European Union (Finance) Bill

Peter Grant Excerpts

Tuesday 23rd June 2015 Commons Chamber

[Peter Grant (Glenrothes) (SNP)]

I could understand the Government’s reluctance to incorporate the amendments in legislation if they did not deal strictly with the narrow interpretation of the Bill, but in view of what they ask the Government to do, I cannot see why the Government should be reluctant to take any of those actions. Why do they not simply give an undertaking to do so? Then we would not need the amendments, and we could all agree on something.

[Mr Gauke]

In the case of new clause 2, which relates to how we deal with the way in which the Council of Ministers works, we are making progress and taking action, which includes cutting the budget. In the case of new clause 1, I do not need to undertake to write a letter calling for the Commission to do something that it is already doing. As for new clause 3. I have already made it clear that I do not think it would be appropriate for us to impose on members of the European Scrutiny Committee something that is a matter for them.

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[Alex Salmond]

Will it be before or after the referendum?

[Peter Grant]

During.

[Barbara Keeley]

The Minister can hear the comments being made by Members from sedentary positions. Clearly, we are working through a crucial time in the run-up to the referendum, and the budgetary information, with all the decisions that have to be made, will be crucial for the people out there.

In our amendments, we have expressed the wish to have these reviews and the reports. We want to send out the message that this House is serious about scrutinising the EU budget.

At the end of our debate on Second Reading, the Economic Secretary talked about the need for scrutiny on the payment gap. She told us that the European Commission has committed to publish more frequently its analysis on payment forecasts. I join the hon. Lady in welcoming an enhanced level of information on the EU budget, but believe that much more needs to be done on that. Does the Minister agree now—after both of us have spoken on the matter—that it is time that the EU moved away from a system in which it can make commitments of billions of euros more than it can pay, creating pressure on member states to ever-increasing budgets?

New clause 2 calls for a reform of the priorities in the EU budget, and specifically requests a review by the Council of Ministers of budget priorities and waste and inefficiency in the EU budget. The Minister has mentioned reviews that are already taking place, but I do not think that he mentioned a review of priorities of the kind that our new clause invites.

On Second Reading, I raised the need for further reform of budget priorities. Labour believes that expenditure on growth and jobs should continue to be prioritised by cutting back even further on agriculture spending.

The Financial Secretary to the Treasury told us that overall spending on the common agricultural policy will fall by 13%, compared with the last financial period, and that spending on research and development will increase by 4%. As welcome as that fall in agriculture spending is, we believe that the level of spending is still too high compared with spending to support growth and jobs. The Minister has responded to points made by his own side today, but he has not really got to the nub of the point.

As I said on Second Reading, agriculture accounts for only 1.6% of the European Union’s total output. If that is the case—I think that we will keep returning to this point—is it still appropriate that it accounts for 30% to 40% of the budget?

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[Mr Rees-Mogg]

Being more traditional, I prefer a minimum per acre, but otherwise I am broadly in agreement with the right hon. Gentleman. I agree that it is not right to look at the issue purely in terms of the landowner, because that discourages consolidation. As Conservatives, we are in favour of efficiency in all industries, but the subsidy system across Europe not only disadvantages our farmers, but discourages consolidation and efficiency. That cannot be the right approach.

[Peter Grant]

Is the hon. Gentleman telling us that consolidation and enlargement always equal efficiency? Does he not recognise that, especially in agriculture, there are significant community and social benefits to allowing small, family owned farms to continue in existence?

[Mr Rees-Mogg]

There are great advantages to having small, family owned farms, but we need an efficient agricultural system that provides the food and produce the country needs. I do not think one should be unduly sentimental for agriculture against other industries. As a lover of the countryside and of our rural traditions, I am tempted to fall in line with the hon. Member for Glenrothes (Peter Grant). The constituency was called Central Fife when I stood there—unsuccessfully, just for the record. However, although I am sympathetic to his point, I think it is important to have efficient agriculture first when spending other hard-pressed taxpayers’ money. It ought not to be entirely about sentimentality.

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[The Temporary Chair (Hywel Williams)]

I call Peter Grant.

[Peter Grant]

Tapadh leibh—thank you, Mr Williams. I apologise for not being able to say that in Welsh despite your attempts at tuition last night. I will keep practising.

