§ Mr. Teddy Taylorasked the Lord Privy Seal, pursuant to his reply on 27 October 1980, Official Report, c. 96–98, about the United Kingdom's budget contribution to the European Economic Community, whether the 30 May agreement specified when any refunds, due in the event of the gross contribution from the United Kingdom for 1980 exceeding the percentage share of Community gross domestic product, should actually be made; and if he will make a statement.
§ Sir Ian GilmourThe 30 May agreement specifies that the refunds made under the financial mechanism should be entered in the Community's 1981 budget. The financial mechanism set up by Council regulation No. 1172/76 says in article 7 that at the request of the member State concerned, an advance equal to 75 per cent. of the provisional amount of the payment shall be paid at the beginning of the year following the year to which the payment applies. This article further provides that, after184W the revenue and expenditure account has been drawn up, and as soon as it has at its disposal the final data referred to in the regulation, the Commission shall calculate the final amount of the payment and determine such adjustments as may be necessary. Article 73 of the financial regulation of 31 December 1977 requires the Commission to draw up the revenue and expenditure account by 1 June.
In accordance with these arrangements, we received £210.5 million under the financial mechanism on 30 January 1981, and expect to receive the balance this autumn.