§ Mr. William Hamiltonasked the Chancellor of the Exchequer what has been the estimated net contribution of the United Kingdom to the EEC in each of the last four years and for the current year; how this compares with that of other member States; and what plans are
£ million(*) 1976 1977 1978 1978§ (after full Article 131 refunds) Belgium/Luxembourg … … … +222.3 +247.4 +261.2 +252.6 Denmark … … … … … +235.5 +339.7 +411.9 +411.9 Germany … … … … … -630.8 -844.4 -230.3 -281.4 France … … … … … +63.5 -30.4 -22.1 -55.0 Ireland … … … … … … +120.8 +267.0 +352.2 +356.0 Italy … … … … … … +130.4 -43.4 -480.3 -499.5 Netherlands … … … … … +183.4 +187.0 +157.2 +146.4 United Kingdom … … … … -148.0 -408.0 -744.6 -625.8 TOTAL +177.1 -285.1 -294.8 -294.8 Direct payments in other countries … … +13.4 +10.9 +25.9 +25.9 Changes in Commission's balance with national treasuries (†) … … … -185.9 +212.0 +261.5 +261.5 Differences on exchange rates (‡) … … -4.6 +62.2 +7.4 +7.4 TOTAL 0 0 0 0 + net beneficiary; - net contributor. (*) Converted from European units of account (EUA) at the average exchange rate for the year in question. (†) The national treasuries maintain accounts in the name of the Commission; the balances on these accounts changed during the year. These balances do not earn interest and can be used by the Commission only to meet approved budgetary expenditure. (‡) These are accounting differences which arise because of the use of average exchange rates. (§) Article 131 of the Treaty of Accession limits the gross contributions of the new member States to the 1978 and 1979 budgets. In December 1977 the European Council discussed the interpretation of this article and agreed that all member States would initially pay full own resources, but that the new member States would receive refunds, quarterly in arrears, to reduce their gross contributions in line with an agreed formula. The figures shown include four quarterly refunds in respect of the 1978 budget, including one of £121.6 million paid in the first quarter of 1979 in respect of the last quarter of 1978; the refund figures do not appear in the Commission press release. No estimates of net budgetary transfers for each member State are available becoming the largest net contributors to the Community Budget in 1979, given in the "Government's Expenditure Plans 1979–80 to 1982–83"—Cmnd. 7439—was £780 million at 1978 survey prices.
As to the last part of the hon. Members question, I refer him to my right hon. and learned Friend the Member for Hitchin (Mr. Steward) about dicussion at the EEC Finance Council on 14 May. It is there made plain that the Government regard the present pattern of net contributions, under which two of the least prosperous members of the Community,
142Wbeing proposed to reduce their commitment.
§ Mr. LawsonThe net recorded budgetary transfers for each member State for 1976 to 1978 as published by the Commission are shown in the following table. There are no published figures for 1975.
the United Kingdom's and Italy, are becoming the largest net contributors to the Community budget, as unsustainable. At the Finance Council my right hon. and learned Friend therefore emphasised that the European Council would have to focus its attention on this problem at its next meeting and that the issue would have to be presented in such a way that the Heads of Government could apply solutions without delay.
§ Mr. Hefferasked the Chancellor of the Exchequer what proposal he has to reduce the amount paid by Great Britain into the EEC budget; how such proposals differ from those of the previous Government; and if he is satisfied that such actions will be interpreted by other 143W EEC countries as being in favour of the EEC.
§ Mr. LawsonMy right hon. and learned Friend the Chancellor of the Exchequer emphasised at the EEC Finance Council on 14 May that the present position of the United Kingdom as regards net contribution to the Community budget is unsustainable. However, unlike the previous Government, the present Government will be approaching this issue in a constructive rather than a destructive spirit, demonstrating their intention of engaging fully and actively with other member States in developing the Community.