UK TRADE WARY OF HIGHER EC GRAIN LEVY
The European Community may decide to
increase the cereals co-responsibility levy and extend its
scope to cover cereal substitutes if the Commission's 1987/88
farm price package is opposed by member states, Edgar Pye,
vice-president of the British agricultural merchants'
association UKASTA, said.
    At the moment the Commission is proposing the rate of levy
remain unchanged at three pct - but Pye, addressing a feed
manufacturers' dinner in Glasgow, said this could change if its
controversial plans to cut cereal prices and introduce an oils
and fats tax are blocked
    Pye said UKASTA would continue to fight the cereals levy
"tooth and nail."
    However, a test case in the European Court of Justice
contesting the legality of the current regulation applying the
levy, which is being backed by the EC feed manufacturers'
organisation FEFAC, was not now expected to be heard until the
end of 1987, he said.
 Reuter
