Agriculture Council (Hansard, 27 May 1993)

§ Mr. Gummer

I represented the United Kingdom at the meeting of the Agriculture Council from 24 to 27 May.

The Council reached agreement, subject to the adoption of legal texts, on agricultural prices and other measures for 1993–94, in so far as these had not already been settled as part of last year's reform of the common agricultural policy.

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There was a difficult discussion on fixing the percentage requirement for non-rotational set-aside, to parallel the 15 per cent. rate for rotational set-aside fixed in last year's reform package. Given the important environmental advantages of non-rotational set-aside, I was determined to ensure that the figure should not be set at a level that made it unattractive to our farmers. For other member states, the Council adopted the figure of 20 per cent. proposed by the Commission. I secured agreement that the rate for the United Kingdom should be 18 per cent. for at least two years. Over this period, the effectiveness of non-rotational set-aside in the United Kingdom will be assessed to ensure that its impact on production is no less than expected; if it is less, the rate can be changed.

The Council agreed to an increase of some 25 per cent. in the rate of aid for set-aside land.

The cut in milk quotas provisionally agreed last year to take effect for 1993–94 has been deferred: it will be reconsidered next year in the light of the market situation. Instead, there will be an increase of 0.6 per cent. in national wholesale quotas for all member states except Spain, Greece and Italy. This is to meet particular needs, especially obligations arising from recent European Court judgments. In the negotations, I consistently argued that, since these obligations resulted fron the Court's reinterpretation of Community law, they should not be met by reducing the quotas of other producers, as the Commission originally proposed.

The Council confirmed increases in the milk quotas of Italy, Greece and Spain that had been provisionally agreed last year in the context of the reform package. It was made clear that these increases will only be continued beyond 1993–94 if the Council is satisfied that the countries concerned are complying with their undertakings to reduce production and implement the quota system in full.

The support price for butter will be reduced by 3 per cent. this year and 2 per cent. next. This will benefit consumers and is in line with the view which I strongly expressed in the Council that the Community's milk production should he regulated by price rather than by quota.

Earlier this month, the Commission unexpectedly threatened the future of export refunds on whisky and other grain-based spirits, which compensate for the higher price of Community-grown cereals. These are worth over £40 million per year to our industry. As part of the agreement reached in the Council, I secured agreement that the present arrangements will continue.

The Council agreed on a smaller reduction in the rate of aid for linseed production than the Commission had proposed. At the same time, linseed will be brought within the set-aside scheme from 1994–95 and not from the current year as the Commission originally envisaged. Since United Kingdom farmers account for over 60 per cent of Community linseed production, it was important to get these arrangements right. I believe they should avoid the replacement of this useful crop by additional grain production.

This outcome, particularly on the rate of non-rotational set-aside, the retention of whisky export refunds and the avoidance of milk quota cuts, made the Council an important achievement for the United Kingdom.

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