Green Currencies

HC Deb 27 July 1979 vol 971 cc713-4W

Mr. Spearing

asked the Minister of Agriculture, Fisheries and Food by what percentage the value of the green currency of each EEC currency varies from (a) the agricultural unit of account, (b) the European unit of account, and on the basis that the monetary coefficient is based on the latest market rate of exchange.

Mr. Peter Walker

The unit of account now used in agriculture is the European currency unit (ECU), which has the same definition and value as the European unit of account (EUA). The percentage difference between the green rate for each currency and its market rate against the ECU-EUA on 25 July were as follows:

			Per cent.
Germany	…	…	+9.67
Netherlands	…	…	+0.32
Belgium /Luxembourg	…	…	+0.10
Denmark	…	…	-2.85
Ireland	…	…	-2.64
United Kingdom	…	…	-3.71
France	…	…	-6.86
Italy	…	…	-8.13

Notes

1. Where a country has more than one green rate in operation, the most general one has been used.

2. These percentages are close to, but not exactly the same as, those used in the calculation of the monetary compensatory amounts.

Mr. Leighton

asked the Minister of Agriculture, Fisheries and Food whether he will circulate in theOfficial Report a table showing how the EEC Commission arrived at its conclusion that the 1½ per cent. devaluation of the green franc would cost member countries £51 million and that the 5 per cent. devaluation of the green pound would, on the contrary, result in a saving of £74 million.

Mr. Peter Walker

The Commission has allowed for the fact that a green rate devaluation affects the EEC budget in two ways. In addition to increasing farm support prices in the national currency which increases the budgetary cost of support measures in the member States concerned, a green rate devaluation also affects the monetary compensatory amounts (MCAs). As France is a net exporter of CAP products, the MCAs levied on her exports exceed those paid on her imports and a reduction in MCAs on French trade therefore results in a net reduction in the Community's income. Conversely, as the United Kingdom is a net importer of CAP products, a reduction in MCAs on our trade results in a net reduction in the Community's expenditure.