HC Deb 09 February 1987 vol 110 cc30-3W
Mr. Gould

asked the Chancellor of the Exchequer whether he will publish in the Official Report a table showing the rate of exchange between the pound sterling and the European currency unit used in each year since 1973 to calculate the United Kingdom contribution to the European Economic Community budget; how this compares with the market rate and the rate of exchange used for agricultural purposes; and what rates are being assumed for the purposes of the 1987 budget.

Mr. Brooke

Information concerning the average annual market rate of exchange between the European currency unit and the pound sterling for the years 1973 to 1987 is given in the table. I refer the hon. Member to the reply I have given today to the hon. Member for Great Grimsby (Mr. Mitchell) concerning the exchange rates used to calculate the United Kingdom contribution to the European Community budgets since 1973 and for the rates of exchange used for agricultural purposes.

Annual average (Market) exchange rates
(1 ECU = £)
1973 0.50232
1974 0.50980
1975 0.56003
1976 0.62158
1977 0.65370
1978 0.66391
1979 0.64639
1980 0.59849
1981 0.55311
1982 0.56045
1983 0.58701
1984 0.59063
1985 0.58879
1986 0.62127
1987 0.62738

Note: The annual market exchange rates up to and including 1985 have been taken from table 41 of the European Commission document "European Economy", vol. 29, July 1986. For 1986 and 1987 the rate is the European Economic Community budget exchange rate.

Mr. Austin Mitchell

asked the Chancellor of the Exchequer whether he will publish in the Official Report the rate of exchange between the pound sterling and the ecu used each year from 1973 to date for determining (i) the United Kingdom's contribution to the European Economic Community budget and (ii) intervention prices under the common agricultural policy; and if he will bring up to date the information on appropriations for the European Economic Community budget given in his written answer to the hon. Member for Great Grimsby (Mr. Mitchell) on 22 May 1986, Official Report, columns 307–8, together with the figures for 1986 and the forecast for 1987.

Mr. Brooke

The information is set out in the tables. The budget exchange rates for the period 1973 to 1976 inclusive are not readily available (table A).

Table A ECU/£ Sterling budget exchange rates
Conversion rates for:— (I ua/eua/ ecu(3) = £)
1977 0.416667
1978 0.651186
1979 0.629926
1980 0.675084
1981 0.629350
1982 0.523058
1983 0.558500
1984 0.617584
1985 0.571710
1986 0.621268
1987 0.627379

Source: Relevant preliminary draft budget documents (Vol. 7).

Notes:

  1. (1) Until 1979 the budget was established in units of account (u.a.). Between 1978 and 1980 it was established in European units of account (eua). Since 1981 it has been established in European currency units (ecu). For the period 1981 to 1983 the eua and the ecu had the same value.
  2. (2) The budget exchange rate is the rate used to convert member states' estimated VAT revenue for a particular budgetary year from national currency to an amount expressed in ecu. Member states' monthly VAT contributions during the budgetary year are then paid on the basis of one twelfth of the ecu amount; the amount of the monthly payment in national currency made by the member state being determined by the rate of exchange in force on the first working day after the 15th day of the previous month.
  3. (3) ua for 1977, eua for 1978 to 1981, ecu for 1982 to 1987.

Table B:

Exchange Rates relating to intervention prices under the Common Agricultural Policy (Green Rates).
United Kingdom 100 £ =
1 February 1973 (Date of entry to EEC) 216.440 ua
7 October 1974 200.530 ua
3 March 1975 196.178 ua
4 August 1975 186.369 ua

Table C Payment appropriations, European Economic Community Budgets
£ million
1984 1985 1986 1987
Guarantee expenditure
Payment appropriations in the main budget 9,745 11,749 13,737 14,405
Payment appropriations in any supplementary budgets 1,083 0 0 0
Payments actually made during the year 10,825 11,614 n.a. n.a.
Other expenditure
Payment appropriations in the main budget 5,234 4,992 8,115 8,336
Payment appropriations in any supplementary budgets 32 0 0 0
Payments actually made during the year 5,431 4,930 n.a. n.a.

United Kingdom 100£=
27 October 1975 175.560 ua
1 May 1977 170.463 ua
All commodities except milk. Rate applied to milk from April 1 1978
16 September 1977 173.013 ua
For milk sector only
2 February 1978 161.940 ua
Pigmeat and beef sectors only
22 May 1978 157.678 ua
For pigmeat May 17 1978
9 April 1979 181.094 ECU
Introduction of EMS. Green rate devalued to 149.794 ua immediately for dairy, beef, pigmeat, sugar and isoglucose. From start of marketing year for all other commodities. Green rate adapted by formula: 149.794 ua x 1.208953 = 181.094 ECU
1 July 1979 172.039 ECU
For isoglucose only on 1 July. Start of marketing year for eggs and poultry, wine, fishery products and other products (except pigmeat) where the 1979–80 marketing years had not started on 1 July. 2 July in all other cases, including pigmeat.
1 October 1979 160.148 ECU
17 December 1979 161.641 ECU
Start of 1980–81 marketing years for cereals, eggs and poultry. 1 January 1980 for fishery products, immediately for all other products.

