Multiannual Financial Framework

Mark Pritchard Excerpts

Wednesday 31st October 2012 Commons Chamber

[Mark Pritchard (The Wrekin) (Con)]

Although it might be popular on the Government Benches, I think that the country is getting sick and tired of Eurosceptic words from Ministers but very little action on the ground. Is it not the case that, irrespective of whether or not the Government are successful in negotiating a freeze, in cash terms more money will be given to the European Union? If I am incorrect, will the Financial Secretary please correct me on the record?

[Greg Clark]

The shape of the budget needs to be negotiated—it has not been settled yet—but it is true to say that as a result of the giveaway of the rebate that the previous Government introduced we lose out from spending that goes to the new member states that previously would have been abated.

Let me address the three main differences between the motion and the amendment. First, the amendment would remove the condemnation of the previous Government for giving away part of our rebate. Despite the talk of fiscal responsibility, the aim is to conceal the loss to this country of £10 billion. That amount, coincidentally, is nearly equal to the whole of Britain’s share in the budget increase proposed by the Commission—an increase to which we are opposed. It is simply not credible to vote for restraint and then to remove from criticism the most wasteful surrender of the British taxpayer’s interest that any Prime Minister has made in Brussels.

The second effect of the amendment would be to delete references to new EU taxes. Yet the tax sovereignty of this country is, or should be, non-negotiable. In particular, this removal would send a signal that this House supports the introduction of a new financial transaction tax which could badly undermine Britain’s economy. By the Commission’s own analysis, the tax would lead to a fall in European GDP of up to 3.5% and nearly half a million job losses.

Thirdly and finally, there is the call simply to cut the EU budget and not, as the Government’s motion has it, to cut or, at the very least, to have a real-terms freeze. Let me address this aspect precisely, as it comes to the crux of the matter. I should like to say this not only to Labour Front Benchers but to all those Members present who are genuinely outraged by the budget proposal. Like them, I believe, very simply, that the EU should cut now, and keep on cutting. The Opposition call on the Government to persuade others and to build alliances with those who share our concerns. On the issue of budgetary restraint, that has been exactly our approach. In 2010, the Prime Minister achieved a historic breakthrough when he agreed with the leaders of Germany, France, Finland and the Netherlands that

“payment appropriations should increase at most, by no more that inflation over the next financial perspective.”

If this position were to be agreed to, then it would be the first time in the history of the EU that the seven-year budget has done anything other than accelerate. No one is pretending that this would represent all the long-term reform required—not a bit of it—but it would be a turning point. Having reached such an agreement, which has been scrutinised in this House in the two years since it was published, it is surely right for the Prime Minister to keep to his commitment rather than have to give backword at the last moment.

This Prime Minister has been clear, as neither of his two predecessors were, that the remorseless rise in spending in the EU has to stop, and it will stop. If there is no cut, or no real freeze, there is no deal: the framework will be vetoed. The Prime Minister has a formidable task in persuading other countries of this—many of them were looking forward to a seven-year pay-out—but he has made a strong start, and he deserves the support of this House as he goes in to bat for Britain.

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[Mr Brooks Newmark (Braintree) (Con)]

I am delighted to follow the hon. Member for Dunfermline and West Fife (Thomas Docherty). I feel rather uncomfortable with what I am about to say, because I agree with pretty much everything that has been said, particularly by Government Members. Of course we all want a real cut—I am sure the Prime Minister, the Chancellor and the Financial Secretary do. The nub of the debate, however, is what my hon. Friend the Member for South Northamptonshire (Andrea Leadsom) said. It is about how the Prime Minister negotiates, and negotiation is about achieving realistic objectives.

I think that the multiannual financial framework, or EU budget to use a simpler term, is insane. For the European Union to ask for a 10% real-terms increase above inflation is insulting to our constituents and to the people of Spain, Italy, Portugal and Ireland, who are being told to pull in their belts. My hon. Friend the Member for The Wrekin (Mark Pritchard) said—I think I am getting this right—that people are being asked to make painful cuts in their household budgets. Each and every one of us has constituents who are being told to pull in their belts, and we all agree with that.

[Mark Pritchard]

I am flattered that my hon. Friend has quoted me. One way in which the Prime Minister’s hand can be strengthened is by having a united Parliament rather than a disunited Parliament when he goes to Brussels to negotiate on my birthday, 22 November.

[Mr Newmark]

I hasten to add that it is my wife’s birthday as well.

Let us discuss and decide today what message the Prime Minister should be given. Clearly he will read Hansard, and he will know the message that the Whips give him and so on, but do we want to bind his hands when he goes into the negotiations? He has already discussed a real-terms freeze with the Germans, French and Dutch, who are buying into the fact that this is a reasonable prospect. Do we want to push him over the edge and ask for something that we know he can never realistically achieve?

--- Later in debate ---

[Mark Pritchard (The Wrekin) (Con)]

I support the amendment. Teachers, police officers and nurses in my constituency have told me, “Not a penny more.” Today we paid tribute to our armed forces—those fallen heroes and heroines—but this Government have set in place a pay freeze for our armed forces. In April next year, armed forces salaries will be capped at 1% for the next two years. Is it right, and can we justify it to our constituents, that our brave armed forces, spilling their blood in Afghanistan as we speak this evening, are not going to receive the same treatment as the European Union—a wasteful, profligate and inefficient European Union?

Is it so difficult to conceive that a multiannual budget over the next six or seven years of almost €1 trillion might be able to find some efficiency savings? Our local councils are having to find them, member states are having to find them and, most importantly, our constituents are having to find them. There are increasing numbers of food banks, and people are struggling to pay their utility bills and to put shoes on their children’s feet for the new school year. It is our job to represent our constituents.

I say to Front Benchers that we do not risk doing ourselves a disservice. We are not being self-indulgent, as my hon. Friend the Member for Banbury (Sir Tony Baldry) said. I think it is the ultimate act of self-indulgence to continue to ignore the will of the British people. The British people want us, as their representatives, to stand up to an over-bureaucratic Brussels—an obese Brussels that needs to go on a diet like everyone else, including all our constituents, this Government and member states throughout the European Union. The Prime Minister’s hand can be strengthened by a united Parliament. A disunited Parliament will weaken his negotiating hand.

The Government speak about a real-terms freeze. Let us be truthful: a freeze is not a cut. What is this real-terms freeze? It is not really a freeze as there will be increased cash—an extra £300 million a year, year on year, will be required by the European Union even if the Prime Minister is successful with the so-called real-terms freeze. That sum is the equivalent of two medium-sized district general hospitals in each of our constituencies and of a medium-sized borough council—the same councils we all represent, who are looking for 20% cuts or more. Let us stop dancing on the head of a pin, as the Conservative party so often does. Let us stop playing semantics and being disingenuous with the British people. We are talking about £300 million next year, and hundreds of millions, and billions, of pounds beyond that.

This is the decision we have to make today: are we going to continue to ask families throughout this country to stop putting new shoes on their children’s feet in order to pay for the very large Mercedes fleet in Brussels? That is the choice. This is a moment of truth, and it is no good Eurosceptics on the Government Benches speaking about things in Eurosceptic terms—it is no good our going around parading as Eurosceptics—if our actions defy what we say we believe. At the European elections in 2014, it will be no good our wrapping ourselves in the Union flag if tonight we take it off and wrap ourselves in the stars of the European Union flag.

This is a moment of truth. This is a moment of decision. We can send a united message, as a Parliament and as a nation, to Brussels. Let us make a difference. If we are not making a difference, we might as well all go home.

[Several hon. Members]

rose—