§ Mr. Spearingasked the Minister of Agriculture, Fisheries and Food if he will describe the unsatisfactory features of the operation of the European Economic Community special levy on New Zealand butter to which he referred in the Official Report on 17 July.
§ Mr. Buchanan-SmithThe Council regulation currently in force states that the special levy shall be determined on the basis of the difference between the cif price, plus the total costs between the cif stage and the stage of initial sale, and the market price of New Zealand butter in the United Kingdom. A judgment therefore has to be made about the price at which New Zealand butter will sell on the United Kingdom market; and, since there can be a considerable lag between the time of payment of levy and the time of sale, the judgment has to extend to future market prices. List prices of home-produced butter and imported brands can change several times during the course of the year and, because the United Kingdom butter market is fiercely competitive, discounts from list prices are often available. As a consequence the selling price used in the calculation has frequently proved out of line with the prices at which New Zealand butter could be sold.