§ Mr. Spearingasked the Minister of Agriculture, Fisheries and Food what is the increase in farm gate prices which he estimates will arise from the annual review of European Community agricultural prices in both percentage and actual terms; and how he estimates that the resulting increase in food retail prices will be of the order of 1 per cent.
§ Mr. Peter WalkerIt is estimated that the increase in Community institutional prices is around 9–9.5 per cent., but it is not possible to determine precisely the effect on farm gate prices. The settlement will result in only a 1 per cent. rise in retail prices for food in this country over a full year because some food products are not subject to regimes under the common agricultural policy and firsthand price increases in certain sectors, for example for beef and sheep, where variable premium arrangements apply, are not passed on to consumers, nor is there any effect on liquid milk prices. Wages in the food processing and retailing sectors, transport and energy costs are major factors in determining food prices which are not dealt with in the price fixing.