HC Deb 22 February 1988 vol 128 cc16-7W
Mr. Austin Mitchell

To ask the Prime Minister whether the legal and binding controls which have been agreed for expenditure under the common agricultural policy will operate to terminate the price guarantees once the money has been used up or whether the EEC will be allowed to borrow against the next year's provision or make other arrangements outside the budget of the kind used to finance overspending in the past.

The Prime Minister

The detailed European Council conclusions provide for legally binding limits on agricultural expenditure, supported by automatic stabiliser mechanisms in the individual product regimes. They further provide that when there is a risk of agricultural expenditure exceeding the budget limits, the Commission shall take remedial action whether by use of its own management powers—including the operation of the new stabilisers—or by making additional proposals to the Council. The Council is committed to acting within two months in order to remedy the situation.