§ Q113. Sir David Priceasked the Prime Minister whether she will initiate early measures at the Council of Ministers of the European Community to withdraw from the Commission the discretion given it to dispose of agricultural products to the Soviet Union at very low prices.
§ The Prime MinisterSo long as there are substantial surpluses of agricultural produce in the Community one of the most economic ways of disposing of them is by sales to third countries. These take place at prices which reflect the competition on world markets. It would increase the cost of disposal to limit sales to particular markets. In the medium term the best way to reduce the need for sales of78W agricultural surpluses is to reduce production. A more realistic prices policy under the CAP would reduce the incentive to over-produce, would encourage greater consumption within the Community and put the CAP onto a more stable financial foundation. This remains a central element of our approach to improving the operation of the CAP.