§ Mr. William Hamiltonasked the Minister of Agriculture, Fisheries and Food what would be the effect on food prices and on the retail price index of the complete abolition of British monetary compensatory amounts.
§ Mr. Buchanan-SmithAbolition of existing United Kingdom monetary compensatory amounts—without taking account of the 5 per cent. devaluation agreed last week—would require a devaluation of the green pound by 10.7 per cent. This might eventually add just over 2 per cent. to food prices and ½ per cent. to the retail price index, when all the effects had worked through. These estimates are based on the position today, before last week's settlement comes into effect. My right hon. Friend's statement on 22 June set out the price effects of that settlement.