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Common Agricultural Policy

Paul Flynn: To ask the Secretary of State for Environment, Food and Rural Affairs what her latest estimate is of the total cost of the UK's contribution to the Common Agricultural Policy in each of the next five years if no major reforms take place. [11499]

Jim Knight: Figures for the UK's net contribution to EU institutions are given in the Treasury's statement on the 2005 EC Budget and measures to counter fraud and financial mismanagement and the 2005 Financial Statement and Budget Report. These figures are for the whole Budget, reflecting the fact that the UK contributes to the EC Budget as a whole rather than to specific components of it. As with other elements of total managed expenditure, forecasts are only available to the end of the current Spending Review in 2007–08.

On this basis, the UK net contribution is as follows:
£ million

Net contributions to EC budget (rounded)
2003–04 outturn3,264
2004–05 estimated outturn4,310
2005–06 plans3,764
2006–07 plans3,398
2007–08 plans5,173

Norman Baker: To ask the Secretary of State for Environment, Food and Rural Affairs by what year she aims to have secured further substantive revision to the common agricultural policy regime. [15074]


 
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Jim Knight: It is a key priority of the UK's presidency of the European Union to secure agreement to reform of the CAP sugar regime this year. Reviews of some of the minor regimes (fruit and vegetables, wine and flax and hemp) are scheduled for 2006, and the dairy regime is due for review in 2008.

The UK has also suggested a review of the whole EU budget—including, but not limited to, agriculture—midway through the next EU financial perspective (2007–13). If that is agreed by other member states, any resulting changes to the CAP budget may be made during the second half of that period.

Norman Baker: To ask the Secretary of State for Environment, Food and Rural Affairs if she will make a statement on the balance of funds between pillar 1 and pillar 2 within the common agricultural policy. [15075]

Jim Knight: In 2004, pillar 2 expenditure accounted for 18 per cent. of the common agricultural policy. The UK is committed to rural development and views expenditure through pillar 2, as an important means of delivering public benefits and contributing to wider EU environmental objectives.

CAP reform in 2003 replaced a voluntary modulation system with a EU compulsory system leading to a maximum of 5 per cent. modulation. We are now working to secure further voluntary modulation from pillar 1 to 2 in the context of the financial perspectives negotiations.

Conference Expenditure

David T.C. Davies: To ask the Secretary of State for Environment, Food and Rural Affairs how much the Department spent on (a) organising and (b) sponsoring conferences in each of the last five years. [10272]

Jim Knight: Defra was formed in June 2001. The spend on organising and sponsoring conferences by the Communications Directorate since that time is as follows:
£000
2001–02280,000
2002–0390,000
2003–04310,000
2004–05970,000

These costs do not include provision for G8 and EU presidency activity which is still being collated.

Dairy Prices

Mr. Amess: To ask the Secretary of State for Environment, Food and Rural Affairs what has been the average price of (a) one litre of milk and (b) 250 grams of butter in each year since 1997; and what those figures are at constant prices. [14308]


 
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Jim Knight: Average retail prices for 1 litre of milk and 250 grams of butter are shown in the following table. The prices have also been converted to a constant price series using the All Items Retail Price Index. The
 
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All Items Retail Price Index and the constant prices for milk and butter (based on average 2004 prices) are also shown in the following table.
19971998199920002001
Milk
Retail price of whole milk (pence per litre)(16)6260606065
Whole milk at constant 2004 prices (pence per litre)7369686670
Butter
Retail price of butter (pence per250g)8385848279
Butter at constant 2004 prices (pence per 250g)9897959085
Retail Price Index
All Items Retail Price Index annual average (1987=100)157.5162.9165.4170.3173.4

2002200320042005(17)
Milk
Retail price of whole milk (pence per litre)(16)63656261
Whole milk at constant 2004 prices (pence per litre)67676260
Butter
Retail price of butter (pence per250g)77768077
Butter at constant 2004 prices (pence per 250g)82788075
Retail Price Index
All Items Retail Price Index annual average (1987=100)176.2181.3186.7190.8


(16)Average price of one pint of delivered milk and the one pint equivalent of two pints of shop bought milk.
(17)To June


Mr. Hoyle: To ask the Secretary of State for Environment, Food and Rural Affairs what recent discussions she has had with (a) the National Farmers Union, (b) supermarkets and (c) processors on the price of milk paid to farmers. [13484]

Jim Knight: Price negotiations between producers and processors, or processors and supermarkets are a private commercial matter in which the Government cannot and should not get involved, provided competition rules are respected. However, Ministers frequently meet representatives from all parts of the dairy supply chain, and are therefore keenly aware of the issues, particularly current concerns about the sustainability of the industry at current and projected prices. For example, the Dairy Supply Chain Forum, which my Noble Friend Lord Bach chairs, met on 20 July. Lord Bach also attended the board meeting of Dairy UK on 12 July, and met the President of the National Farmers' Union on 21 July.

Mr. Hoyle: To ask the Secretary of State for Environment, Food and Rural Affairs if she will make a statement on milk pricing following the April review. [9031]

Jim Knight: The current average farmgate price for milk delivered in April (the most recent month for which figures are available) was 17.68 pence per litre. This is only marginally below the price for April 2004 despite last year's cuts to intervention prices which were expected to result in lower farmgate prices. In partial compensation for the intervention price cuts, dairy farmers received a dairy premium subsidy payment in November 2004 worth 0.78 pence per litre. (This premium is not included in the farmgate price figures).

Emissions

Mr. Steen: To ask the Secretary of State for Environment, Food and Rural Affairs what steps she is taking to reduce carbon dioxide emissions in motor transport. [14426]

Mr. Morley: A number of steps are currently being taken to reduce carbon emissions from the road transport sector. These include improvements to average new car fuel efficiency through the voluntary agreements between the European Commission and the automotive industry, complemented by changes to vehicle taxation, and support for low carbon fuels such as biofuels. In the area of fuel efficiency alone, new cars in the UK are now emitting some 10 per cent. less carbon dioxide per kilometre on average than in 1995. Policy measures in the transport sector alone are forecast to reduce carbon dioxide emissions by some 4.4 million tonnes of carbon a year by 2010.

Fuel efficiency labels, similar to those currently displayed on fridges and other white goods, have been developed by the Low Carbon Vehicle Partnership (LowCVP) in an effort to provide information to car buyers on how they can save money and help the environment. All 42 car brands in the UK have signed up to the introduction of the voluntary labelling scheme, and the label is due to be in all UK car showrooms by 1 September. As well as highlighting the fuel efficiency of every new car on sale, the labels also contain information on how much motorists can expect to pay in fuel bills in a typical year for a particular car, and whether the car qualifies for a reduction in Vehicle Excise Duty.
 
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The Climate Change Programme (CCP) published in 2000, is currently being reviewed by the Government. The CCP review is looking at how existing policies in all sectors are performing and the range of policies that might be put in place for the future. Evaluation of existing policies is almost completed and appraisal of possible new measures is currently under way. Responses to consultation along with outcome of analytical work will feed into the revised programme due to be published by the end of the year.

Mr. Steen: To ask the Secretary of State for Environment, Food and Rural Affairs if she will increase vehicle excise duty for 4x4 vehicles that emit high quantities of carbon dioxide. [14427]

John Healey: I have been asked to reply.

The Government keep all taxation policy under review. Any changes to taxation policy are announced by the Chancellor in the context of his Budget statement.


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