European Council

Ed Miliband Excerpts

Monday 27th October 2014 Commons Chamber

[Edward Miliband (Doncaster North) (Lab)]

I thank the Prime Minister for his statement. Let me start by echoing his words about the contribution of our armed forces in Afghanistan. All our thanks are with those who have served our country, and all our thoughts are with the families of those who lost their lives. We will continue to support the Afghan Government through political and humanitarian aid, as well as our training mission. Every one of our troops who served in Afghanistan can take pride in their mission and what they achieved, and the House and the whole country are proud of them.

I also echo the Prime Minister’s words about Ukraine and support for its Government. On climate change, I welcome the climate and energy package, paving the way for the global UN summit in Paris next year. What action will he be taking in the coming months to encourage other countries, especially China and the United States, to bring forward ambitious targets and policies in advance of that conference?

Turning to the Ebola crisis in west Africa, the whole world has been horrified by the devastating scenes. Our hearts go out to the communities that confront the threat on a daily basis. I welcome the Government’s efforts to help affected countries. We are proud of the work of our armed forces, our health professionals and our aid community. What effort was made at the summit to encourage other countries to do what Britain has done by sending health workers and personnel to the affected region?

Let me turn to the EU budget change. The Commission’s handling of the matter has been cack-handed and unacceptable, and it has caused consternation in several other states. The urgent priority now is for the Government to pursue all diplomatic means to get the best deal for Britain, but the Prime Minister must also explain whether the Government carried out due diligence in their handling of the matter. He says that he was made aware of the matter only on 23 October, while the Chancellor said that he had “no warning”, but that is simply not the case. The budget changes arise due to changed estimates of gross national income—GNI. The scale of the changes should not have taken anyone in government by surprise because extensive coverage was given to significant changes to our national income arising from the inclusion of the shadow economy, which is worth more than £50 billion.

Will the Prime Minister confirm that the Office for National Statistics agreed to, and has been part of, these substantial and planned changes throughout Europe for at least two years—since 2012? Will he further confirm that the ONS stated publicly in May 2014 that the changes would impact our budget contribution? It said in a press release that GNI

“is used in the calculation of a Member State’s contribution to the EU budget.”

The Treasury was clearly aware of the situation, because I have here a letter that the then Economic Secretary, the right hon. Member for Loughborough (Nicky Morgan), wrote to a parliamentary Committee on Europe not seven days ago, but seven months ago—on 11 March 2014. She said in that very interesting letter that changes to GNI would take place in time for 2014 and wrote about the “high priority” that the Government were giving to addressing them. The changes had been planned for a number of years, the ONS publicly declared that they would have an impact on our budget contribution, and Ministers knew about them and claimed that they were a “high priority”, so when the Prime Minister replies, will he really maintain that there was “no warning” and that Treasury Ministers knew nothing about the changes? Surely the Treasury must have made its own assessment of the impact on the EU budget that would follow. As a matter of basic competence, if it did not do that, why not? This matters because the Prime Minister could have done much earlier what he did at the last minute on Friday: called for a meeting of Finance Ministers and entered negotiations about the demand.

Is not the truth that this is a familiar pattern with this Prime Minister: months and months when he does not do the work, followed by last-minute pyrotechnics when it goes wrong? No one will be fooled by it. He spends all his time negotiating with his party about Europe, when what he should be doing is the basic work of getting a better deal for Britain. Once again he shows that, for all his bluster, he has been asleep at the wheel and the British people are paying the price.

[The Prime Minister]

Throughout all that, the right hon. Gentleman would not answer one simple question: would Labour pay the bill? That is the problem: there is absolutely no leadership available on the Opposition Front Bench. [Interruption.] Let me answer all his questions—[Interruption.]