HC Deb 03 April 1978 vol 947 cc78-80W
Mr. Ralph Howell

asked the Minister of Agriculture, Fisheries and Food if he will compare the average annual producer prices in units of account and £ sterling in each of the nine member States of the EEC for: milk, wheat, beef and pork, respectively, for the latest date for which figures are available, in all member States.

Mr. Bishop

The available information is set out below:

(b) the European unit of account (EUA); by what percentage the representative rate for each European Economic Community member differs from the AUA: and what would be the percentage in each case if the current market rate for the EUA were to be substituted for the current representative rate and if the agricultural prices now expressed in argricultural units of account were to be expressed in EUA on the basis that one EUA equalled one AUA.

Mr. Bishop

The average value of the US dollar against the agricultural unit of account (AUA) used in converting world market data during the week 22nd–28th March 1978 was 1 US dollar;0.653232 AUA. Its average value against the European unit of account (EUA) during the same week was 1 US dollar=0.797626 EUA.

The percentage differences between the market rates used for the purpose of calculating, the monetary compensatory amounts for each member State applicable on 3rd April, and the representative rates used for converting common support prices, are shown in Column I of the table below. If EUA market rates were to be substituted for existing representative rates, and agricultural prices were expressed in EUA on the basis that 1 EUA ; 1 AUA, the above-mentioned percentage differences would be nil for all member States. If, however, existing representative rates were maintained and the EUA market rates were substituted for the AUA market rates, these percentage differences would be as shown in Column II of the table.

TABLE
(Column I) (Column II)
Belgium/Luxembourg + 1.4 +19.5
Denmark Nil +18.1
Germany + 7.5 +25.2
France -19.5 + 2.8
Ireland -10.2 +10.3
Italy -19.9 + 2.3
Netherlands + 1.4 +19.8
United Kingdom -39.0 -13.1
(-28.6) (- 4.6)

Notes:

(1) Column II is based on the one-week reference period normally used for the calculation of MCAs. Column 1 is based on the three-week reference period which is presently being used on an experimental basis.

(2) The percentages in brackets for the United Kingdom relate to the green rate of £1 ; 1.57678 UA which has been agreed but has not yet come into effect. The unbracketed percentages relate to the green rate of £1 ; 1.70463 UA.

(3) The percentages in column I are all shown gross, before deduction of the 1.5 per cent. franchise.

Mr. Spearing

asked the Minister of Agriculture, Fisheries and Food when the agricultural unit of account first rose above the weighted average of the currencies of European Economic Community member countries; what has been the average divergence each year and what is the current figure.

Mr. Bishop

The relationship between the agricultural unit of account and the weighted average of the currencies of EEC member countries depends on the method used to produce such an average. The normal measure of developments in market values of EEC member currencies as a group is the European unit of account (EUA) which is a basket unit composed of fixed amounts of each member currency. This unit was introduced in April 1975 and was designed so that the total value of the currencies it contained equalled one special drawing right (SDR) on 28th June 1974. In practice the market value of the agricultural unit of account is equal to the value of the European monetary unit of account (EUR). The relationship between the EUR and the EUA when the latter was introduced was 1 EUR ; 1.07 EUA. The average relationship in 1976 was 1 EUR ; 1.13 EUA. Average figures for the whole of 1977 have not yet been published but in the first quarter of that year 1 EUR ; 1.19 EUA. In the week ending 28th March 1978 the relationship was approximately 1 EUR ; 1.23 EUA.

Sources:

1975–77 figures—Eurostat

1978 figures—MAFF calculations based on exchange rates published by the EEC Commission.