HC Deb 01 May 1986 vol 96 c471W
Mr. Austin Mitchell

asked the Minister of Agriculture, Fisheries and Food how much was spent by the Government of the Federal German Republic by way of special rebate of value added tax to German farmers in 1985; and what effect this had on output of common agricultural policy products.

Mr. Gummer

As a result of an agreement at the 1984 price fixing the German green rate was revalued from 1 January 1985 which reduced support prices in Germany by amounts ranging from 4.1 to 5.2 per cent. In order to alleviate the impact of this it was agreed that a transitional adjustment could be made through the German VAT system. The Commission is due to report on the operation on this system and has been pressed to bring forward its report.