§ 6. Mr. Denzil Daviesasked the Minister of Agriculture, Fisheries and Food what is the present level of import duties or levies imposed on butter imported into the United Kingdom from outside the Common Market.
§ Mr. StrangRates of levy and compensatory amounts vary according to circumstance, and information about current rates is published by the Intervention Board for Agriculture. The present rate of levy on imports of butter from New Zealand under Protocol 18 arrangements is £117.48 a ton. From other non-EEC countries the net levy is £299.00 a ton.
§ Mr. DaviesWill my hon. Friend explain to those of us who are not experts in this sphere and find it difficult to understand the complications of the CAP why it is necessary to impose these taxes on 1920 imports of food, especially at a time when we are fighting a difficult battle against inflation?
§ Mr. StrangThe fact of the matter is that the system of levies is part of the common agricultural policy and is intended to safeguard the interests of Community producers. New Zealand has very special arrangements which my right hon. Friend recently improved to its satisfaction.
§ Mr. PowellIn the absence of these duties and levies would the price of butter in this country be higher or lower?
§ Mr. StrangThe price of New Zealand butter in this country if the levy were reduced—and the price to New Zealand was not increased and the levy correspondingly reduced—would indeed be lower. I would point out to the right hon. Gentleman that one change since the argument about entry has been that for many commodities world prices are higher than EEC prices.