§ 53. Mr. Temple-Morrisasked the Minister of Agriculture, Fisheries and Food what assessment he has made of the implications for the United Kingdom's agriculture industry of the current level of exchange rate fluctuations; and if he will make a statement.
§ Mr. JoplingBecause fixed green rates are used to convert CAP prices from ecu into national currencies, agricultural producers benefit from CAP support prices which are not generally affected by exchange rate fluctuations. In order to ensure that the relative terms of trade in agricultural products are also not affected by exchange rate fluctuations, movements in the value of sterling (and other EC currencies) are reflected in changes in the monetary compensatory amounts (mca). In the United Kingdom, these are currently charged on exports and paid on imports and are recalculated weekly.