§ Mr. Austin Mitchellasked the Minister of Agriculture, Fisheries and Food what is his estimate of the effect on European Economic Community output of agricultural products of a stabilisation of common agricultural policy prices in real terms; and if he will publish in the Official Report an estimate of the resultant change in the cost to the European Economic Community budget.
§ Mr. MacGregorPrices under the common agricultural policy have generally fallen in real terms in recent years while production has risen. While many factors2W affect the level of production, if a policy of stabilising real prices were introduced production would be expected to increase still further with consequent effects on budgetary expenditure. It is not possible to produce reliable estimates of these effects since the results would depend on the assumptions employed.
Her Majesty's Government is, of course, to press for a more stringent price policy than has been followed in the past.