HL Deb 12 June 1979 vol 400 cc598-9WA

asked Her Majesty's Government:

  1. (a) what commodities, and in what amounts, are currently held in intervention stores in the EEC;
  2. (b) how many days supply of each commodity at current EEC consumption rates does this represent;
  3. (c) what is the estimated annual net cost of intervention buying, storage and administration and what percentage this represents of the Common Agricultural Policy budget.


The latest information available is shown below.

(a) (b)
EEC Public intervention Stocks Estimated Supply (days)
('000 tonnes)
Beef & Veal 161 9
Butter 317 68
Skimmed Milk Powder 446 84
Wheat 1,048 11
Barley 139 2
Rye 442 49
Durum Wheat 161 16
Olive Oil 91 70
Tobacco 30 N/A

The cost of intervention includes both public and private storage. When stocks go into intervention, the cost of purchase falls on the national funds of the country concerned. The EEC budget bears the cost of storage only, which includes a financing element. The EEC budget also absorbs any loss or takes any profit which may arise out of the disposal. The estimated cost to the EEC budget in 1979 is some 900 million European Units of Account (approximately £580 million at current exchange rates), which is equivalent to about 9 per cent. of the forecast total EEC budget.