§ Dr. David ClarkTo ask the Minister of Agriculture, Fisheries and Food how many ecus have been transferred to the tobacco sector of EAGGF in(a) 1989 and (b) 1990; and if he will make a statement.
§ Mr. GummerThe Community Budget Authority (the Council and the European Parliament) transferred the following amounts to the tobacco sector:
Million ecus 1989 165 1990 200
§ Dr. David ClarkTo ask the Minister of Agriculture, Fisheries and Food whether he has given his support to additional money being transferred to the tobacco sector of the EAGGF; and if he will make a statement.
§ Mr. GummerThe United Kingdom has long been critical of the EC tobacco regime and the expenditure which it incurs and has consistently pressed for improvements. The Commission is currently conducting a review of the regime and I shall be arguing for substantive change. However, tobacco is grown in some of the poorest parts of the Community and alternative crops cannot be easily identified.
In 1989 the costs of the tobacco regime were higher than originally estimated partly because of agrimonetary movements but mainly because production levels and intervention stocks were greater than forecast when the budget was fixed in 1988. As the expenditure was legitimately incurred within the rules for the sector, the Budgetary Authority (the Council and the European Parliament) agreed to regularise the situation in this and other sectors by transferring funds from sectors which had underspent. Overall, the 1989 FEOGA budget was underspent, after these adjustments, by some 2.4 billion ecu. Similar transfers from underspending sectors within the 1990 FEOGA budget to cover legitimate expenditure in other sectors, including tobacco, have recently been agreed.