§ Mr. Sackvilleasked the Minister of Agriculture, Fisheries and Food if he will indicate the effects of the recently announced increases in common agricultural policy prices on the Supply Estimates for 1983–84.
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§ Mr. JoplingSince the Supply Estimates of the Intervention Board for Agricultural Produce were prepared a number of changes have taken place in market prices, levels of production, exchange rates and trade volumes. Revised forecasts for 1983–84 have to take account of these changes as well as the effects of the new common agricultural policy prices. Most of the relevant expenditure is funded from the Community budget although expenditure on intervention purchases is not recouped until the foods are sold. As a result, total net expenditure is forecast to increase in only two sections—A and C of Class III, 1. The common agricultural policy price fixing is estimated to add about £76 million to net requirements, as indicated in the following table:
£ million Net Expenditure* Receipts from Community Exchequer expenditure A. 1,010 805 205 Supply Estimate 1983–84 B. 1,260 874 386 Forecast before price fixing C. 1,476 1,014 462 Forecast after price fixing D. +216 -140 +76 Cost of price fixing (C-B) * Before allowing for receipts from the Community.