asked the Minister for Agriculture and Fisheries the extent to which the effects of the most recent devaluation of the green £ will be dissipated by the fall in the value of sterling.
Ceisteanna—Questions. Oral Answers. - Green £ Devaluation.
3.
The advantages arising from the change in the representative rate for the Irish £ secured by me at the recent meeting of the Council of Ministers continue and are not affected by the fall in the value of the £.
As the Deputy is aware, the relationship between the representative rate and the market rate for the £ in any week determines the level of the monetary export charge. Consequently, the recent fall in the market rate for the £ results in a higher monetary charge on our exports to non-UK destinations, thereby negativing the benefit which would otherwise arise from the floating downwards of the £. The net monetary position in regard to exports to the UK is not affected.
Does the position of sterling not affect the position outside the United Kingdom?
No, it does not. It means that by getting that 2 per cent we reduce the charge by 2 per cent. Whatever the charge increases to we get the benefit of that 2 per cent so we do not lose the benefit of it.