European Public Prosecutor’s Office

Martin Horwood Excerpts

Tuesday 22nd October 2013 Commons Chamber

[Martin Horwood (Cheltenham) (LD)]

I add my congratulations to you on your election, Madam Deputy Speaker.

It is important that we retain some sense of proportion in this debate. We are, after all, discussing an idea which, in practice, would tackle the simple issue of crime against the EU, particularly fraud against the EU budget. While I welcome the Minister’s fairly practical approach, I think that the hon. Member for Kingston upon Hull North (Diana Johnson) doth protest a bit too much in painting such a cataclysmic picture of the complete collapse of the European criminal justice system were this to go ahead. That is completely out of proportion, and I think she is just trying to prove her Eurosceptic credentials. This is not quite the massive issue that some might imagine. I recognise, however, that there is a thin end of the wedge argument in that the proposal sets out a different principle in creating a new kind of European competence, albeit one already recognised in treaty. I also recognise the specific acknowledgement in the coalition agreement that Conservative Members, in particular, do not want to pursue such a solution to the problem.

In this case, on balance, the Government are right in their interpretation of the subsidiarity principle. The Commission has not demonstrated that the proposed path has to be taken because nation states are incapable of tackling fraud against the EU budget, and it therefore fails the subsidiarity test as currently presented. There is an important role for pro-European Members of this Parliament and other Parliaments in applying the subsidiarity principle properly. We should not allow any kind of drift towards dealing at a European level with competencies that are really better exercised at a lower level.

[Kelvin Hopkins (Luton North) (Lab)]

rose—

[Martin Horwood]

I am happy to give way to my friend on the Labour Benches.

[Kelvin Hopkins]

Yet again the hon. Gentleman talks about Europe rather than the European Union. Many of us love Europe in all sorts of ways but do not necessarily love the European Union.

--- Later in debate ---

[Martin Horwood]

I had picked up that impression from many hon. Members, but I understand the point that the hon. Gentleman is making.

However, there is a problem. As the hon. Member for Kingston upon Hull North rightly said, it is estimated that there is a vast amount of fraud against the European budget—some €500 million a year—and that is unacceptable. National law enforcement against that is fragmented across the member states. While the UK may have a robust record on tackling it, that is not always true of all member states. In fact, only one in five of the cases transferred by the European anti-fraud office—OLAF—to the national prosecution authorities leads to a conviction, and those conviction rates vary considerably among member states. There is, therefore, a problem that needs to be tackled. I accept what the Minister has said about improvements to OLAF, but the European Commission and European Union authorities also need to take a more proactive stance against EU budget fraud. I do not think, however, that a European public prosecutor’s office is the solution at this stage.

The Commission’s proposal has an additional problem, in that it suggests locating the EPPO in Eurojust, but that would seriously muddy the waters of the role of Eurojust, which is a very effective and important organisation. I am pleased that the coalition has agreed that, with certain reforms, we should opt into it. Eurojust is important in stimulating investigation and co-operation on judicial and prosecutorial matters. The impetus for it emerged after 9/11, when the importance of tackling cross-border terrorism was made very clear. It helps European authorities to tackle serious organised crime, people trafficking, drug trafficking, the smuggling of illegal immigrants, illicit trade in human organs, kidnapping, trafficking works of art and computer crime. The list goes on and on and it is a very good example of how European Union institutions help us to tackle cross-border crime in a way that would be impossible for 27 different countries trying to co-operate on a bilateral basis.

To confuse the role of Eurojust, which is one of encouraging co-operation and stimulating investigations, with that of a prosecutorial authority would change the role of Eurojust and create an additional complication, which might, in the domestic political context, reduce support for opting back into Eurojust. Practically, politically and in principle, I think that locating the EPPO in Eurojust would be the wrong step to take.

I will not detain the House any longer. The Liberal Democrats support the Government’s motion. The problem of serious fraud against the European budget needs to be tackled, but the proposal oversteps the mark in terms of the principle of subsidiarity, so I am happy to give my support to the Government tonight.