HC Deb 19 May 1986 vol 98 cc88-9W
Mr. Gould

asked the Chancellor of the Exchequer if he will publish in theOfficial Reporta table showing (a) the forecast contribution to the European Economic Community budget this year, including supplementaries, as a percentage of the contribution in 1979 in terms of sterling, (b) the corresponding increase in expenditure by the United Kingdom Government and (c) the increase in the retail prices index.

Mr. Brooke

I shall let the hon. Member have a reply as soon as possible.

Mr. Gould

asked the Chancellor of the Exchequer if he will bring up to date the figure for gross receipts from, and gross payments to, the European Economic Community budget given in his reply of 7 July 1983; if he will provide an estimate for 1986, including forecast supplementaries, together with a forecast for next year; and how the figure for refunds is made up.

Mr. Booke

I shall let the hon. Member have a reply as soon as possible.

Mr. Austin Mitchell

asked the Chancellor of the Exchequer whether he will bring up to date the table published in theOfficial Reporton 3 April 1984, Official Report, columns 451–2, giving details of the United Kingdom contribution to the European Economic Community budget; and if he will add an estimate for this year and the forecast for next.

Mr. Brooke

I shall let the hon. Member have a reply as soon as possible.

Mr. Austin Mitchell

asked the Chancellor of the Exchequer whether the Government are satisfied with the results achieved in the EEC budgetary field as a result of the Fontainebleau agreement; what has been the increase in the share of the European Community budget spent on agriculture since 1983; what is forecast for this year and next; and if he will publish in the Official Report a table showing what the United Kingdom gross contribution to the European Economic Community budget is expected to be this year, before allowance is made for any rebates, the amount of the rebate, and the amount which is represented by the 0.4 per cent. addition to the United Kingdom's value added tax contribution.

Mr. Brooke

The Fontainebleau agreement has been working as expected. We have already received £605 million in respect of 1984, and are receiving our 1,400 mecu abatement for 1985 at the rate of £75 million a month. The Commission will propose to increase this by 500 mecu (£25 million a month) in the supplementary budget it is to introduce.

The percentage points increases in the share of the budget taken by agriculture, and the forecasts for 1986 and 1987, are as follows:

Actual share per cent. percentage points increase
1983 64.9
1984 66.6 +1.7
1985 70.2 +3.6
1986* 62.4 -7.8
1987 62.6 +0.2
* includes full amount proposed by Commission for supplementary budget

The other information requested is as follows:

mecu
Gross contribution (at uniform VAT rate) assuming Commission's proposed Supplementary budget is adopted 6,796
Total abatement (inc proposals in supplementary budget) 1,900
Yield of 0.4% VAT in 1986 1,324

Mr. Portillo

asked the Chancellor of the Exchequer if he will make a statement about the payment in May of non-value-added tax own resources to the European Communities.

Mr. Brooke

In accordance with article 10(2) of Council regulation 2891/77, the Commission has again invited member states to advance the payment of own resources other than VAT in respect of agricultural, sugar and isoglucose levies and customs duties collected by the Government on its behalf.

In accordance with this request, the Government propose to make an advance payment of some £131 million on 20 May. This will be financed initially by a repayable advance from the contingencies fund, pending parliamentary approval of a summer Supplementary Estimate. The payment of levies and duties on 20 June 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 forecast public expenditure for 1986–87.

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