Mr. Robert B. Hughes
asked the Chancellor of the Exchequer if he will make a statement about the European Commission's latest cash position and the implications for the United Kingdom.2W
§ Mr. Brooke
The European Commission estimated that its spending obligations in June would again exceed available revenues under the budget for 1987.
The Commission therefore requested member states to advance from July into June the payment of own resources other than VAT in accordance with article 10(2) of Council regulation 2891/77: a similar advance was made last month. The Government are satisfied that this request was within the vires of article 10(2) and accordingly made an advance payment on 19 June of £133 million from the Consolidated Fund under section 2(3) of the European Communities Act 1972. The payment of levies and duties on 20 July will be reduced by the amount of the advance.
The Commission has also informed us that it has had to overdraw its accounts with member states in June in accordance with article 12(2) of Council regulation 2891/77. The amount involved for the United Kingdom is expected to be of the order of £210 million. The Government are meeting this obligation from the Consolidated Fund in accordance with section 2(3) of the European Communities Act, 1972. Repayment of drawings made under this facility will be made by deduction from subsequent own resources payments.
Neither of these facilities involved increasing the total amounts which the Community is authorised to spend during 1987. There is therefore no net addition to public expenditure.