Common Agricultural Policy: Costs

HL Deb 02 April 1996 vol 571 cc25-6WA

The Earl of Kimberley

asked Her Majesty's Government:

What is the net cost to the United Kingdom of the common agricultural policy; and

How much the United Kingdom taxpayer pays towards the common agricultural policy.

Lord Lucas

I shall answer these questions together.

Expenditure on the Common Agricultural Policy (CAP) in the United Kingdom is forecast at £3.0 billion for the 1996–97 financial year. In addition, we contribute to expenditure in other member states through our net contribution to the EC budget. Our theoretical share of the cost of the CAP budget for 1996 would be around £3.5 billion after the Fontainebleau abatement is taken into account. Our receipts are estimated at £2.7 billion.

In addition, the CAP imposes costs on consumers estimated for 1993 at some £3 per week per person. A note setting out the calculations of the costs to UK taxpayers and consumers has been placed in the Library of the House.