EU Agricultural Spending Needs Renegotiating

12.00.00am BST (GMT +0100) Fri 10th Jun 2005

Commenting on the call by Jacques Chirac for Britain to give up its rebate from the EU budget, Liberal Democrat Shadow Chancellor, Vince Cable MP said:

"The Liberal Democrats support the Government's position that the British rebate is justified because of the enormous inequalities arising from European expenditure on agriculture.

"The British Government should be seeking to reopen negotiations so as to reduce agricultural spending. If that happens, there is scope for renegotiating and reducing the British rebate. But if that does not happen the British Government has no alternative but to hold its current position and if it does so it will have our full support."