§ Mr. Mylesasked the Minister of Agriculture, Fisheries and Food if he will announce the guaranteed price of wool for 1981–82.
§ Mr. Peter WalkerThe Government have to strike a balance between the increased costs facing producers of wool and the stabilisation principle on which the wool guarantee is operated. Largely as a result of currency fluctuations, United Kingdom wool market prices have been weaker than expected over the last year, causing the stabilisation fund administered by the British Wool Marketing Board to move into deficit; prices in the coming year seem likely to be appreciably lower than the guaranteed price, necessitating the continuation of Exchequer advances to the fund. Accordingly, the guaranteed price for wool will remain at its present level of 115p per kg for the marketing year beginning 1 May 1981.
However, the Community sheepmeat regime has already provided and will continue to provide producers with substantially higher returns than under our previous national arrangements. I also wish to announce that, following representations from the industry, the Government have decided not to implement the reduction in the maximum payable weight for lambs from 22kg to 21kg which was to have taken place at the start of the next marketing year.