HC Deb 05 August 1976 vol 916 cc2109-10
14. Mr. Crouch

asked the Minister of Agriculture, Fisheries and Food what is the present discrepancy between the green pound and the£ sterling.

Mr. Peart

The gap between the two rates is 21 per cent., giving a calculated monetary compensatory amount percentage of 19.5 for the current week.

Mr. Crouch

Does the right hon. Gentleman think that the difference between United Kingdom and EEC prices is getting a little too wide? Does he not feel that the time is coming when our own farmers and producers should not be put at such a disadvantage against their continental competitors?

Mr. Peart

That point has been put to me many times, and I have considered the matter very carefully. I have made changes, and the Community has been pressing me to make further changes. We shall examine the matter.

Mr. Cryer

Will my right hon. Friend bear in mind that the British people have been making considerable sacrifices under the illusion that wages are the sole source of inflation? Does he agree that any further devaluation of the green pound would lead to increases in the cost of living, and that we should resist any further alteration in favour of the farming community so that at least we can obtain some benefit from this crazy organisation called the EEC and the common agricultural policy?

Mr. Peart

My hon. Friend knows that I try to represent the food industry and the consumer. I would remind my hon. Friend that I am not only Minister of Agriculture but also have responsibilities in regard to fisheries and food. I recognise that I have responsibilities to see that prices are not excessive, but I must strike a fair balance. I have already said that I shall carefully examine the matter, and it may well be discussed at future Council meetings.

Mr. Fairbairn

Will the Minister appreciate that among the British workers mentioned by the hon. Member for Keighley (Mr. Cryer) the hardest worker is the farm worker? Is it not unfair for them to have to pay out in one currency and to receive back a currency worth only three-quarters of it when prices are arranged on a basis of parity? Will he pursue a policy to ensure that there is a regular review of the value of the green pound?

Mr. Peart

I do not accept that there needs to be an automatic arrangement. This topic is discussed at most Council meetings and will inevitably come up at the next meeting.

Mr. Pym

Does the Minister agree that by allowing this misalignment to be as wide he has made it more difficult to bring the matter into parity? Does he agree that by the end of next year we shall be close to parity, so that British producers will be able to do business on fair competitive terms with their European partners? Will he not soon make adjustments to bring the green pound closer to parity?

Mr. Peart

I note what the right hon. Gentleman says, and I have made several moves in that direction. I must point out that no similar move was made by a Conservative Government.

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