asked the Taoiseach if he has replied to a letter issued six weeks ago by the President of the EC Commission about the financial state of the Community; if so, when and if he will indicate (a) his attitude to the Commission's proposals, (b) the implications of these proposals for Ireland and (c) if he supports the reported position of the Spanish Government that it will block any short term deal which fails to resolve the EC's long standing budget needs.
Ceisteanna — Questions. Oral Answers. - EC Budget.
1.
It is not the practice to disclose details relating to correspondence at the level of Heads of Government and I do not propose to depart from that practice other than to say that Mr. Delors' letter dealt with an emerging deficit on the 1987 Budget of the Community and that I replied to it in May.
The proposals are likely to be discussed at a further meeting of the Budget Council this month and in this negotiating situation it would not be appropriate to reveal details of the Irish position, other than to say that the Government will make every effort to ensure that the Community has adequate financial resources, both in 1987 and over the medium term, satisfactorily to finance its policies and to discharge the commitments into which it has entered.
Without entering into the content of the correspondence I want to pose a question to the Taoiseach on the substance of the issue. Is he aware that the EC budget is in serious difficulty in that the stocks in the hands of the EC are over-valued to the tune of 5.5 billion ECUs, that its budget for 1987 is running at a deficit of a further 5 billion ECUs and can he confirm that the Commission proposals would involve a delay in payment to Ireland during 1987 in regard to the FEOGA guarantee fund amounting to £160 million which, if the interest on that had to be met by the Irish Government, would have a serious effect on our budgetary situation?
I am anxious to assist the Deputy in eliciting information but he seems to be imparting information rather than seeking it.
I am asking the Taoiseach if he will confirm whether this is true. Given that the Taoiseach's answer was relatively uninformative I have to put these questions to him. I will not go any further if the Taoiseach will deal with those three points.
Will the Deputy repeat his question because the Ceann Comhairle interrupted my train of thought.
Will the Taoiseach confirm that the EC budget for 1987 is in serious difficulties in that its stocks in hand are artificially over-valued to the extent of over 5 billion ECUs, that its expenditure this year is running at a rate involving a deficit of a further 5 billion ECUs and that the proposals put forward by the Commission to remedy the situation involve delays of two months in payments to the Irish Government which would result in extra borrowing this year by the Irish Government to the extent of £160 million which, if the interest on that had to be met by the Irish Exchequer, would of course have a serious effect on our budget deficit this year and is, therefore, a serious matter for Ireland?
The Deputy is inclined to exaggerate matters. He is not always accurate in the statements he makes as we will learn later today. It is common knowledge that the Community budget is in some difficulty and discussions are going on at present in relation to this. I am not in a position at present to say what the outcome of those discussions will be. However, the Deputy can be assured that everything possible will be done to protect the Irish position and, in particular, the Irish Exchequer in the discussions and negotiations which are taking place.
Would the Taoiseach agree that the proposals made by President Delors involve in part a renationalisation of the Common Agricultural Policy in that the Exchequer of the member states will now have to meet up front the FEOGA guarantee expenditure and that they will be reimbursed later by the Commission rather than receive advance money in order to enable them to perform that function and that any precedent involving a renationalisation of the Common Agricultural Policy would be very damaging to Irish interests?
It must be well known that the trend in Community thinking and policy formulation in recent times in so far as it encompasses the reintroduction to a greater or lesser degree of national aids would be detrimental to this country. The Deputy can be assured that the Government will act in accordance with that principle.
In view of the lack of information contained in the Taoiseach's reply can he tell me if he actually read the letter from President Delors.
The Deputy has a capacity to be unnecessarily insulting in these matters. I will confine myself to stating that the conduct of our affairs in the Community will be infinitely better conducted by this Government than was the case by the Government on which Deputy Bruton was a member. I might add that that would not be very difficult.
It is evident from the responses of the person in charge, namely the Taoiseach, that he does not have much information about what is going on.
The Deputy engages in distortions of the truth as we will learn later today.
The Taoiseach had adequate opportunity to give the information but he did not do so.
Next question, please.