§ 88. Mr. Teddy Taylor
asked the Chancellor of the Exchequer whether the conditions laid down by Her Majesty's Government for justifying an increase in the resources of the Common Market have now been met; and if he will make a statement.
§ Mr. Ian Stewart
Yes. The conditions which the Government laid down for agreeing to an increase in EC resources were the establishment of an effective system of budgetary discipline and of a lasting solution to the problem of budgetary imbalances. The Council of Ministers agreed the arrangements for budgetary discipline last December. On 8 May, they formally agreed to the text of the new own resources decision, which provides for the mechanism agreed at Fointainebleau for reducing our contributions as well as for the increase in the Community's VAT ceiling. The decision will be brought before the House for approval in due course.