§ Mr. Shoreasked the Chancellor of the Exchequer, what was the United Kingdom's gross contribution in £ sterling and in European currency units to the European Economic Community budget for each European Economic Community budget year, 1980 and 1981, what were the United Kingdom's receipts or current estimates of receipts for 1980 and 1981, and what therefore was the United Kingdom's net contribution in each year.
§ Sir Geoffrey Howe[pursuant to his reply, 23 July 1981, c. 192]: Estimates for the European Community budget for 1981, expressed both in European currency units and sterling, were published in table II of the statement on the 1981 Community budget (Cmnd. 8187) as follows: 504W
Million Ecus £ million United Kingdom gross contribution 3984.3 2507.5 United Kingdom total receipts 3076.6 1936.2 United Kingdom net contribution 907.7 571.3 No such precisely comparable estimates for the 1980 budget are available. Figures in £ sterling of United Kingdom payments to, and receipts from, the Community budget during 1980, i.e. the actual flow of payments and receipts irrespective of the year of the budget from which they derive, were included in the answer given to the hon. Member for Newham, North-West (Mr. Lewis) on 16 February 1981—[Vol. 999, c. 45]. It would not be realistic to try to convert these figures to European units of account as they are the actual payments and receipts in sterling and would need to be converted at the actual sterling-Eua rates ruling at the time of each payment-receipt. The figures for receipts in both 1980 and 1981 include refunds payable under the 30 May 1980 agreement. These refunds are, however, paid in arrears and are, therefore, not wholly shown against the year to which they relate.
§ Mr. Richard Shepherdasked the Chancellor of the Exchequer if, having regard to the fact that the Federal Republic of Germany's gross domestic product is twice that of the United Kingdom and that France's gross domestic product is 50 per cent higher, he will explain the reasons why Germany's value added tax contribution to the European Economic Community budget is only 23 per cent. larger than that of the United Kingdom and that of France is 9 per cent. greater.
§ Mr. Lawson[pursuant to his reply, 23 July 1981, c. 192]: The difference between the various gross domestic products is not as great as my hon. Friend suggests. The figures vary from year to year; at present exchange rates, German GDP exceeds that of the United Kingdom by about a half and France's GDP does so by about one-fifth. The VAT contributions to the Community's finances are derived from the member States' shares in the harmonised VAT base. This is closely related to consumer expenditure and the ratio of consumer expenditure to GDP is not the same in each member country, so that there is unlikely to be a close fit between GDP shares and VAT shares in any particular year. The VAT shares are also sharply affected by changes in the exchange rates used in the calculations. For example, in the 1981 draft amending budget just established by the budget Council, the German VAT base is estimated at 69 per cent. greater than that of the United Kingdom; whereas in the 1982 draft Budget it is estimated as only 24 per cent. greater. The corresponding percentages for the French VAT base were 33 per cent. greater and 9 per cent. greater respectively.