§ Mr. Hunter
asked the Minister of Agriculture, Fisheries and Food if Her Majesty's Government accepts the desirability of the abolition of monetary compensatory amounts procedures at European Community frontiers; and if he will make a statement.
§ Mr. MacGregor
Monetary compensatory amounts are necessary to avoid trade distortions arising when market rates of exchange diverge from the special green rates used for the common agricultural policy. The Government accept that over time it is desirable for green rates to be adjusted to take account of underlying exchange rate developments, so that producers in all member states are supported at the same real price levels. But the specific timing of such changes must be decided in relation to all relevant economic considerations.