HC Deb 05 December 1984 vol 69 cc194-5W
Mr. Hind

asked the Chancellor of the Exchequer whether he will make a statement about the European Economic Community Budget Council on 29 November.

Mr. Ian Stewart

I represented the United Kingdom at this Council in Brussels.

The Council met a delegation from the European Parliament led by the President of the Parliament, M. Pflimlin, to exchange views on the Parliament's proposed amendments and modifications to the draft budget for 1985. Following this, the Council considered and voted on the Parliament's proposals.

The Council rejected the Parliament's major changes to the draft budget, which included proposals: to place the United Kingdom's 1,000 mecu compensation for 1984 on the expenditure side of the budget, rather than as an abatement of our contributions, in contravention of the agreement reached at Fontainebleau: to increase the agricultural provision by 1,300 mecu, thus taking the Budget beyond the 1 per cent. VAT ceiling; to make alterations relating to the revenue side of the budget.

With regard to additional agricultural expenditure, the Council agreed to make two memorandum entries, one on the revenue side and one on the expenditure side of the budget. That on the expenditure side included a figure of 1,315 mecu but the text makes it clear that it is not part of this budget, it does not therefore bear upon the 1 per cent. ceiling. The entry on the revenue side repeats the undertaking which the Council adopted in October to meet by 1 October 1985 the additiona budgetary requirements which will arise in 1985 including the obligations entered into vis-a-vis the United Kingdom as prescribed under the Fontainebleau agreement through a supplementary and amending budget, for which additionall funds will be provided.

The Council accepted a number of proposed amendments to non-obligatory expenditure. In particular, provision of 50 mecu was entered in the reserve chapter 100 for integrated mediterranean programmes and increases were agreed to several items of aid expenditure.

The Council agreed that, if necessary, it would hold a further meeting with the European Parliament in Strasbourg on 12 December.