Green Pound (Hansard, 9 June 1988)

§ 8. Mr. Brandon-Bravo
To ask the Minister of Agriculture, Fisheries and Food what progress is being made with attempts to devalue the green pound, following the recent meeting of the Agriculture Council.

§ Mr. MacGregor
Discussions are still continuing. I have made it clear to the Agriculture Council that in my view it would be right to take a measured step in the current price-fixing towards the elimination of MCAs from all products by 1992, and to remove them immediately from the pigmeat sector.

§ Mr. Brandon-Bravo
My right hon. Friend is aware that I represent a typically inner-city constituency, but, by way of explanation, I should say that even that constituency has three splendid farms on its southern border. On behalf of that tiny minority, may I ask whether the negotiations will ensure that my three constituents and the rest of the farming community will have a fair deal? For the less initiated, how will it affect the cost of our food?

§ Mr. MacGregor
I assure my hon. Friend that I am seeking a fair deal for the United Kingdom farmer at the price-fixing negotiations. I made clear my intentions about the green pound from the outset of the Council discussions. This will, however, he one of the trickiest parts of the negotiations, and we have not yet seriously debated it. My hon. Friend's second point depends on whether there is devaluation and the extent of it. The impact on the retail prices index of a 1 per cent. green pound devaluation is minute.

§ Mr. Leigh
Will my right hon. Friend reassure the 500 farmers in my constituency that his efforts on green pound devaluation, MCA abolition and to prevent unfair subsidies abroad will result in a common agricultural policy that is truly free and fair? Our farmers are the most efficient in Europe, but they demand a free market, not a cheats' market.

§ Mr. MacGregor
I assure my hon. Friend that that is my objective. I think that he used the words "cheats' market" at the end of his question. That is a separate issue, but he will be aware that I am one of the Ministers taking a lead in Europe in the drive against fraud in the CAP.