§ Mr. Forthasked the Chancellor of the Exchequer if he will make a statement about the European Commission's latest cash position and the implications for the United Kingdom.
§ Mr. BrookeThe European Commission estimates that its spending obligations this month will again exceed available revenues under the provisional twelfths system.
The Commission has therefore requested member states to advance from March into February the payment of our own resources other than VAT in accordance with Article 10(2) of Council Regulation 2891/77: a similar advance was made last month, which I announced to the House on 20 January (Official Report, c. 467). The Government consider that this request is justified and will accordingly make today an advance payment of some £142 million from the Consolidated Fund, under Section 2(3) of the European Communities Act, 1972. The payment of levies and duties on 20 March will be reduced by the amount of the advance.
The Commission has informed us that it expects in addition to have to overdraw its accounts with member states this month in accordance with article 12(2) of Council Regulation 2891/77. The amount involved for the United Kingdom is expected to be of the order of £36 million. Subject to confirmation that use of this facility is needed as well as the article 10(2) advance, the Government propose to meet this obligation. too, from the Consolidated Fund in accordance with section 2(3) of the European Communities Act, 1972. Repayment of any drawing under this facility will be made by deduction from our March own resources payments. Neither of these facilities will involve increasing the total amounts which the Community is authorised to spend during 1987. There will therefore be no net additions to public expenditure.