asked the Minister for Agriculture and Food if his attention has been drawn to a report produced by the British Consumers Association which suggested that the Common Agricultural Policy was adding an extra £13 to the weekly food bill for an average family; if any similar figures are available for this country; if, in view of these figures, the Government intends to seek any further reforms of the Common Agricultural Policy; and if he will make a statement on the matter.
Written Answers. - Common Agricultural Policy.
25.
I am aware of the report on "Consumers and the Common Agricultural Policy" (CAP) prepared by the National Consumer Council in the UK. The report quotes the results of three independent studies. The estimate of the overall cost of the CAP to consumers according to these studies varied from £66 (sterling) per person per annum to £9.28 (sterling) a week for a family of four.
No comparable comprehensive report is available for this country. However experience in the Community as a whole has been that increases in food prices have remained below the general level of inflation.
The Deputy will be aware of the ongoing changes in the Common Agricultural Policy. Following the February European Council, stabilisation mechanisms are now in place in nearly all CAP sectors. Stabilisers operate by limiting the full level of support to quantities of production more in line with market needs, with cuts in support if those quantities are exceeded. The European Council also agreed a legally binding ceiling on FEOGA guarantee expenditure and its growth. This will result, according to current estimates, in a reduction from 64 per cent in 1987 to 56 per cent in 1992 in the FEOGA guarantee expenditure as a proportion of total EC expenditure. In addition, the Council are also introducing a range of schemes such as set-aside which will help to remedy overproduction in sectors where it is taking place.
It is my aim to ensure that necessary changes in the CAP to restore market balance in the long-term interests of both producers and consumers are accompanied by measures to safeguard incomes in rural areas.