§ Mr. Austin Mitchellasked the Minister of Agriculture, Fisheries and Food if he will bring up to date the information given in the reply of 26 February, Official Report, columns 91–93, concerning prices and levies; and what further changes he envisages as a result of more recent movements in the exchange rate.
§ Mr. MacGregorThe information requested is set out in the tables. The "world prices" shown in table 1 are generally the lowest offer prices at the Community frontier underlying the Commission's calculation of the variable import levies. I remind the hon. Member that these are the lowest prices recorded and it is highly likely that on average higher prices would have to be paid if larger quantities were to be purchased on world markets. The "world prices" shown do not necessarily relate to the same quality or presentation of product for which United Kingdom market prices are set out in table 2.
The levies and notional world prices shown reflect the £-ecu exchange rate used to calculate monetary compensatory amounts (MCA) for the week commencing 22 April. Any subsequent movement in this exchange rate would, other things being equal, have a direct effect on the notional world price shown and, for products to which the MCA system applies, cause a broadly equal but opposite change in the levy applicable in the United Kingdom. The effect of the MCA system is to insulate United Kingdom market prices from movements in the market exchange rate of the pound.
TABLE 1 Levy Applicable in the United Kingdom and Notional "World" Price* on 24 April 1985 for the Main Traded Agricultural Commodities Levy† Applicable in United Kingdom (£/tonne) Notional "world" price (£/tonne) Common wheat 59 109 Barley 58 96 Maize 51 104 Rice 356 148 Sugar ‡298 111 Olive oil 402 836 Butter ||1,437 768 Skimmed milk powder 678 469 Beef and veal ¶1,446 935 Pigmeat 249 930 Sheepmeat ● — 1,739 Poultrymeat 138 722 Eggs 151 626 Note:
* "world" prices have been calculated by subtracting the levy applicable on 24 April from the threshold/guide price. The beef price is also adjusted for duty. In the case of pigmeat, poultrymeat and eggs, the "world" price has been taken as the sluicegate price, less supplementary levy where appropriate. The resulting estimate has been converted from ECU/t at the appropriate market rate of exchange £0.606046= 1ECU;
†the rates of levy vary for different tariff headings. The rates quoted are beef and veal—carcase; pigmeat—carcase; poultrymeat—70 per cent. chickens; rice—wholly milled long grain; virgin olive oil (1,507 AIa) eggs in shell including supplementary levy. Levies are shown after deduction of the monetary compensatory amount where applicable;
‡ in practice the United Kingdom's imports from third countries are normally covered by the Lomé convention and enter the Community levy-free;
|| a special lower rate of levy is applicable to imports of butter from New Zealand;
¶most imports of beef from third countries are subject to special arrangements allowing entry at reduced levy rates;
● imports of lamb under voluntary restraint arrangements with principal 75W suppliers and related agreements are subject to a reduced charge of 10 per cent, ad valorem. Any imports outside these arrangements are subject to levies which cannot exceed the 20 per cent, tariff bound in the GATT.
Table 2 Selected Average Market/Wholesale Prices United Kingdom: Week ending 20 April 1985 £/tonne Common wheat (grower to merchant price England and Wales) *117 Barley (grower to merchant price England and Wales) *110 Maize (USA ex port Bristol) †164 Rice (US long grain—London) 615 Sugar (refined bulk granulated) 419 Olive oil (EC origin, cif UK) 1,847 Butter (English, wholesale, London) 2,270 Skimmed milk powder (list price) 1,050 Fat cattle, certified, UK (liveweight) 945 Fat sheep, certified, GB (estimated dressed carcase weight) 2,438 Fat pigs (all pigs, deadweight) 1,021 Poultrymeat (broilers, liveweight) 573 Eggs (size 3, packer to producer price) 589 Note: A wide range of price quotations exists for individual commodities depending on quality, presentation, stage of marketing and so on. Those shown are intended to be illustrative of prices paid by wholesalers or received by producers.
* Relates to week ended 13 April.
†Relates to week ended 17 April.