§ Mr. Teddy TaylorTo ask the Minister of Agriculture, Fisheries and Food what action has been taken by the EC to ensure that its budget for agricultural spending does not exceed £24 billion; if such action is subject to the approval of the Council of Ministers; and if he will make a statement.
§ Mr. CurryThe Commission currently estimate that, if no further corrective action is taken, expenditure on market support in 1991 could reach 32,991 mecu (£22,990 million). This would be 1,475 mecu (£1,028 million) over the budget for market support and 480 mecu (£334 million) over the guideline. In addition, the depreciation of the dollar against the rate used in the preparation of the budget will lead to extra expenditure, 400 mecu (£279 million) of which will be financed from the guarantee section of the EAGGF; expenditure over this amount will be financed from the monetary reserve. The Commission is proposing to introduce a supplementary budget up to the level of the guideline. The Commission's 1991 price fixing proposals comply with Council decision 88/377 on budgetary discipline and envisage savings of 540 mecu (£376 million) in 1991 and 2,057 mecu (£1,433 million) in 1992. Both a supplementary budget and the price proposals will require approval by the Council of Ministers. The Commission also intends to obtain savings of 400 mecu (£279 million) through management action.
Other EC agricultural expenditure is expected to remain within current budget provisions.