EU: UK Net Contributions

Debate between Lord Dykes and Lord Sassoon

Wednesday 24th October 2012 Lords Chamber

[Lord Dykes]

Can my noble friend reassure the House that there will be a friendly compromise on this matter when the full negotiations take place?

[Lord Sassoon]

I would love to see that happen. Of course, I cannot give any assurances about how it will play out.

Eurozone

Debate between Lord Dykes and Lord Sassoon

Monday 9th July 2012 Lords Chamber

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

My Lords, the June European Council discussed a report by the four presidents on strengthening economic and monetary union. They will conduct further work and report back to the European Council in December with an interim report in October. There is likely to be discussion on aspects of these issues in a number of different fora before and after the December report.

[Lord Dykes]

I thank the Minister for that Answer. I congratulate Her Majesty’s Government on their strong official support for the eurozone summit agreement success, in stark contrast to the negative carping of some Tory MPs and MEPs and of a few voices in the Christian Social Union in Bavaria.

[Lord Sassoon]

I am grateful to my noble friend for confirming the success of the recent European Council, a Council which confirmed among other things that the single market had to be considered in the context of fiscal union, which brought important parts of the new EU patent court to London, and which considered a raft of other growth-related matters.

Taxation: Avoidance

Debate between Lord Dykes and Lord Sassoon

Thursday 28th June 2012 Lords Chamber

[Lord Sassoon]

My Lords, I am always prepared to consider every suggestion that comes up in your Lordships’ House. However, I think that one is getting a little radical and I cannot promise him much early progress on it.

[Lord Dykes]

Will my noble friend bear in mind that, as tax avoidance and evasion from the UK is at least 15 times greater than social security abuse and fraud, that the Government should therefore be 15 times more energetic in dealing with tax avoidance and evasion than they are with social security?

[Lord Sassoon]

My Lords, I do think that we are comparing apples and pears. We will be vigorous on both fronts. In relation to tax avoidance, HMRC has reassigned some £900 million of its expenditure within the spending round to tackle this issue. We should also remember that while the tax gap in the UK is £35 billion—about 8% of liabilities—it compares well on an international comparison. For example, the equivalent in the US is 14% and in Sweden 10%. So, yes, there are big numbers to be played for, but good progress is being made.

EU: Euro Area Crisis

Debate between Lord Dykes and Lord Sassoon

Thursday 24th May 2012 Lords Chamber

[Lord Sassoon]

Again, my Lords, I will not speculate on the range of scenarios. Plenty of advice has been given to the UK Government, to each of the individual Governments in the eurozone and to the eurozone collectively. The important thing is to get on with it. The next major milestone will be what the Greek people decide at their forthcoming election.

[Lord Dykes]

My Lords, does my noble friend agree that the British Government played a very constructive role in last night’s summit meeting? Will they use their voice to persuade Germany to think again about the business of collective Eurobonds, and enlarging the firewall to make it realistic? That would be an excellent and effective way, without causing inflation, of having a lower yield overall, which would get over the nonsense that eurozone market ratings at the moment are generally lower than those of the much more heavily indebted United States of America and Japan.

[Lord Sassoon]

I certainly agree with my noble friend that my right honourable friend the Prime Minister played a very constructive role in the discussions last night and is clearly open to a range of ideas.

EU: Economic and Financial Issues

Debate between Lord Dykes and Lord Sassoon

Monday 12th March 2012 Lords Chamber

[Lord Dykes]

To ask Her Majesty’s Government when they will next hold high-level talks with their European Union partners on economic and financial issues.

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

My Lords, the Government hold high-level talks with all our European Union partners on economic and financial issues at the regular European Union Economic and Financial Affairs Councils. The next Economic and Financial Affairs Council—ECOFIN—is taking place tomorrow, Tuesday 13 March.

[Lord Dykes]

I thank my noble friend for that Answer and wish him well for that meeting. Can he explain carefully to the House why, since we had achieved—with some skill—all our objectives on the innovation, investment and growth programme of the EU at the recent meeting of all the member states, we did not therefore show solidarity by signing the fiscal compact treaty as well, alongside every other member apart from the Czech Republic?

[Lord Sassoon]

My Lords, the fiscal compact intergovernmental treaty was discussed at the European Council on 8 and 9 December. As has been discussed on a significant number of occasions, the UK did not get the safeguards it was looking for and is not a party to that treaty, which is why we did not sign it in the fringes of the European Council on 1 and 2 March.

EU: Fiscal Compact Treaty

Debate between Lord Dykes and Lord Sassoon

Tuesday 7th February 2012 Lords Chamber

[Lord Dykes]

To ask Her Majesty’s Government what progress they are making on discussions with European member states on the future legal basis for the European fiscal compact treaty.

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

My Lords, although the United Kingdom will not become a party to it, we have participated fully in discussions on the intergovernmental treaty on stability, co-ordination and governance in the economic and monetary union. The parties have set out their desire that its substance will be added to the EU treaties in the future. Any such addition to the EU treaties would need to have the agreement of all 27 members.

