§ Mr. Barry Field
To ask the Minister of Agricuture, Fisheries and Food if he will provide details of expenditure in 1987–88 and 1988–89 by the Intervention Board for Agricultural Produce and the agricultural departments on market regulation under the common agricultural policy.
§ Mr. Ryder
Details are given of the outturn for 1987–88 and the latest forecast of outturn for 1988–89.
£ million 1987–88 (Actual outturn) 1988–89 (Forecast outturn) (i) Expenditure by the intervention board for agricultural produce Cereals 229.4 163.8 Beef and Veal 201.4 160.9 Pigmeat -1.9 0.6 Sugar 151.1 135.2 Processed goods 47.6 78.8 Milk products 251.1 79.3 Oilseeds 208.3 167.3 Sheepmeat 119.4 104.2 Others 16.6 33.8 Total 1,222.9 923.9 (ii) Expenditure by the agricultural departments Payments to producers giving up milk production 51.0 74.1 Suckler cow premium scheme 36.7 37.8 Annual premium on ewes 80.6 202.0 Small cereals producers 1.7 1.9 Total 170.0 315.8 Grand total 1,392.9 1,239.7
Some of the expenditure shown benefits consumers and trade interests rather than United Kingdom producers.
The figures for the Intervention Board for Agricultural Produce are made up of several elements and include refunds on intra-Community trade, import and export refunds on third country trade, the beef and sheep variable premium schemes (net of clawback for sheepmeat and charges on beef exported and sold into intervention), aid for private storage and animal feed, certain other marketing and production subsidies and the cost of purchasing commodities into intervention less proceeds from sales. The figures are also net of other receipts treated as negative expenditure, namely monetary compensatory amounts levied on intra-Community trade (in the case of pigmeat these exceeded expenditure prior to 1988–89), the co-responsibility and supplementary levies on milk producers and the co-responsibility levy on cereals. Receipts from levies on the production and storage of sugar and isoglucose and on third country exports, which are regarded as Community own resources, are excluded. The figures include the United Kingdom share of the EC school milk subsidy scheme.
For the annual premium on ewes from the 1985 marketing year, late publication of the final rate of payment has delayed the making of some payments into the following year. The forecast for 1988–89 provides for slippage from the 1987 marketing year and payment for the 1988 marketing year in full.
Of the estimated outturn for 1988–89 £1,507.4 million is expected to be financed from the European agricultural guidance and guarantee fund (EAGGF); in 1987–88 £1,086.7 million was thus financed. However, because the United Kingdom is a net contributor to the European Community budget, the whole of this expenditure is attributable to the Exchequer. Receipts from the European Community do not always relate to expenditure in the period. For market support there was prior to 1987 little delay in reimbursement of expenditure but in that year a delay of two months was introduced as an economy measure and this was lengthened to two and a half months from 1988. Receipts for 1988–89 reflect new arrangements for the depreciation of stocks agreed at the February 1988 European Council.
The individual totals may not add up due to rounding.
§ Mr. Ryder
Details are given of the outturn for 1987–88 and the latest forecast of outturn for 1988–90.
1987–88 (Actual outturn) 1988–89 (Forecast outturn) £ million £ million Price guarantees Wool 0.7 0.1 Potatoes — — Total 0.7 0.1 Support for capital and other improvements Environmentally sensitive areas 2.9 9.1 Agriculture and horticulture development scheme 32.3 25.9
1987–88 (Actual outturn) 1988–89 (Forecast outturn) £ million £ million Guidance premiums 2.3 0.8 Farm accounts 0.7 0.5 Farm structures 0.4 0.4 Northern Ireland agricultural development programme 2.0 1.6 Agriculture and horticulture grant scheme 3.6 1.8 Agriculture improvement scheme (EC) 18.9 28.4 Agriculture improvement scheme (National) 9.0 9.0 Others 0.3 0.3 Total 72.4 77.8 Support for agriculture in special areas Hill livestock compensatory allowances 121.0 116.7 Additional benefit under AHDS, NIADP, AHGS, AIS (EC) and AIS (National) 20.9 25.9 Others 4.1 8.4 Total 145.9 151.0 Other payments Milk outgoers scheme 11.1 11.6 Crofting building grants and loans/net 3.3 4.1 Sheep compensation scheme 1986 1.0 1.1 Storm damage 1987 — 1.7 Co-operation grants 1.7 2.1 Farm diversification:— Capital grants — 2.0 Marketing feasibility grants — 0.8 Others 1.0 1.0 Total 18.1 24.5 Grand Total 237.1 253.4
Some of this expenditure attracts contributions from the European agricultural guidance and guarantee fund. These are mainly received in the following year. In 1988–89 £44.1 million is expected to be received from the fund compared with £41 million in 1987–88.
The individual figures may not add up to the totals shown due to roundings.