European Communities (Finance) Bill

My hon. Friend is correct that that is how the rebate is calculated. Indeed, the first line of article 4 of the Council decision on own resources says:"““The United Kingdom shall be granted a correction in respect of budgetary imbalances.””" Those on the Opposition Benches who claim that the rebate has been lost in the decision simply have not read the own resources decision. My hon. Friend's point about the gap is correct, but that is because there is a disapplication of the rebate on economic and structural spending in the new member states, as I have explained. With those countries having been welcomed into Europe, our judgment is that the right thing to do morally is equip them to compete competitively. If we did not do that, we would be in breach of our responsibilities as a full member of the European Union. That explains the gap to which my hon. Friend has drawn the attention of the House. Let me put on record more facts about the Bill. Fourthly, in response to the right hon. Member for Wokingham (Mr. Redwood), the UK's contribution is forecast to rise on average by 3 per cent. in real terms from 2007 to 2013. Fifthly, in answer to my hon. Friend's question a moment ago, new member states will receive €158 billion in structural and cohesion funds in this financial perspective—a 250 per cent. increase on the previous financial perspective period. The share of new member states' receipts will rise from 24 per cent. of the total to 56 per cent. in 2013. Lastly, because of the shift in spending from west to east, all wealthier nations will see their net contributions rise, some by more than others. In this financial perspective, French and UK net contributions will be in rough parity, with French and Italian contributions rising twice as fast as ours.