--- Later in debate ---

[Lord Dykes]

I thank my noble friend the Minister for the very substantial and indeed creative fence-mending by Her Majesty’s Government that has taken place since 9 December. Does he agree that although we are not yet members of the fiscal compact treaty, now that that has been successfully signed by all but two, it is our duty, as we stated before Christmas, to make sure that we help the eurozone authorities and the national leaders return the eurozone to its strength as a traditional international currency?

[Lord Sassoon]

My Lords, I am happy to confirm to my noble friend that of course this intergovernmental agreement, which goes to the heart of strengthening the fiscal arrangements within the eurozone, is a necessary but not sufficient part of what we hope to see with the eurozone returned to health. There are a number of other critical elements, including sorting out the immediate situation in Greece, getting the European banks’ capital positions where they need to be, and so on.

Economy: Deficit Reduction

Debate between Lord Dykes and Lord Sassoon

Thursday 15th December 2011 Lords Chamber

[Lord Sassoon]

My Lords, first, the deficit reduction strategy, as the OBR confirms, is absolutely on track. If the noble Lord is suggesting that we should cut expenditure and raise taxes, is that the policy of his party?

[Lord Dykes]

My Lords, did the Minister notice that the credit rating agencies and the American-dominated $16 trillion debt system gave AAA ratings to all the hedge funds and banks that collapsed in the United States and elsewhere in the world just about a week or a few days before they actually did collapse. Are they really so reliable?

[Lord Sassoon]

My Lords, the track record of the credit rating agencies as far as sovereign debt is concerned speaks for itself. It is quite different to the mistakes that they have made in other sectors.

International Monetary Fund

Debate between Lord Dykes and Lord Sassoon

Thursday 24th November 2011 Lords Chamber

[Lord Sassoon]

It would be unproductive to be drawn into the history of the arrangements that the previous Government committed this country to, but we could go into that if noble Lords want to. This Government are completely clear: we will support the IMF on a bipartisan and all-party basis, as we have always done since its inception. It must be for the eurozone countries to put in place their mechanisms for future support.

[Lord Dykes]

My Lords, does the Minister not agree that in view of the deep urgency of this crisis, which the noble Lord, Lord Barnett, referred to—indeed, the United States is the most irresponsibly indebted country of all in the whole IMF system—there is a growing case for a significant increase in these facilities and for working with the eurozone for the good of the whole world? Otherwise this problem is going to grow and grow, including in non-euro countries.

[Lord Sassoon]

My Lords, I would just reinforce to my noble friend that at the G20 Britain and all the other countries agreed to ensure that the IMF continues to have all the resources that it needs. There is no lack of commitment to the IMF having those resources. We now need to see what proposals develop. I agree that the situation cannot drag on for ever.

EU: Economy

Debate between Lord Dykes and Lord Sassoon

Wednesday 2nd November 2011 Lords Chamber

[Lord Dykes]

To ask Her Majesty’s Government what conclusions they have reached from the discussions of European Union Finance Ministers in Luxembourg on 4 October concerning the case for member states to work together to solve their current economic problems.

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

My Lords, the Government support the euro area’s commitment to ensure financial stability of the euro area. A comprehensive and sustainable solution is urgently needed and is in the UK’s interest. This can be achieved only by the euro area working closely together. The Government also recognise the urgent need to boost growth across the EU and are pushing completion of the single market, promotion of trade, reduction in regulation and greater innovation.

[Lord Dykes]

My Lords, I thank the Minister and the whole Government for having shown steady and firm solidarity with our eurozone partner countries and for their strenuous efforts to solve current financial and economic problems. Does he agree that such a firm stance must be maintained to stop deep market panic despite the monumental shock of the Greek referendum decision?

[Lord Sassoon]

I am grateful to my noble friend for recognising the constructive role which the UK Government have played in pushing forward the many strands of important discussion in the EU at the moment. I indeed agree that the agreement signed last week has to be delivered by all member states, including Greece. We will be working hard to play our part to that end.

EU: Financial and Monetary Co-ordination

Debate between Lord Dykes and Lord Sassoon

Monday 6th June 2011 Lords Chamber

[Lord Dykes]

To ask Her Majesty’s Government whether they will consider making proposals to their European Union partners to strengthen economic, financial and monetary co-ordination within the Union.

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

My Lords, six legislative proposals aimed at strengthening co-ordination on financial and economic matters across the EU have already been agreed by the ECOFIN Council. These are currently the subject of discussion and negotiation with the European Parliament. The measures would strengthen the stability and growth pact and formalise the monitoring of economic imbalances. The Government recognise the importance of strengthening co-operation and co-ordination, and fully support the package agreed by ECOFIN.

[Lord Dykes]

My Lords, I thank the Minister for the way in which the British Government have strongly supported in ECOFIN the various measures that are being taken by both the ECB and the member Governments. Does he agree that advanced countries like the United States and other leading countries like Britain were already heavily indebted before the financial crisis and are even more so now, and that it is important for this country to stand in support of the eurozone countries and the ECB to defeat the ruthless international speculators wherever they may be, especially as—you never know—we might need their help in the future?

