Draft EU Budget 2011

Priti Patel Excerpts

Wednesday 13th October 2010 Commons Chamber

[Priti Patel (Witham) (Con)]

It is a delight to speak in this debate as a new Member, particularly as the country was denied a vote on the Lisbon treaty and this is the first post-Lisbon budget.

When the Lisbon treaty was passed, we heard claim after claim that it would make the EU decision-making process more efficient and democratic. How can it have led to more efficiency, when the EU budget is due to increase by 5.8% in payment appropriations? Even the Opposition, with their astonishing record on spending and waste, would struggle to justify an annual increase in spending on that scale. I very much doubt that, in the current economic climate, any Department calling for such an increase in its budget would be given any consideration.

The Government’s position is to keep cash levels at the same rate as last year, but, at a time when most domestic Departments are looking to make efficiencies and cuts ranging from 25% to 40%, why is the EU not being pushed further? With a total budget exceeding €130 billion, it is not unreasonable for the Government and the Economic Secretary to the Treasury, in her negotiations, to pursue the Commission and other member states to make deeper cuts in order to bring down the cost of the EU and to protect the British taxpayer.

My constituents in Witham and the majority of the British public now understand that the Government are dealing with spending, and that spending must come down. As decisions affecting my constituents are taken, however, they will be furious to see that, although they cannot have their new school buildings or road improvements for now, more and more of their hard-earned money is being handed over to Europe.

Having gone through the draft budget, which is a significant document, I note that there are some significant and questionable increases in spending, which the Economic Secretary should seek to reverse in her negotiations. There is an extraordinary document entitled, “Administrative expenditure of the institutions”. Linked to the budget, it is an alarming read, and figures for each institution, line by line, give a shocking insight into bureaucratic waste in the EU.

Those figures include an 85% increase in “Entertainment and representation expenses”; a 440% increase in

“Miscellaneous expenditure on the organisation of Euromed Parliamentary Assembly meetings”;

a 43% increase to €19.6 million on

“Expenditure on publication, information and participation in public events”;

a 23.6% increase in

“Contributions to European political parties”;

a 24.7% increase in

“Contributions to European political foundations”;

and, on top of that, as we have already heard, the

“Provisional appropriation for the 18 additional Members of the European Parliament”,

which under the Lisbon Treaty will cost €9.4 million.

I have previously questioned the Europe Minister, who is not here today, on that matter, but, while this Parliament reduces its numbers and cuts its costs, subsidies and expenses, surely the Economic Secretary should make the same point about Europe when she comes to negotiate with her European counterparts.

Only last month, another example of EU waste was brought to my attention. Promoted by the East of England Development Agency and the East of England European Partnership, the document entitled, “Europe for Citizens”, opens with an extraordinary and, one could argue, helpful statement, proclaiming:

“Europe for Citizens is a funding programme that basically provides a large number of small grants.”

I find that statement astonishing. In spite of the economic difficulties that face this country and, in fact, other European states, a pot of money amounting to €215 million is available for “High visibility events”, “Town twinning”,

“Structural support for think tanks”,

and

“Support for projects initiated by civil society organisations.”

Trimming those budgets and other activities would save the British taxpayer quite a lot of money and even bring some long overdue financial management to the EU.

Next month, as we have heard, we will have the spectacle of the European Court of Auditors finding, no doubt, even more irregularities in the EU budget for yet another year running. In any well-respected democracy, no organisation spending money on that scale would be able to get away with the auditors not signing off its books, or with the level of previous errors, which most Government Members attribute to the previous Government’s maladministration. I urge the Economic Secretary to ask for stringent guarantees that money spent by the EU will be spent not only efficiently but robustly and effectively, and that the auditors are doing their job properly, because there are so many instances of waste and unaccountability. British taxpayers are not sufficiently up in arms about that issue.

Instead of acknowledging the deficiencies in its budgets and its incompetent financial management, the EU lives in denial, pursuing a policy of blatant spin and propaganda, and attacking any organisation that dares to question how taxpayers’ money is being spent. On its website, there is a whole section devoted to so-called “EU budget myths”, and a “myth-buster guide” has been published. The EU goes as far as to state that we should

“not confuse errors with fraud”

and that there are

“too many errors, usually made by the end users of EU funding.”

This budget and the forthcoming negotiations clearly provide an opportunity to challenge the EU in its way of working.

[Nick de Bois (Enfield North) (Con)]

Does my hon. Friend agree that when the Economic Secretary engages in these negotiations, which I have no doubt that she is more than qualified to lead given what she said earlier, it would be to her advantage if we supported amendment (b), because going in and asking for a reduction in the budget instead of just the status quo would help our case?

[Priti Patel]

I totally agree with that.

The situation is without a doubt unsustainable. Particularly given the EU’s previous track record as regards misappropriation of funds and lack of transparency, current funding levels cannot continue. EU officials need to understand that the British public cannot be treated like fools. We can clearly see through the spin, the propaganda, and the abuses of taxpayers’ money for endless self-serving vanity projects that are not in our democratic, economic or national interest. Just as sunshine has proved to be the best disinfectant on issues such as MPs’ expenses, it is about time that some sunlight was shone on to the EU budget.

[Nick de Bois]

Give them IPSA.

[Priti Patel]

They are welcome to IPSA, as well.

