HC Deb 25 March 1981 vol 1 cc329-31W
Sir William Clark

asked the Chancellor of the Exchequer what further progress has been made in securing United Kingdom budget refunds from the European Community.

Mr. Lawson

the Commission has today announced further decisions on payment of the United Kingdom's

Community contributions in respect of United Kingdom public expenditure programmes 1980–81
Northern Ireland Scotland North South-West Yorkshire and Humberside Total
£ million per cent £ million per cent £ million per cent £ million per cent £ million per cent £ million
Roads 16.9 40 23.1 30 9.0 30 5.1 30 54.1
Rail 0.8 40 17.4 30 11.1 30 1.8 30 13.5 30 44.6
Water and Sewerage 10.3 40 18.9 30 5.7 30 21.3 30 56.2
Advance Factories 2.5 20 6.1 20 8.6
Land reclamation 0.2 20 3.6 20 3.8
Telecommunications 19.6 40 36.5 30 18.9 30 7.8 30 38.7 30 121.5
Housing 18.0 20 18.0
Total 68.3 86.7 57.9 15.3 78.6 306.8

The supplementary measures regulation provides that a down payment of 90 per cent. of agreed contributions may be made before certification that the expenditure in question has been carried out. Pending certification, the total amount now payable in respect of the five programmes is therefore 90 per cent of £306.8 million, or £276.2 million. As announced previously, similar payments totalling £157.9 million were made on 31 December and 2 February in respect of programmes for Wales and North-West England. The remaining 10 per cent of the Community contributions in respect of all these programmes will be payable when the public authorities concerned have certified that the expenditure in question has been carried out.

The Community budget refunds 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 budget refunds. The United Kingdom is to receive in the next few days a further instalment of some £276.2 million under the "supplementary measures" scheme. This will bring our cumulative receipts under the 30 May budget refunds agreement to nearly £645 million, of which £434 million has been paid under the supplementary measures scheme and £211 million under the financial mechanism. These refunds represent 81.6 per cent. of our assumed gross entitlement for 1980 in the case of the supplementary measures scheme and 75 per cent. in the case of the financial mechanism.

The supplementary measures scheme provides for contributions buy the Community in respect of public sector investment programmes in the United Kingdom, principally in the regions. Decisions announced by the Commission in December provided for Community contributions of £177.3 million in respect of programmes in Wales and North-West England. The decisions announced today provides for the Community to contribute a total of £306.8 million in respect of the current year's investment programmes by central government and public corporation spending authorities in Northern Ireland, Scotland, the North of England, South West England and Yorkshire and Humberside. The accompanying table shows the breakdown between these regions. The percentage figures show the Community contribution as a proportion of total estimated expenditure in 1980–81 on the programmes concerned.

refunds do not, however, open the way to increases in domestic expenditure programmes beyond the levels already planned. These planned levels were set on the assumption that substantial refunds would be received from the community budget.

Projects which form part of the programmes in Northern Ireland now attracting support under the supplementary measures scheme include the construction of a new road linking the M1 and M2 in Belfast, the provision of a new bridge across the River Foyle at Londonderry and improvement of the Lagan Valley sewer. Also attracting Community support are a £90 million programme to provide new and improved housing, particularly in Belfast, Londonderry and Lisburn, and wide-ranging investment programmes on telecommunications, rail, advance factories and land reclamation.

Projects which form part of the programmes in Scotland now attracting support under the supplementary measures scheme include several improvements to the A9, in particular the construction of a by-pass at Pitlochry and a bridge at Kessock.

Also attracting Community support are the programmes of major improvements to signalling and passenger facilities of the inter-city rail network, which will also benefit the long-distance freight services; the advance factory programme undertaken by the Highlands and Islands Development Board, the land reclamation and advance factory programmes undertaken by the Scottish Development Agency, including the GEAR project to regenerate the east end of Glasgow; and the programme of telecommunications investment planned by British Telecom. The latter programme is designed to strengthen the links with the more remote areas of Scotland, especially those facing new developments as a result of North Sea oil, as well as improving facilities in the central belt and links between Scotland and the national and international networks.

Projects which form part of the programmes in the Northern region now attracting support under the supplementary measures scheme include improvements in the East-West links—A66 and A69—and the Al north of Newcastle. The main element of rail investment is the reconstruction of track on the inter-city routes in Northumberland and Durham. Also attracting Community support is a programme of improvements to the region's telecommunications network and water and sewerage facilities, including the Kielder reservoir and the Tees augmentation scheme.

Projects which form part of the programme in the South-West region now attracting support under the supplementary measures scheme include the St. Neots, Colliford impounding reservoir and the Cambourne-Redruth main drainage scheme. Also attracting Community support are investment programmes to improve the region's rail and telecommunications facilities.

Projects which form part of the programmes in Yorkshire and Humberside now attracting support under the supplementary measures scheme include the completion of the routes through Hull and improvements to the A180 route to Immingham and Grimsby. Improvements in the region's rail network include track reconstruction and signalling particularly in the Leeds and Doncaster areas. Also attracting Community support are investment programmes in telecommunications and water and sewerage, including improvements in the Yorkshire grid supply network and construction of the Don Valley intercepter sewer to improve facilities for industry in Sheffield.

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.