European Union Bill

Lord Wharton of Yarm Excerpts

Tuesday 1st February 2011 Commons Chamber

[Mr Lidington]

My hon. Friend pre-empts me, because I am about to come on to the question of cost-benefit analysis. I very much agree with my hon. Friend the Member for Witham that the EU has to provide much better value for money. The Government are clear that the EU needs to change and can do things a lot better than it does at present. My right hon. Friend the Prime Minister has argued in the House and elsewhere that the EU cannot be immune to the budgetary realities that every member state Government in the EU and every family in the EU has to face. That is why it was the Prime Minister and this country that led the process to ensure that the 2011 EU budget did not grow in line with the unacceptable demands of the Commission and the European Parliament, and why at the end of last year the Prime Minister secured the important principle that over the next financial perspective the EU budget should reflect the consolidation efforts being made by Governments right across the EU.

[James Wharton (Stockton South) (Con)]

Does the Minister agree that this is not just about value for money within the EU as a body and the way it functions, but about the impact on value for money across all that Government do and across our society as a whole of the measures implemented by the EU? We talk about what appears to be mission creep from the EU, which we often see when competences are used in an elastic manner to drive forward new centralised European policies. Will the Minister please make a statement on ensuring that we look for value for money in how they are implemented as well?

[Mr Lidington]

My hon. Friend makes an important point. The Government seek to ensure that there is much better value for money and a more rigorous cost-benefit analysis of measures at the EU level, and to apply those same principles to the transposition of European legislation into our own domestic arrangements. I suspect that hon. Members on both sides of the House will have been familiar in the past with European legislation that has all sorts of gold-plated extras that add to the cost and complexity that businesses or voluntary organisations face when the legislation reaches its final form here, usually by way of statutory instrument.

My hon. Friend the Member for Witham rightly says that we must ensure that the EU too addresses this challenge, and we are going about that in a number of ways. First, we are working with like-minded European partners to encourage smarter regulation by applying more rigorous use of evidence in the EU. We welcome the Commission’s smart regulation communication, published in October 2010, which set out a four-year strategy to reduce the regulatory burden of EU legislation on business. That communication reflected a number of this country’s priorities, including further strengthening of the impact assessment process and post-evaluation adjustment of laws.

We need to see much more progress on impact assessment. The Commission has a commitment to produce impact assessments for all its proposals, but, to be honest, the quality is variable and we continue to press for improvements. The Parliament and the Council do not have a routine commitment even to produce impact assessments as a matter of course, and we believe that those two institutions should be doing that as well. It is now a fact of life that most areas of European law-making involve the European Parliament as a more or less equal partner with the Council of Ministers. That means that on a number of important measures, for example on employment matters and other pieces of social regulation, the Council might agree a position and then the Parliament can choose to vote through measures that introduce greater costs that industry has to bear.