§ Mr. Spenceasked the Minister of Agriculture, Fisheries and Food if he can estimate the amount by which the intervention and target prices for beef would be increased if the green pound were restored to its maximum value; and if he will make a statement.
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§ Mr. PeartThe difference between the representative rate and market rate for the £ sterling as calculated for the purposes of MCAs to be applied in the week beginning 7th July was almost 22 per cent. If the representative rate were altered to the market rate the United Kingdom intervention price for beef, which is fixed in units of account, would rise from £22.85 to £27.83 per live cwt. Decisions on the United Kingdom monthly target prices would be a matter for the United Kingdom Government.
§ Mr. Spenceasked the Minister of Agriculture, Fisheries and Food by how much the green pound is overvalued by comparison with the floating pound; when the two were approximately at parity; over how long and at what intervals the loss of value occurred; and if he will make a statement.
§ Mr. PeartThe difference between the representative rate for sterling—the "green pound"—and its current value in terms of the agricultural unit of account is calculated weekly for the purpose of fixing monetary compensatory amounts (MCAs). For the week beginning 7th July the MCAs will be based on a difference of almost 22 per cent.
The difference was last zero in February 1973. The current value of sterling used for this calculation has declined progressively since then, but the present Government have twice agreed to adjust the representative rate downwards so as to reduce the difference.