HC Deb 07 July 1986 vol 101 c40W
Mr. Baldry

asked the Minister of Agriculture, Fisheries and Food what he estimates the effect will be of the present proposals on the co-responsibility levy on (a) those farming over 100 acres and (b) those farming under 100 acres.

Mr. Gummer

The cereals co-responsibility levy which will apply from 1 July will be collected on cereals at the time of first-processing, intervention buying and export to non-Community countries. A producer processing grain on his agricultural holding for use on that holding in animal feed will, however, be exempt from levy. The effect of the levy is thus unrelated to the size of the farm.

Mr. Baldry

asked the Minister of Agriculture, Fisheries and Food what impact he anticipates the co-responsibility levy on cereals will have on cereal prices in the United Kingdom.

Mr. Gummer

The cereals co-responsibility levy will reduce prices received by cereals producers by £3.373—5.38 ecu—a tonne when they sell into intervention, for export to non-Community countries or to a leviable processing outlet.

Mr. Baldry

asked the Minister of Agriculture, Fisheries and Food who currently benefits from the co-responsibility levy on cereals.

Mr. Gummer

Proceeds from the cereals co-responsibility levy, which applies from the 1986-87 marketing year starting on 1 July, will be used to offset expenditure by the European Community on cereals support measures.

Mr. Baldry

asked the Minister of Agriculture, Fisheries and Food if he will make a statement on the present position in negotiations on the co-responsibility levy on cereals.

Mr. Gummer

The Commission's implementing rules for the co-responsibility levy have now been determined and will apply from 1 July.