HC Deb 27 July 1979 vol 971 cc706-8W
Mr. Spearing

asked the Minister of Agriculture, Fisheries and Food if he will publish in theOfficial Report a table showing EEC Commission levies, monetary compensatory amounts, and United Kingdom net levies similar to that published on 4 April last.

Mr. Peter Walker

Following is the information requested as at 23 July 1979.

under the CAP is to insulate the import cost of the products concerned from changes in the relative value of currencies. Since all principal foodstuffs are covered by this system, it follows that their import prices expressed in sterling have been essentially unaffected by the appreciation of sterling.

The effects of green pound devaluations which have been made during this period have been estimated by the Ministers concerned at the time, notably in my predecessor's statements of 1 February 1978 and of 7 March 1979.—[Vol. 943, c. 470–484; Vol. 963, c. 1267–77.]

Mr. Leighton

asked the Minister of Agriculture, Fisheries and Food whether his estimate of the effect on the United Kingdom contribution to the EEC budget of the recent agreement on agricultural prices took into account the increase in levies and other charges as a consequence of the devaluation of the green pound; if he will circulate in theOfficial Report a table showing how much was paid by way of such levies, and so on, on importation into the United Kingdom of each of the principal products in 1978; how much extra would have been payable as a result of each of the devaluations of the green pound this year; and how much in total he estimates will be paid by the United Kingdom in 1979 and 1980 if the green pound remains at the present level.

Mr. Peter Walker

My estimate took into account the increased levies on imports from third countries resulting from the devaluation of the green pound, as well as the reduced levy on imports of butter from New Zealand agreed as part of the butter subsidy arrangements. I regret that the detailed table requested could not be produced without disproportionate cost.

Mr. Leighton

asked the Minister of Agriculture, Fisheries and Food whether his estimate of the effect on the United Kingdom contribution to the EEC budget of the recent agreement on agricultural prices took into account the reduction in monetary compensatory amounts payable on or in respect of imports into the United Kingdom of foodstuffs subject to the common agricultural policy; and if he will circulate in theOfficial Report a table showing (a) by how much these amounts would have been reduced in 1978 if the green pound had stood at its present rate and (b) what he estimates is likely to be paid in this way in respect of imports into the United Kingdom in 1979 and in 1980.

Mr. Peter Walker

My estimate took account of the reduction in monetary compensatory amounts payable on these imports. Since the amounts in question, so far as imports from other member States are concerned, are paid in the member State of exportation, their reduction results in a saving in budgetary expenditure on the CAP but does not affect the United Kingdom's receipts from the budget.

If the current green pound rate had applied to all commodities throughout the whole of 1978, the net reduction in budgetary expenditure in respect of monetary compensatory amounts on the United Kingdom's agricultural trade, including both imports and exports, would have been about £260 million. It is impossible to say what payments will be made in 1979 and 1980 since this depends on the exchange rate for sterling over these years.

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