HC Deb 28 June 1979 vol 969 cc331-2W
Mr. Denzil Davies

asked the Minister for Agriculture, Fisheries and Food what will be the net effect on the United Kingdom's contributions to the EEC budget of the farm price package agreed in Luxembourg on 21 June.

Mr. Peter Walker

The latest revised figures given by the Commission as to the cost of the CAP prices settlement are as follows:

£ million
The 1½ per cent. Price increases plus the changes in the German and Benelux green rate 63
The 1½ per cent. Green franc devaluation 51
Increase in milk powder subsidy 44
Increase butter subsidy 182
Other changes in the milk sector, such as school milk 8
Other increases mainly on aids on processed fruit and vegetables 24
372
The 5 per cent. Green pound devaluation (minus) 74
298

Britain will have to meet 16 ½ per cent. of this total, which is its marginal contribution to the CAP, which will amount to £49 million.

The benefits to the United Kingdom in financial terms will be:

£ per tonne
As at 1 January 1979 As from 9 April 1979 1979–80 prices*
Common wheat:
(i) Non-breadmaking qualityt† … … 81.73 — 86.71
(ii) Breadmaking wheat reference pricet† … 91.49 — 97.69
White sugar … … … … … 218.74 230.25 245.87
Butter (82 per cent. fat) … … … … 1,494.95 1,573.63 1,656.43
Beef … … … … … … … 719.00 756.84 808.65
Skimmed milk powder … … … … 607.44 639.41 673.05
* The 1979–80 prices will take effect on 1 July for sugar; on 2 July for butter, skimmed milk powder and beef; and 1 August for wheat.
† Prices for wheat were subject to monthly increments of 93p per tonne on 1 February, 1 March, 1 April and 1 May, and reverted on 1 June to £77.10 per tonne (intervention price) and £88.86 (reference price).

£ million
The butter subsidy 65
School milk subsidy 4
Extra receipts due to the green pound devaluation 14
83