§ Mr. Teddy Taylorasked the Chancellor of the Exchequer what is the policy of Her Majesty's Government on the new proposals from the European Economic Community Commission about the financing of the Community; and if he will make a statement.
§ Mr. BrookeThe Government's position remains as set out in the statement by my right hon. Friend the Prime Minister to the House on 1 July, at columns 493–94, following the last European Council: there must be agreement on effective and binding control of Community spending, particularly agricultural spending, before the question of additional resources can be addressed.
§ Mr. Teddy Taylorasked the Chancellor of the Exchequer what is his latest estimate of the amount which the European Economic Community will actually spend in the 12 months of 1987 in excess of its budget, disregarding the savings made by the Community in demanding early payment of contributions and delaying payments due to member states.
§ Mr. BrookeThe 1987 Community budget allows expenditure of up to 36,168 mecu. The Commission's limited discretion to seek overdraft facilities for cash flow reasons must be unwound during the budgetary year, so total spending cannot exceed this figure.
On the question of the budgetary savings agreed in 1987, I refer my hon. Friend to the answer I gave to my hon. Friend for Moorlands (Mr. Knox) on 3 July, at columns 178–79.