(Limerick West) asked the Minister for Agriculture the action he proposes to take concerning a devaluation of the Irish green £; and if he will make a statement on the matter.

The EMS realignment which took place on 6 April resulted in a monetary gap of 3 per cent for the Irish £ and the introduction of an Irish negative MCA of 1½ per cent with effect from 14 April. The negative MCA represents a charge on exports and a subsidy on imports and is designed to offset any imbalance arising from the currency realignment.

The Finance Ministers agreed, as part of the realignment, that changes in the compensatory amounts would not be sought before the end of the current agricultural price-fixing round. At that stage I will, of course, be seeking such a change in our case.

(Limerick West): Will the Minister ensure that the question of the green £ devaluation is not allowed to damage our position in regard to the other drastic Commission proposals now before the Council. In other words, the green £ should not be bartered.

I do not see how that could happen.

(Limerick West): Is the Minister saying then that the green £ devaluation will be a matter on its own.

At the end of the day that will be a matter for the Commission but I do not see how any realignment could effect our negotiations on the other proposals.

(Limerick West): Is the Minister fully aware of the position of Irish farmers who last year suffered a 15 per cent drop in income and who are now affected seriously by the very bad spring and the fodder shortage? Is this not all the more reason for the Minister to press for action now on the green £ devaluation and do so without there being any strings attached?

When the realignments were decided on, the Finance Ministers agreed that there would not be an advantage for any State until price negotiations were concluded. That is the state of play as of now and we do not anticipate there being any change.

(Limerick West): Has the Minister applied for this devaluation?

As I have stated, the matter will not arise until the price negotiations have concluded. That was the agreement when the realignment was decided on by the Finance Ministers.

(Limerick West): That was not my question. At the appropriate time will the Minister apply for this devaluation?

Of course. What else would I do?