European Community Budget (Grain Prices)

HC Deb 24 July 1979 vol 971 cc175-7W

Mr. Hooley

asked the Chancellor of the Exchequer what would be the effect on the EEC budget income in 1980 in respect

Mr. Peter Rees

The information is given in the table below. There is no specific price index for converting Government revenue to a constant price basis. In order to give a rough indication of the changes in revenue in real terms the current price information has been revalued at the price level of 1975, using the implied deflator for gross domestic product at market prices.

Mr. Biffen

The information relating to current prices is shown in the table below. Figures for public expenditure on a constant price basis comparable with gross domestic, or national, product are not available. Estimates of public expenditure at 1978 survey prices for each year since 1973–74 are shown in "The Government's Expenditure Plans 1979–80 to 1982–83", Cmnd. 7439.

of agricultural levies, if world grain prices were to rise (a) 10 per cent., (b) 15 per cent., and (c) 25 per cent. above their current levels.

Mr. Lawson

It is estimated that Community budget revenue in 1980 in the form of agricultural levies would be reduced by 175 million European units of account (MEUA), 265 MEUA and 440 MEUA if world prices were to rise above their current levels by 10 per cent., 15 per cent. and 25 per cent. respectively. In order to maintain the balance between budget revenue and expenditure any such reductions would occasion the need for offsetting increases in member States' VAT contributions.