§ Mr. ChapmanTo ask the Chancellor of the Exchequer if, following the adoption of the supplementary and amending budget for 1988, the European Commission has asked member states to make available their contributions under the 1988 intergovernmental agreement; and if he will make a statement.
§ Mr. BrookeThe Commission has requested that member states in a position to do so should make available on 1 August eight-twelfths of their agreed contributions under the 1988 intergovernmental agreement (IGA). In the United Kingdom's case, this would amount to 619 mecu (some £410 million). The Commission recognises that member states may have to defer payment until their domestic legislative procedures are complete. In this event, the Commission will continue to require overdraft facilities under article 12(2) of regulation 2891/77. The Government intend to provide such facilities to the Commission during August and will keep their position on the timing of IGA payments under review.
The outstanding amount of the overdraft for the United Kindom by the end of August is expected to be around £118 million. Repayment of any drawing under this facility will be made by deduction from future own resources payments. The article 12(2) facility does not affect the total amount which the Community is authorised to spend during the year. The Commission's request does not, therefore, involve any net addition to public expenditure.