EARL FERRERSasked Her Majesty's Government:
What action they propose to take to safeguard the returns of United Kingdom beef producers in view of the fact that the Minister of Agriculture has indicated that he does not like the Intervention System, and has obtained an option from the E.E.C. Council of Ministers not to use it.
§ LORD WELLS-PESTELLThe measures to keep supplies of beef moving into consumption at reasonable prices and the additional support totalling £38 million for beef production announced by Her Majesty's Government on March 25 will act to safeguard the returns of United Kingdom beef producers.
The United Kingdom guide price is linked to the full Community guide price and to the Irish Republic's guide price by the system of compensatory payments and subsidies. If beef prices fall unduly low in the United Kingdom then the Continental market will become more attractive and more United Kingdom beef 1363WA would be exported. Similarly, beef will not be sold at depressed prices in the United Kingdom by Irish producers if it can be sold at higher prices into intervention in the Irish Republic.