EU: Budget

Lord McConnell of Glenscorrodale Excerpts

Thursday 17th January 2013 Lords Chamber

Asked by

[Lord McConnell of Glenscorrodale]

To ask Her Majesty’s Government what position they will take on the European Development Fund and other European Union aid budgets in the current negotiations on future European Union funding.

[Baroness Northover]

My Lords, the UK’s top priority in negotiations for the EU budget for 2014-20 is budgetary restraint. We oppose increases beyond inflation in any area of EU expenditure, including the European Development Fund. However, it is important at least to maintain or increase the proportion of official development assistance within restrained EDF and overall EU budgets.

[Lord McConnell of Glenscorrodale]

I thank the Minister for her Answer. It would be an absolute scandal if those who lived in the poorest countries in the world were made to pay for the deficits that exist in the richest part of the world. In addition, will the Government address this technical point? Any reductions in the EU aid budget will simply have to be made up again in the national aid budgets of the member states. In the United Kingdom, where we have agreed to meet the 0.7% international target, that will mean that any reduction in the EU aid budget is simply transferred to the DfID budget because the EU aid budget contributes to that 0.7% target. The only countries that will benefit from a reduction in the EU aid budget will be those that wish to reduce their aid contributions by the back door and do not replace that money in their national budgets. Will the Government look again at this issue and ensure that the EU aid budget is preserved so that those countries that wish to reduce their aid contributions by the back door are not allowed to do so, and ensure that we make a contribution to that multilateral development assistance?

[Baroness Northover]

I thank the noble Lord for his question. He is well aware that the United Kingdom is increasing its own spending because it recognises the importance of supporting the poorest in the world, even when we are in financial difficulties. As far as the EDF and the EU budget are concerned, we scrutinise them very carefully for their poverty focus. We are encouraged by the direction they are heading in, so perhaps I can reassure the noble Lord in that regard. However, we will continue to keep up the pressure, as it needs to be poverty-focused. I point out that we are fifth in the league, as it were, in terms of ODA in the EU, behind Sweden, Luxembourg, Denmark and the Netherlands, all of which have gone beyond the 0.7%. The evidence is not quite as he indicated in terms of other countries. For example, there are increases from Germany, Italy and Sweden, so the picture here is not quite as he portrays it.