EU: Budget

Lord Campbell of Alloway Excerpts

Monday 10th January 2011 Lords Chamber

Asked By

[Lord Campbell of Alloway]

To ask Her Majesty’s Government what steps they will take to ensure that the expenditure on accounts for the budget signed off by the European Court of Auditors shall be excluded from the contribution imposed on member states.

[The Commercial Secretary to the Treasury (Lord Sassoon)]

My Lords, the UK cannot withhold its contributions to the annual European Union budget as it is required to make those contributions under obligations imposed by the treaties. The European Communities Act 1972, particularly Section 2, gives effect within the UK to Community law.

[Lord Campbell of Alloway]

I ask the noble Lord in response: since the findings of the Council are subservient to the approval of the Parliament, will the Government now seek change to the Lisbon treaty to enable the European Court of Auditors to oppose expenditure on a reasoned assumption that has the support of the Council of Europe, and so then to sign off the accounts? In other words, will the Government take some step, if not that step?

[Lord Sassoon]

My Lords, I am grateful to my noble friend for drawing attention to a clearly unsatisfactory situation. Year after year, the European accounts cannot get a clean audit opinion. However, it is the Government’s view that the way forward is not to press for treaty changes but to try to make sure that the whole system of accounting is made simpler and clarified. It should concentrate on what is important, and the capabilities of both the European Commission and other agencies—whether at the European level or, particularly, within member states—to manage the money should be enhanced so that we get out of an appalling situation that we do not want to see continue. However, treaty change is not the appropriate vehicle.