HC Deb 23 October 1975 vol 898 cc706-7
15. Mr. Brotherton

asked the Minister of Agriculture, Fisheries and Food if he will make a statement about the future of the green pound.

The Parliamentary Secretary to the Ministry of Agriculture, Fisheries and Food (Mr. Gavin Strang)

I refer the hon. Member to the statement made by my right hon. Friend on 15th October—[Vol. 897, c. 1360–71.]

Mr. Brotherton

Will the Minister tell his right hon. Friend that there continues to be grave concern in the farming industry about the valuation of the green pound, and that the sooner it is brought in line with the value of the £sterling, so that the farming community may have a fair return on their money, the better?

Mr. Strang

The Government have adjusted the green pound no fewer than four times over the past year. We are determined to win the battle against inflation and at the same time give our farmers the returns that they need in order to produce our food.

Mr. Torney

Does my hon. Friend agree that more purpose would be served for the farming industry if we completely renegotiated the Common Market agricultural policy and abolished the green pound?

Mr. Strang

My hon. Friend is aware of the Government's policy of modifying the CAP, and using the stocktaking exercise as a means of achieving that. With farmers' costs increasing, whether we are in or out of the Community it is necessary to give them higher prices.

Mr. Jopling

Is the Minister aware that the way in which the green pound works causes serious contortions in the whole system of the agricultural economy? Will he give an assurance that his Department is seriously considering various proposals that have been put for the introduction of automatic trigger arrangements to neutralise the adverse effects of the green pound discrepancies over the whole economy of our food-producing industry?

Mr. Strang

I note what the hon. Gentleman says, but we need a green pound because we could not possibly have weekly adjustments in prices, not only because of the consumer effects but because of the impracticality of automatically adjusting support prices so often.