§ Mr. Spence
asked the Minister of Agriculture, Fisheries and Food what are the current figures of the amount of the subsidy or financial incentive, or both, given in each of the EEC countries to the beef production and marketing industry; to what extent he estimates they result in subsidised beef being exported to and marketed in the United Kingdom; and if he will make a statement.
§ Mr. Bishop
Under the EEC arrangements for intra-Community trade subsidies of two kinds are given on trade in beef between other member States and the United Kingdom. These are accession compensatory amounts (ACAs) designed to offset the different price levels in the original and new member States; and monetary compensatory amounts (MCAs) designed to offset the differences in prices due to currency fluctuations. The rates of subsidy vary according to country of origin and the presentation or cut of meat involved. In addition, MCAs may function either as subsidies or charges according to whether the currency of the member States concerned has appreciated or depreciated in relation to the representative exchange rate used for agricultural purposes.
The rates of subsidy on fresh or chilled carcase meat which apply in the week beginning 11th November 1974 are given below (all figures in pence per pound).
AC As (refunds on exports to the United Kingdom) West Germany 7.2 Netherlands 7.3 France 7.3 Denmark 7.4 Belgium / Luxembourg 7.4 Italy 7.2 No ACA applies in trade between the Republic of Ireland and the United Kingdom.
MCAs (i) refunds on exports to the United Kingdom West Germany 6.0 Belgium / Luxembourg 1.2 Netherlands 1.2 (ii) charges on exports to the United Kingdom France 3.0 Republic of Ireland 2.06 No MCAs are at present applied on exports from Denmark or Italy. (iii) refunds on imports into the United Kingdom from all Members States 3.06
These compensatory amounts are designed solely to ensure fair conditions of trade throughout the Community. So far as national aids are concerned, I have no evidence to suggest that aids granted by other member States are having any significant effect on imports of beef into the United Kingdom. National aids within the Community are governed by Articles 92–94 of the Treaty of Rome and member States have recently undertaken to supply full information about the aids to the Commission by 1st January 1975.