§ Lord STANLEY of ALDERLEYasked Her Majesty's Government:
Whether it is true that during the week ending 29th January 1977, a 510 kilogram (10 cwt.) bullock exported live from Eire to the United Kingdom received 17.78p per kilogram Monetary Compensatory Amount from the Irish Intervention Board, less export MCA charges of 6.6p per kilogram, resulting in a net MCA to the Eire farmer or exporter of approximately £57 per 10 cwt. bullock; and, if this is true, whether the Government will devalue the green pound to stop this undercutting of the United Kingdom beef producers' market or explain what action it intends to take to stop the rapidly increasing lack of confidence amongst United Kingdom farmers.
§ Lord STRABOLGIThe figures are correct. The recent changes in the Irish Republic representative rate do not have an impact only on the United Kingdom. The monetary compensatory adjustments on Irish exports to other destinations have been similarly affected and the Republic's intervention price has also been increased.
The value of the MCA is not necessarily reflected in the exporter's selling price and its effect on the United Kingdom beef markets cannot therefore be quantified. United Kingdom beef producers have for many months been receiving average returns above the target price 1533WA levels and future prospects remain good. The continuing firm prices being paid for calves and store animals do not indicate a lack of confidence.
The possibility of a green pound devaluation remains under review but we do not consider the differential between Irish and United Kingdom prices to be in itself an adequate justification for a change.