HC Deb 23 February 1988 vol 128 c143W
Mr. Boswell

To ask the Minister of Agriculture, Fisheries and Food what is the impact of 1 per cent. change at the margin in the average rate of the green pound on(a) United Kingdom net Exchequer cost, (b) farm incomes and (c) the retail prices index.

Mr. MacGregor

The impact of a green pound devaluation designed to reduce United Kingdom monetary gaps and, where relevant, MCAs in all commodity sectors by one percentage point would depend on a number of factors, including the effects of recent changes in support arrangements. However, once all the effects had fed through a broad estimate is that it could, in a full year(a) increase United Kingdom expenditure by around £13 million (provisional); (b) add approximately £45 million to producer revenues, after taking account of increased prices of purchased feed and seed; (c) add of the order of 0.02 per cent. to the RPI.