CAB128-94_A1b — Page 209

CONFIDENTIAL

FIDEN

Council

20/21 Nove

Social Charter

Page 209

4. THE MINISTER OF AGRICULTURE, FISHERIES AND FOOD said that the Council had reached a decision on changes to the agricultural structures regulations. He had had to fight hard, against strong opposition from the Commissioner Mr Mac Sharry, to improve the proposed limit per farm for payments on livestock in hill areas. The limit would have most impact in the areas where farming conditions were hardest. The French Presidency and certain other Ministers had offered some support and the Commission had eventually been somewhat more flexible. The mber of livestock within the limit had been more or less doabled. Though less than he would have liked to achieve, this

a big improvement on the original proposal. The Council also agreed on a one per cent increase in the milk quotas with effect from the current year. The budgetary cost would be offset through cuts elsewhere, but the savings would not take effect until the following year.

In a brief discussion it was noted that the limit to payments on hill lives applied to the Community's contribution to those payments. The attitude of the Farmers' Unions would depend on the extent to which the Government was willing to pay above the limit at national expense.

CONF!

THE SECRETARY OF STATE FOR EMPLOYMENT said that the Commission had now revealed its

ti

Charter. There would be

programme to implement the Social

eliminary discussion at the Social Affairs Council on 30 November. The action programme had been slightly modified: there were no proposals touching on industrial relations and nondog measure was envisaged on minimum wages.

But the Commission still planned to regulate hours of work, part-time work, badays and rest periods in a way which would be contrary to vernment's policy over the last ten years and was absurd against the background of 14 million unemployed in the Communit He would circulate information to colleagues in time fo the House of Commons debate on 29th November. In the debate he would continue to take the line that some moves had been made in the United Kingdom's direction, but that these were insuficient.

ficient.

In a brief discussion, it was noted that the Confederation of British Industry and other bodies representing industry fully supported the Government's stance: but they had limited success in mobilising their counterpartscher Member States, partly because the motive of some Governmente the Charter, for example the German Government, was essentially protectionist. A reply to the Prime Minister's letter to President Mitterrand could not be ruled out but it might arrive at the last moment: if the French did not want negotiate with the United Kingdom on the text, there wouk

only

backing

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CONFIDENTIAL

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