§ Mr. Harrisasked the Minister of Agriculture, Fisheries and Food if he will publish a table showing the effects on Supply Estimates of the decisions on common agricultural prices for 1985–86.
§ Mr. JoplingSince the Supply Estimates of the Intervention Board for Agricultural Produce were prepared a number of changes have taken place in market prices, levels of production, exchange rates and trade volumes. Revised forecasts for 1985–86 have to take account of these changes (which gave rise to a Summer Supplementary Estimate) as well as the effects of the decisions taken on the common agricultural policy prices. Most of the relevant expenditure is funded from the Community budget although expenditure on intervention purchases is not recouped until the goods are sold. Expenditure net of Community receipts is therefore forecast to change as a result of the price fixing decisions only in the section relating to public intervention operations (A of Class III.I). There were no changes in schemes only partly funded by the Community (C of Class III.I). The common agricultural price decisions, including the price reductions for cereals and rapeseed imposed by the EC Commission, are estimated to reduce the net call on Exchequer funds by about £37 million, as indicated in the table below: 173W
£ million Net Expenditure (before allowing for receipts from the Community) Receipts from Community Exchequer Expenditure A. Supply and Summer Supplementary Estimates 1985–86 1,547 (1,134) 413 B. Forecast before price fixing (15 July 1985 for cereals and rapeseed; 15 May 1985 for other products) 1,856 (1,090) 766 C. Forecast after price fixing* 1,892 (1,163) 724 D. Effect of price fixing (C-B) +36 -(+73)= -37 *Includes payments under the fully-funded ewe premium brought forward from 1986–7 following a change in the Community marketing year.