Aviation: Passenger Duty

Debate between Lord Sassoon and Lord Campbell of Alloway

Monday 23rd January 2012 Lords Chamber

[Lord Sassoon]

My Lords, although I do not underestimate for one moment the effect on the Caribbean, there will be very many businesses located there, here and in other places for which air passenger duty is a burden. The present system of four bands was introduced by the previous Government. We had a one-year freeze in order to recognise the difficult situation in which people were placed by this and we looked at it. However, the fact is that the APD raised approximately £2.5 billion in 2011-12 and is an important revenue-raising duty.

[Lord Campbell of Alloway]

My Lords—

EU: Budget

Debate between Lord Sassoon and Lord Campbell of Alloway

Thursday 28th April 2011 Lords Chamber

[Lord Campbell of Alloway]

To ask Her Majesty’s Government what proportion of the United Kingdom contribution to the European Union Budget has been signed off by the Court of Auditors over the last 16 years.

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

My Lords, the UK contributes to the EU budget as a whole, not to individual spending programmes. Therefore, data on UK contributions to the EU budget not signed off by the Court of Auditors are unavailable. However, the recurrent failure to achieve a positive audit opinion from the court on the EU’s accounts is unacceptable. The Government set out recommendations to improve EU financial management and transparency at ECOFIN in February this year.

[Lord Campbell of Alloway]

I thank the noble Lord for his explanatory exposition of this aspect of the unacceptable, on which we have not spoken previously. I merely seek to establish a transparent, independent regime and to deal with the problem of inclusion in the budget of expenditure which has been signed off in the accounts by the Court of Auditors. Perhaps I may ask a short question. Is it not a relevant consideration in the ongoing negotiations to seek to establish an acceptable regime?

[Lord Sassoon]

I am grateful to my noble friend for once again drawing attention to the unacceptable situation that we face with regard to the European audit. I think that he puts his finger on one of the key issues, which is that we need to work towards a much simpler and more transparent regime. If the rules around the various European expenditure programmes were made less complex, it would be much easier for member states to comply with those rules. It is very much on that practical aspect of the regime that my honourable friend the Economic Secretary is working with the Audit Commissioner, others in Brussels and member states to make sure that we move to a simpler, clearer and more auditable regime.

EU: Financial Management

Debate between Lord Sassoon and Lord Campbell of Alloway

Wednesday 6th April 2011 Lords Chamber

[Lord Campbell of Alloway]

To ask Her Majesty’s Government what representations they will make to the Council of Ministers to give consideration to the joint declaration by the Netherlands, Sweden and the United Kingdom regarding the financial management of European Union funds, made at the Economic and Financial Council on 15 February, before the European Union Budget for 2010 is discharged.

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

My Lords, the failure to achieve a positive opinion from the European Court of Auditors on the EU accounts is unacceptable. The Government are working to resolve this and have been clear that they want to see simpler rules surrounding EU programmes to facilitate proper scrutiny of EU spending. The Government continue to build on the February joint declaration. This includes negotiations on the financial regulation and the principles governing EU budget implementation.

[Lord Campbell of Alloway]

I thank the noble Lord for that constructive response not only about representations that will be made to the Council of Ministers for approval of the joint declaration, but also about the initiative to set up negotiations, without which no new effective regime could be established. I add shortly that, having read the reports of yesterday—if you can understand them at all—it is apparent that a referendum is in no way related to this matter because, whether you call it a power, a competence or whatever, nothing is being taken away from us; it is in fact just given to us and to others.

I have two short questions. What practical steps will be taken to address the management of EU funds which relate to the EU budget and to make them transparent? Could the Government—of course we cannot deal with this issue at Question Time—arrange for a debate in which these matters may be considered by your Lordships?

[Lord Sassoon]

My Lords, I am very grateful to my noble friend for recognising the practical steps that the Government are taking to get round this issue. I very much respect his many years of involvement in European issues. We are working very practically. Only next week, my honourable friend the Economic Secretary is meeting the three Commissioners who have responsibilities for the budget and the audit of the budget. She plans to meet the Court of Auditors and she has met the one and only state Minister who is solely responsible for the management of EU funds. We are very much on the case in making sure that EU funds are handled in a much simpler and transparent way in the future so that control can be improved.

On the question about a debate, I shall take that suggestion on board. In another place, I believe they have a debate in committee which normally takes place in January or February before ECOFIN considers the annual discharge. We shall consider that suggestion.

EU: Budget

Debate between Lord Sassoon and Lord Campbell of Alloway

Monday 10th January 2011 Lords Chamber

[Lord Campbell of Alloway]

To ask Her Majesty’s Government what steps they will take to ensure that the expenditure on accounts for the budget signed off by the European Court of Auditors shall be excluded from the contribution imposed on member states.

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

My Lords, the UK cannot withhold its contributions to the annual European Union budget as it is required to make those contributions under obligations imposed by the treaties. The European Communities Act 1972, particularly Section 2, gives effect within the UK to Community law.

[Lord Campbell of Alloway]

I ask the noble Lord in response: since the findings of the Council are subservient to the approval of the Parliament, will the Government now seek change to the Lisbon treaty to enable the European Court of Auditors to oppose expenditure on a reasoned assumption that has the support of the Council of Europe, and so then to sign off the accounts? In other words, will the Government take some step, if not that step?

[Lord Sassoon]

My Lords, I am grateful to my noble friend for drawing attention to a clearly unsatisfactory situation. Year after year, the European accounts cannot get a clean audit opinion. However, it is the Government’s view that the way forward is not to press for treaty changes but to try to make sure that the whole system of accounting is made simpler and clarified. It should concentrate on what is important, and the capabilities of both the European Commission and other agencies—whether at the European level or, particularly, within member states—to manage the money should be enhanced so that we get out of an appalling situation that we do not want to see continue. However, treaty change is not the appropriate vehicle.

EU: Budgets

Debate between Lord Sassoon and Lord Campbell of Alloway

Thursday 2nd December 2010 Lords Chamber

[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.

EU: Financial Assistance to Member States

Debate between Lord Sassoon and Lord Campbell of Alloway

Monday 19th July 2010 Lords Chamber

[Lord Sassoon]

My Lords, as I have set out, the UK is indeed playing its part. Forty per cent of our exports go to the eurozone and it is absolutely critical that we play our part, not only in the current ongoing crisis but in influencing the structural reforms that Europe requires going forward.

[Lord Campbell of Alloway]

My Lords, perhaps I may ask a simple question, speaking for no Benches at all. What is the Answer: are we or are we not liable?

[Lord Sassoon]

My Lords, the €60-billion element of the package agreed on 9 May comes out of the EU budget. So far there have been no loans advanced under this but, if there were and any question of loss arose, the UK would indirectly bear its proportionate share, along with any other item in the EU budget.