§ Mr. Gouldasked the Chancellor of the Exchequer what is the percentage increase in the prices of food, fuel and basic materials since the first quarter of 1974; and how this compares with the increase in hourly wage rates, weekly earnings and wholesale and retail prices.
§ Mr. Robert SheldonI assume that my hon. Friend has in mind the prices of food, fuel and materials purchased as inputs by manufacturing industry. Figures are not compiled in this precise form, but the following information is available:
review is at present at a very early stage and all member States therefore agreed that, in establishing the draft 1978 budget, the Council should not take any action which would prejudice the outcome of the review.
There was no general agreement within the Council on what level of provision should be included in the draft budget consistent with this overall view. Some member States, including the United Kingdom, considered that there should be substantial provision for the Fund in view of the need to reduce regional disparities within the Community. Other member States were opposed to making substantial provision at this stage since the arrangements for the operation of the Fund in 1978 have yet to be settled.
The Council acts on budgetary matters by qualified majority; a qualified majority 177W in favour is required for any provision to be included in the draft budget. In order to provide a qualified majority, the United Kingdom supported a proposal by the presidency for commitment appropriations of 399 meua—£260 million, approximately—and payment appropriations of 390 meua—£254 million, approximately—the equivalent of the amount provided for new actions in the 1977 budget. If the United Kingdom had not done so then, since there would not have been a qualified majority for any figure, the draft budget would have no provision for the Regional Development Fund in 1978.
This result is not satisfactory, but the alternative of no provision at all would have been even more unsatisfactory. Our representative at the Council made it clear that this was the only reason for our support of the presidency proposal. The decision taken by the Budget Council on 20th July does not, however, settle the matter. This Council was the start of the budget exercise, which will be completed when the European Parliament adopts the 1978 budget in December. The Council will be able to reconsider this matter later in the year, as will the European Parliament, which has the final say over the level of provision for the Fund.