Multiannual Financial Framework

Henry Smith Excerpts

Wednesday 31st October 2012 Commons Chamber

[Mike Gapes (Ilford South) (Lab/Co-op)]

You and I, Mr Deputy Speaker, were both Members of this House in 1992-93, when I was one of those pro-Europeans who followed my pro-European party leader, John Smith, and the spokesman for foreign affairs, Lord Robertson, into the Lobby with people whom I would never have described as having the same view as me on Europe and its future. The same thing will happen this evening, but I wish to make it clear that I do so not because I agree with the tenor and tone of the many Europhobic speeches we have heard from Government Members—and some, unfortunately, from this side of the House—but because I believe it is wrong for the European Union to increase its spending at a time when national budgets, not just in this country but in Greece, Spain, Portugal and elsewhere, are being reduced.

This is not the most important debate about the future of Europe that we will face, and we must put it into perspective. Although there is talk of billions of pounds and euros, the EU budget is only 1% of the GDP of all member states. In this country, public spending accounts for more than 40% of our GDP each year, and we must put into perspective the fact that the EU’s total spend is very small.

In his introductory remarks, the Minister referred to the size of the Commission. I was unable to intervene at that point, but let me place it on the record that the European Commission has, in total, between 30,000 and 33,000 employees who serve 27 member states. The Minister’s Department in Her Majesty’s Revenue and Customs alone has about 80,000 employees, and we must get such things into perspective. We do not have a gargantuan European Union bureaucracy hoovering up resources; in fact, the UK Government spend five times as much servicing the interest on the national debt each year than they do in European Union contributions.

[Henry Smith (Crawley) (Con)]

The hon. Gentleman is talking about the administration of the European Commission, which at 30,000 employees I think is still too large. The bulk of the EU budget goes on redistributing money, typically from net contributors such as the United Kingdom to other parts of Europe. Does he feel that we need a little more restraint in that respect as well?

[Mike Gapes]

I agree with that, but I also point out that the UK contribution to the European Union is less than that of Germany. Our net contribution—with the rebate that was retained by the previous Labour Government—is comparable to that made by France, a similar country in terms of size, population and GDP. We are among the net contributors, but the European Union is also about solidarity. One thing that led to the growth of the European Union, and the increased trade and prosperity from which British workers and British companies benefit, is the fact that countries such as Spain and Portugal—and, increasingly, countries such as Slovenia—are growing and benefiting by their membership of the EU.

The EU also makes a contribution to democracy and stability in Europe, for which the Nobel prize committee has rightly—[Interruption.] Oh I see. Here they are; here is the real agenda. The Nobel prize committee has rightly recognised the European Union’s contribution to peace in Europe over the decades. If somebody like Henry Kissinger can get the Nobel peace prize, the European Union certainly deserves it.