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Dept for Environment Food and Rural Affairs

Answer

Mr. James Wray: To ask the Secretary of State for Environment, Food and Rural Affairs what reform of the Common Agricultural Policy has taken place since 1997; what recent discussions have taken place with European colleagues on this matter; what proposals she has for future reform; and when they will be submitted to the EU. [93577] Mr. Morley: The Agenda 2000 reform package, agreed at the March 1999 Berlin European Council, brought EU cereal, milk and beef prices closer to world levels, and gave member states some flexibility to use CAP money for environmental schemes. It represented a significant shift from price support to direct payments and it reduced some of the economic distortions of the CAP, enabling the formulation of an integrated EU rural development policy. On 22 January 2003 the Commission issued its draft legislative proposals for the `Mid-term Review' of Agenda 2000. The Government has welcomed these proposals, believing further reform of the CAP to be necessary for both domestic and international reasons. In particular, we were pleased to see formal proposals to break the link between subsidy and production (`decoupling'), which will give producers greater flexibility to exploit market opportunities. However, we also have concerns over some elements of the proposals. For example, the proposed mechanism for transferring funds to support rural development is complex, would be hard to administer and would unfairly impact on larger farms; and we are disappointed at the proposed extension of milk quotas. The first formal discussion of these proposals took place at the Agriculture and Fisheries Council meeting on 27 and 28 January. Further Council discussions are planned for the coming months. In addition, my right hon. Friend the Secretary of State regularly meets her EU counterparts bilaterally to discuss this issue. Since the start of this year she has met both the French and Greek Agriculture Ministers.

Secondary information

Type

Written question

Reference

93577; 398 c1076W;398 c1070W

Session

2002-03

Subjects

Cereals Environment protection Prices Production Milk Reform Subsidies Beef Common agricultural policy Quotas Agricultural products Rural development plans

Link

View this Written question on www.publications.parliament.uk