§ 31. Mr. Ernie Rossasked the Minister of Agriculture, Fisheries and Food what assessment he has made of the potential impact on food surpluses of changes in the system of management of the common agricultural policy.
§ Mr. GummerI refer the hon. Member to the reply given by my right hon. Friend the Minister to my hon. Friend the Member for Scarborough (Sir M. Shaw) earlier today.
§ Mr. Teddy Taylorasked the Minister of Agriculture, Fisheries and Food what assessment he has made of the reduced or additional costs which have accrued to the common agricultural policy in consequence of movements in the dollar exchange rate with the ecu since the date on which the strict budgetary controls were approved; and if he will make a statement.
§ Mr. JoplingThe 1985 Community budget was drawn up on the basis of an exchange rate of $1 = 1.30 ecu. The actual average rate for the year was slightly higher at about $1= 1.33 ecu, and this is estimated to have saved the budget some 200 mecu. The rate assumed in the 1986 budget was $1 = 1.20 ecu, but the Commission has recently proposed a supplementary budget based on $1—10 ecu. It estimates that such a fall in the value of the dollar would increase expenditure by some 900 mecu over the year as a whole. The average rate in May 1986 was about $1 = 1.04 ecu.