EU: Budgets

Lord Kinnock Excerpts

Thursday 2nd December 2010 Lords Chamber

[Lord Sassoon]

My Lords, I can certainly confirm what the noble Lord says. This does not necessarily excuse anything. If around 50 per cent of expenditure nevertheless does not meet the standards, whether through laxities in accounting or administration of the expenditure, it excuses nothing. Indeed, the level of fraud itself, which has been much discussed, is nevertheless at a very low level. According to the work of the European Anti-Fraud Office, OLAF, the level of fraud has decreased from 0.2 per cent of expenditure in 2007 to 0.07 per cent in 2008.

[Lord Kinnock]

My Lords, will the noble Lord further confirm the satisfactory rate at which the statements of assurance can be offered in respect of different parts of the budget? Secondly, will he also confirm that in areas where there is effective measurement of payments in and payments out, statements of assurance—as in administration, as the noble Lord, Lord Williamson, just said—have consistently been given? Will the Minister therefore encourage the Government to try to spread the good habits that have been developed in this country over recent years so that other member states, where there is a higher incidence of error and fraud, conform to the highest standards so that both the Commission and the Court of Auditors can undertake their work at a much more satisfactory level? That would please everyone.

[Lord Sassoon]

My Lords, I am happy to confirm that the consolidated statement that the UK and a handful of other member states are producing is the most useful practical way of demonstrating that the EU funds that the UK administers are well under control. There is little reference in the auditors’ reports to any matters in the UK. Leading by example is the way we should do it.