Regulation of the European Parliament and of the Council on the Fund for European Aid to the Most Deprived: EUC Report
(Limited Text - Ministerial Extracts only)
Read Full debate
Baroness Stowell of Beeston
My Lords, I am grateful to the noble Lord, Lord Boswell, and indeed the EU Committee for scrutinising the proposal from the Commission and producing the report that we are debating today. Along with the noble Lord, Lord McKenzie, I am grateful also to the noble Lord, Lord Boswell, for his very clear introduction to this debate. Because he was very comprehensive in going through the history of how we got to the present position, I will not spend any time repeating that history, not least because we are all feeling the chill in this Room and brevity is the key. However, first, it is essential to make the point that the Government share the committee’s view that this Commission proposal is not consistent with the principle of subsidiarity and that we support the Motion put forward today.
In 2011, the Commission sought to extend the existing scheme. It is worth reminding ourselves, as I think the noble Lord, Lord Boswell, already has, that the French and German declaration at that time stated that they considered that the conditions were not met for a proposal for a new programme after 2013—even though they had supported at that time the extension of the existing programme—and that they could not agree with legal and financial proposals by the Commission for such a programme in future. In response, the Commission issued a declaration saying that it,
“takes note of the opinion of a significant group of Member States not to pursue the program beyond 2013”,
and that:
“Without prejudice to its right of initiative under the Treaty, the Commission will take account of this strong opposition to any legal and financial proposal of such a program in the future”.
The Commission has now produced a proposal but it is very difficult to see how the Commission has taken account of this strong opposition that was stated at the time. We have to ask what the main changes are in the new proposal.
First, the new scheme is presented as an instrument to promote social cohesion and to contribute to the European 2020 target on reducing poverty, whereas the current scheme has an agricultural legal base. Secondly, the fund will no longer be financed from the CAP but from the structural and cohesion fund, as has already been mentioned, for the 2014-20 budget. Thirdly, the fund will be used to purchase basic consumer goods for the personal use of homeless people or children, as well as to provide food aid. Fourthly, the new fund will be obligatory—this is a key point—whereas the current scheme is optional. Each member state will receive a financial allocation and be required to set up a single national programme to implement the fund in 2014-20. Fifthly, not only will the fund be obligatory, but member states will be required to provide matched funding of at least 15% of the costs of their national programmes—in other words, on top of the welfare programmes we already have in this country. The fund from the European budget will contribute only up to 85% of the costs of the scheme being proposed in most cases. Sixthly, the new fund will be implemented along similar lines to the structural and cohesion funds.
Despite these changes, the Government’s view has not changed. We remain unconvinced as to the merits or appropriateness of this proposal. The principle of subsidiarity, currently enshrined in Article 5 of the Treaty on European Union, states that the EU should act collectively only where the objectives of the proposed action cannot be sufficiently achieved by the member states acting on their own, and that they can therefore be better achieved by action on the part of the Union.
We consider that measures to assist the neediest members of society, as set out in this proposal, can be better and more effectively delivered by individual member states through their own social programmes and not at EU level. The member states and their regional and local authorities are best placed to identify and meet the needs of deprived people in their countries and communities, and to do that in ways that are administratively simple and efficient. We will therefore oppose this proposal on the grounds that social measures of this sort are a matter for individual member states.
We are also concerned that the proposal does not represent value for money and would be burdensome to administer. Using EU structural and cohesion fund processes to deliver this instrument would lead to heavy and costly administrative burdens on member states and partner organisations, without adding value to existing arrangements in member states.
Not only is this fund inconsistent with subsidiarity, it will use resources that would be better deployed at national or local level. It is worth pointing out that if this fund were removed from the proposals, the UK could argue for an equivalent reduction of €2.5 billion from the EU budget over the seven years of the multiannual financial framework.
I underline that the Government strongly support measures to tackle poverty and social exclusion and certainly agree with the points made by the noble Lord, Lord Boswell. In the UK, we have a full range of social security benefits and tax credits in place to cover financial needs for those who are both in and out of work. We are investing £400 million in the current spending review period to help local authorities prevent and tackle homelessness. We are committed to eradicating child poverty and are taking a new approach to tackling the root causes, including worklessness, educational failure and family breakdown.
On food aid, the Healthy Start scheme provides a nutritional safety net in the form of vouchers for basic healthy foods and free vitamin supplements for pregnant women and children aged under four in disadvantaged and low-income families. Initiatives such as FareShare and FoodCycle are good examples of the essential work that charities are doing to support communities to relieve food poverty.
The noble Lord, Lord McKenzie, asked a couple of questions. I know that he directed them to the noble Lord, Lord Boswell, but it is perhaps worth me responding to them. He asked whether each member state provides for the three issues that the new fund would cover. Obviously, I will allow the noble Lord, Lord Boswell, to respond as he sees appropriate on behalf of the committee. From the Government’s perspective, it is clearly not for us to comment on other member states’ ability. Our approach is to tackle the root causes of poverty, as I just said. Any future proposal will have to be considered on its merits and in the circumstances at the time. If an alternative proposal were put forward by the Commission, we would want to consider it rather than set out our views now on whatever alternative might be proposed.
Lord McKenzie of Luton
Just to pick up on that point, a moment ago the Minister said that it is accepted that the EU can act where objectives cannot be sufficiently achieved by member states acting on their own. Does that imply some understanding of the resources that are available to individual member states? Is that part of the judgment about whether, acting on their own, they can deal with the issue?
Baroness Stowell of Beeston
The principle of subsidiarity is clear. I set that out clearly in my previous remarks and the noble Lord, Lord Boswell, has done the same. It is not for this Government to comment on whether other individual member states feel that they are in a position to be able to fulfil the objectives of the proposed fund.
Lord McKenzie of Luton
I am sorry to interrupt, but who can therefore make that judgment and how? If the judgment is about whether it can be sufficiently achieved by member states acting on their own—that is what the Minister has just said—who makes that judgment and on what basis? If we are saying that each individual member state has to ignore what the resources are and what the position is in each other member state on this issue, how on earth does that make sense of trying to make that evaluation, which she says is important?
Baroness Stowell of Beeston
The Commission itself, in bringing forward a proposal, has no doubt made a judgment in order to inform its decision to put forward this proposal to fund the scheme. I am saying that it is not for us as a member nation to comment on the ability of other member nations as to whether they can meet the objectives that the fund is there to meet. It is our view, from the position of a member state, that we are can provide for our citizens in the way that we are. We think that the issues to be addressed are better addressed by nation states and by local communities or regional bodies within those nation states because of the nature of the issue. That is the point that I am seeking to make.
I conclude by saying that we agree with the committee that the Commission has provided no convincing argument that its proposal meets the principle of subsidiarity. I restate that I thank the committee for its report and all its members who have contributed to this debate. I repeat that the Government support the Motion on the reasoned opinion.