andMr. Bruton asked the Minister for Agriculture the implications of the proposed European Monetary System for the common agricultural policy, with particular references to, (a) the calculation of monetary compensation amounts; (b) the Green Pound system; (c) Irish exports of commodities not covered by MCAs; and (d) the size of the Community budget for agriculture.
Written Answers. - European Monetary System.
504.
I would refer the Deputies to my statement in the House on 19 October in which I dealt at some length with the implications of EMS for the common agricultural policy in general and Irish agriculture in particular. In brief my conclusion was that, apart from the possibility of greater MCA stability and certain technical changes in the way in which MCAs are calculated, the new system would not involve any major changes for the common agricultural policy. I cannot be more specific at this stage about the possible changes in MCA calculations as the technicalities of the new monetary system have not yet been worked out in detail. If, however, we participate in a "Snake" type arrangement, the Irish MCA should be calculated on a basis similar to that used for the present snake currencies. The new system should not involve changes in the arrangements under which common prices are converted into national currencies by the use of green rates. Likewise, the level of Community expenditure on agriculture should not be affected except to the extent that greater monetary stability might in the longer term reduce total Community expenditure on MCAs.