HC Deb 05 December 1988 vol 143 cc56-7W
Mr. Teddy Taylor

To ask the Chancellor of the Exchequer on what date the IGA payments failed to be made in consequence of the recent European Council decision; what member states have failed to make the necessary payments; what sums are involved; and if such member states are obliged in terms of the agreement to pay interest on late payments.

Mr. Brooke

Member states are not obliged to make payments under the 1988 IGA until they have obtained the necessary approval from their national legislatures. This means that there is no fixed date on which the initial payments are due. Information relating to the timing of payments by individual member states is not generally available. There is no explicit provision in the IGA for interest charges. It would be for the Commission to consider whether to claim interest in the event of any default.

Mr. Teddy Taylor

To ask the Chancellor of the Exchequer why Her Majesty's Government agreed to make an advance payment to the EEC of their non-value added tax own resources because of the EEC's cash flow problems created by the non-payment of IGA by certain member states; what other member states were invited to make such advance payments; and under what powers the EEC has asked for such facilities from individual states.

Mr. Brooke

The last date on which the Government made an advance payment of non-VAT own resources was 21 November. At that time the Commission was experiencing cash flow difficulties because most member states, including the United Kingdom, had not paid their contributions under the IGA. The Government were satisfied that the Commission's request for this advance—as for advances made earlier in the year—complied with article 10(2) of Council regulations 2891/77. All such requests are made simultaneously to all member states; none is singled out.