister of Agriculture, Fisheries and Food has put forward proposals for a Community scheme to divert land out of cereals production so helping to eliminate costly surpluses and reducing costs of the regime.
(III) Proposals for reform of the beef regime and for further reform of the milk regime are under discussion in 172W the Agriculture Council.(IV) The Commission has in the meantime announced management measures in the milk sector which are equivalent to an annual price reduction of about 1 per cent.
(V) Ministers of the GATT participating countries agreed that all aspects of agricultural support should be included in the new GATT round negotiations, which were launched in Uruguay on 15–20 September.
(VI) Finance Ministers of the Community, meeting on 13 October under the chairmanship of the Chancellor of the Exchequer, gave support to the principles that CAP support prices should more closely reflect market conditions (especially where there are surpluses) and that intervention should revert to its original role of safety net.