HC Deb 26 June 1980 vol 987 cc736-8
16. Mr. Marlow

asked the Chancellor of the Exchequer whether he will make a statement on the payment of the United Kingdom contribution to the Common Market.

Sir Geoffrey Howe

I have nothing to add to the statement which my right hon. Friend the Lord Privy Seal made to the House on 2 June.

Mr. Marlow

Can my right hon. and learned Friend help me? I have been trying with his Department and others to discover, over and above our net budget contribution, the net cost to the United Kingdom consumer of having to buy food at common agricultural policy prices rather than world prices, and the net benefit to other countries in Europe such as France? Not only myself but many other hon. Members and people in the country would like to the answer to that question.

Sir G. Howe

If my hon. Friend will table a question on that subject or write to me about it I shall be glad to answer him, but not when he tables a question about payment of the United Kingdom contribution.

Mr. Healey

Is the Chancellor aware that the Financial Secretary told the House last week that the Government have not the slightest idea by how much the public sector borrowing requirement will be reduced this year as a result of the agreement in Brussels? Will he confirm the general estimate that the PSBR will fall this year by under one-third the amount by which he claims the European countries will reduce our net budgetry contribution? Does this not reveal as even more fatuous the suggestion by the Prime Minister the other day that interest rates would fall faster this year as a result of the agreement in Brussels?

Sir G. Howe

The right hon. Gentleman knows more about fatuity than most people, but he should surely acknowledge that a reduction in the PSBR is likely to be a significant factor affecting interest rates in a downward direction. My hon. Friend did not tell the House, as the right hon. Gentleman sought to suggest, that it was not possible to fore cast the reduction. He said that it was not possible to make a precise forecast. and nor is it, as, again, the right hon. Gentleman well knows. The PSBR in the current year, and in subsequent years, will be substantially lower as a result of the settlement achieved by my right hon. Friend the Prime Minister—achieved by this Government, and so manifestly not achieved by the last Government.

Mr. Healey

Will the Chancellor give us an imprecise estimate?

Sir G. Howe

The settlement, which the right hon. Gentleman should be generous enough to acknowledge as substantial and successful, will make a substantial reduction in the PSBR.