HC Deb 26 June 1980 vol 987 cc314-5W
Mr. Deakins

asked the Chancellor of the Exchequer what information was contained in his written answer of 12 June to the hon. Member for Waltham Forest, on the effect on the United Kingdom balance of payments of the recent agreement on European Economic Community budget contributions, which was not available to the Government on 2 June when they agreed to accept the European Economic Community budget deal worked out by European Economic Community Foreign Ministers.

Mr. Lawson

None. The Government's decision to accept the agreement reached at the Foreign Affairs Council on 30 May took full account of its likely impact on the balance of payments.

Mr. Deakins

asked the Chancellor of the Exchequer if spending under special regulations for financing additional European Economic Comunity expenditure in the United Kingdom as part of the recent agreement on European Economic Community budget contributions will entail any extension of European Economic Community competence.

Mr. Lawson

No. The new regulation under article 235 of the Treaty of Rome will enable the Comunity to help finance the United Kingdom's own national expenditure programmes.

Mr. Deakins

asked the Chancellor of the Exchequer if it is the United Kingdom or the European Economic Community which will be responsible for ensuring that expenditure in the United Kingdom under spceial regulations resulting from the recent agreement on budget contributions takes place in the appropriate financial year.

Mr. Lawson

The argeement reached the Foreign Affairs Council on 29/30 May was at the outcome of negotiations in which the United Kingdom made it clear that it would expect to receive the bulk of the refund payable in respect of a particular calender year in its corresponding financial year. The draft regulations now under discussion allow for this. The responsibility for implementing the agreement reached on 29/30 May rests with the whole Comunity, of which the United Kingdom is a part.