It struck me after hearing the first two speakers in the debate that we had spent an hour and 45 minutes discussing the Bill and the only point of contention appeared to be whether the Government should write letters, and, if so, how many. If we are serious about sorting out great European institutions that are inefficient and have a lot of waste, I suspect that many of the audience of millions watching live on television will ask us to hold a mirror up to our own face. A debate such as this surely cannot be what this place was designed for.

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[Alex Salmond]

My hon. Friend makes an interesting point about the likely outcome of Scottish negotiations in Europe, but it is highly unlikely that any Scottish negotiator would come back with less agriculture support than the minimum awarded to every other European nation.

[Peter Grant]

I do not know whether that is a bid to be the first independent Scottish ambassador to the European Union, but if I am in a position to put anybody’s name forward I shall certainly bear in mind my right hon. Friend. He makes a valid point, which is related to the question he has asked repeatedly and on which he has still not had an answer: what the Prime Minister’s negotiating position and priorities are going to be. The fishing industry is not a massively important part of the United Kingdom’s economy; it is a massively important part of the economies of some nations that make up the United Kingdom. The negotiations are, however, always carried out through the Westminster lens, and it is seen as a major achievement when all we come back with is, “Not too many things have got worse.” We talk about aspiration. I think aspiration means we want things to get better, not to think we have achieved a lot when we come back from negotiations and have not had to lose too much.

The European Union does not mange its finances very well at all. We do not need to be accountants to work that out. Most companies would not be allowed to continue if they went 20 years without having their accounts signed off. Sometimes we need to look, however, at how we manage the part of it for which we are responsible. Some questions today, particularly those from the hon. Member for Worsley and Eccles South (Barbara Keeley) on the Labour Front Bench, about scrutiny of the European budget and the performance and financial management of the European Union, were pointing to weaknesses in the way this House holds Europe to account. That points either to a lack of involvement of members of the European Scrutiny Committee, or to the fact that it has not been given sufficient powers. There are many weaknesses in the way European finances affect the responsibilities of this Chamber, and changes could be made to the way this House holds Europe to account, but their delivery does not necessarily mean having to threaten to walk away from Europe altogether.

As I said in an earlier intervention, I do not see why the amendment needs to be put to a vote. It does not contain anything that the Government should be reluctant to do. I defer to the hon. Member for Stone (Sir William Cash), who has left the Chamber, and his expertise on the procedures of the House and the position of the EU Scrutiny Committee, but it is time to put on a statutory basis a process whereby the Government ask things of Europe on our behalf—and which no Government in their right mind should be reluctant to do. How could any Government not want to ask Europe to be more accountable, or to think a wee bit more carefully about its spending priorities before it sets them? I hope that we see an outbreak of common sense among Government Members.

The United Kingdom’s position in whatever negotiations the Prime Minister has would be strengthened if we could find a way for this Bill to be amended and approved unopposed. If the proposed changes are put to a vote, I am minded to go with them. It would be sad if it were a matter of public record that this Committee had divided on such an important matter—on the crucial question of whether we wanted the Secretary of State to write a letter to Europe.

[Mr Gauke]

We have had a wide-ranging debate over the past two and a half hours. The hon. Member for Glenrothes (Peter Grant) was not far off the substance of the matter before us: the disagreement is over whether there should be placed in statute a requirement to write a letter.

I recognise the spirit of the proposed changes before us, and the need for us to improve the value of expenditure in the European Union, to cut down on waste and to increase transparency. We strongly support and have advocated those points.

I have to say that writing to the Commission, asking it to review the issues, will not particularly achieve the objectives we have heard set out, but the Government have taken action and continue to do so to improve EU spending. That began with the Prime Minister’s historic deal, cutting the budget in real terms. It has forced the Commission to prioritise, which we very much welcome, and it has led to the Commission’s budget for results initiative. The UK is playing an active role in that process, and we continue to push the Commission to bear down on waste in its responses to the EU budget discharge process. The Government are contributing to the simplification proposals from the Commission, and the UK will continue to fight for restraint in the annual budget.

Those steps have led to concrete results: the Commission has become more transparent and has shifted more funding into pro-growth spending. We certainly make no apologies for that—although there appears to be some resistance to it in some parts of the House—and the UK’s contributions will be lower for every year in this seven-year deal period than in the final year of the last MFF deal. That is a saving of almost £8 billion over the forecast period compared with 2013-14.