HC Deb 27 June 1984 vol 62 cc991-2
70. Mr. Litherland

asked the Secretary of State for Foreign and Commonwealth Affairs what concessions Her Majesty's Government have obtained on the rebate proposals tabled by the President of the Commission at the Brussels summit.

Sir Geoffrey Howe

Agreement has now been reached on a lasting, systematic settlement of the budget imbalances problem. The agreement retains the main elements of the text put forward in Brussels in March, but will give the United Kingdom a better deal than was offered at the Brussels summit.

Mr. Litherland

Although events have overtaken the tabling of the question, does the Foreign Secretary agree that, after all the Prime Minister's boasting about a just and lasting settlement, the Government have failed miserably on both counts? It is not just, because we shall still be paying vast sums; it is not lasting, because as soon as the money runs out the Community will be back for more. Is this not just a cut and run after the elections?

Sir Geoffrey Howe

It is no such thing. The settlement represents a good deal for Britain and the Community. The most important point is that it is a lasting system which can be changed only with the unanimous agreement of the member states. We were offered a far less satisfactory settlement at Brussels. We have now secured a settlement which is better than any previously available, and entirely right.

Mr. Lester

Will my right hon. and learned Friend confirm that the increase in own resources is a gradual requirement and a ceiling below which increased spending must be justified.

Sir Geoffrey Howe

That is right. That is why we also attach importance to the completion of the agreement required at Brussels for the establishment of firm and effective texts for the maintenance of budgetary discipline, and equally the agreement on a reduction in the share of the Community budget being devoted to agricultural expenditure.

Mr. John David Taylor

When the Foreign Secretary referred to the agreement as being a lasting one, and as it is connected to a 1.4 per cent. own resources limit, how long does he expect lasting to last?

Sir Geoffrey Howe

As long as it takes—[Interruption]—The right hon. Gentleman must be patient and wait for the rest of my answer, which is, as long as it takes to convince the Government of this country and the House of Commons that a case for change has been made out. A unanimous decision of the European Council and the agreement of the House of Commons are necessary before there can be any change in the 1.4 per cent. 'VAT ceiling that it is proposed to establish. There can be no change in the system now established unless that unanimous agreement is forthcoming.

71. Mr. Leighton

asked the Secretary of State for Foreign and Commonwealth Affairs what progress has been made in relation to the payment of the rebate due to the United Kingdom as agreed at Stuttgart.

Sir Geoffrey Howe

Heads of Government agreed that the refund due to the United Kingdom for 1983 should no longer be blocked. Foreign Ministers meeting after the European Council in Fontainebleau yesterday have already adopted the regulations. It now remains for the European Parliament to agree to the transfer.

Mr. Leighton

Is it not a disgrace that after the Prime Minister's noise and bluster she has ended with a whimper, and given away the British position? As there is no control over agricultural spending, and as the Prime Minister has agreed to an increase in own resources, is it not clear that we shall be paying ever more money to the Community in future?

Sir Geoffrey Howe

No. As the hon. Gentleman knows, and has been told more than once today, the text agreed at Brussels on budgetary discipline provides for agricultural expenditure to take a gradually declining proportion of the own resources that are available. Moreover, the agreement on own resources will be ratified only when the measures necessary to guarantee the effective application of those principles have been adopted. That is the work now before the Finance Ministers.

Mr. Cohen

On a point of order, Mr. Speaker—

Mr. Speaker

I shall take points of order after the statement.