§ Lord Hyltonasked Her Majesty's Government:
Whether, following the recent European Community price review, prices for the main farm commodities are now the same in Northern Ireland and the Irish Republic, and if not, what is the difference for each commodity, and to what extent this is due to:
- (a) exchange rates,
- (b) "green" currencies,
- (c) other factors, and if so which.
§ The Parliamentary Under-Secretary of State, Ministry of Agriculture, Fisheries and Food (Baroness Trumpington)The common support prices agreed by Ministers at the recent European Community price settlement are expressed in ecu and apply to all member states. Their value, expressed in national currencies, will depend on the level of the green exchange rates in force. The table shows the level of support prices which will apply, from the start of the 1989–90 marketing years, for at the price settlement and current market exchange rates. Differences between columns 2 and 3 of the table reflect, principally, the fact that Irish and United Kingdom monetary gaps (the gaps between green and market rates of exchange) are different for most commodities but also, to a small extent, reflect the fact that the punt and other currencies within the exchange rate mechanism of the EMS at present diverge from the central rates on which agricultural exchange rates are based. As CAP reform weakens intervention, market prices are less determined than in the past by the level of support prices and more by supply and demand in the market price.
Common support prices Sterling equivalent of Irish support prices (at market rale of exchange on 3rd May) UK support prices (converted at UK green rates) ecu/tonne (1) £UK/tonne (2) £UK/tonne (3) Feed grain intervention price 170.47 122.58 119.56 Beef guide price 2,050.20 1,503.75 1.496.30 Sheep guide price 3,674.70 2,642.41 2,569.86 Butter (82 per cent. fat) intervention price 3,008.00 2,163.00 2.125.84 Skimmed milk powder intervention price 1,740.40 1,251.49 1,229.99