HC Deb 09 February 1983 vol 36 cc995-7
65. Mr. Ioan Evans

asked the Secretary of State for Foreign and Commonwealth Affairs if he is able to make a further statement on the European Community budget problem.

66. Mr. Myles

asked the Secretary of State for Foreign and Commonwealth Affairs what further negotiations there have been to settle the British budget problem within the European Community.

Mr. Pym

The Council last week established the draft 1983 supplementary and amending budget, which makes provision for our 1982 refunds. The draft budget has been sent to the European Parliament, and I hope that the Parliament will now adopt it with the minimum of delay. Discussions are continuing in the Council with the aim of finding a solution for 1983 and later years. The Commission has just published a discussion paper on the future of the Community's financing system, which we are studying.

Mr. Evans

Is it true that we have to await the decision of the European consultative assembly tomorrow to know whether we are to get the refund of £500 million? Is it true that the assembly wants assurances that the money will be spent in pursuit of EC policies over which it can exercise greater control? Will the right hon. Gentleman resist that? Does the assembly want a guarantee that this will be the last annual makeshift rebate paid to the United Kingdom? Will he also resist that?

Mr. Pym

I believe that the House knows that the European Parliament has proposed no amendment to this draft budget. It seems likely that the Parliament will agree to it tomorrow, but it remains to be seen whether it does so. If so, that will be the end of the matter. In any case, we have the assurance of the Commission that the agreement reached in the Foreign Affairs Council last year will be honoured no matter what happens. We can, I am sure, count upon that.

As to later years, I have demonstrated clearly to the Council—Mr. Dankert and other members of the European Parliament were informed when we met a few weeks ago—that, in order to make an adjustment in 1983 and later, it will probably be necessary to have some kind of temporary arrangement. This is for the simple reason that the long-term restructuring of the financial system of the Community will take longer than a few months to achieve.

Mr. Brocklebank-Fowler

Do the Government take the view that the whole of the Community aid programme should be brought within the Community budget so that it can be scrutinised by the European Parliament?

Mr. Pym

I have not taken a decision or a view about that. It is under discussion.

Mr. Nicholas Winterton

Will my right hon. Friend accept that the budgetary problems of the European Community will get no easier, particularly with the accession recently of Greece and shortly of Portugal and then Spain? Is it not true that the budgetary problems will become more complex and that the initial members will have to pay out increasing amounts, to the detriment of our industries and of agriculture?

Mr. Pym

They may get more complex, but certainly they need not do so. That is the point of the proposals that we have put forward. It is the theme of the discussions that we shall pursue in consideration of the Green Paper. Our view is that enlargement of the Community does not necessarily mean an increase in resources or the need for such an increase. Too much goes on agriculture already. It is one of the points to be made for reform of the CAP.

This is obviously a matter that will be discussed over a period of months within the Community. Our view is that there is enough money at the moment. It has yet to be demonstrated to us that there is need for an increase.

Mr. Heffer

Does the right hon. Gentleman agree that it is absurd that the House should have to wait for a decision of the European Parliament to know the future of the budget negotiations in which the Government have been engaged with the rest of the Community? Is it not clear, as the Opposition have argued, that the increase in the assembly's powers to the detriment of the interests of the British people has been proved by this event? Will the Government make it clear, irrespective of any decisions of the so-called assembly, that they will do what is right in the interests of the British people?

Mr. Pym

We have already shown that the Government are a better defender of British interests than the Labour Government. The Labour party took part in the European elections in 1979, as did the Conservative party. There are members of the Labour party now in the European Parliament who have a role to play whether the hon. Gentleman likes it or not. They are entitled to use whatever powers they have. The fact that they are voting on this issue seems to me to be a matter for them. We have the undertaking from the Commission that the bargain that was struck and the deal that was done for the 1982 refunds will occur in all circumstances.