§ Mr. Austin Mitchellasked the Minister of Agriculture, Fisheries and Food what steps Her Majesty's Government have taken since 1981 to overcome the problem of price differentials for trade in cereals as described in paragraph 10 of the evidence submitted by the Grain and Feed Trade Association and the United Kingdom Agriculture Supply Trade Association to the Select Committee of the House of Lords on the European Communities concerning agricultural trade policy published in its second report, Session 1981–82.
§ Mr. MacGregorThe fixing of cereal prices is a matter for the Community as a whole. The United Kingdom Government have consistently and strongly argued for a policy of price restraint in this sector, including a reduction in target (and hence threshold) prices and for the abolition of the additional price support given to breadmaking wheat. Since 1981 this policy has been increasingly successful. Cereals support price were cut in ecu terms in 1984–85 and the Commission proposals for 1985–86 include a 3.57 per cent. reduction in target and intervention price for most cereals.
In addition, since 1981 the impact of special support for breadmaking wheat has been greatly reduced. The premium for minimum quality breakmaking wheat has been cut and a 3 million tonne limit imposed on the quantity of wheat that may be bought into intervention at this price.
For 1985–86 the Commission has said that it does not intend to operate intervention at this level at all. The 120-day delay in payment for sales into intervention applied to all cereals since last season has also effectively reduced cereal prices.