European Commission Mr. Fallon asked the Chancellor of the Exchequer if he will make a statement about the European Commission's latest cash position and the implications for the United Kingdom. Mr. Brooke The European Commission estimates that its spending obligations this month will again exceed available revenues under the budget for 1987.The Commission have therefore requested member states to advance from June into May the payment of own resources other than VAT in accordance with Article 10(2) of Council Regulation 2891/77: a similar advance was made last month. The Government are satisfied that this request is within the vires of Article 10(2) and accordingly will make an advance payment on 20 May of £146 million from the Consolidated Fund under section 2(3) of the European Communities Act, 1972. The payment of levies and duties on 22 June will be reduced by the amount of the advance.The Commission have also informed us that it has to overdraw its accounts with member states in May in accordance with Article 12(2) of Council Regulation 2891/77. The amount involved for the United Kingdom is expected to be of the order of £285 million. The Government are meeting this obligation from the Consolidated Fund in accordance with section 2(3) of the European Communities Act, 1972. Repayment of drawings made under this facility will be made by deduction from our June own resources payments. Neither of these facilities involve increasing the total amounts which the Community is authorised to spend during 1987. There is therefore no net addition to public expenditure.