§ 40. Mr. Rostasked the Minister of Agriculture, Fisheries and Food what is the extra budgetary cost to the EEC Farm Fund resulting from the decline of the value of £ sterling from $2 to $1.80.
Mr. PearlThe level of United Kingdom monetary compensatory amounts depends on the relationship between sterling and the Community currencies in the joint float and not on the relationship between the dollar and sterling. When the entry for MCAs in the Communities' budget was drawn up in September 1975 the £ sterling stood in the region of £1=$2.08. The Commission estimated MCA expenditure in respect of United Kingdom trade at £110.3 million. The Commission's most recent estimate is based on the situation in mid-April, when £ sterling stood at £1=$1.86, and forecasts £192 million expenditure on MCAs in 1976 in respect of United Kingdom trade, an increase of £81.7 million.