§ Mr. Teddy Taylorasked the Chancellor of the Exchequer if he has received a copy of Commission document No. 7113/86 issued by the Vice President of the Commission concerning the adequacy of their own resources of the European Community within a 1.4 per cent. rate; and if he will make a statement.
§ Mr. BrookeYes. It was deposited under cover of an explanatory memorandum on 17 June 1986.
§ Mr. Teddy Taylorasked the Chancellor of the Exchequer what steps he intends to take to seek to ensure that the Commission of the Common Market restricts its spending to the legal limit imposed by the 1.4 per cent. value added tax rate; and if he will make a statement.
§ Mr. BrookeThe 1.4 per cent. VAT ceiling is enshrined within the Community's new own resources decisions, which have treaty status. The Community is bound to keep its spending within this ceiling unless and until member states agree unanimously to change it, with the consent of their Parliaments.
§ Mr. Teddy Taylorasked the Chancellor of the Exchequer if he will make it his policy not to accept liability for expenditure incurred by the European Economic Community Commission in excess of the legal limits of spending; and if he will make a statement.
§ Mr. BrookeI think it is highly unlikely that such an eventuality will arise. The Commission is subject to public audit by the Court of Auditors.
§ Mr. Teddy Taylorasked the Chancellor of the Exchequer if he will make it his policy to secure parliamentary approval before any supplementary or amending European Economic Community budget is implemented for 1986; and if he will make a statement.
§ Mr. BrookeThe Council and the European Parliament will be trying next week, in the light of the European Court's judgment this morning, to reach quick agreement on a new and valid budget for 1986. I regret, therefore, that there will be no opportunity for prior debate in the House. I have written to the hon. Member for Newham, South (Mr. Spearing) and my right hon. Friend the Member for Worthing (Mr. Higgins), about this.
§ Mr. Teddy Taylorasked the Chancellor of the Exchequer what are the authorised limits on European Economic Community spending in 1986; and what spending commitments for 1986 have been agreed by the European Economic Community Commission.
§ Mr. BrookeThe authorised limits on commitments and payments this year are subject to the outcome of the Council's case against the European Parliament's622W adoption of a disputed budget for 1986. We expect to receive the judgment of the European Court of Justice on 3 July.
No figures are available for the total commitments entered into by the Commission so far during 1986.