It is an appropriate coincidence that we are discussing the EU budget on the very same day that Baroness Thatcher celebrates her 85th birthday. What better way to celebrate the Iron Lady’s birthday than for the Economic Secretary to go to Europe tomorrow, stand up and really fight our corner, and say those immortal words, “No, no, no”, giving an ultimatum to her European counterparts and the Commission bureaucrats as they press for larger sums of money to be spent and attack our rebate?

I wish the Economic Secretary well in those fundamental discussions and negotiations. Our country has paid a high price on previous occasions, and our sovereignty has been undermined. We have Europe meddling in our affairs, taking billions of pounds from the hard-pressed British taxpayer. I urge her to put Britain’s interests, and the interests of the British taxpayer, first.

Equitable Life (Payments) Bill

Priti Patel Excerpts

Tuesday 14th September 2010 Commons Chamber

[Priti Patel (Witham) (Con)]

I pay tribute to my hon. Friend the Member for Congleton (Fiona Bruce) for her outstanding maiden speech, and for the beautiful tour of her scenic constituency.

Right hon. and hon. Members have a big responsibility to deliver a fair resolution to policyholders who have been affected by this scandal of maladministration by the regulators. As we have heard, when in opposition, Conservatives and Liberal Democrats quite rightly pursued and scrutinised the previous Government, and sought to hold them to account for neglecting Equitable Life victims and for failing to establish a long-overdue compensation scheme. We rightly acted in victims’ interests to support them as the previous Government dithered, delayed and dragged their heels. Disgracefully, as we have heard, they left many policyholders to pass away, unable to receive the justice that they deserved. That applies to a number of families in my constituency. By contrast, we are passionately committed to delivering a fair, transparent and independent payment scheme for the losses that people incurred because of that dreadful regulatory failure. Obviously, the Bill is a strong, positive measure and a step in the right direction.

It is important to remember that Equitable Life policyholders did exactly the right thing. They chose to save for their retirement so that they could have a decent quality of life in their later years. One of my constituents wrote to let me know of a loss of something like £130,000 as a result of being forced to buy an annuity. There are some maths involved, but the loss works out at around £80,000 per year, which is a substantial amount of money to anyone, but particularly to a pensioner trying to make ends meet in this day and age. He is more than frustrated; he is desperate beyond belief to find out the next steps and what, effectively, he will get. Another of my constituents has had to rethink their plans for retirement off the back of their losses, and I could reel off a list of more than 100 names of constituents who have contacted me on this matter.

[Heather Wheeler (South Derbyshire) (Con)]

Will my hon. Friend give way?

[Priti Patel]

I will not, if my hon. Friend does not mind.

The 1.5 million policyholders affected and their families desperately need certainty, finality and, frankly, closure on this lamentable situation. Although policyholders in my constituency broadly welcome the Government’s decision and their commitment to begin making payments through the independent scheme next year, it is understandable that, owing to the actions of the previous Government, they remain sceptical. They have many probing questions for the Minister and the Government, as many colleagues in the House will recognise.

Transparency in the scheme is of course essential—the Minister referred to that—and although payments will begin next year, my constituents want to know when the process of making payments to all affected policyholders will be completed, as we have heard from other hon. Members. Let us be realistic. Processing payments is a challenging task made all the more arduous by the delays caused by the previous Government and the atrocious financial situation that we face, which we constantly hear about, but that is why it is important that all policyholders have their cases resolved promptly, in addition to receiving payments as soon as possible.

Where policyholders are not fully compensated for their losses, it is important that they are given clear reasons why not, and that they have an opportunity to restate their case when that is an option. I should welcome clarification from the Minister on any appeals process for policyholders who feel that an initial award by the independent commission is unfair to them.

The scheme will also need to address the implications for tax, tax credits, other benefits and means-tested benefits. Frankly, in view of the bureaucracy associated with Her Majesty’s Revenue and Customs and the current crisis of HMRC demanding money back from hard-pressed taxpayers and pensioners, policyholders in my constituency are genuinely concerned that although they might receive some compensation, they might also get a letter from HMRC demanding money back. After a decade-long struggle to receive justice and payment, the last thing that those policyholders need is a letter on the doorstep from a heavy-handed bureaucrat demanding money back.

Lives have been ruined and it is scandalous that, two and a half years after the ombudsman reported, six years after Penrose and almost a decade after the whole scandal came to light, justice has yet to be delivered. It is right that the Government should tackle the issue and the Bill is a great step forward. Fairly compensating those who have lost out has to be a priority for the Government. Having seen the shambles of the previous Government, I welcome this Government’s commitment to policyholders. The Bill is an absolute must and is long overdue.

Proposed Public Expenditure Cuts

Priti Patel Excerpts

Monday 13th September 2010 Commons Chamber

[Mr Osborne]

It is difficult to see how we can have a debate on out-of-work benefits and how to reform them without at least addressing the issue of some people who should perhaps be doing more to get into work. Let me stress that we are doing everything we can to make sure that the poorest and the most vulnerable are helped, while rewarding work. If the right hon. Lady or any other Labour Member wants to make a positive contribution or propose a positive plan, we will listen to it.

[Priti Patel (Witham) (Con)]

Will the Chancellor condemn the calls for civil disobedience coming from the trade unions in the light of the necessary spending decisions that have to be made in view of the economic mess left by the last Government?

[Mr Osborne]

I do not think that strike action would help anyone at this point in time. Again, the people who suffer most when countries lose control of their public finances are often those working in the public sector, so I would hope that the trade unions, like everyone else in our society, will work together to sort out this national problem—and do so in the national interest.