asked the Chancellor of the Exchequer what will be the increase in the European Economic Community own resources when the maximum value added tax rate is raised to 1·4 per cent.

After allowing for the United Kingdom's VAT abatement as a result of the Fontainebleau mechanism—as well as relief to Germany in respect of the financing of that abatement — the potential increase in the amount of revenue available to the Community as a result of raising the VAT ceiling from 1 per cent. to 1·4 per cent. will be some 15 to 20 per cent.