asked the Minister for Foreign Affairs if he will outline his policy in regard to the common agricultural policy in the light of pressures being exerted thereon, particularly in view of the need to increase the EEC's own resources limit to sustain Community finances.
Ceisteanna—Questions. Oral Answers. - Common Agricultural Policy.
25.
There has never been any ambiguity regarding our unequivocal support for the common agricultural policy which, apart from the Customs Union, and its associated Common Commercial Policy is as yet the only fully developed Community policy. The policy itself is enshrined in the Treaty and its fundamental principles (viz: Free Trade and Community preference and the creation of a market organisation based on common prices coupled with financial solidarity to bear the cost of this common policy) have been repeatedly reaffirmed by the Council of Ministers—(most recently in its decision of 30 May 1980 on the British budgetary problem). The CAP has over the years acted as a major force for European integration, ensured security of food supplies and contributed to the economic and social stability of Europe.
Deputies are aware that the Community is financed by common customs duties, agricultural levies and such proportion of member states' VAT revenues, not to exceed the presently agreed ceiling of 1 per cent, as is required to cover agreed expenditure. The fact that Community policies are financed by the Community's independent "own resources" marks in a special way its nature as a Community. The Community is now approaching the presently agreed ceiling of 1 per cent of VAT receipts. We have repeatedly stated our view that an increased maximum of "own resources" is vital—not just for the necessary development of the Common Agricultural Policy, but also for continuing the process of European integration through the development of comprehensive and effective Community policies in other areas. For instance, any serious attempt at "reducing the differences existing between the various regions and the backwardness of the less favoured regions" as called for in the very preamble of the Treaty, will require a substantial increase in funds such as the Regional and Social Funds, while the enlargement of the Community and the development of its policies in fields such as energy, industry, transport and so on are likely to require additional budgetary resources. For these reasons the current debate on the Community's own resources will be conducted, not just within the confines of the Community's agricultural policy, but rather in the broader terms of the future nature of the Community.
Does the Minister see any allies in the EEC in the fight to increase the own resources limit? We know of people who have indicated that they are against an increase, including the Germans. Has the Minister made any attempt to find any allies from the point of view of putting up a reasonable fight to get an increase in the own resources limit?
Talks on a bilateral basis have already taken place between the Danish Foreign Minister and myself and I propose to see the Dutch Foreign Minister shortly on this basis as well. It is clearly in the interests of the smaller countries within the Community, Denmark, Holland, Belgium and ourselves, to ensure that the 1 per cent ceiling is eliminated because it is clearly a barrier to future Community progress in terms of the Community itself rather than in terms of the bigger members.
Is the Minister satisfied that enough efforts have been made in this regard bearing in mind that this problem was evident eighteen months ago and bearing in mind that within a very short time the cupboard will be empty and we will be at the limit?
This will be the major matter before the Community in 1981. There is no question about that. This is the single most important fundamental matter now facing the Community.
I appreciate that but the cupboard will be empty at that stage.
Will there be any discussion on the possibility of increasing the revenue percentage from VAT with a view to extending the financial resources?
That is what we are talking about.
Has this been specifically raised?
This is the central issue in the whole question because if that is not raised, then obviously the larger countries will be driven towards national aids and the Community will be on a slippery slope to destruction. To run the Community and to provide a proper Community policy they have preferred to seek an increase of funds to that end and have a proper common agricultural policy. All of this was estimated three years ago in a report and should mean a VAT level of 3 per cent rather than 1 per cent.
Does the Minister think that that decision will be arrived at in 1981?
I did not say that. The obstacles are quite substantial in this and the views being taken by larger countries such as Germany, Britain and France are very obdurate regarding the retaining of the 1 per cent.
Has the McDougall report been rejected out of hand?
The McDougall report is the one to which I was referring.