HC Deb 05 December 1994 vol 251 cc26-7W
Mr. Spearing

To ask the Chancellor of the Exchequer, pursuant to his answer of 23 November,Official Report, column 155, concerning differences between the text of the Edinburgh presidential conclusions and the relevant draft decisions of the Council of Ministers of the European Community, if he will list the textual differences together with an assessment of their respective significance.

Mr. Heathcoat-Amory

Council decision 94/728/EC Euratom involves a number of changes from the existing own resources decision—Council decision 88/376, EEC, Euratom—which are not direct consequences of the Edinburgh future financing settlement. Most are minor changes of wording which have no effect on the meaning of the text. The more significant textual changes are as follows—unless otherwise specified, the article references relate to decision 94/728/ EC, Euratom:

Article Replacement of the phrase "The budget of the Communities shall, irrespective of other revenue, be financed entirely from the Communities' own resources" with, "The budget of the Communities shall, without prejudice to other revenue, be financed wholly from the Communities' own resources. This change is simply a matter of translation. The French text of the new decision retains the same wording as previously: Le budget des Communauteés est, sans preés judice des autres recettes, inteégralement financeé par des ressources propres aux Communauteés. The new English translation is consistent with the wording of article 201 of the treaty of Rome.

Article 2(1)(d) Introduction of a cross-reference to directive 89/130/EEC, Euratom (a directive spelling out how member states' gross national products are to be calculated for own resources purposes). The formula in the present own resources decision refers to a Directive [to be] adopted under Article 8(2) of the Decision". Directive 89/130/EEC,Euratom had not been agreed when the 1988 ORD was adopted. It has however been in use since 1989, so the text of the new ORD involves no change in procedure.

Article 2(4)(b) Removal of some redundant text—"For 1988, the gross amount of the reference compensation shall be reduced by 780 mecu"— referring to transitional arrangements for 1988, since the point is now of no relevance.

Article 2(7) of Decision 88/376,EEC,Euratom Deletion of this article, which covers the arrangements for assessing the financial contributions of member states in which the method of calculating the "harmonised" base for VAT-based own resource contributions has not been established. This Article has become redundant since the uniform rate of VAT applies in all member states—and where the point is of relevance to a new member state, temporary arrangements are more appropriately a matter for the treaty of Accession.

Article 5 Modification to give legal force to the informal understanding reached in 1988 that is the United Kingdom abatement were to exceed our contributions under the VAT based resource, any excess could be offset against our fourth resource payments; the present ORD simply states that the abatement shall be offset against our VAT based contributions. Also a minor change in the way other member states' contributions to the abatement are accounted for in the Community budget.

Article 8 Renumbering of cross-reference to treaty article—previously 206a, now 188c— reflecting restructuring of treaty after Maastricht.

Article 9 Addition of reference to refunds received by Greece between 1981 and 1985. These were previously in Greek treaty of accession. The point is of no substance whatsoever.

Article 11 Deletion of a redundant provision relating to the financing of the high flux reactor—scientific research project on the Dutch—German border—of 1984–1987.

Mr. Spearing

To ask the Chancellor of the Exchequer which members of the European Community have approved the Council decision 94/729 of 31 October 1994; by which date he expects it to come into force; by what means and to whom member states are making known their completion of their necessary constitutional procedures; and by what means such notifications are publicised.

Mr. Heathcoat-Amory

To date, no member state has ratified the 1994 own resources decision, although on current information Belgium, Denmark, Greece, Ireland and Italy are expected to do so by the end of the year.

Member states will notify the Secretary General of the Council, in writing, upon completion of their necessary constitutional procedures. The own resources decision will enter into force on the first day of the month following the receipt of final notification by the Secretary General of the Council. Member states will then be notified in writing of this by the Council secretariat.