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Dáil Éireann debate -
Wednesday, 2 Jun 1971

Vol. 254 No. 5

Ceisteanna—Questions. Oral Answers. - Membership of EEC.

12.

asked the Minister for Foreign Affairs if an estimate is yet available of the anticipated contribution by this country in the event of EEC membership; and, if so, if he will give details.

I would refer the Deputy to the reply which I gave to a question on this subject on 20th April.

Since then the Community have put forward the outline of a formula for the calculation of the contributions to be paid by the applicant countries to the Community budget during the transitional period. The outline formula does not contain the necessary percentages which would enable an estimate to be made of what Ireland's contribution would be during the transitional period if the Community formula was to be applied.

We have accepted the Community's proposal as a basis for discussion in the negotiations.

To what is the formula related?

It is related to the GNP and the relative amount of the Community GNP of each of the countries concerned, with a provision for a phased rebate, and the percentages of the rebates have not yet been mentioned. I will circulate the formula to the Deputy.

Is it on the same basis as the calculation made in respect of the transitional period contribution?

The question to which I referred the Deputy was in relation to the contribution as members of the Community when the Community expect to have their "own resources" system. The system would get its income from the levies and the customs tariffs plus a percentage not greater than 1 per cent of the value added tax from each country. What we are talking about now is a formula for phasing in and this formula has yet to be completed. When it is completed we will be able to make an assessment and, having done that, we will be able to negotiate on it.

Does the formula take into account the GNP of the applicant countries or of the enlarged Community as a whole?

I think the relative GNP of each country in relation to the whole Community.

It is extraordinary that the British have had the most specific proposals put to them. I am astounded that our negotiators, on the basis of the Minister's answers here today, have not had any specific proposals put to them.

I am astounded that the Deputy does not appreciate that the amount involved for us does not even —I do not want to go too far—create a major problem for us.

How does the Minister know that when he does not know what it is? The Minister has applied for membership to a club and he does not know what the fee is. The Minister will not get in for nothing.

I am wondering is the Minister having any discussions.

Deputies should take this seriously sometime. The Deputy will appreciate that the actual cost to Britain was a major obstacle in the negotiations.

And it is no problem for us?

The amount involved is not much and it should not be a problem of any great magnitude.

How does the Minister know that when he does not know what it is?

It should not be a problem.

Could the Minister not give us some approximate figure of what the cost will be?

The actual cost of membership of the Community was estimated in the White Paper, which Deputies refuse to read, at £19 million a year and I told the House about three weeks ago that we have no reason to think that it will be any more than that. Deputies do not remember for even three weeks.

The Minister said he did not know.

We have had so much rubbish provided by the Department that nobody is inclined to believe anything.

There is no substitute for work. You can shout all you like but there is no substitute for hard work.

Over the transitional period would the amount approximate to £100 million?

The amount will come out in the final figure. The phasing in would not be at the full amount. I will circulate the formula. What we are talking about is the transitional period of five years. The figure is estimated at £19 million.

Does the Minister mean GNP during the negotiations?

GNP in relation to the whole. A formula will be derived from this.

This is of some magnitude for Britain but the Minister said there will not be any difficulties as far as Ireland is concerned. Will we pay on a pro rata basis in accordance with our size, our workers, our population——

If the Deputy studies this question he will find the budget of the Community. The income which we will expect out of the budget of the Community will be fairly high where-as in the case of other countries it might not be so satisfactory. We should not stress this too much. We are in negotiation. I do not have to do all your thinking for you.

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