§ Mr. Laurence RobertsonTo ask the Secretary of State for Environment, Food and Rural Affairs what the total CAP underspend was in each of the last 10 years for which figures are available; and if she will make a statement. [66513]
§ Mr. Morley[holding answer 2 July 2002]: Expenditure on the Common Agricultural Policy (CAP) is made in accordance with the EU regulations. Actual CAP expenditure may be higher or lower than forecast at the beginning of each budgetary year, due to the market situation, exchange rate fluctuations, or exceptional items. Surplus from one year's EC Budget is returned to Member States in the following year's Budget by means of a reduction of the amount to be financed from own resources. This has the effect of reducing the amount each Member State is required to pay from the GNP-based resource. The budget process requires the Commission to estimate the level of expenditure necessary in a particular year. It would be misleading to describe a difference between the estimate and outturn expenditure as an "underspend". Information on the implementation of the budget is available from the House of Commons Library in the Annual Reports of the Court of Auditors.