§ Mr. BoswellTo ask the Chancellor of the Exchequer if he will make a statement about early payment of non-value added tax own resources to the European Communities in May.
§ Mr. BrookeThe European Commission estimates that its spending obligations in June will exceed its available revenues under the provisional twelfths regime. In accordance with article 10(2) of Council regulation 2891/77, the Commission has requested member states to advance from June 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.
The Government are satisfied that this request is within the vires of article 10(2) and accordingly will make a 584W payment today, 20 May, of £153 million from the Consolidated Fund under section 2(3) of the European Communities Act, 1972. The payment of levies and duties on 20 June will be reduced by the amount of the advance.
The article 10(2) facility does not affect the total amount which the Community is authorised to spend during the year. The Commission's request does not, therefore, involve any net addition to public expenditure.