§ Mr. Austin Mitchellasked the Minister of Agriculture, Fisheries and Food what would be the effect on the European Economic Community budget of eliminating the negative monetary compensatory amount of approximately 6 per cent. payable in the United Kingdom under the common agricultural policy; and if he will provide an estimate based on experience in 1983 of the gains and losses which would result.
§ Mr. MacGregorThe United Kingdom has a positive monetary compensatory amount—MCA—which fell from plus 6.2 to plus 3.7 on 19 March because of a fall in the market value of sterling.
The Commission of the European Communities has, based on experience in 1983 and earlier years, estimated that each one percentage point reduction in the United Kingdom MCA brought about by a green rate revaluation would reduce Community expenditure under the EAGGF budget by some 10 million ECU—about £6 million—in a full year. Commission figures also indicate that such a revaluation would reduce own resources by some 25 million ECU—about £15 million.