§ Mr. RedwoodTo ask the Chancellor of the Exchequer when the European Commmunity's new own resources decision entered into force.
§ Mr. BrookeArticle 11(1) of the own resources decision provides for the ORD to come into force on the first day of the month following that in which the last member state notifies the Council secretariat that it has completed its national procedures for the adoption of the Decision. Not all member states had done so by 31 December and the ORD cannot therefore enter into force before 1 February.
The Commission has accordingly informed member states that there is no legal basis for payment in January of the new GNP-related fourth resource. However, the Commission has requested VAT-related payments in January on the basis of the 1989 draft budget.
The Government believe that, pending entry into force of the new ORD, own resources contributions should be based on the system of provisional twelfths. The United Kingdom has therefore restricted its VAT-related payment in January to the level which applied under the 1988 Budget. This is around £55 million less than the sum requested by the Commission.