II. OUR INQUIRY
11. Radical in some respects, cautious in others,
the proposals relating to reform of the Common Agricultural Policy
(CAP) in the European Commission's Agenda 2000 documents
are a curious mixture. Clear proposals for the reform of the
cereals, beef and dairy sectors co-exist with less explicit proposals
on subjects such as the future of agri-environmental and rural
development policy, and a complete absence of suggestions for
reform of the sheepmeat and sugar regimes. Set within the context
of the economic and political challenges facing the European Union
(EU) in preparation for and following the expected accession of
central and eastern European countries (CEECs) to the Union early
next century, the proposals for the CAP take their place alongside
changes in structural policy and other internal EU policies in
establishing an appropriate financial and political framework
for the development of a larger Union in the years 2000 to 2006.
12. The publication of Agenda 2000, on 16
July 1997, coincided with our establishment as a Committee, and
it was clear that the proposals for reform of the CAP should form
the subject of one of our first major inquiries. We issued the
terms of reference for our inquiry by press notice on 30 July,
seeking evidence on "the general appropriateness of the policy
for reform of the CAP sketched out in the Agenda 2000 document,
with particular reference to:
- the accuracy and comprehensiveness of the Commission's
assessments of the effects of the 1992 CAP reforms and of future
developments in the agricultural and food sectors in the EU and
worldwide;
- the appropriateness of the future policy objectives for the
CAP advocated by the Commission;
- the main probable consequences of implementation
of the proposed reforms in the crop sector, the beef regime, the
dairy regime, and for Mediterranean products;
- the compatibility of the proposed reforms of
the CAP with the obligations on the EU likely to be agreed under
the next round of World Trade Organisation negotiations;
- the likely effects of the proposed reforms on
CAP expenditure, including any effect the reforms are likely to
have on the extent of fraud and irregularity in CAP expenditure;
- the appropriateness of the proposed introduction
of ceilings for direct payments to producers;
- the desirability of the proposed reforms to rural
and agri-environmental policy, and the likely effects of the Commission's
reform proposals taken as a whole on rural communities and the
rural environment".[1]
13. We have received over 60 memoranda, and have
held four oral evidence sessions, hearing from MAFF officials,
the National Farmers' Union of England and Wales, the Country
Landowners' Association, the Consumers in Europe Group, the Countryside
Commission, the Council for the Protection of Rural England (CPRE),
the Royal Society for the Protection of Birds (RSPB), the Food
and Drink Federation, Cargill plc, and the UK Food Group. In
addition to this formal evidence, on 3 December 1997, we visited
Brussels where we held meetings on Agenda 2000 with officials
of Directorate-General VI, British MEPs and the Secretary-General
of COPA-COGECA, the EU-wide agricultural producers and co-operatives
organisation. We are most grateful to all those who have assisted
us in the course of this inquiry.
14. Our investigations have been greatly aided by
our two specialist advisers, Professor Allan Buckwell of
Wye College, University of London, and Professor Alan Swinbank
from The University of Reading. We are grateful to our two advisers
for their invaluable assistance in clarifying the complexities
of the CAP for us.
15. This Report is by no means our last word on Agenda
2000, and we have the option to focus on the specific legislative
measures necessary to implement the Commission's proposals as
and when they emerge. This Report should be seen as presenting
our interim conclusions and recommendations on the general direction
set out by the European Commission for the future of the CAP,
to inform and, where appropriate, support the UK Government's
approach to CAP reform in Agriculture Council negotiations both
during the UK Presidency and subsequently, as well as to influence
the European Commission itself as it attempts to stimulate the
construction of a reformed CAP up to and beyond 2006.
16. Section III of this Report provides an overview
of the agricultural proposals contained in Agenda 2000
and also considers the international context of the proposals,
the rationale for direct payments to farmers and the implications
of the proposals for overall expenditure on the CAP and for consumers.
In Section IV we look at the proposals relating to individual
commodity regimes, and in Section V we consider the path mapped
out by Agenda 2000 for the future of agri-environmental
and rural policy. In Section VI we summarize our overall conclusions
and recommendations.
1
Agriculture Committee Press Notice No. 3, Session 1997-98,
30 July 1997 Back
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