§ Mr. SpellarTo ask the Minister of Agriculture, Fisheries and Food what is the current subsidy for tobacco growers in the European Community; what is the projected cost for the next financial year; what levels of intervention stocks of tobacco are held; and what amount of tobacco stock has been destroyed over the last five years.
§ Mr. JackThe provisional outturn for Community expenditure in 1993 is 1,165 mecu—£917 million—compared to a budget provision of 1,401 mecu. The 1994 budget for tobacco has been set at 1,235 mecu—£933 million. Following substantive reform of the tobacco regime in 1992, from the 1993 harvest onwards, intervention arrangements no longer exist. The European Commission's most recent figures show 10,344 tonnes of tobacco from harvests prior to 1993 remain in intervention stores. No figures are available for tobacco which may have been destroyed, but the tobacco regime does not provide for destruction of stocks which have received EC support. Tobacco eligible for EC support must be of sound and fair merchantable quality and free of characteristics which would otherwise pevent normal marketing.
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 common agricultural policy crop per hectare and we will continue to press for greater reforms.
427WBudgetary ecu rates; 1993 £1=1.2700 ecu; 1994 £.1=1.3234 ecu.