European Council

Lord Pearson of Rannoch Excerpts

Monday 11th February 2013 Lords Chamber

[Lord Hill of Oareford]

On my noble friend’s second question, I will need to see whether I can provide better particulars on how the figures break down, and what the basis is for the speculation that my noble friend saw—whether it is to do with the energy elements of environment funds through the CAP, for example. I am not sure about that, so I will see what I can do. On his general point, I could not agree more. This outcome shows that Britain was far from marginalised and isolated in the negotiations. It also shows that the pessimistic view held by some that Britain is doomed to fail, and therefore should not go into negotiations with a strong position trying to win others round to our point of view, is entirely wrong.

I remember that many years ago when I was working for the then Prime Minister, John Major, there were similar views to the effect that Britain would never be able to win an opt-out of the single currency or an opt-out of the Social Chapter, but in fact those were both successfully achieved. Similarly on this occasion, there were people looking forward with eager anticipation in the expectation that my right honourable friend the Prime Minister would not be able to secure Britain’s interests. In fact, he has; I agree with my noble friend that by being clear in one’s objectives and by assembling alliances—in this case, with the Germans, the Swedes, the Dutch and the Danish—it is perfectly possible for Britain to secure its objectives, and it will continue to be so.

[Lord Pearson of Rannoch]

My Lords, I hope it will not ruin the Prime Minister’s day if I offer congratulations on a small step in the right direction. However, I think he is going a bit far when he describes the present situation as “a good deal for taxpayers”. Could the noble Lord tell us what this country’s gross and net contributions now become? In 2012, our gross contribution was some £22 billion, of which we got back around £11 billion, so our net contribution was £11 billion a year. That represents the salaries of 1,000 nurses at £30,000 a year every day, which we never see again. Therefore, I still have to query whether this whole arrangement is anything but a disastrous deal for British taxpayers.

More importantly, perhaps, is it true that the European so-called Parliament is going to vote on this new proposal in secret? If so, does that not nicely confirm the nature of this animal? What happens if the EU Parliament votes this down? Do we go back to some 2% inflation per annum for the next seven years? Could he enlighten us on that before we get too overwhelmed by the Prime Minister’s success?

[Lord Hill of Oareford]

I shall do my best to calm the House down, my Lords. I noticed that in the space of the comments of the noble Lord, Lord Pearson, he went from expressing concern about causing my right honourable friend the Prime Minister an anxiety attack by praising him, to rescinding that praise by the end.

On the cost to the British taxpayer, clearly, so far as the negotiation was concerned, the fact that the Prime Minister managed to end up with a credit card limit that was so many billions of euros lower than had been initially proposed is a cause of some modest satisfaction to the British taxpayer. That cost would have been lower if a chunk of our rebate had not unfortunately been surrendered in those negotiations in 2005 in the hope, as I understand it, that there would then be a deal on the CAP: a deal that has not been forthcoming. That explains why, although the overall figures are considerably lower—and they do represent a real-terms cut, which is what everyone wanted—the cost to the taxpayer is nevertheless higher than one would like.

On the European Parliament, like the noble Lord I have read some of the speculation there has been about that. The European Parliament has a role to play in approving the budget, but our position is that that agreement was struck by the 27 member states that are responsible for finding the money. We believe that some of the situations that the noble Lord has invited me to speculate about will not come to pass, but we need to see what happens. I will not be drawn into his alluring hypothetical situations.