§ Sir Teddy TaylorTo ask the Prime Minister why the European Council concluded on 11–12 December that agriculture spending by the EC would fall between 1993 and 1994; and if he will make a statement.
§ The Prime MinisterThe figures to which my hon. Friend refers are those for the agricultural guidelines in constant 1992 prices. The guideline is calculated in real terms by up-rating the 1988 baseline figure by 74 per cent. of the estimated growth in real Community gross national product (GNP) between 1988 and the year in question. This calculation takes place when the Commission submits its preliminary draft budget. For 1993, therefore, the guideline was calculated in May 1992. Subsequently, the estimate of Community GNP was revised downwards. Although the decision was too late to affect the 1993 figure it will be reflected in the guideline for 1994 and thereafter. The estimate for the guideline for 1994 to 1999, used by the European Council in its future financing plans, takes account of this latest information.