asked the Minister for Agriculture (a) the cost to the Exchequer of butter and milk subsidies in 1985; (b) the contribution from the EC towards these subsidies; (c) the value of these subsidies to the consumer; and if he will compare these answers to the situation that would have obtained had no decision been taken to reduce food subsidies last July.
Written Answers. - Food Subsidies.
294.
(a) The estimated cost to the Exchequer of butter and milk subsidies in 1985 is £31.5 million.
(b) The estimated contribution from the EC towards these subsidies in 1985 is £6.2 million.
(c) The value of the combined Exchequer/EC subsidies to the consumer is the sum of the figures at (a) and (b) above, i.e. £37.7 million.
Had no decision been taken during August 1984 to reduce its contribution towards the cost of subsidising butter and milk, the estimated cost to the Exchequer of such subsidies this year would have been about £57.3 million. The Government's decision in regard to the level of Exchequer funding of subsidies for butter and milk, had no financial consequences as far as EC contributions towards these subsidies are concerned.