[Lord Sassoon]

My Lords, I am grateful to my noble friend for what he says about the Government’s approach to these matters. It is indeed in the country’s interest to ensure that the eurozone is strong—it is, after all, where more than 40 per cent of our exports go—and we will continue to work constructively on ideas to strengthen the framework. At the same time, we want to make absolutely sure that it is understood, as the Council has recognised, that the UK stands in a special relationship to the eurozone and that we will not have the fiscal sovereignty of Parliament in any way infringed on these matters.

I agree with my noble friend that fiscal discipline is key to ensuring that we do not get into problems like this again, whether within the eurozone or without it, which is why it is gratifying to see that the IMF, in its assessment today, has stressed this very point in relation to the UK’s deficit reduction programme.

Currency Markets

Debate between Lord Dykes and Lord Sassoon

Wednesday 2nd February 2011 Lords Chamber

[Lord Dykes]

To ask Her Majesty’s Government when they will next hold talks with eurozone representatives to discuss the present state of currency markets.

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

My Lords, Ministers regularly meet their opposite numbers from other member states to discuss pertinent economic and financial issues, including currency issues, at ECOFIN. The next council meeting is currently scheduled for 15 February.

[Lord Dykes]

I thank the Minister for that Answer and for the fact that, on at least four or five recent occasions, HMG have said with great emphasis that the United Kingdom benefits directly from a strong, stable and secure eurozone. Does he feel that if the City, which is probably the largest euro-trading market in the world now, is undermined by greedy gamblers still spreading false stories about the strength of the euro, that would be a tragedy for the City of London?

Deficit Reduction

Debate between Lord Dykes and Lord Sassoon

Tuesday 18th January 2011 Lords Chamber

[Lord Sassoon]

My Lords, as and when there are proceeds they will be fully accounted for. That is the position.

[Lord Dykes]

My Lords, will the Minister agree that if the Government take more energetic action to deal with the tax dodgers, of which there are many—probably amounting to over £100 billion a year—there will then be less need to sell state assets?

[Lord Sassoon]

My Lords, we want to see that the taxpayers of this country pay what they properly should pay. Indeed, we are investing an extra £900 million over the spending review period to ensure that HMRC is able to generate many billions of pounds in additional tax revenue each year. That is quite independent of the need to look properly and hard at Government-owned assets—companies and otherwise—to see what revenue can properly be derived from those assets.

EU: Budgets

Debate between Lord Dykes and Lord Sassoon

Thursday 2nd December 2010 Lords Chamber

[Lord Sassoon]

My Lords, I am happy to confirm that the consolidated statement that the UK and a handful of other member states are producing is the most useful practical way of demonstrating that the EU funds that the UK administers are well under control. There is little reference in the auditors’ reports to any matters in the UK. Leading by example is the way we should do it.

[Lord Dykes]

My Lords—

[Lord Dykes]

My Lords, can the Minister confirm again that these are overwhelmingly technical, clerical, administrative and operational mistakes, and not to do with fraud, which accounts for a tiny amount; and that fraud has also occurred regularly in the United Kingdom?

[Lord Sassoon]

I do not want to go over old ground; I have talked about the fraud issue, which we should not get out of perspective. We nevertheless should not be complacent about any of this. There has to be a formal vote each year to discharge the Commission in respect of the audit qualifications. The previous Government never used their vote in this respect when the annual discharge was voted on. As my honourable friend the Economic Secretary has said, the Government plan to be ready to use our vote if the accounts fail to meet the standards that we think they should. We have to strike a balance here and be seen to take tough action if that is appropriate.

EU: Membership

Debate between Lord Dykes and Lord Sassoon

Monday 8th November 2010 Lords Chamber

[Lord Sassoon]

My Lords, in answer to the first part of the noble Lord’s question, 40 per cent of the UK’s trade goes to Europe, so it is a critical trading partner. On the potential increase of our budget contribution for next year, I should say that it was only thanks to the work of my right honourable friend the Prime Minister that the budget was put on to the agenda of the Council of Ministers and, thanks to the work he did with a number of other member states, the ridiculous proposal of a 6 per cent increase has been thrown out of court. The Council instead discussed the 2.9 per cent increase which we believed to be the absolute upper limit of what should be acceptable for next year.

[Lord Dykes]

My Lords, further to the Minister’s answer when he was referring to the enormous benefits in all sectors, would he agree that even the City earnings from being the largest euro currency trading centre in the whole world are enormous in comparison with the budget contribution we have to make? There are many other examples.

In view of the low quality of the characteristic questions of the noble Lord, Lord Pearson, should he not return to being leader of UKIP, the only party in Britain that wants us to leave, after 37 years of membership of the EU? If he were right, Richard Branson and many other businessmen would be wrong.

[Lord Sassoon]

My Lords, I suppose there was a question in there for me somewhere. I certainly agree with my noble friend that the City of London over a number of decades has indeed become the principal financial centre for the European Union. It is important that business across the European Union understands what benefit it gets out of the financing that goes through the City of London.