§ Mr. Austin Mitchellasked the Minister of Agriculture, Fisheries and Food why United Kingdom agriculture is not to be subject to the same exchange rate pressures as the Government have applied to United Kingdom manufacturers.
§ Mr. Peter WalkerI consider that there should be a proper degree of stability in the level of support for agriculture, just as there was before we joined the Community. This would not be achieved by frequent adjustments in line with changes in the exchange rate. Nor was that the policy followed by the last Government, which refused to devalue the green pound408W in line with the fall in sterling thereby worsening the farming industry's competitive position.
Moreover, over the year ending September 1980, food prices rose by 11.3 per cent. compared with 17.1 per cent. for other prices. This suggests that, despite the exchange rate pressures to which it is subject, the rest of industry has raised its prices by much more than farmers have raised theirs.