§ Mr. Bruce-Gardyneasked the Chancellor of the Exchequer what progress has been made in securing United Kingdom budget refunds from the European Community.
§ Mr. LawsonThe Commission has today taken its first decisions on payments of budget refunds to the United Kingdom. The United Kingdom will receive £97.6 million in the form of advanced payments under the "supplementary measures" scheme before the end of December.
As announced by my right hon. Friend the Lord Privy Seal on 2 June—[Vol. 985, c. 1043–7]—and 27 October—[Vol. 991, c. 96–100]—the total amounts of the United Kingdom's refunds were agreed by the Council on 30 May. These refunds are to take the form of payments under the amended financial mechanism and the "supplementary measures" scheme, the regulations for which were formally adopted on 27 October.
The latest decisions in Brussels have two components. First, it is agreed that the Community should contribute the sums shown in the following table in respect of the current year's investment programmes by central Government and public corporation spending authorities in the North West and Wales. The percentage figures show the Community contribution as a proportion of total estimated expenditure in the current year on the programmes concerned.
Community contributions in respect of United Kingdom public expenditure programmes 1980–81 North West Wales £ million Per cent. £ million Per cent. Roads 15.9 30 24.6 30 Rail 12.0 30 6.0 30 Water and sewerage 15.6 30 9.3 30 Advance factories 0.8 20 14.2 20 Telecommunications 48.6 30 30.3 30 Total 92.9 84.4 Secondly, it is agreed that £97.6 million of the Community contributions now approved will be made available in the form of advance payments to the United Kingdom before the end of December. The bulk of the receipts estimated due to us under the scheme in respect of the 1980 budget will follow between the end of December and the beginning of March. The Commission is expected to decide in that period on the amounts of the Community contributions in respect of the investment programmes of central Government and public corporation spending authorities in other areas of the United Kingdom, in particular Scotland, Northern Ireland, the North, Yorkshire and Humberside and the South West.
The refunds from the Community, of which the advance payments announced today are the first instalment, are enabling public expenditure programmes generally in the United Kingdom to be sustained at levels higher than the country could otherwise have afforded. Expenditure programmes throughout the country are benefiting accordingly. The refunds do not, however, 280W open the way to increases in domestic expenditure programmes beyond the levels already planned. These planned levels were set out on the assumption that substantial refunds would be received from the Community budget.
Projects which form part of the programmes in Wales now attracting support from the Community budget include construction of the M4—Bridgend northern bypass— the A40—Raglan to Abergavenny—the A55—diversion east of Abergele—and the Queensferry sewerage works extension and Wye abstraction schemes. Community support will also be linked to the programme of rail investment in Wales, covering the reconstruction and improvement of track, signalling, depots and stations; the modernisation and extension of the telecommunications service in Wales; and the advance factory building programme, which is spread over both industrial and rural Wales with a concentration in the former to help alleviate the effects of the restructuring of the steel industry.
Projects which form part of the programmes in the North West region now attracting support from the Community budget include several motorway schemes which form part of the Manchester outer ring road, the top priority road in the region; the covering of reservoiurs and the provision of new treatment facilities at Prescot, Liverpool; and the Manchester—Davyhulme sludge digestion scheme. The Community is also supporting an extensive programme of investment to improve the rail network in the North West, which includes many projects for track reconstruction and modernisation of signalling; telecommunications investment in the region, including the provision of a number of new telephone exchanges; and the continuing advance factory building programme of the English Industrial Estates Corporation.
Summaries of the eight programmes put forward by the United Kingdom for Community support under the supplementary measures scheme have been placed in the Library.