§ Mr. Allan Stewartasked the Minister of Agriculture, Fisheries and Food if he is able to announce the guaranteed price for wool for the 1987 clip; and if he will make a statement.
§ Mr. JoplingTogether with the Secretaries of State for Scotland, for Wales and for Northern Ireland, I have received the state of the wool market and prospects for the 1987 clip.
The prices achieved by the British Wool Marketing Board for United Kingdom wool improved during 1986, but since average auction prices did not rise above the guarantee level of 129p/kg Exchequer advances continued to be necessary. The deficit in the board's stabilisation fund has continued to rise and is currently at £19.3 million. Accordingly, my colleagues and I had to consider seriously whether the guarantee should be cut. However, we are mindful of the need to encourage the continued improvement in quality of British wool, a growing proportion of which is exported. Furthermore, current wool prices are significantly higher than a year ago, stock levels are low and the Wool Board has reported markedly improved prospects both in the demand for and in the price of British wool. My colleagues and I have therefore decided to maintain the price guarantee for the 1987 wool clip at 129p/kg.