HC Deb 22 October 1984 vol 65 cc465-7W
Mr. Foulkes

asked the Chancellor of the Exchequer if he will list the weighted averages accorded to each currency within the European currency unit (a) before the drachma was included and (b) since the drachma was included.

Mr. Ian Stewart

The fixed nominal currency amounts and the relative weights of each currency in the ecu, directly before and after the inclusion of the drachma, are as follows:

in June 1983 to grant the United Kingdom compensation for its disproportionate contribution to the 1983 Community budget.

This is the last of the special measures ad hoc refund deals negotiated by the Government in respect of the Community budgets 1980–83 and brings the total refunds received to some £2,500 million (net), over £3 billion (gross). With effect from 1985 the United Kingdom's refunds will be paid automatically by abatement of our VAT contribution. This will avoid the difficulties with other member states and with the European Parliament over the implementation of the refunds which have occurred in the past.

The special measures regulations provide for Community contributions to United Kingdom public sector projects, measures or schemes in the fields of employment, transport infrastructure and energy strategy. They provide that Community support should be granted to projects etc. which meet Community policy objectives in these fields.

The special employment measures provide for Community contributions to schemes designed to provide additional employment opportunities for those most seriously affected by unemployment. The decisions provide for a contribution of £163 million to the Job Release Schemes operated by the Department of Employment and the Department of Economic Development for Northern Ireland.

The special transport infrastructure measures provide for Community support for road and rail projects and schemes designed to relieve bottlenecks on major routes and to facilitate the movement of people and goods within the Community. The decisions provide for a contribution of £273 million to schemes in England, Scotland and Wales.

The special energy strategy measures provide for the Community to support projects or measures designed to reduce dependence on imported oil; to ensure continuity of energy supplies by improvements in coal technology and more rational use of energy and to increase power generation capacity. The decisions provide for a contribution of £151 million to projects in England, Scotland and Wales.

Payment of £528 million is expected within the next few days. Payment of the balance will be made later in the year when the Commission has carried out spot checks to ensure that the measures have been carried out in accordance with the regulations.

The payments from the Community budget enable public expenditure programmes generally in the United Kingdom to be sustained at levels higher than the country could otherwise afford. Expenditure programmes throughout the country have benefited accordingly.

The table below shows the value of the decisions and the amounts expected shortly.

Programme Decision Payment
£ million £ million
Employment 163 146
Transport infrastructure 273 246
Energy strategy 151 136
TOTAL REFUND (GROSS) 587 528
TOTAL REFUND (NET) 440 396

Mr. Stern

asked the Chancellor of the Exchequer if he will make a statement about an advance of own resources payments to the European Communities in October.

Mr. Lawson

The Commission has, in accordance with article 10(2) of Council regulation 2891/77, invited member states to advance from 20 November to 22 October payments of own resources other than VAT in respect of agriculture, sugar and isoglucose levies and customs duties collected by the Government on their behalf in September. The Government are complying with this request, which is entirely separate from the draft supplementary budget currently before the European Parliament.

The advance will reduce the Commission's cash flow difficulties and enable the Commission to pay the bulk of the refund due to the United Kingdom in respect of its contribution to the 1983 budget and make other payments from the budget to United Kingdom recipients.

Pending parliamentary approval of a winter supplementary Estimate, payment of £150 million will be made by a repayable advance from the Contingencies Fund. The payment of levies and duties on 20 November 1984 which is made directly from the Consolidated Fund under section 2(3) of the European Communities Act 1972 will be reduced by the amount of the advance. There will therefore be no net addition to public expenditure.

Any further requests for advances will be considered in the light of the then prevailing circumstances.