EU: Salaries

Lord Tomlinson Excerpts

Wednesday 6th March 2013 Lords Chamber

[Lord Wallace of Saltaire]

My Lords, we are now into the whole question about residency, non-residency and international organisations. It has been a common rule for international organisations that you do not pay national taxes but are given a degree of exemption. If we were to reclassify the European Union as not an international organisation but as rather like going to work in Manchester or Leeds, different processes would apply. As a former international banker, the noble Lord will be well aware of the many complexities of international taxation, expatriate allowances and the like.

[Lord Tomlinson]

Is the Minister as surprised as I am by the low number of European Union institution employees? How does that figure—I think he said 55,000—compare with a large-scale local authority in the United Kingdom?

[Lord Wallace of Saltaire]

My Lords, the figures I have are that Paris employs 50,000 people and Birmingham employs 60,000 people, so it is a relatively modest number. I am sure the noble Lord will admit that the inefficiencies of the Commission—in particular, the rather inadequate personnel policies, the relatively generous allowances and an expatriate allowance which, unlike the NATO expatriate allowance, does not phase out after a number of years and is rather more generous—are things that we should be looking at, particularly when all national budgets within the European Union are being squeezed.