§ Mr. ColvinTo ask the Minister of Agriculture, Fisheries and Food by how much co-responsibility levies will increase when the Green pound is devalued as a result of the 1989 price negotiation.
§ Mr. MacGregorAt the 1989 price fixing, agreement was reached on significant reductions in the levels of milk co-responsibility levy, including its removal in less-favoured areas. It was agreed that this was the first step towards total elimination of the levy, for which the United Kingdom has consistently argued. These changes, together with the 3.2 point green pound devaluation, mean that the rates of levy paid by producers in 1988–89 and that to be paid in 1989–90 compare as follows:
1988–89 £ per tonne 1989–90 £ per tonne (i) Producers in LFAs: First 60,000 kg 2.861 Nil Remainder 3.814 Nil (ii) Producers elsewhere: Producers of up to 60,000 kg 3.814 1.968 Producers of more than 60,000 kg 3.814 2.951 The cereals co-responsibility levy has two elements. First, there is a fixed basic levy of 3 per cent. of the 116W intervention price. Secondly, there is an additional levy which, at the beginning of the marketing year, is set at 3 per cent. of the intervention price and is subsequently adjusted under the stabiliser arrangements if the EC cereals harvest exceeds the maximum guaranteed quantity of 160 million tonnes by less than 3 per cent. The total levy—basic plus additonal—deducted from first sales of cereals at the beginning of the 1988 marketing year was £7.;06 per tonne. This was subsequently adjusted to £5.57, which was the rate applicable at the time of this year's price fixing. Following the 3.9 point green pound devaluation agreed at this year's price fixing, and taking account of the operation of the cereals stabiliser mechanism on the intervention price, the rate of levy to be deducted from the start of the 1989–90 marketing year, 1 July 1989, will be £7.32 per tonne. Any adjustment which may need to be made will depend upon the size of the 1989 EC cereals harvest.