§ Mr. Teddy Taylorasked the Prime Minister if the decision of the European Council to restrict the rate of increase in agricultural spending to the rate of increase in the own resource base relates to the increase in the yield of the value added tax element only or to the increase in the three elements of own resources; and whether the rate of increase will take account of the increase in the rate of value added tax which the European Economic Community will receive subject to the approval of the various Parliaments.
§ The Prime MinisterThe Council of Finance Ministers is now working on the precise measures to150W guarantee the effective application of the principles agreed by the European Council on budget discipline, including the financial guideline to restrain expenditure on agricultural market support. In the Commission's proposals for the financial guideline the rate of growth in the own resources base is defined as relating to the three main elements of the Community's own resources—VAT, customs duties and agricultural levies—not to the VAT element alone. The proposal also states that in calculating the guideline due account will need to be taken of changes in the own resources base, for example, as a result of an increase in the VAT ceiling.