HC Deb 23 June 1986 vol 100 cc51-2W
Mr. Teddy Taylor

asked the Chancellor of the Exchequer why the European Economic Commission requested a further advance payment of contributions from member states; if the request was put to a meeting of the Council of Ministers; and why Her Majesty's Government agreed to the advance payment.

Mr. Brooke

The Commission requested the latest advance payment because of cash flow difficulties. Under article 10(2) of Council Regulation 2891/77 the Commission may, without recourse to the Council of Ministers, invite members states to bring forward any payments of traditional own resources in order to meet short term cash flow difficulties. The Government are prepared to accede to such requests when they are justified by the Commission's cash flow position.

Mr. Teddy Taylor

asked the Chancellor of the Exchequer what rebates of abatements remain to be secured from the EEC by the United Kingdom in respect of the calendar year 1985 and previous years; and if he will make a statement.

Mr. Brooke

There are no rebates or abatements owing to us from years prior to 1985. Our abatement in respect of 1985 is being implemented in accordance with the arrangements agreed at Fontainebleau, with the result that our VAT contributions to the Community are some £75 million per month less than would otherwise be the case. The total provision for our abatement in the 1986 budget is 1,400 mecu (some £900 million). This amount will need to be corrected when outturn information on our 1985 VAT expenditure gap becomes available. The Commission has proposed that a correction of 500 mecu (£325 million) should be included in a supplementary and amending budget this year. A further correction might be required next year.

Mr. Teddy Taylor

asked the Chancellor of the Exchequer if it is the policy of Her Majesty's Government to make to the EEC any advance payments requested by the Commission; and if he will make a statement.

Mr. Brooke

The Government are prepared to accede to requests for advance payments only when we are satisfied that the Commission's cash flow position justifies such requests.

Mr. Teddy Taylor

asked the Chancellor of the Exchequer what is the latest estimate of the net contribution which the United Kingdom will be required to make to the EEC in respect of the calendar year 1986; and if he will make a statement.

Mr. Brooke

The Government's latest forecast of the United Kingdom's net contribution to the Community budget is that published in the Public Expenditure White Paper (Cmnd. 9702).