§ Mr. Boswell
To ask the Minister of Agriculture, Fisheries and Food what is the impact of 1 per cent. change at the margin in the average rate of the green pound on(a) United Kingdom net Exchequer cost, (b) farm incomes and (c) the retail prices index.
§ Mr. MacGregor
The impact of a green pound devaluation designed to reduce United Kingdom monetary gaps and, where relevant, MCAs in all commodity sectors by one percentage point would depend on a number of factors, including the effects of recent changes in support arrangements. However, once all the effects had fed through a broad estimate is that it could, in a full year(a) increase United Kingdom expenditure by around £13 million (provisional); (b) add approximately £45 million to producer revenues, after taking account of increased prices of purchased feed and seed; (c) add of the order of 0.02 per cent. to the RPI.