EU: Budgets

Lord Campbell of Alloway Excerpts

Thursday 2nd December 2010 Lords Chamber

Asked By

[Lord Campbell of Alloway]

To ask Her Majesty’s Government what assessment they have made of the grounds on which the European Union Court of Auditors has withheld approval of European Union budgets.

[The Commercial Secretary to the Treasury (Lord Sassoon)]

My Lords, the Government are concerned that the European Court of Auditors has been unable to provide a positive statement of assurance for the 16th year in succession. The Government support the ECA’s work but are concerned at the slow pace of reforms to EU financial management. The European Commission and member states are responsible for disbursing EU funds, and share responsibility for sound financial management. The Government take financial management seriously and will shortly publish a consolidated statement on the use of EU funds in the UK.

[Lord Campbell of Alloway]

I thank my noble friend for his surprisingly encouraging exposition. There is no need on that basis to delve into the grounds of the assessment, because that has been covered. May I by leave ask a question that perhaps the Government may accept? At their behest, by dint of diplomacy, will they seek an arrangement, be it by treaty or by some other means, to ensure that the ECA’s decisions are always reflected, and that they are the only decisions reflected, in the contributions of all member states to the budget?

[Lord Sassoon]

My Lords, I reiterate that we take the situation enormously seriously. It is deeply unsatisfactory, but progress has been made. In their latest report, the auditors have been able to certify a greater percentage of EU expenditure as satisfactory than before. There are significant complications with anything that goes to changes in the treaty arrangements in this area, but the UK is leading by example by, for instance, producing this consolidated statement, which a number of other member states are now producing and which is welcomed by the Commission. We are adopting every route to try to get improvement. We are by no means complacent, nor should the European authorities be.