Vol. 424 No. 9
98 Mr. Yates asked the Minister for Agriculture and Food the changes, if any, it is proposed will take place to the green pound sterling after 1 January 1993 to ensure the maintenance of the value of Irish exports to the United Kingdom.
Under the proposed new arrangements for the agrimonetary system in 1993 the movement of sterling would be monitored on a monthly basis. When a monetary gap of more than 2.25 per cent opens up between the sterling green rate and the market rate, the green rate would be adjusted at regular intervals within the monitoring period to eliminate the excess gap. At the end of the month the green rate would be aligned to the market rate to reduce any remaining gap by half.
Adjusting the green pound would effectively alter the institutional price levels for agricultural products within the UK which should increase UK prices and so help to offset negative effects of fluctuations in sterling. The agri-monetary proposals are still under discussion in the Council of Ministers. I have sought adjustments to provide greater security of our agriculture and food sector. It is too early to predict the precise outcome of the negotiations.
