§ 13. Mr. Teddy Taylorasked the Chancellor of the Exchequer if he is satisfied with the progress made in reforming the structure of the Common Market budget; and if he will make a statement.
§ Mr. Ian StewartThe Fontainebleau agreement represented a significant achievement and good progress has been made on the detailed provisions for implementation.
§ Mr. TaylorWhy does my hon. Friend think it necessary to increase the Common Market's public spending by over £3 billion a year in real terms? Does he appreciate that it makes it rather more difficult for Back Benchers to explain to their constituents why it is necessary to have real cuts in the provision for housing, student grants and foreign aid if we are to pour more money into the Common Market, which is spending over £100 million every week on dumping, storing or destroying surplus food?
§ Mr. StewartI do not expect our contribution to the European Community over the next few years, on average, to be greater than it has been in the recent past. The important factor for the United Kingdom in any agreement to increase the amount of resources available to the Community is that we shall have in place a system of abatement which keeps our contribution below 1 per cent. of VAT own resources, while the level of contribution of all other member states will be above that figure.
§ Mr. ForthDoes my hon. Friend agree that if we cannot obtain a satisfactory budgetary mechanism to control expenditure we shall be unable to agree to an increase in Community resources?
§ Mr. StewartThe Economic and Finance Ministers in council on Monday of this week agreed a common position on budgetary discipline which meets the British Government's objectives.