HL Deb 31 May 1995 vol 564 cc74-5WA
Lord Pearson of Rannoch

asked Her Majesty's Government:

What action they propose to take at the Agriculture Council on 29 May when ministers consider the European Commission's current proposal to limit the cost of currency fluctuations under the agrimonetary provisions of the Common Agricultural Policy.

The Parliamentary Secretary, Ministry of Agriculture, Fisheries and Food (Earl Howe)

My right honourable friend the Minister of Agriculture, Fisheries and Food will strongly support the Commission's proposal to limit the cost of compensation to producers affected by revaluation of their green currencies. Adoption of this proposal would enable green rate revaluations to take place when they become due without giving rise to excessive expenditure on compensation.

Lord Pearson of Rannoch

asked Her Majesty's Government:

What has been the cost to United Kingdom industrial sugar users, such as the manufacturers of soft drinks, jam and biscuits, of the decision to defer the operation of EC Regulation 150/95.

Earl Howe

The decisions to extend the delay in revaluing the agricultural conversion rates (known as green rates) of member states with strengthening currencies have so far had no effect on the level of CAP support prices, including sugar prices, in the UK. The devaluations of the UK green rate which have occurred since mid-February 1995, raising UK support prices by 6.5 per cent., are partly due to the weakness of sterling over that period, and partly due to the provisions for delaying revaluations in strong currency member states that already exist in Regulation (EEC) 3813/92, as amended by Regulation (EEC) 150/95.