EU Tobacco Subsidies

HL Deb 29 July 2002 vol 638 c134WA

Lord Morris of Manchester

asked Her Majesty's Government:

What estimate they have made of the cost to date to the United Kingdom, and the total cost to European Union member states as a whole, of subsidising farmers to produce tobacco that was subsequently dumped on third world markets. [HL5573]

Lord Whitty

Member states contribute to EU budget as a whole and not to any particular part. The UK contribution is about 12.7 per cent after the effect of the Fontainbleau abatement has been taken into account.

In the financial year ending 15 October 2001, some 964 million euros (£610 million at current exchange rates¹) was spent on EU tobacco subsidies.

We have no evidence of EU tobacco being dumped on third world markets but exports to third world countries in 2001 were 2,751 tonnes².

¹Euro = £0.63310

²Source: Comexdata 2001