§ Mr. Deakins
asked the Minister of Agriculture, Fisheries and Food what is the relationship between the exchange rate for the £ sterling and monetary compensatory amounts.
§ Mr. Buchanan-Smith
Monetary compensatory amounts broadly represent the difference between the market exchange rate for sterling, in relation to the currencies fully participating in the European monetary system, and the representative rate for agricultural purposes, otherwise known as the green rate, which is fixed by the Council of Ministers. When the market rate is stronger than the green rate, MCAs are positive; when the market rates is weaker than the green rate, MCAs are negative.