EU Council

Lord Davies of Stamford Excerpts

Monday 27th October 2014 Lords Chamber

[Lord Davies of Stamford (Lab)]

My Lords, the Prime Minister is putting it about that there is nothing he could have said or done about this until he knew the full details, which happened only on Thursday, and the Minister has been trying to defend him on that basis. However, is that not complete and obvious nonsense? It has been known for many months that these negotiations were continuing between Eurostat and the ONS. Anybody half awake would have known that, even if the recorded growth discrepancies in any one year were fairly small, resolving the whole matter by a single payment could amount to paying a very considerable cash sum. All that the Chancellor and the Prime Minister had to do was simply to follow carefully, via the ONS, how the discussions were proceeding to see whether that danger was materialising. They monumentally failed to do that: they took their eyes completely off the ball and have no one but themselves to blame for the surprise that they found on Thursday and Friday.

[Baroness Stowell of Beeston]

I know that the noble Lord follows European matters quite closely but, from what he has just said, he is clearly not familiar with this process, which happens every year. Each country puts forward the calculations of its own measures and then the Commission has to look at each country’s submissions alongside one another. It then proposes what will be refunded in the light of that. No nation state will know the net payment until the last minute. That is why all of the nation states that were affected by this dramatic increase were as surprised as Mr Cameron.