§ Mr. Austin MitchellTo ask the Minister of Agriculture, Fisheries and Food by how much common agricultural policy prices would rise in the event of the value of the deutschmark rising 5 per cent. within the ERM of the European monetary system against all EEC currencies; what would be the effect on the stabilisers; and how any increase in surpluses would be forced.
§ Mr. MacGregorArrangements agreed in 1987, but not yet activated by an EMS realignment, provide that green rates will be altered following any such realignment (which would take place in the circumstances the hon. Member cites) if the net effect of the realignment is to widen the gaps between green and market rates of exchange. The effect on common agricultural support prices expressed in national currencies would depend upon changes in the central rates of all EMS currencies, including those such as sterling, which are not in the ERM. It cannot be predicted in advance.
The stabiliser arrangements, which are not linked to agrimonetary considerations, will act to penalise production in excess of the thresholds set for the various commodities, and therefore help to constrain expenditure.