European Commission (Own Resources Payments)

HC Deb 23 June 1983 vol 44 cc3-4W

Mr. Ralph Howell

asked the Chancellor of the Exchequer if he will make a statement about own resources payments to the European Commission in June.

Mr. Ridley

The Commission has, in accordance with article 10(2) of Council regulation 2891/77, requested that member states advance by one month the payments of "own resources", other than VAT resources, normally due on 20 June and 20 July. These are in respect of agricultural levies and customs duties collected in April and May respectively.

All other member states complied with the first request, but the dissolution of Parliament prevented the United Kingdom from doing so. The Government have assented to the request that the United Kingdom should, with its partners, meet the second request. In view of the urgency of the situation, a repayable advance of £112,830,000 was made to the Commission out of the Contingencies Fund on 20 June in respect of agricultural levies and customs duties collected by the Government on their behalf in May. Payments directly charged to the Consolidated Fund under section 2(3) of the European Communities Act will be reduced by the amount of the advance.

A supplementary estimate will be presented shortly to Parliament to enable the Contingencies Fund to be repaid.