§ Mr. Marlowasked the Chancellor of the Exchequer how the risk-sharing mechanism with regard to the European Community budget refund operates; and what is likely to be the order of magnitude of the additional refund to the United Kingdom.
§ Mr. Ridley[pursuant to his reply, 3 February 1983, c. 173]: The United Kingdom's net refund from the 1982 222W budget was fixed at 850 million ecu—about £500 million—on the basis of the Commission's estimate of a net United Kingdom contribution to the Community budget of 1,530 million ecu. The risk-sharing arrangement will work as follows. If the actual net contribution is higher than 1,530 million ecu, but lower than 1,580 million ecu, the United Kingdom's net refund will be unchanged. If it is above 1,580 million ecu but lower than 1,730 million ecu, the net refund will be increased by 50 per cent. of the difference between the actual figure and 1,580 million ecu. If the United Kingdom's net contribution is higher than 1,730 million ecu, the net refund will be increased by 75 million ecu plus 75 per cent. of the difference between the actual figure and 1,730 million ecu. If the net contribution is lower than 1,530 million ecu, but higher than 1,480 million ecu, the net refund will be unchanged. If it is lower than 1,480 million ecu, the United Kingdom's net refund will be reduced by an amount equal to 75 per cent. of the difference between the actual figure and 1,480 million ecu.
The latest provisional estimate of 1982 budget outturns, which the Commission recently supplied to the European Parliament, point to a United Kingdom net contribution in the range of 1,972 million to 2,108 million ecu. On this basis, the United Kingdom would be entitled to additional net refunds of some 250 million to 350 million ecu—some £150 million to £200 million.
§ Mr. Marlowasked the Chancellor of the Exchequer what particular indications he has received of the policy of the French Government towards a long-term solution to the problem of the United Kingdom budget deficit.
§ Mr. Ridley[pursuant to his reply, 3 February 1983, c. 173]: As I said in my answer on 21 January, I believe that the Governments of all member states would like to see a long-term solution. Individual Governments have not to my knowledge tabled concrete proposals as to the nature of the solution; but there is a broad consensus on the importance of developing Community policies.