§ 51. Mr. David Young
asked the Minister of Agriculture, Fisheries and Food what would be the increase in price of the commodities covered by the common agricultural policy if the differential between the £ sterling and the green pound were abolished; and if he will make a statement.
§ Mr. Bishop
I cannot reliably predict the effect on individual commodity prices of devaluing the green pound to the market rate because this would depend on a number of variables, including market conditions and the precise timing of the change. But, in current circumstances, devaluation to the market rate now might affect some major foodstuffs covered by the CAP as follows:
p per lb (a) Butter +11p–14p (b) (c) Cheddar cheese +11p Beef (bone out) +8p–13p (c) Bacon +4p Pork 3p–5p (c) Sugar 4½p per kilo Standard loaf +1p
(a) These effects are additional to those arising from the 7½ per cent. devaluation already agreed and assume that the move would be made immediately
(b) On the assumption that the current FEOGA subsidy of 33 ua per 100kg is in operation at the time of the devaluation
(c) Depending on market conditions the effect on the retail price of beef would vary with changes in the supply of home-killed and imports. Costly supplies of beef would also raise the price of pork