HC Deb 20 April 1978 vol 948 cc312-3W
69. Miss Boothroyd

asked the Minister of Agriculture, Fisheries and Food on what statistical evidence he bases his judgment—Official Report, 21st March—that the Cambridge Economic Review's estimate of 12p in the £ as the increase in British retail food prices resulting from membership of the EEC is somewhat on the high side.

Mr. John Silkin

The Cambridge Economic Policy Group estimate that the CAP currently adds some 12p in the pound to United Kingdom retail food prices depends in part on the assumption that food manufacturers' and distributors' margins, which cover such costs as wages and fuel, would increase to the same extent as prices at the farm gate or import stage. Since these costs are largely determined independently of agricultural support or market prices, I consider that the Cambridge Economic Policy Group has to some extent overstated the effects of the CAP on retail food prices.

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