HC Deb 05 March 1979 vol 963 cc548-9W
Mr. Grocott

asked the Chancellor of the Exchequer, in the light of the fact that the Isle of Man was able to decrease its contribution to United Kingdom defence and common services from £716,377 in 1977–78 to £400,000 in 1978–79, whether be will take steps to ensure that the Isle of Man pays its proper contribution in the future.

Mr. Joel Barnett

Under section 1(2) of the Isle of Man Contribution Act 1956, Tynwald may, in respect of any financial year, increase or decrease the annual contribution, after consultation between representatives of the respective Governments. The contribution is made voluntarily.

Mr. Grocott

asked the Chancellor of the Exchequer what would be the contribution which the Isle of Man would have to make to the defence and external affairs budgets of the United Kingdom if it contributed to them on the same basis per capita as the people of Lichfield and Tamworth.

Mr. Joel Barnett

The voluntary contribution made by the Isle of Man towards United Kingdom expenditure on defence and other common services under section 1 of the Isle of Man Contribution Act 1956 is expressed as a percentage of the Isle of Man's share of the duties and taxes collected by Her Majesty's Customs and Excise under the Common Purse Agreement. If, on the other hand, the contribution were to be calculated on the hypothetical basis suggested in the Question, the figure for 1977–78 would be about £7.8 million at 1978 survey prices.