HC Deb 27 July 1978 vol 954 cc855-7W
Mr. Giles Shaw

asked the Secretary of State for Prices and Consumer Protec-

Mr. Meacher

This information is not available at constant prices. Following are the figures available from theOverseas Trade Statistics:

tion what proportion of the 104.9 per cent. increase in food prices between 1974 and 1978 was due to membership of the EEC; and if he will make a statement.

Mr. Lawrence

asked the Secretary of State for Prices and Consumer Protection what is the percentage increase in food prices due to British membership of the EEC to date; and what is the overall increase in food prices over the same period.

Mr. Neubert

asked the Secretary of State for Prices and Consumer Protection by how much the food price index has increased since 1st January 1973; and what part of this increase can be attributed to membership of the European Economic Community.

Mr. Maclennan

Between mid-January 1973 and mid-June 1978 the retail food index has increased as follows:

Overall increase Per cent. Percentage increase on same month a year earlier
January 1974 20.1 20.1
January 1975 42.1 18.3
January 1976 78.1 25.4
January 1977 119.9 23.5
January 1978 135.6 7.1
June 1978 148.3 6.7

It is not possible to identify, after the event, the effect of the CAP separately from all other factors affecting food prices. However, it is estimated that the additional cost of purchasing food at CAP rather than world prices currently accounts for less than 10 per cent. of the overall increase in food prices since February 1974. This estimate clearly depends on assumptions about the prices at which food could at present be purchased if the United Kingdom were not a member of the EEC. The effects of EEC membership on food prices at any time depends on the relative levels of CAP and world prices, which fluctuate over time. In 1974 and 1975, for example, world prices tended to exceed CAP prices, and the effects of membership on food prices were then negligible. It is one of the Government's objectives for the CAP to ensure that support prices take greater account of world price levels.