§ Mr. Patrick Jenkin
At noon today we received the Commission's formal proposals for a supplementary budget of 1008.66 mua consisting of 120.00 mua for the European Social Fund, 879.29 mua for the Guarantee Section of FEOGA and 9.37 mua for reimbursing member States for the cost of collecting own resources. If approved in full, this supplementary budget would involve an extra gross cost to the United Kingdom, after allowing for reimbursement of the United Kingdom's collection costs, of £33.2 million which will be further offset by additional receipts notably in respect of United Kingdom expenditure on butter subsidies and monetary compensatory amounts.
The Commission has been conducting an urgent examination of the possibility of savings to offset the extra expenditure needed to Finance FEOGA operations during the last three months of this year. I understand that the figure formally requested is 186 mua less than the figure which I am informed was proposed by Commission officials to the Commissioners several weeks ago. It is hoped that further small savings will be agreed as a result of a new exercise now in train.
The Council of Ministers will discuss the Commission's proposals during the course of today. My right hon. Friend the Chancellor of the Duchy of Lancaster will make a statement on the results of the Council's discussion tomorrow. The draft budget will subsequently be authorised by the Council by written agreement during the course of the next few days. It will then be submitted to 408W the European Parliament in accordance with the provisions of the treaties.
The matter must be discussed by the European Parliament at its session in September in order that the supplementary budget may be finally adopted in time to finance FEOGA operations in October.