§ Mr. McLoughlinasked 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 1986–87.
§ 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 1986–87 have to take account of these changes 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 in only two sections (A and C of class IV.1). The common500W agricultural policy price decisions are estimated to increase the net call on Exchequer funds by about £23 million, as indicated in the table.
A winter supplementary Estimate will be submitted seeking parliamentary approval for any agreed change in provision for collection of the co-responsibility levy on cereals and for payments under the aid for small cereals producers and the milk outgoers schemes which were agreed as part of the price fixing. The supplementary Estimate will also make provision for payments and receipts on external trade following the accession of Spain and Portugal to the Community.
Class IV Vote 1 Net expenditure before allowing for receipts from the Community Receipts from Community £ million Exchequer Expenditure A. Supply Estimate 1986–87 1,490 (1,142) 348 B. Forecast before price fixing (25 April 1986) 1,682 (1,314) 368 C. Forecast after prive fixing 1,657 (1,266) 391 D. Effect of price fixing (C-B) -25 -(-48) = -23