HC Deb 11 February 1985 vol 73 cc53-4W
Mr. Deakins

asked the Chancellor of the Exchequer what have been the annual increases in total EC expenditure since 1970; and what have been the annual increases in own resources since the system was first introduced.

Mr. Ian Stewart

Information prior to 1973 is not readily available. The remainder of the information requested is set out in the table.

The budget figure to which expenditure relates were established in Units of Account (u.a.) before 1978; from 1979 until 1980 they were established in European units of account (EUA). Since these two units were calculated on different bases they are not directly comparable, except in the case of the European development fund for which it was agreed that a conversion rate of 1.u.a. =1 EUA would be adopted. Community budgets from 1981 have been established in European currenty units (ECU), with the agreement that 1 ECU= 1 EUA for the years 1981 and 1982.

As from 1 January 1971 the system of own resources progressively replaced the former system of fixed percentage financial contributions by member states. From 1975 these financial contributions were calculated on the basis of the gross national product (GNP) shares of members states.

In 1979 own resources, for the first time included VAT. This was paid by member states other than the Federal Republic of Germany, Ireland and Luxembourg, which continued to pay GNP-based financial contributions. From 1980 the VAT system was applied by all then member states. Greece joined the Community in 1981 and, on a transitional basis, has paid financial contributions based on GNP.

Increase in total EC expenditure Increase in own resources
1974* 90.5 387.6
1975* 1,043.3 921.6
1976* 2,202.3 1,817.2
1977* 1,113.7 489.9
1978† 2,778.4 3,803.7
1979† 1,084.3 2,368.5
1980† 1,735.5 1,055.2
1981†‡ 2,251.5 2,596.4
1982†‡ 3,550.4 3,140.2
1983‡ 3,076.7 1,849.4
1984‡ 2,187.5 2,435.7
* Budget established in units of account (u.a.).
† Budget established in European units of account (EUA).
‡ Budget established in European currency units (ECU), for 1981 and 1982 1 EUA= 1 ECU.

Note:

The information given has been taken from the relevant European Court of Auditors' reports, except in the case of the increase between 1983 and 1984 where, for 1984, Supplementary and amending budget figures have been used.

Mr. Foulkes

asked the Chancellor of the Exchequer by what percentage total European Economic Community expenditure has increased in each year since 1970.

Mr. Ian Stewart

[pursuant to his reply, 1 February 1985, c. 336]: I regret that an error was made in the compilation of the table supplied with the original answer. The corrected version is as follows:

Information prior to 1973 is not readily available.

The remainder of the information requested is set out in the table. The budget, figures to which the percentages relate were established in Units of Account (u.a.) before 1978; from 1978 until 1980 they were established in European Units of Account (EUA). Since these two units were calculated on different bases they are not directly comparable, except in the case of the European development fund for which it was agreed that a conversion rate of 1u.a. = 1 EUA would be adopted. Community budgets from 1981 have been established in European currency units (ECU), with the agreement that 1 ECU = 1 EUA for the years 1981 and 1982.

Percentage increase over previous year of 1 per cent.
Per cent.
1974 2
1975 20
1976 35
1977 13
1978 29
1979 17
1980 12
1981 14
1982 19
1983 14
1984 9

Figures for 1985 are not yet available.

Source:

Figures derived from the reports of the European Court of Auditors' and, for 1984, the supplementary and amending budgets.