§ Sir H. Legge-Bourkeasked the Prime Minister if he will undertake a study of the effect on food prices in Great Britain of entry into the Common Market; and what conclusions have been reached.
§ The Prime MinisterPrecise calculations are not possible, for much would depend on supply and market conditions—in the Community, in this country and 627W in the rest of the world—at the material time. It is certain, however, that there would be a very substantial increase in retail food prices here if he were to adopt the Community's levy system and then use it to keep prices at the levels which seem likely to prevail in the Common Market.
The hon. Member will, however, have seen the estimate made by my right hon. Friend the Minister of Agriculture, Fisheries and Food—OFFICIAL REPORT: 22nd December, 1965, col. 435—that to maintain our producers' returns by import levies at the present level of our guaranteed prices might increase the retail cost of food—both home and imported—by something like £400 million a year. If community farm prices after our entry into the Common Market, were as now above the present level of our guaranteed prices, the effect on the retail cost of food in the United Kingdom could be substantially more than this.