§ Mr. Richard Shepherdasked the Minister of Agriculture, Fisheries and Food what has been the cost since its inception to date of the levies under the common agricultural policy on imported food; how this compares with the cost of the deficiency payment scheme over a similar period of time; and what is the cost comparison between the two at constant prices.
§ Mr. Buchanan-SmithThe effect of the system of import levies in the cost of food can be estimated only in broad terms. For 1979, its effect is put at 8 to 10 per cent. on food prices, equivalent to around £2 billion of consumers' expenditure.
Average expenditure on deficiency payments during the seven financial years ending 1972–73 was £117 million per year equivalent to £392 million at October 505W 1979 prices. However, this figure does not necessarily bear any relation to what the cost of a deficiency payments system would have been if it has operated under the different economic conditions prevailing during the last seven years; nor did that system when it operated, give consumers access to all foods at the equivalent of world prices.