§ Mr. Deakinsasked the Minister of Agriculture, Fisheries and Food what estimate he has made of the impact of recent currency revaluations in the European monetary system on the costs of the common agricultural policy and on the 1986 price proposals of the EEC Commission.
§ Mr. GummerThe realignment of the European monetary system on 6 April did not give rise to any changes to the agricultural conversion rates ("green rates") used in the CAP. Support prices to farmers have, as a result, been unaffected. The Commission services have suggested that the effect of the realignment will be to increase expenditure by 333 mecu in 1986 as a result of the changes in parities and effects on trade including the introduction of monetary compensatory amounts for France and the Irish Republic. The realignment provides increased scope for devaluations in green rates. Such devaluations would add to the cost of the CAP.