HC Deb 21 October 1993 vol 230 cc461-2

Motion made, and Question proposed, That, for the purposes of any Act resulting from the European Economic Area Bill [Lords], it is expedient to authorise any increase attributable to the Act in the sums charged by any other Act upon the people.—[Mr. Robert G. Hughes.]

8.21 pm
Mr. Cryer

As I requested in my speech, will the Minister give an outline of the amount of money that is needed? He probably has a note in front of him for this occasion. As several hon. Members have referred to the financial effects of the Bill as set out in the explanatory and financial memorandum, it would help if the Minister were to explain the cost and financial effects of the Bill and the ways and means that will therefore be required in order to finance the Bill. I am not the only hon. Member to raise this matter. At least one Conservative Member did so too. As the Minister has no doubt been provided with the information, by courtesy of the civil servants, it would be helpful to be given it.

For example, during the debate the Minister said that, with regard to further financial support of the further financial expenditure on the income support regulations, it is a reciprocal relationship with the other EFTA countries—

Mr. Deputy Speaker

Order. The hon. Gentleman is usually more astute. We have dealt with the money resolution which affects income support. We are now on the next motion where matters of income support are not appropriate.

Mr. Cryer

The Ways and Means resolution provides for ways and means of meeting expenditure and the total ways and means should be outlined by the Minister. I should be grateful if he would do that. This question has been raised by several hon. Members, myself included. No doubt the Minister will refer to the first resolution by way of explanation in passing, as he is entitled to do.

8.23 pm
Mr. McLoughlin

The Ways and Means resolution is necessary due to the potential for taxation as a result of the effect of clause 2(1) on the existing Acts of Parliament. Clause 2(1) modifies United Kingdom legislation to ensure its consistent application to the whole of the Community and EFTA. It applies to legislation that relates to the subject matter of the EEA agreement. Where the operation of such legislation is limited by reference to the Communities, the reference will, in effect, be substituted by one to the European economic area. So the clause will affect the operation of certain existing Acts of Parliament. Where those Acts imposed taxation, requiring a Ways and Means resolution, the amendment to them by clause 2(1) clearly has a potential to increase taxation. It is for that reason that the House rules require a money resolution.

The financial memorandum to the Bill describes three specific areas where there is likely to be increased expenditure—£1.1 million per year in 1996–97 as a result of the application of the EC social security regulations to EFTA nationals; a small amount as the result of the application of the income support regulations 1987 to EFTA nationals; an increase in United Kingdom and other member states' fourth resource contributions to the EC budget as a result of the reduction of agricultural levies that contribute to the EC's own resources. Those all arise from directly applicable Community obligations.

Question put and agreed to.