§ Mr. Marlowasked the Prime Minister what is her estimate as to how the United Kingdom's net rebate of contribution to the European Economic Community 7W budget for each of the years 1985, 1986 and 1987 will compare with the outturn for each of the years 1980, 1981, 1982, 1983 and 1984.
§ The Prime MinisterIt was agreed at Fontainebleau that the United Kingdom should receive a flat rate rebate of 1,000 mecu in respect of 1984. Thereafter, the annual rebate will be set at 66 per cent. of the gap between our VAT share and our share of expenditure from the allocated Community budget. It is too early to give precise estimates of the effects of this arrangement, which will depend on the future level and composition of Community expenditure. But it is clear that the United Kingdom will be substantially better off than if there had been no agreement and the 1 per cent. VAT ceiling had been retained.
The following table shows the net refunds received or expected for the period 1980–84:
Net refunds Million ecu £ million 1980 1,175 645 1981 1,410 783 1982 1,082 624 1983 750 441 1984 1,000 590
§ Mr. Marlowasked the Prime Minister what processes within the European Economic Community are necessary before the United Kingdom rebates becomes irrevocable.
§ The Prime MinisterThe 1983 refunds will be paid after the European Parliament has approved the transfer of the appropriations out of the reserve chapter of the 1984 Community budget. The Commission has proposed the necessary transfers and the Parliament is expected to act on them within the next six weeks. The precise arrangements for paying the agreed 1984 refunds of 1,000 mecu net on the revenue side of the 1985 budget remain to be settled.
For future United Kingdom refunds, the arrangements agreed at the Fontainebleau European Council will be incorporated in a revised own resources decision which will have to be ratified by national parliaments. Once the decision has been ratified, the refunds will be implemented automatically each year on the revenue side of the Community budget by abatement of the United Kingdom's VAT payments.
§ Mr. Marlowasked the Prime Minister whether the United Kingdom budget rebate is dependent on agreement to an increase in European Economic Community own resources by every national legislature in the European Economic Community.
§ The Prime MinisterArrangements for the United Kingdom's budget rebate will form part of the decision to increase own resources. That decision is subject to ratification by all national Parliaments in the Community.