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£ Sterling (Community Rate)

Volume 893: debated on Monday 16 June 1975

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asked the Minister of Agriculture, Fisheries and Food what would be the effect upon British agricultural income and consumer prices, respectively, if the Common Market British green pound were devalued to match the Irish green pound formula; and if he will make a statement.

It is difficult to make worth while estimates of the kind which the hon. Member has in mind. If the United Kingdom representative rate for common agricultural policy purposes—the green pound—were devalued to equal that applied in the Irish Republic, the sterling value of Community institutional prices would rise by a little over 5 per cent. and the monetary compensatory amounts applied in trade by the United Kingdom would fall. But the effect of such changes on market prices is uncertain since these are determined largely by the market circumstances for each of the commodities affected. I am keeping the United Kingdom representative rate under review.