HC Deb 22 May 1975 vol 892 c619W
Mr. Spearing

asked the Secretary of State for Prices and Consumer Protection if she will publish in the Official Report the estimate she made in calculating the cost of United Kingdom membership of the cost to consumers of the common agricultural policy for cereals in 1974 and 1975 to date, specifying the tonnage and type of cereal on which the saving was made.

Mrs. Shirley Williams

The latest estimate of the effect of membership on food prices, which shows that membership is at present having no significant effect overall, takes into account the effect of Community-financed subsidies as well as levies and duties. In the first quarter of 1975 membership was responsible for a slight overall reduction in prices.

The estimate of the effect on cereals has been one of significant savings. The bulk of our imports of Community grains are benefiting from Community-financed monetary compensatory amounts, which act as import subsidies. Since October 1974 these subsidies are also being paid on United Kingdom grain imports from third countries. In addition, during 1974 and early 1975, when world cereals prices exceeded Community prices, export levies were charged on exports of EEC grains to third countries in order to discourage exports and contain prices within the Community. These savings have been made at different times on wheat, maize, barley, oats, rye and sorghum.

Details of the volume and type of United Kingdom grain imports are published in Table 7 of the Annual Review of Agriculture 1975 Cmnd. 5977.