§ Mr. ChaytorTo ask the Minister of Agriculture, Fisheries and Food if he will make a statement on the impact on British confectionery manufacturing of the 187W European Commission's decision to suspend the payment of refunds payable on the export of non-Annex 1 products. [124769]
§ Ms Quin[holding answer 14 June 2000]From 8 May this year the European Commission temporarily suspended the issue of further refund certificates, required for refund payments on the export of non-Annex 1 products. Special provision has been made for small traders to ensure that they are unaffected by the suspension. This suspension reflects the Commission's concern about the value of claims made so far in the current year compared to budgetary limits.
For the British confectionery manufacturing industry this could result in a shortfall in the current budget year of some £4.7 million from the previous year's export refund receipt of £18.5 million, if certificates remain suspended until the end of the budget year in October. The UK confectionery industry exports products worth some £300 million per year to non-EU destinations, and it is these exports that will be affected by suspension.
Discussions with the Commission are continuing at official and at ministerial level to secure a solution that will minimise the impact for all exporting industries affected by the suspension.