§ Mr. Austin Mitchell
asked the Minister of Agriculture, Fisheries and Food what is his estimate of the net effect of removing monetary compensatory amounts on European Economic Community output of agricultural products.
§ Mr. MacGregor
Aligning representative rates of exchange with market or central rates so as to remove monetary compensatory amounts (MCAs) would tend to increase production in member states which currently have negative MCAs and reduce it in those with positive MCAs. It is not possible to make reliable estimates of these effects since the results depend on the assumptions employed. Future effects would depend on exchange rate developments.