Multiannual Financial Framework

Graham Stringer Excerpts

Wednesday 7th December 2016 General Committees

[Mr Gauke]

First, on why we abstained on the annual budget, it is fair to say that the budget deal has a healthy payments margin of €9.8 billion—over €7 billion more than last year—and we welcomed that. We still believe that the EU could go further to cut lower priority spending from the budget. However, progress has been made, and the UK recognises that by not voting against the budget. We very often voted against the budget in the past because we felt that not enough had been done to deal with wasteful spending and that better value for money could be obtained for the European taxpayer. However, given that the payment margins were healthy this year, we decided not to vote against. More could have been done, but, in the circumstances, we decided to abstain.

On the reallocation of immigration expenditure, I can reassure the hon. Gentleman that the spending on aid was not impacted by increases in internal security. In fact, both have been enhanced.

Pensions remuneration is not a matter for budget discussions; it is a matter for the rules that the Commission applies to itself, so there were no particular discussions on that point. The UK and other member states have pointed out that the European Commission’s administration costs are higher than we would like. Indeed, there has been an increase in recent years, particularly in administration costs, although that has largely been put down to increased security costs, given recent events. The specific point that the hon. Gentleman raised was not part of our discussions.

[Graham Stringer (Blackley and Broughton) (Lab)]

The EU vanity project, Galileo, has massively overspent, not because of need but because of technical and budgeting incompetence. Will the Minister tell us how much extra that has cost the British Exchequer and what that extra expenditure has done to the original cost-benefit analysis of Galileo? Will he also tell us what action the Government took to try to keep that project within budget? If he is unable to answer now—I would not be totally surprised—will he write to Committee members with his response?

[Mr Gauke]

I thank the hon. Gentleman for his question. He has anticipated what I will say, which is that I will write to him with details. I will check, but as far as I understand it, the delays on Galileo have led to fewer commitments in this multiannual financial framework, rather than an increase. Of course, what has happened to the overall project costs is another matter, but my understanding is that it has led to fewer commitments over this period—I caveat that by saying that I will confirm it.

[Graham Stringer]

Finally, it is all very well looking at these budgets with under-expenditures, over-expenditures and changes in the budget, but will the Minister tell us what action the Government are taking, while we are still a member of the EU, to ensure that the EU has signed, audited accounts for all this money?

[Mr Gauke]

The hon. Gentleman takes me into the territory of another of the regular annual debates that we have in this room, or sometimes in the Chamber, on signing off EU accounts. Fraud and error levels fell again this year but are still too high and the issue that he raises continues to apply. We take the financial management of the EU budget very seriously. Taxpayers need to have confidence that their funds are being effectively managed and implemented at EU level. The Government have been robust in holding the Commission to account, including by regularly taking a strong public stand in voting against signing off the accounts. We continue to place pressure on the Commission to improve. We debate the issue regularly, and I look forward to the next time we do—I cannot remember exactly when that will be, but I am sure the hon. Gentleman will be there and will be able to make his points again on that.