§ Mr. Austin Mitchellasked the Prime Minister whether the European Economic Community Budget proposals which the United Kingdom Government rejected included any provision for the arrangements now agreed for sheepmeat and 845W wine; and, if not, whether what has now been agreed for the United Kingdom contribution to the European Economic Community budget in 1980 and in 1981 will, all other things being equal, cost more than what she was offered at the earlier date.
§ The Prime MinisterThe European Community Commission did not give a detailed breakdown of its estimates of Community expenditure in 1980 and 1981 when earlier proposals on the budget issue were being discussed. In view of the margin of uncertainty over estimates of agricultural support spending, it is impossible to state categorically whether or not particular items were included.
The agreement last week on wine distillation will not however add to European Community budget expenditure in 1980 or 1981. Moreover, the agreement on sheepmeat now negotiated is an excellent bargain for the United Kingdom.
§ Mr. Austin Mitchellasked the Prime Minister whether any reduction will be made in the United Kingdom contribution to the European Economic Community budget in the current year; whether so far as the public sector borrowing requirement is concerned the United Kingdom will not benefit from the agreement reached with other European Economic Community countries in respect of payments in 1980 until 1981; and, if so, how the agreement is expected to operate in the event of the European Economic Community running out of money in 1981 under the own resources system under a 1 per cent. value added tax.
§ The Prime MinisterWe expect the bulk of the refund which is due in respect of 1980 to be paid before the end of the United Kingdom's 1980–81 financial year. The public sector borrowing requirement will benefit accordingly.
The exhaustion of the Community's own resources, if and when it occurs, will be a Community problem, to which a Community solution will have to be found. But the Community is committed to financing our refund.
§ Mr. Austin Mitchellasked the Prime Minister what is the timetable for the review of the United Kingdom contribution to the European Economic Community 846W budget for 1982; and what there is in the terms agreed to prevent any Government delaying action on this until they have secured what they want on farm prices.
§ The Prime MinisterAs the conclusions of the Foreign Affairs Council of 29/30 May make clear, the review will take place in 1981. Member States have undertaken to do their best during the period of review to ensure that decisions on agricultural prices are taken expeditiously. No link has been established between the review and the timing of these decisions.