HC Deb 09 July 1984 vol 63 cc356-7W
Mr. Spearing

asked the Prime Minister if she will explain and define the term "excess levies and duties" as used by her in answers subsequent to her statement of 27 June.

The Prime Minister

Our "excess levies and duties" represents the difference between the levy and duty payments we actually make to the Community (in respect of the allocated budget) and what we would pay if our levy and duty share were the same as our VAT share. In 1983, the difference amounted to some 291 million ecu. The corrective mechanism agreed at Fontainebleau applies to the whole of our net contribution, excluding only the excess levies and duties.

Mr. Spearing

asked the Prime Minister if she will explain and define the terms "share of VAT payments", "share of expenditure allocation" and "in accordance with present criteria" as used in the Fontainebleau cornmuniqué; and if she will now publish in full the formula for future United Kingdom repayments.

The Prime Minister

The "share of VAT payments" refers to each member state's share of all payments made in respect of value-added-tax on GNP contributions in the year (except in respect of budget refunds). For the Fontainebleau corrective mechanism, our share of levies and duties is regarded as the same as our share of VAT payments. The effect of this is that the corrective mechanism takes account of all our contributions except for our excess levies and duties—id est the difference between what we actually pay and what we would have paid if our levy and duty share were the same as our VAT share.

The "share of expenditure allocated" refers to the Commission's calculation of shares expenditure out of the allocated budget for the year. The phrase in accordance with present criteria means that this allocation is to be carried out in the same way as it has been in the Commission's calculations of net contributions since 1979. The formula for future United Kingdom rebates is set out in the communiqué from the Fontainebleau European Council, a copy of which has been deposited in the House.