§ Sir Teddy TaylorTo ask the Minister of Agriculture, Fisheries and Food what percentage of farmers' income stems from price support, subsidy and other forms of state intervention; what was the relative percentage in 1979; and if comparable figures are available for the EC as a whole.
§ Mr. CurryEstimates of the cost of support depend critically on the assumptions used. The Organisation for Economic Co-operation and Development (OECD) has, however, estimated the transfers from consumers and taxpayers resulting from agricultural policies in the European community—separate figures for the United Kingdom are not available. These indicate that, for the period 1979–81, the transfer represented 88 per cent. of gross value added by agriculture. The estimate for 1990, the latest period available, is 94 per cent. The estimate for the earlier period is not directly comparable because it excludes Spain, Portugal and the former German Democratic Republic.
As the OECD makes clear, these estimates do not take into account the impact on world prices, and on other variables, if farm support were to be removed. They are likely, therefore, to overstate the true extent of support to the agricultural sector.