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Rubber

Volume 977: debated on Monday 21 January 1980

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asked the Secretary of State for Industry whether the United Kingdom Government are a party to the International Natural Rubber Agreement; and, if so, when the instrument of notification will be deposited.

participated fully in the UNCTAD negotiating conference which adopted the International Natural Rubber Agreement in October last year. The agreement opened for signature on 2 January 1980. It is too early to say when the United Kingdom will become a party to the agreement.

asked the Secretary of State for Industry what financial contribution will be made by the United Kingdom to the cost of buffer stocking under the International Natural Rubber Agreement.

The International Natural Rubber Agreement provides for the buffer stock account to be financed equally by producer and consumer member Governments, with individual contributions determined by trade shares. On this basis, membership by the United Kingdom would involve a share of approximately 2·65 per cent. of the costs to the account of any buffer stock purchases.As a member, the United Kingdom would be expected to make an initial contribution of approximately £430,000 into the account within 18 months of the agreement entering into force. The precise cost to the United Kingdom of the account over the lifetime of the agreement would depend on the price and amount of any buffer stock purchases and sales made in order to stabilise rubber prices.