HC Deb 02 July 1981 vol 7 cc998-9
10. Sir Anthony Meyer

asked the Chancellor of the Exchequer what has been the total of United Kingdom net contributions to the budget of the European Economic Community since United Kingdom accession, expressed as a percentage of public expenditure.

Mr. Lawson

A little over a half of 1 per cent.

Sir Anthony Meyer

Does not that figure, which represents rather less than one-eightieth of what we spend on social security, demonstrate the utter falsity of the picture so seduously fostered by the Labour Party and its accomplices in this matter in other parties that our contribution to the budget represents an intolerable and crushing burden on the British economy?

Mr. Lawson

I would rather put it another way. The small size of the—[Interruption.]—percentage is a reflection not of the small size—[Interruption.]

Mr. Speaker

Order. I ask hon. Members below the Gangway not to conduct private conversations during the answer.

Mr. Lawson

Thank you for your protection, Mr. Speaker.

The relatively small size of our net contribution to the EEC budget expressed as a percentage of public expenditure is not a reflection of the small size of our contribution but rather of the very large size of our total public expenditure.

Mr. Hooley

What is the rationale of giving almost as much aid to the nine richest countries of the world as we do to the 120 poorest?

Mr. Lawson

The hon. Member will be well aware that the Government have addressed themselves constructively and successfully to the problem, unlike the Government whom he supported. As a result of the 30 May agreement we have secured a substantial reduction in our net contribution. Indeed, as a result of the restructuring proposals put before the Community by the Commission following the mandate that it was given in that agreement, we intend that further progress should be made.

Mr. Dykes

Is it not a colossal cheek for the Opposition to moan about a fairly modest agreement when, unlike the Prime Minister, they did nothing to reduce it when they were in office? Is not the sum about one-fifteenth of the total that they expended on wasteful and useless nationalisation of industries such as steel?

Mr. Lawson

It is unfair to say that the Labour Government did nothing. To use my hon. Friend's word, they moaned.

Mr. Shore

Could not the Financial Secretary, to the benefit of the British people, better spend the £400 million, which, as a result of his unsuccessful negotiations, we are to pay to the EEC this year, and the £500 million that we are to pay next year?

Mr. Lawson

It is the greatest impertinence for the right hon. Gentleman to call the negotiations unsuccessful. They were highly successful. They substantially reduced the net United Kingdom contribution—something that totally eluded the Government of which he was a member.