§ Sir Teddy TaylorTo ask the Minister of Agriculture, Fisheries and Food what steps have been taken by the Agriculture Council and the EC Commission on the containment of agricultural spending within the budget of 1991.
§ Mr. CurryThe Council at this year's price fixing agreed a number of measures to reduce the level of EC expenditure on agricultural support. These included price cuts, a 2 per cent. cut in milk quotas and changes to the beef and butter intervention arrangements. The Commission took action under its management powers in a number of sectors. Expenditure on agricultural support in 1991 is now expected to be some £350 million below the level provided for in the EC budget.
§ Sir Teddy TaylorTo ask the Minister of Agriculture, Fisheries and Food what adjustments have been made to the budget of agricultural spending by the EC in 1991 to take account of inflation; and if he will further state the basis on which the rate of inflation is calculated and the responsibility for making such assessments.
§ Mr. CurryNo changes were made to the provision for expenditure on the common agricultural policy in the 1991 EC budget.
Community expenditure on agricultural market support is legally constrained by the agricultural guideline which is adjusted each year to take account of 74 per cent. of the rate of growth of Community GNP and of inflation. The level of EC GNP, the general GNP deflator and the level of the guideline are calculated each year by the Commission on the basis of information supplied by the member states.