Written question asked by Austin Mitchell (Labour) on Thursday, 13 January 2000, in the House of Commons. It was due for an answer on Thursday, 3 February 2000. It was answered by Baroness Quin (Labour) on Thursday, 3 February 2000 on behalf of the Ministry of Agriculture, Fisheries and Food.

Ministry of Agriculture Fisheries and Food

Question: To ask the Minister of Agriculture, Fisheries and Food, how long the intervention milk price equivalent has been set in euros rather than ecu; what assessment he has made of the effect of the decline of the euro against the pound on UK milk support prices for each 1 per cent. fall in the euro; and if he will estimate the differential in UK milk prices if the IMPE had continued to be set in ecu.

Answer: Mr. Mitchell: To ask the Minister of Agriculture, Fisheries and Food how long the intervention milk price equivalent has been set in euros rather than ecu; what assessment he has made of the effect of the decline of the euro against the pound on UK milk support prices for each 1 per cent. fall in the euro; and if he will estimate the differential in UK milk prices if the IMPE had continued to be set in ecu. [105479] Ms Quin: The Intervention Milk Price Equivalent (IMPE) is a derived value for the price of the milk which goes into the manufacture of intervention products in the dairy sector. It has no formal basis either in the CAP regime or in UK law and is used only as a commercial negotiating mechanism between milk sellers and purchasers. The Government make no calculation, therefore, of its value. For each 1 per cent. decline in the euro against sterling, EU milk support prices in the UK also fall by 1 per cent.

Secondary information