§ Mr. Marlowasked the Chancellor of the Exchequer how much of the United Kingdom European Economic Community refund will be for projects as opposed to cash for each of the years 1980 and 29W 1981; where projects are involved, to what extent they will be projects already decided; and where the projects have not been decided, what additional funds will be required from the United Kingdom budgetary sources to complete these projects.
§ Mr. LawsonThe settlement of the United Kingdom's budgetary problem provided for the reductions in the unadjusted net contribution to be effected by means of payments under an improved financial mechanism and, for the balance, through additional Community expenditure in the United Kingdom under an article 235 regulation. The balance between these two elements will depend on the size of both the reductions due under the agreed formulae and the refunds payable under the financial mechanism. For 1980, the Commission's estimates imply that the financial mechanism refund will make a net contribution of some 500 meua out of a total reduction of 1175 meua.
Community rules do not permit 100 per cent. Community financing of projects in the member States. Therefore, any project supported by the Community will also require part finance from national sources. The rate of Community support and other detailed arrangements under article 235 have yet to be agreed.
§ Mr. Deakinsasked the Chancellor of the Exchequer what will be the effect on the United Kingdom balance of payments in 1980, 1981 and 1982 of the recent agreement on the United Kingdom budget contributions to the EEC.
§ Mr. LawsonI shall let the hon. Member have a reply as soon as possible.
§ Mr. Deakinsasked the Chancellor of the Exchequer if any rebate on United Kingdom budget contributions for the EEC in respect of one year will be received before the start of agricultural price negotiations in the following year.
§ Mr. LawsonI would expect a significant part of our annual refund to be paid within such a timetable, under the arrangements negotiated on 29/30 May.
§ Mr. Marlowasked the Chancellor of the Exchequer when refunds will be available from the EEC; and, if delayed, 30W under what circumstances interest payments will be due.
§ Mr. Lawson[pursuant to his reply, 5 June 1980, c. 810]: As my right hon. Friend the Lord Privy Seal explained to the House on 2 June—[Vol. 985, c. 1043–57]—the settlement of the United Kingdom's budget problem provides for reductions in our net contributions in respect of 1980 and 1981 of £1,570 million or more, depending on the operation of the detailed formulae. The precise timing of these adjustments has yet to be determined. Community legislation does not provide for the payment of interest to member States when payments to them have been delayed.