HC Deb 04 July 1988 vol 136 cc464-5W
Mr. Teddy Taylor

To ask the Minister of Agriculture, Fisheries and Food if the Commission has revealed the nature and extent of the management economies it intends to introduce as a means of keeping common agricultural policy expenditures in 1989 within the guidelines agreed at the European Council; and if it will be reporting to the Council on the implementation of these measures.

Mr. MacGregor

The Commission has reduced by 12½ per cent. the rates of aid payable on skimmed milk used in animal feed and to manufacture casein. It has also cut the minimum level of skimmed milk powder incorporated in animal feed from 60 per cent. to 45 per cent. The Commission estimates that these measures will produce savings of 285 mecu (£191 million) in 1989. In addition, the Commission has reduced the provision for expenditure on export credits for sales of agricultural products to developing countries by 24 mecu (£16 million). The Commission is obliged by the new arrangements for tighter budget discipline to report monthly to the Council and European Parliament on developments in expenditure for each major agricultural product.

Mr. Teddy Taylor

To ask the Minister of Agriculture, Fisheries and Food what increase in common agricultural policy expenditure has been estimated by the Council to take place in 1989 in consequence of the price review; and if he will make a statement.

Mr. MacGregor

The Commission estimates that the price review will add 289 mecu (£194 million) to expenditure in 1989 compared to the proposals which were originally forwarded to the Council, but these additional costs will be more than offset by management economies.

Mr. Teddy Taylor

To ask the Minister of Agriculture, Fisheries and Food what was the budgeted and actual expenditure on the common agricultural policy in 1987; and what is the budget figure for 1988 and 1989, respectively.

Mr. MacGregor

Expenditure on the guidance and guarantee sections of the common agricultural policy, including fisheries, is:

mecu
1987 Supplementary and Amending Budget 24,101
1987 Outturn 123,996
1988 Budget 231,104
1989 Preliminary Draft Budget 332,340

Notes:

1 4,535 mecu of guarantee expenditure in November and December 1987 could not be met from the 1987 Budget and will fall on the 1988 Budget.

2 Covers guarantee expenditure from November 1987 to 15 October 1988. Includes provision of 1,240 mecu for depreciation of old stocks and a monetary reserve of 1,000 mecu.

3 Covers guarantee expenditure from 16 October 1988 to 15 October 1989. Includes 640 mecu for depreciation of old stocks, 800 mecu for reimbursement of butter disposals in 1987–88 and a monetary reserve of 1,000 mecu.

Sources:

1987 Supplementary and Amending Budget.

EAGGF Financial Reports (draft).

Report on Implementation of the Budget.

1988 EC Commission Statistics.

1989 Preliminary Draft Budget ("Popular Version").