01 May 1998
Green Pound revaluation cuts subsidies for UK farmers
By FWi staff
A FURTHER revaluation of the “Green Pound” was set this week, cutting the Sterling value of European Union agricultural payments by 2.6%.
The revaluation has lead to renewed calls from the National Farmers Union and the National Farmers Union of Scotland for Westminster to apply for European Union monetary compensation.
This is the sixth revaluation since 1996 amounting to a total revaluation of 18.7% in two years. The value of the Ecu changes from 69.57p to 67.74p from Sunday.
The Green Pound is the exchange rate at which European Union agricultural payments are translated from Ecu into Sterling.
NFU president, Ben Gill, said Sterling has appreciated by 27.3% against the German Mark since July 1996. The union argues that UK farmers are entitled to almost £1 billion in EU monetary compensation.
However, the Government has repeatedly told farmers that it cannot afford to apply for the money because under the terms agreed by the previous administration UK taxpayers would be expected to fund 71% of the package.