§ Mr. Blakerasked the Secretary of State for Prices and Consumer Protection if she will show how the present monetary compensatory amount (MCA) system operated by the EEC is protecting the British consumer from increases in the prices of imported food which would otherwise result from the depreciation of the £ sterling; and if she will give examples.
§ Mrs. Shirley WilliamsThe White Paper, "Food from our Own Resources" (Cmnd. 6020) points out that, were we not a member of the Community, each 1 per cent. change in the value of £ sterling when worked through into prices could add about £35 million to our food import bill. Membership of the Community is partly protecting us against the effects of the depreciation of sterling through the payment of import subsidies—monetary compensatory amounts—which bridge the gap between the fixed representative rate of the pound—the green pound—and a market rate for sterling.
These subsidies are paid on a wide range of imports both from the rest of the Community and from third countries, notably on cereals, beef, dairy products, bacon and other pigmeat products.