§ Mr. Leeasked the Minister of Agriculture, Fisheries and Food what additional domestic food price increases commodity by commodity would follow a 1 281W per cent., 3 per cent. and 5 per cent. green pound devaluation; and what increase or decrease in United Kingdom exchequer contribution to Common Market funds would follow.
§ Mr. BishopThe estimated retail price increases, commodity by commodity, are given in the table for a 5 per cent. and a 3 per cent. devaluation of the green pound. The increases for a 1 per cent. devaluation are proportional, but generally negligible. These increases would obtain when all the effects of the devaluations had worked through to the retail stage.
A 5 per cent. devaluation of the green pound, in the absence of any changes in production, consumption or trade, would reduce the United Kingdom's net contribution to the EEC budget by about £4 million under own resources financing and assuming continuation of the exporter pays treatment of MCAs on imports. The savings to the United Kingdom would be broadly proportional for smaller green pound devaluations.
ESTIMATED RETAIL FOOD PRICE INCREASES WHEN THE EFFECTS OF A 5 PER CENT. AND A 3 PER CENT. DEVALUATION HAVE WORKED THROUGH Devaluations: Commodities: Five per cent. Three per cent. Butter (p lb.) 3½ 2 Cheese (p lb.) 3 ½ Beef (p lb.) 2 1 Bread (p standard loaf) ⅓ negligible Sugar (p kg.) 1½ 1 Bacon (p lb) 1 ½