To ask the Chancellor of the Exchequer how much expenditure was categorised under the European Union budget line of sundry debtors in the 2006-07 financial year; and if he will make a statement. (133074)

‘Sundry debtors’, covering receivables arising from the activities of the European Communities, including unpaid fines, cash advances and amounts paid to financial intermediaries, appears as an item under short-term assets in the balance sheet provided for the ‘Final Annual Accounts of the European Communities 2004’. This amounted to €4,140 million at 31 December 2004.

Following a modernisation of the accounts of the European Communities in 2005 and the change to an accruals accounting system, an asset entitled pre-financing is now recognised on the balance sheet and represents the advances paid to beneficiaries. In 2005, the latest year for which European Communities accounts are available, the amount of short-term pre-financing is given as €6,633 million as at 31 December (with a restated figure of €6,728 million as at 31 December 2004).