§ Mr. GillTo ask the Minister of Agriculture, Fisheries and Food what is the estimated cost of eliminating the green currency gaps; and what would be the resultant cash effect upon United Kingdom agriculture.
§ Mr. CurryThe Government are committed to eliminating the monetary gap associated with the green240W pound by the end of 1992 at the latest. The effect of a complete devaluation of the green pound will depend on movements in the market rate of sterling over this period. It is estimated that a devaluation to eliminate the present monetary gap would add about £290 million in a full year to public expenditure in the United Kingdom. This expenditure would be mainly financed from the EC budget to which the United Kingdom, of course, contributes. Such a devaluation would increase farmers' incomes by over £700 million in a full year and add around 1.25 per cent. to retail food prices on average.