asked the Minister for Agriculture and Fisheries whether he considers that the failure to secure a realistic devaluation of the Irish green £ means in effect that Irish producers are being deprived of the real price for their animals and that they are subsidising consumer prices, whereas consumers in Great Britain are subsidised to the tune of £1.50 million per day by the EEC itself.

The most recent adjustment in the Irish green £, which resulted in a reduction of ten percentage points in the Irish MCA, was the sixth such adjustment since October, 1974. The cumulative effect of these reductions has been to increase farm support prices in Ireland by 38 per cent and to reduce our MCAs by 50 per cent.

Despite the significant adjustments which we have obtained, the level of Irish MCA remains persistently high. For this, among other reasons, I am supporting recent Commission proposals to modify the MCA system by establishing limits on MCAs and automatic adjustment mechanisms. These proposals are along the lines of suggestions that I have repeatedly made in the council.

The existence of MCAs undoubtedly reduces the value of Irish agricultural exports. The MCA system has, however, on the other hand, helped to preserve the common price and intervention system in the face of huge currency fluctuations.

The MCA charges on Irish exports are, in common with the charges on exports from the other depreciated member states and the charges on import in the appreciated member states, paid into Community funds. The MCA subsidies payable on import in the depreciated member states—in-cluding Ireland—are paid from Community funds.

Does the Parliamentary Secretary not agree that the disproportion between the real value of Irish sterling at present and the green currency is in the region of 25 per cent? Does he not also agree that the Irish MCA at present is £7.61p per cwt? Does he not further agree that the export taxes on Irish exports of cattle to the Continent will be between £90 and £100 per beast, that this is direct taxation on the Irish producer; and that the failure of the Government to come to a realistic devaluation of the green currency in order to avoid a rise in the cost of living which could be compensated by food subsidies is keeping down the production of foodstuffs on which we depend? Will the Parliamentary Secretary say that there must be a total withdrawal of MCAs before there is any realistic effect?

I am aware that there is a variation in the MCAs——

Of 25 per cent.

Yes, 25 per cent at present, that is correct. As I mentioned, we are repeatedly making representations on this line. We are quite conversant with what is happening so far as the level of MCAs is concerned, and we are trying to have them reduced. So far as the green £ is concerned, we have had six adjustments since 1974——

None of them adequate.

——and we have supported proposals submitted recently by the Commissioner covering comprehensively this whole question of MCAs.

Covering comprehensively?

Yes, and the green £.

Does the Parliamentary Secretary not realise that the last devaluation of the green £ was used up within three weeks of its being granted?

That is possibly correct to some extent.

Completely.

We have advocated that the only way to keep the MCA system in reasonable check is to apply ceilings on MCAs and establish an automatic adjustment mechanism. That is what the Minister is trying to do, and it will be discussed at council level again.

Would the Minister not think that the complete elimination of the MCA system would be better?

Yes, but the Minister is only one of nine. When we are dealing with the Community we have to put forward our case, but there is also an obligation on us to listen to the views of others.

13.