HC Deb 22 December 1981 vol 15 cc360-2W
Mr. Austin Mitchell

asked the Minister of Agriculture, Fisheries and Food, further to his reply dated 8 December, Official Report, columns 367 to 370, to a written question from the hon. Member for Grimsby concerning prices compared with levies on common agricultural policy products, whether he will publish in the Official Report (a) the conversion factor used for sterling, (b) a revised table showing the first three columns in terms of sterling using the conversion factor, (c) his estimate of the amount by which United Kingdom consumption would increase if United Kingdom prices fell to the current world level and (d) any evidence he has that supplies currently obtained from other European Economic Community countries would not be obtainable at world prices if the United Kingdom left the Common Market.

Mr. Buchanan-Smith

(a) and (b): In compiling the information contained in the reply to which the hon. Member refers it was not necessary to make use of a conversio factor for sterling. The sterling equivalents of the first two columns of the reply are set out in the following table, together with the conversion factors used to derive them. The common levy has no direct sterling equivalent; the method of calculating the United Kingdom net levy from the common levy is explained in the reply to the hon. Member's later question.

(c) No reliable estimates can be made of the amount by which United Kingdom consumption of the products in question would increase if United Kingdom prices fell to the current world level.

(d) The quantities of the products in question which we would want to or be able to obtain from European Community countries if the United Kingdom left the Community, and the terms on which they would be obtainable, would depend on a variety of factors including whatever arrangements on whithdrawal were negotiated between the Community and the United Kingdom.

Cap Support Price* £/tonne‡ Estimated World Price † £/tonne
Beef and Veal 1,749.56 933.42
Sheepmeat 1,770.59 1,580.04
Pigs 850.16 778.27
Poultry 838.03 640.80
Eggs 735.15 311.44
Milk p/litre 13.4155 N/A
Butter 1,966.33 1,226.38
Skimmed Milk Powder 819.41 542.69
Common Wheat 118.51 93.11
Barley 106.38 78.25
Maize **106.38 65.03
Sugar 319.91 169.98

Notes:

* Intervention price applicable in the United Kingdom

† Intervention is not available in the United Kingdom

‡ Converted from ECUs at the current green rate (ie 1ECU=£0.618655).

** Converted using the market rate applicable on 23 November (ie 1ECU=£0.570411).

Mr. Austin Mitchell

asked the Minister of Agriculture, Fisheries and Food, further to his reply dated 8 December, Official Report, c. 366, to a written question from the hon. Member for Grimsby concerning the consumption of basic foodstuffs, whether he will publish in the Official Report (a) the conversion factor used in calculating the levies, (b) a revised table showing the figures in the two final columns on the nearest comparable basis to exclude in particular sugar beets, liveweights and dozens, (c) an approximate milk conversion factor for butter and cheese, and (d) an additional column showing in cash terms the additional duties payable on imports from third countries at the representative rate, or, in the case of a wide range of duties, the average incidence of the duties at the most favoured nation rate collected on imports dutiable at that rate.

Mr. Buchanan-Smith

(a) There is no explicit conversion factor. The United Kingdom levy is calculated from the common levy by the following method. The common levy rate expressed in ECU is converted into sterling at the representative—green—rate of exchange; this is then adjusted by multiplying by the monetary co-efficient, and the sterling value of the monetary compensatory amount is then added; on 23 November the monetary co-efficient was 0.942 and the MCA percentage was +5.8.

(b) The two final columns of the original table are reproduced in this reply, but have been adjusted to exclude references to sugar beet, liveweights and dozens.

(c) Approximate milk conversion factors for non-Channel Island milk in England and Wales are:

Average producer price £/tonne Levy applicable on 23 November 1981 to United Kingdom imports from third countries £/tonne
Common wheat 98.86 46.87
Sugar 214.6(c)(u) 185.43(d)
Beef and veal 1386.4(v) 959.1(e)
Mutton and lamb 1257.0(g) (f)
Pork 866.4(g) 250.54(h)
Bacon and ham 320.71(i)
Poultrymeat 911.0(j) 147.72(k)
Milk—
Liquid 12.81 per litre(l)
Butter 903.59(m)
Cheese 1154.84(n)
Eggs 542.30(w) 265.56(o)
Tobacco 113.26(q) (r)
Wine 74 per litre(s) (t)

Notes

Footnotes (a) to (t) are given in the reply dated 8 December. [Vol. 14, c. 366.]

(u) A notional figure calculated by applying a standard 13 per cent. yield of usable sugar to the beet price given in the previous reply.

(v) Based on an assumed killing out percentage of 55.

(w) Based on the assumption that there are on average 1,450 dozen eggs per tonne.

Litres of whole milk to produce 1 tonne product
Butter 22,567 (summer)
21,580 (winter)
Cheese (Cheddar) 10,181

(d) The information requested is not readily available.