§ Mr. Andrew MitchellTo ask the Minister of Agriculture, Fisheries and Food if he will describe the net effects on supply estimates of the European Community decision on agricultural prices for 1991–92.
§ Mr. GummerThe net voted provision for class III vote 1 intervention board—executive agency (CAP market support) is £72.270 million. Gross provision is £1,895 million. It is estimated that changes to market conditions which had arisen after the supply estimate was published would have increased the net provision required to some £110 million and that the price settlement has reduced this requirement to nearly £81 million. Supplementary estimates will be presented as necessary to reflect changes in vote provision required, reflecting also any further changes in market conditions.
The effect of the price settlement arises mainly from reduced attractiveness of intervention for beef and dairy products, lowered rates of aid for oilseeds crushing and on protein plants and increased receipts because of the higher cereals co-responsibility levy. The devaluation of the green pound has increased sterling costs of CAP market support but has removed the MCAS on trade both within the community and with non-member states at current market exchange rates.