References by name to the UK
apart from entries in various Diagrams and Tables are as follows:-
In relation to the performance
of Member States in collecting and remitting entitlements to traditional
own resources which have been established, Table 1.3 shows that
the UK was the third best (third lowest proportion not recovered)
in 1995;
the UK is noted as one of the
five Member States reporting write-offs of amounts (of traditional
own resources) in excess of 10,000 ECU. Table 1.5 refers;
the UK is noted as one of four
Member States where the ECA examined the operation of the inward
processing procedure for customs duties, leading to the criticism
that the UK was late in making the required declarations and remitting
revenues (1.26 and 1.27);
the UK is the only Member State
correctly administering a particular aspect of the EEC-Turkey
Agreement;
the UK is noted as one of eight
Members making errors in administration of the VAT Information
Exchange System (VIES);
the UK approach to compilation
of VAT statistics about intra-Community trade (Intrastat) is noted
in context of divergent practices amongst Members, and (1.84)
the UK opinion on the reliability of Intrastat is noted;
use by the UK of VIES to cross-check
VAT declarations led to recovery of 1.4 million ECU in 1994;
the ECA notes that the UK (and
Italy) report changes in nature or scope of VAT irregularities
since the single market was introduced with new intra-Community
trade procedure;
the UK is noted as one of seven
Members whose national statistics offices contributed to an ECA
study on how to measure the reliability of national GNP data.
UK and Italy were the only ones able to report conclusions from
studies of the accuracy of their national accounts. The UK study
(see 1.123) suggests that audit of quality of GNP data may be
practicable and further work (1.124) drawing on contributions
from UK and Italy is envisaged;
a large increase in the area
of the UK on which fibre flax is cultivated (similar increase
in Spain) is implicitly criticised in the context of observations
about the poor economic rationale for subsidisation of fibre flax
production. In its reply, the Commission suspects that this reflects
a premium (subsidy) 'hunt', and that the yield per hectare in
the UK is 'very much lower' than in the traditional flax cultivation
zones;
the ECA criticises 'serious systems
weaknesses in the UK' concerning export refund payments on cereals
used in the production of whisky which is exported. In 3.108
the ECA says that 'later improvements in the UK control system
have not removed the high risk of irregular payments in previous
years' and goes on to observe that 'the Commission should therefore
because of changes in differential prices between the EC regime
and the world market review whether the continuation of EU
subsidies for whisky distillers is still justified'. In its reply
the Commission argues for continuing the whisky distillation aid;
the Commission acted belatedly
to cancel historic commitments for contributing towards national
expenditure on fisheries surveillance in a number of States, including
the UK, where expenditure was lower than the commitments appropriated.
Table 4.3 illustrates that the UK has drawn down a low level
of the commitment authorised for pilot projects on satellite monitoring
of fisheries vessels;
the UK (and France) failed to
make payments due under recovery orders relating to advances from
the budget for "specific ('non-quota measures') Community
regional development measures" which the UK was unable to
justify. Two cases amounting to 4 million ECU relate to the UK;
the EIB has yet to forecast lending
under the Community Support Framework for the UK;
UK operational programmes account
for the bulk (76 per cent) of unutilised historic commitments
of the European Social Fund (ESF) being carried forward against
its 1994-99 appropriations;
during 1995 the Commission decided,
illegally in the view of the ECA, to extend the deadline for expenditure
under the UK's 1990-93 ESF operational programme, with the effect
of reopening eight programmes which had been closed at the end
of 1993 and paying or committing to them 38.7 million ECU (£32.8
million) which should have been dedicated to the 1994-99 ESF;
the UK is listed as one of six
Members where ESF management agencies are found not to be implementing
certain aspects of required certification and control procedures;
a subsidy of 200,000 ECU (£169,000)
was paid for production in high-definition TV mode of a programme
about the 1995 world figure-skating championships in Birmingham
which was broadcast only to a small number of viewers in France;
UK TV broadcasters abandoned
projects to broadcast coverage of horse racing in widescreen format,
despite the Commission making 1.8 million ECU (£1.5 million)
of subsidies available. In its reply the Commission regretted
the cancellation of the plans.
The Government intends to
respond to the ECA's observations, where appropriate, during the
procedure for discharging the 1995 budget.
