HC Deb 25 January 1984 vol 52 cc915-6
52. Mr. Andrew F. Bennett

asked the Secretary of State for Foreign and Commonwealth Affairs what specific political initiatives he proposes to ensure that the next summit meeting successfully agrees arrangements for the payment of the United Kingdom's budget rebate.

47. Mr. Willie Hamilton

asked the Secretary of State for Foreign and Commonwealth Affairs what progress has been made in expediting the payment of the £457 million rebate due to the United Kingdom from the European Economic Community.

Sir Geoffrey Howe

We are taking the necessary steps within the Council to ensure that there is no obstacle to the bulk of our 1983 refunds being paid by the end of March as in previous years. If it is to act responsibly, the European Parliament should lake the measures necessary to enable the Community to meet its obligations and thus strengthen the chances of success in the present negotiations, and not take discriminatory and unacceptable action against us.

Mr. Bennett

My original question asked whether there was anything new in the right hon. and learned Gentleman's initiative. If there is not, how does he expect it to work this time when it has failed in the past?

Sir Geoffrey Howe

Urgency, and indeed novelty, are added to the present negotiations by the growing perception that unless they are brought to a successful conclusion the Community in its present form will run out of money. There are many reasons, well perceived by the parties to the negotiations, why a successful conclusion should be reached, and the sooner the better.

Sir Anthony Meyer

Does my right hon. and learned Friend agree that, however great the provocation, and however tempting the short-term advantages of reacting to the failure to agree on the budget by withholding our contributions, the United Kingdom stands to gain more than any other member country from the strictest application of the rule of law within the Community?

Sir Geoffrey Howe

The United Kingdom wishes to see obligations upheld and observed throughout the Community. If the Community does not meet its obligations, we must take steps to safeguard our position.

Mr. Foulkes

Will the Foreign Secretary explain why the Government did not take the European Parliament to the Court over its veto on the rebate? Will he give an unequivocal assurance that, if the rebate is not paid by the end of March, the Government will take immediate action to withhold all or part of our contributions?

Sir Geoffrey Howe

It is our expectation that, as in previous years, we shall receive the bulk of the refund by the end of March. To achieve that we need regulations and transfer to the line of the moneys now in the reserve chapter of the budget. Steps are in hand to implement those procedures. The European Parliament can meet them by the end of March, and there is no reason why the money should not be paid then—

Mr. Foulkes

If not?

Sir Geoffrey Howe

If not, as I said in answer to a previous question, of course we must consider what action is necessary to safeguard our position.