HC Deb 09 February 1994 vol 237 cc271-2W
Mr. Cousins

To ask the Minister of Agriculture, Fisheries and Food what is his estimate of the United Kingdom contribution to common agricultural policy expenditure on tobacco subsidies in the last three years.

Mr. Jack

The United Kingdom contributes to the EC budget as a whole, not to particular parts of it such as CAP expenditure on tobacco. We do not produce or store tobacco and therefore have no receipts. Our contributions would benefit in full from the abatement agreed at Fontainebleau and in effect, our net contribution to the tobacco regime could be estimated to be at around six per cent. of EC expenditure. Community expenditure on tobacco amounted to 1,330 mecu (£931 million) in 1991, 1,223 mecu (£873 million) in 1992 and 1,165 mecu (£917 million) in 1993. Budgetary ecu rates: 1991 £1=1.4291 ecu; 1992 £1=1.4131 ecu; 1993 £1=1.2700 ecu.

The effect on expenditure on tobacco resulting from the reform of the regime agreed in 1992 will not begin to show in expenditure figures until at least 1994 and the regime is to be reviewed again in 1996. Nevertheless, tobacco is still the most heavily subsidised CAP crop per hectare and we will continue to press for greater reforms.

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