European Union: Budget

Part of the debate – in the House of Lords at 2:55 pm on 14th June 2005.

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Photo of Lord McKenzie of Luton Lord McKenzie of Luton Government Whip 2:55 pm, 14th June 2005

My Lords, I agree with my noble friend's assessment. Calling it a rebate is incorrect because it never gets paid over in the first instance. It is simply deducted from the contributions that we make in a subsequent year. The assessment is right. Unless we tackle the inequities of the expenditure side, we will not make progress on this issue. If we do, it is not so much a matter of negotiation, it is a matter of arithmetic as to what will happen to our net contribution.