§ Mr. Gouldasked the Minister of Agriculture, Fisheries and Food what is the latest proposal in the European Economic Community for farm prices and monetary compensatory amounts; what is the net effect of these proposals in terms of prices in each country; what increase or reduction in surpluses is expected to result from the change in the case of each of the main commodities; and if he will estimate the likely effect of these proposals on agricultural output in the United Kingdom in 1985–86.
§ Mr. MacGregorMy right hon. Friend explained the final agreement reached in the Agriculture Council on 31 March in his statement to the House on 2 April at column 681W 661. This package of measures will be explained in detail in an explanatory memoradum on draft instrument 6059/84 which will be submitted by my Department shortly.
The estimated net effect in 1984–85 of the price proposals as agreed in the Council on 30–31 March on average support prices in each member state in real terms as amended by the changes in the MCA system agreed in the package, but excluding other green rate devaluations, is as follows:
Percentage Germany -3.5 France -4.3 Italy -6.7 Netherlands -2.8 Belgium -3.4 Luxembourg -4.3 United Kingdom -5.2 Ireland -5.1 Denmark -3.5 Greece -12.8 These figures take no account of the proposed introduction of a supplementary levy for milk.
The level of agricultural production and surpluses in any particular year depends on many factors and reliable estimates cannot be made. It is clear, however that the introduction of a supplementary levy for milk will have a considerable impact on the level of the milk surplus.