§ Mr. D. E. Thomasasked the Secretary of State for Wales if he will outline the effects of the Council of Agriculture Ministers' decision on farm prices on Welsh farmers.
§ Mr. Nicholas EdwardsThe basis of the Council of Agriculture Ministers' agreement on farm support prices for 1986–87 involves a freeze in common support prices for those commodities of particular significance to Wales. However, as a result of the devaluing significance to Wales. However, as a result of the devaluing of the green pound our farmers will receive increases in support prices, in national currencies, of 2.75 per cent. in the livestock sector and 1.35 per cent. in the arable sector.
Although there is to be a further 3 per cent. cut in milk quotas to be achieved over the next three years, this is necessary to reduce the continuing milk surplus. The arrangements for achieving the reduction include a reasonable degree of flexibility for each member state according to its own circumstances.
For beef and sheep the existing support schemes continue essentially unchanged and we were successful in removing a number of unsatisfactory features in the proposals which would have discriminated against United Kingdom and Welsh producers.
The agreement will have a negligible effect on food prices and represents a further significant step towards improving the common agricultural policy while safeguarding the competitive position of our own farmers.