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Common Agricultural Policy

Volume 931: debated on Wednesday 11 May 1977

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asked the Minister of Agriculture, Fisheries and Food what is his estimate of the additional cost to the United Kingdom balance of payments of the agreed increase in EEC farm prices; and how much of this he estimates can be attributed to the devaluation of the green pound.

I estimate that in the period to end March 1978, the farm prices package, including the effects of the butter subsidy and the United Kingdom contribution to the Community Budget, may add about £30 million to our foreign exchange costs. About one-quarter of this is attributable to the devaluation of the green pound. But in the longer term I would expect there to be a foreign exchange saving due to lower imports.

asked the Minister of Agriculture, Fisheries and Food what are the latest available figures from the EEC Commission showing the EEC prices for farm products as a percentage of world market prices; and if he will give the name and reference of any official EEC publication containing this information.

Pages 199/200 of "The Agricultural Situation in the Community 1976 Report" published by the EEC Commission in January 1977 give the following figures, relating to 1975 or 1975–76, of EEC entry prices as a percentage of what are described as "world market" prices. But since the prices used to represent "world market" prices are in general based on the lowest offer prices of individual consignments they do not represent the prices at which regular trade takes place:

Common wheat124
Durum wheat145
Husked rice137
Barley117
Item (and CCT number)Common Levy £/100kgACA £/100kgMCA £/100kg
Common wheat (10.01A)5·26941·05832·325
Barley (10.03)3·16640·99572·037
Maize (10.05B)3·70810·95012·061
White sugar (17.01A)11·551606·852
Butter 82–84 per cent. fat content (04.03A)106·7612*25·5042·480*
Cheddar cheese (04.04E I(b) 1 bb)93·3185*5·046738·344*
Skimmed milk powder (04.02A II (b) 1)52·2727019·455
Boneless frozen beef (02.01 A II (b) 4 bb 33)115·25906·194938·346
Lard (15.01 A II)5·27391·03835·564
Pigmeat: Carcases (02.01 A III(a) 1)16·48453·250017·389
Salted bacon sides (02.06B I(a) 2aa)22·25704·223823·475
Eggs (04.05A I (b))21·7817†2·46205·243
Poultry meat ("70 per cent. chickens") (02.02A I(b))13·0326‡2·09974·502
* There are special rates for New Zealand butter and cheese.
† Includes a supplementary levy of 20ua/100kg (£11·3921)(applicable on imports from certani
‡ Includes a supplementary levy of 5ua/100kg (£2·8480)countries of origin).
Note: Regulations provide for supplementary levies to operate in these two sectors when average free at frontier offer prices fall below sluice gate prices.Offer prices relate to consignments of varying characteristics depending on circumstances

Maize128
White sugar109
Live bovine animals158
Pigmeat113
Butter320
Skimmed milk powder (Spray)266
Olive oil207
Oilseeds127

asked the Minister of Agriculture, Fisheries and Food if he will publish in the Official Report the current EEC common levies, expressed in £ sterling at the current market rate of exchange, for: common wheat, barley, maize, white sugar, butter, Cheddar cheese, skimmed milk powder, boneless frozen beef, lard, pigmeat, eggs and poultrymeat, together with the lowest offer price, the monetary compensatory amount and the accession compensatory amount for the United Kingdom.

EEC common import levies and accession compensatory amounts are expressed in sterling after conversion at the representative rate. When converted to sterling at the current market rate of exchange used for the purposes of monetary compensatory amounts (£1=1·27402 ua) the levies and ACAs at 10th May 1977 for the items requested are as follows. United Kingdom mcas are fixed in sterling and those shown below are in operation on the same date.and information about the lowest offer prices is not readily available.