This item was published during the term of a previous administration that ended in April 2007
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Intervention Board To Offer Euro Option For Market Support Payments
03/08/2000
UK traders will be offered the option of receiving Common Agricultural Policy market support payments in euro from this autumn, Ross Finnie announced today.
The Intervention Board (IBEA) will offer the deal to UK traders following EU Commission approval of the UK's scheme.
The Minister for Rural Affairs said:
"The Intervention Board will shortly be contacting traders who currently receive fully EU-funded market support payments such as intervention payments or export refunds to offer them the option of receiving these payments in euros. This follows consultation with the industry and EU approval of the UK 's scheme
"This should allow UK and Scottish food companies and agricultural commodity traders to compete on a more equal basis with their counterparts in the Eurozone.
" Along with my fellow agricultural Ministers I will be giving further thought to the possibility of extending this option to CAP direct payments made to farmers at a later date."
BACKGROUND
1. In November 1998, during negotiation of the new agrimoney scheme Lord Sewel and the other Agricultural Ministers announced that the Government intended to offer such an option from Autumn 2000.
2. As a result of the introduction of the single currency on 1 January 1999, the agrimonetary system used to convert CAP payments set in euro into national currency was reformed.
3. Under the new system, CAP payments in those Member States participating in the Single Currency are made in euro, whereas those in non-participating countries such as the UK continue to be made in national currency. However, the rules also allow the possibility of UK operators receiving CAP payments in euro, subject to the approval of any such scheme by the Commission.
4. Agricultural Ministers announced in November 1998 that the option of receiving CAP payments in euro should be made available for market support measures from Autumn 2000. (See Scottish Office News Release :2360/98 dated 13 November 1998 ) Today's announcement follows consultation with industry and Commission approval of the UK's scheme. The scheme requires traders to opt for payment in either euro or sterling for a one-year period, following a three-month period of notice. A list of relevant schemes is attached.
5. At first, the Intervention Board will ask traders to opt for export refunds only, or all EU-funded market support schemes, or none, in euro. We hope to make the scheme even more flexible in the future.
6. Ministers are still considering whether and when the option might be extended to CAP direct payments, such as livestock premia, made to farmers. Due to the technical difficulties involved, and the need to ensure that CAP payments to all claimants are safeguarded, it is unlikely that direct payments could be offered in euro for some time.
7. Media wishing a list of the market support measures denominated in euros, and which may be paid in euros should contact Iain Monk, Scottish Executive Press Office on 0131 244 2969.
8. To be made available at a later date, subject to accounting mechanisms
- Milk Supplementary levy
- Milk co-responsibility levy disbursements
- Sale of beef from intervention
- Sale of butter from intervention
- Sale of skimmed milk powder from intervention
- Sale of cereals from intervention
News Release: SE2174/2000
3 Aug 2000