EU: Financial Management

Lord Campbell of Alloway Excerpts

Wednesday 6th April 2011 Lords Chamber

Asked By

[Lord Campbell of Alloway]

To ask Her Majesty’s Government what representations they will make to the Council of Ministers to give consideration to the joint declaration by the Netherlands, Sweden and the United Kingdom regarding the financial management of European Union funds, made at the Economic and Financial Council on 15 February, before the European Union Budget for 2010 is discharged.

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

My Lords, the failure to achieve a positive opinion from the European Court of Auditors on the EU accounts is unacceptable. The Government are working to resolve this and have been clear that they want to see simpler rules surrounding EU programmes to facilitate proper scrutiny of EU spending. The Government continue to build on the February joint declaration. This includes negotiations on the financial regulation and the principles governing EU budget implementation.

[Lord Campbell of Alloway]

I thank the noble Lord for that constructive response not only about representations that will be made to the Council of Ministers for approval of the joint declaration, but also about the initiative to set up negotiations, without which no new effective regime could be established. I add shortly that, having read the reports of yesterday—if you can understand them at all—it is apparent that a referendum is in no way related to this matter because, whether you call it a power, a competence or whatever, nothing is being taken away from us; it is in fact just given to us and to others.

I have two short questions. What practical steps will be taken to address the management of EU funds which relate to the EU budget and to make them transparent? Could the Government—of course we cannot deal with this issue at Question Time—arrange for a debate in which these matters may be considered by your Lordships?

[Lord Sassoon]

My Lords, I am very grateful to my noble friend for recognising the practical steps that the Government are taking to get round this issue. I very much respect his many years of involvement in European issues. We are working very practically. Only next week, my honourable friend the Economic Secretary is meeting the three Commissioners who have responsibilities for the budget and the audit of the budget. She plans to meet the Court of Auditors and she has met the one and only state Minister who is solely responsible for the management of EU funds. We are very much on the case in making sure that EU funds are handled in a much simpler and transparent way in the future so that control can be improved.

On the question about a debate, I shall take that suggestion on board. In another place, I believe they have a debate in committee which normally takes place in January or February before ECOFIN considers the annual discharge. We shall consider that suggestion.