1 ECU = (100£ =)
1 June 1980 0.635626 £
(161.6410) (ECU)
12 May 1986 0.635626 £
Livestock products except pigmeat. From start of marketing year for fish, eggs and poultry.
Crop products. From start of marketing year 0.654044 £
1 July 1986 0.654044 £
Pigmeat
5 January 1987 0.668197 £
Beef
5 January 1987 0.652575 £
Sheep Meat

source: C.A.P. Monitor (section 2–27), published by Agra Europe,(London) Ltd;

n.a.= not applicable.

Source: Court of Auditors Report and relevant budgets.

Notes:

  1. 1. The sterling figures up to and including those for 1985 have been derived using the annual average exchange rates set out at table 41 of the European commission document "European Economy", Vol. 29, July 1986. For 1986 and for 1987 the Community budget exchange rate of I ecu = £0.62127 and 1 ecu = £0.62738 have been used, respectively.
  2. 2. Spain and Portugal joined the Community on 1 January 1986.

Mr. Austin Mitchell

asked the Chancellor of the Exchequer whether he will bring up to date the information on value added tax and own resources given in his answer to the hon. Member for Dagenham (Mr. Gould) on 16 May 1985, Official Report, columns 191–92, together with an estimate for 1987.

VAT and other own resources (OR) as percentage of GDP
1980 1981 1982 1983 1984 1985 1986 1987
VAT OR VAT OR VAT OR VAT OR VAT OR VAT OR VAT OR VAT OR
Belgium 0.40 0.72 0.44 0.71 0.53 0.80 0.48 0.87 0.53 0.79 0.52 0.73 0.57 0.71 0.57 0.76
Denmark 0.40 0.33 0.37 0.32 0.40 0.31 0.44 0.33 0.45 0.35 0.48 0.34 0.52 0.35 0.53 0.33
Germany 0.42 0.37 0.46 0.37 0.50 0.35 0.55 0.33 0.58 0.36 0.61 0.35 0.64 0.34 0.61 0.34
Greece — — 0.46 0.31 0.50 0.48 0.55 0.41 0.55 0.32 0.63 0.29 1.17 0.45 0.76 0.35
Spain — — — — — — — — — — — — 0.79 0.41 0.64 0.51
France 0.39 0.24 0.44 0.24 0.52 0.24 0.53 0.25 0.55 0.26 0.57 0.24 0.64 0.24 0.62 0.23
Ireland 0.46 0.55 0.42 0.55 0.56 0.53 0.73 0.58 0.65 0.67 0.57 0.64 0.69 0.67 0.66 0.67
Italy 0.30 0.38 0.50 0.30 0.41 0.29 0.48 0.27 0.56 0.25 0.53 0.26 0.61 0.25 0.57 0.26
Luxembourg 0.46 0.13 0.66 0.14 0.73 0.13 1.03 0.12 1.12 0.14 0.97 0.13 1.01 0.09 0.98 0.11
Netherlands 0.38 0.66 0.39 0.62 0.46 0.58 0.48 0.57 0.50 0.61 0.54 0.62 0.59 0.63 0.59 0.63
Portugal — — — — — — — — — — — — 0.64 0.47 0.61 0.59
United Kingdom 0.34 0.49 0.42 0.43 0.57 0.47 0.56 0.44 0.56 0.48 0.68 0.42 0.71 0.45 0.73 0.43

Notes:

  1. (1) For value-added tax columns for the years 1980 to 1985 the calculation of the percentage of GDP used the amount contributed by member states, inclusive of the balances and adjustments of previous financial years. Figures for 1984 and 1985 include contributions to the intergovernmental agreements (IGAs) for those years. VAT figures for 1985 have also been amended to make them consistent with all other figures used for VAT.
  2. (2) Greece joined the Community on 1 January 1981 and for the years 1981 to 1985 paid, instead of VAT, a financial contribution based on GNP.
  3. (3) From 1979 to 1980 the European budget was established and implemented in European units of account (EUA). As from 1981, the budget was established and implemented in European currency units (ECU). For 1981, the value and composition of the ECU was the same as the EUA.
  4. (4) GDP base figures for all member states are drawn from Table 6 of the Statistical Annex to "European Economy" (No. 29, July 1986).
  5. (5) VAT and other own resources base figures for the years 1980 to 1985 have been taken from the Official Journal of the European Communities Court of Auditors Reports for 1984 and 1985. IGA contributions in 1984 and 1985 have been taken from Table 2 of the Statement on the 1986 Community Budget (Cmnd. 9907). Amendments to 1985 VAT are taken from the 1985 final adopted budget (p70) published on 5 August 1985. For 1986, own resources figures are drawn from the final adopted budget published on 4 August 1986. The figures for 1987 are the revenue estimates for that year.