§ Mr. Higginsasked the Prime Minister whether it is her policy that any increase in the United Kingdom's contribution to European Economic Community own resources funds shall be offset by a corresponding or greater reduction in other forms of contributions so that the absolute British contribution is not increased.
§ The Prime MinisterThe United Kingdom has proposed that if the Community's revenues were to be raised by an increase in the VAT ceiling, there would also be a new arrangement to ensure a fair sharing of the budget burden. Any member state, in particular the United Kingdom, benefiting from the new arrangement would have its VAT contribution reduced. The details of this arrangement are under negotiation in the Community.
§ Mr. Richard Shepherdasked the Prime Minister how Her Majesty's Government, following the Brussels conference, now calculate the United Kingdom's net contribution to the EEC; and if she will indicate the amount involved and the reasons for the change.
§ The Prime MinisterDetails of, and figures arising from, the Government's method of calculating our net contribution to the EEC can be found in the public expenditure White Paper (Cmnd. 9143), programme 2.2.
§ Mr. Richard Shepherdasked the Prime Minister what the United Kingdom's minimum net contribution would be, on the basis of the proposals made by the Government to the other members of the EEC; and what estimates have been made for the current year and 1985.
§ The Prime MinisterWe have proposed that the United Kingdom's net contribution should be limited by reference to GDP and relative prosperity. On the basis of 1983 figures, I have said we could accept a system, which gave us relief of 1,250 mecu out of a net contribution of just over 1,900 mecu. The effects in subsequent years would depend on matters which are still to be negotiated, and on economic developments.