HC Deb 24 February 1983 vol 37 cc1043-4
8. Mr. Richard Wainwright

asked the Chancellor of the Exchequer what proportion of the total European Community revenue from member countries' value added tax is derived from value added tax revenue of the United Kingdom.

Mr. Ridley

The United Kingdom's share of total Community revenue from VAT own resources is estimated at 20.72 per cent. in the 1983 Community budget.

Mr. Wainwright

Is the Minister aware that Italy, which has a gross domestic product similar to that of the United Kingdom, contributed only 14.9 per cent. from VAT resources to the European Community, which compares badly with the figure that the Minister has given? What action will the Treasury take to remedy this and other persistent disparities that damage our economy?

Mr. Ridley

I cannot confirm that figure for Italy, but I shall check it. Our share of Community revenue is 22.46 per cent. and the proportion that comes from VAT own resources is only 20.72 per cent. The main iniquity in our total contribution lies in our excessive contribution to agricultural import levies.

Mr. Marlow

Does my right hon. Friend agree that the Treasury's expenditure of public money is rather more prudent than that of the European Commission? Therefore, will he make strenuous efforts to ensure that there is no increase whatever in own resources to Europe?

Mr. Ridley

I am grateful for the great compliment that my hon. Friend paid to the Treasury. Such compliments are hard to come by. I confirm that what he said is the Government's policy in relation to increasing own resources.