HL Deb 21 December 2000 vol 620 cc79-81WA
Lord Moynihan

asked Her Majesty's Government:

Whether they will place in the Library of the House the Treasury figures and analyses which confirm that further common agricultural policy reform is "not necessary for enlargement to take place", as stated by the Baroness Symons of Vernham Dean (H.L. Deb., 12th December, col. 347).[HL150]

Baroness Scotland of Asthal

At the Berlin European Council in March last year, the EU agreed to reforms of certain aspects of the common agricultural policy and to a financial perspective for 2000–06. Together these helped pave the way for enlargement. The Government welcomed the CAP reform agreement as a step in the right direction but continue to advance the case for further reform, which many consider to be both desirable and inevitable. The accession process needs to take account of the fact that the CAP is constantly evolving, but it is not necessary to complete the CAP reform process before enlargement takes place.

The precise nature of the new member states' integration into the acquis will depend on the outcome of negotiations with those countries. As in all previous enlargements, transitional arrangements, in which EU policies are phased in over a fixed period of time, are likely to be necessary in a number of areas, including agriculture. The Government are committed to securing early enlargement without breaching the financial ceilings established at Berlin.

Lord Moynihan

asked Her Majesty's Government:

What cost analysis they have done of the application of the common agricultural policy to (a) Poland and (b) Hungary.[HL151]

Baroness Scotland of Asthal

The actual cost of applying the CAP to Poland and Hungary would depend upon many factors, but would be constrained by the limits on enlargement-related spending agreed at the Berlin European Council in March last year.

The Government are concerned that applying the CAP in its present form to countries such as Hungary and Poland would have an adverse impact upon their economies. The UK believes that using available funds for structural improvements in applicant countries would be more beneficial to them.

Lord Moynihan

asked Her Majesty's Government:

What proportion of the workforce in (a) Poland and (b) Hungary is employed in agriculture. [HL152]

Baroness Scotland of Asthal

Poland's Central Statistical Office's Statistical Yearbook for 1998 states that 27 per cent of the total working population is employed in agriculture. There are a further 2 million people in rural areas whose main source of income is not agriculture, but who may be involved in some agricultural activity. In Hungary, 6.7 per cent of the total working population is employed in agriculture. A further 500,000 people are involved in agriculture, but have an alternative main source of employment.

Lord Moynihan

asked Her Majesty's Government:

What is their assessment of the cost to the British taxpayer of the application of the Common Agricultural Policy to (a) Hungary and (b) Poland; and whether they will place any relevant analyses in the Library of the House. [HL153]

Baroness Scotland of Asthal: The actual cost to the UK of applying the CAP to Poland and Hungary would depend upon many factors, but it would be limited in two ways. First, the financial perspective for 2000–06 agreed at the Berlin European Council in March last year set limits on enlargement-related spending. These limits leave the overall ceiling on spending in an enlarged EU well beneath the current Own Resources ceiling (1.27 per cent of Community GNP). Secondly, also at Berlin, the Government succeeded in retaining the UK abatement for the duration of the financial perspective. The abatement will apply to the bulk of spending in the new member states.

Lord Moynihan

asked Her Majesty's Government:

What is the current budget of the common agricultural policy; and what they predict the budget of the CAP will be at the time of accession of (a) Hungary and (b) Poland to the European Union. [HL154]

Baroness Scotland of Asthal

At the Berlin European Council in March last year, the EU agreed a financial perspective for 2000–06. This contained annual ceilings on agricultural expenditure for the current 15 member states. From 2002 onwards, and for the first time ever, the ceilings on CAP spending in the existing member states decline in real terms.

At the time of accession, the agricultural budget will have to increase to reflect the cost of the new member states. The additional cost will depend upon a number of factors, including the terms of accession, but will be limited by the ceilings on enlargement-related spending agreed at Berlin.

Lord Moynihan

asked Her Majesty's Government:

Further to the statement by Baroness Symons of Vernham Dean on 12 December (H.L. Deb., col. 347), whether it is their policy that further common agricultural policy reform is not necessary for enlargement to take place. [HL155]

Baroness Scotland of Asthal

The Government are fully committed to EU enlargement and to CAP reform. We are pursuing both objectives in parallel. Further CAP reform is clearly desirable, both for its own sake and to ease enlargement negotiations with candidate countries. The accession process needs to take account of the fact that the CAP is constantly evolving, but it is not necessary to complete the CAP reform process before enlargement takes place.