Draft EU Budget 2011

Charlie Elphicke Excerpts

Wednesday 13th October 2010 Commons Chamber

[Gordon Henderson (Sittingbourne and Sheppey) (Con)]

Over the past few months, we have spent a lot of our time debating one aspect or another of the financial crisis in which the country finds itself. Britain has a huge deficit, and the British public have collectively built up a mountain of personal debt. All in all, we are in a real mess. The Government have set out a series of measures to reduce the national debt, and I know that many individuals—including people in my constituency—are trying hard to cut down their indebtedness. These are tough times for us all, and we are not alone. Many other countries around the world, including many in Europe, are facing huge financial challenges and struggling to balance their books without pushing their national economies into another recession.

In this era of uncertainty and austerity, what does that organisation of probity and good governance, the European Commission, do? It proposes to increase the EU budget next year by 5.8%, which in real money represents an increase of £6,102 million. What planet do European Commissioners live on? They live on the planet of self-indulgence. They live in a cushioned climate of privilege in which the Brussels gravy train does not stop long enough for them to see what is happening in the real world.

To be fair to our own British Government, at least they recognise the stupidity of the European Commission. As the Economic Secretary wrote in a briefing note and confirmed this evening, the Government are very concerned about the proposed increase in appropriations of 5.8%. They might be very concerned, but I would be absolutely livid. I give at least one out of three cheers to the Treasury for that statement but, sadly, I cannot bring myself to give it any more cheers. My hon. Friend let herself down in addressing the EU problem by proposing that the EU budget remains at cash levels equivalent to the 2010 budget. That is also why I cannot support amendment (a). I bet all those Ministers tasked with making a 20% cut in their departmental budgets are a bit narked. I am sure that in the present economic climate, they would be delighted to be given a zero growth budget.

Like many other right hon. and hon. Members, I have been inundated with letters and e-mails complaining about the proposed cuts in benefits, increases in tuition fees and changes to public service pensions. There is a great deal of disquiet out there and representing a constituency that has some of the most deprived areas in the south-east within its boundaries, I share some of that disquiet, but I am happy to go into bat on behalf of the coalition Government and to argue the case for those cuts. I believe that in their heart of hearts, most people in my constituency understand that we have no choice but to push through those cuts if we are to reduce the mountain of debt we inherited from the previous Government.

In common with my hon. Friend the Member for St Albans (Mrs Main), however, I would not be able to look my friends and neighbours in the eye if we drove through a programme of painful cuts in our public services, while at the same time bunging the EU billions of pounds to waste on grandiose schemes such as the European External Action Service and the European Institute of Gender Equality in Vilnius, Lithuania, for which, incidentally, the UK is being asked to cough up £800,000.

Next year, the European Commission proposes to spend £7 billion on administration. By my calculation, the UK’s contribution to those administration costs will be about £1 billion. If Government Departments and public bodies in this country are being asked to cut their administration costs, it is surely right to expect the European Commission to do the same.

[Charlie Elphicke (Dover) (Con)]

Does my hon. Friend note with concern that where the UK has a 15% increase in public spending over five years, the European Union wants to increase its spending by 60%?

[Gordon Henderson]

I am aware of those figures and I think that they are scandalous.

My hon. Friend the Economic Secretary has said that the British Government will press the EU to deliver greater value for money, and I am sure that she and the Government will do so, but does anyone here really believe that our friends across the English channel in the European Commission will actually listen to them? When the draft budget is eventually presented to the European Parliament for debate later this year, do Treasury Ministers really think that anyone other than a small group of British MEPs will take a blind bit of notice of their view? I think not.

I would personally like to see the Government unilaterally reduce the UK’s contribution to the EU budget for 2011 by the average percentage cut imposed on Whitehall Departments. If the European Commission and the European Parliament do not like it and kick up a fuss, we should immediately hold a referendum on Britain’s continued membership and let the British people decide our future once and for all. Perhaps we could hold it on the same day as the referendum on the alternative vote.

I support amendment (b), and I urge Members in all parts of the House to do the same.

--- Later in debate ---

[Charlie Elphicke (Dover) (Con)]

I will be as brief as possible. I just wanted to note the following numbers. The total managed expenditure in the United Kingdom Budget will be £697 billion in 2010-11 rising to £700 billion in 2011-12. That is an increase of just 0.5%, whereas the European Union is really gunning for it with a 5.8% increase and, as we have heard, administration costs will rise by 4.4%.

It is worth noting what the Commission has to say about the administration costs. It says it has made particular efforts to limit its administrative expenditure and that rise is partially due to the higher than expected salary increases in 2009. So we in the UK are implementing austerity and limiting the pay rises for our public sector workers while the EU just carries on serenely as though nothing has happened. An increase of €380 million is entirely unacceptable.

We have heard about the total number of doctors, nurses and others who will be affected in the current circumstances, but let us look at the constituency numbers: nine doctors per constituency, 19 nurses, 23 policemen and 34 troops. That is the scale of the situation we are facing. The EU budget is therefore a ferocious and astonishing waste of money. It is entirely unacceptable that over a five-year period we in the UK are having a 10% rise in spending, but there will be a 60% rise for the EU. What do we as a nation get for that? Do we get any value at all?

Finally, I want to congratulate the Economic Secretary on making the strongest and most impassioned case on Europe from the Dispatch Box that any of us has seen in the past 20 years, setting out that the Government will take the EU to task and bang the table and make the points that need to be made. I hope I speak for the whole House when I say that in negotiating on this matter she has our strongest and best wishes. All Members on the Government Benches certainly want her to get the best deal for Britain.