European Union (Finance) Bill

Simon Hoare Excerpts

Tuesday 23rd June 2015 Commons Chamber

[Mr Gauke]

I would certainly make it very clear that there was a considerable achievement in the 2013 negotiations that were implemented in 2014. For example, there were calls for changes to the financing system and to introduce new types of member state contributions, but the UK resisted that successfully. There were calls to introduce new EU-wide taxes, including a financial transactions tax, and the UK resisted that successfully. Finally, there were calls to reform the rebate and the Government protected that. That is a considerable achievement.

On the subject of the regional distribution of common agricultural policy receipts, it is only fair to point out that payments per hectare are only part of the story. Although Scotland receives the lowest payments per hectare, Scottish farmers also receive one of the highest payments per farm in the European Union. On average, Scottish farmers receive just under £26,000 compared with England’s £17,000, Wales’s £16,000 and Northern Ireland’s £7,000. I hope that that provides some clarity for the right hon. Gentleman.

[Simon Hoare (North Dorset) (Con)]

I note the irony that the House of Commons Library published its briefing paper on the Bill on the bicentenary of the battle of Waterloo. It notes, with its characteristic understatement, that our

“rebate is not popular with other Member States or the Commission”.

May I invite my hon. Friend to make a firm commitment to the retention of our rebate? Will he continue to argue for it and ensure that it is not part of any of the renegotiations on our ongoing membership in the Community?

[Mr Gauke]

Absolutely. I am keen to make that commitment and I am grateful to my hon. Friend for making that point. Those of us who participated in the equivalent debates after the previous multi-annual financial framework was agreed and on the Act that performed the task that this Bill will now perform will recall that we spent some considerable time focusing on the fact that a large part of the rebate had been surrendered by the previous Government for little or nothing, merely a promise of reform of the common agricultural policy that had not been delivered.

--- Later in debate ---

[Mr Gauke]

My hon. Friend makes a good point. He anticipates comments that I will make later relating to how we can ensure that the money is not just controlled and reduced, but better spent. There is a criticism, which I suspect is shared by Members from all parts of the House, that the money that the European Union spends in its various ways is not used as efficiently and is not as focused on improving our competitiveness as it might be. There are encouraging signs that there is a greater focus on that. I will return to that shortly.

I was running through the various technical changes in the own resources decision. I have touched on the changes to the retention rates. May I also touch on the changes in relation to GNI-based contributions?

[Simon Hoare]

rose—

[Mr Gauke]

Before I do so, I will give way to my hon. Friend.

[Simon Hoare]

I am grateful to my hon. Friend for giving way a second time; he is being very generous. My constituents in North Dorset and people across the south-west want to have confidence that Her Majesty’s Government will in no way acquiesce to a change in our rebate as part of any negotiations. We all understand that the UK’s agreement is contingent on any changes to the rebate. I invite the Minister to make the commitment that the rebate is not part of any renegotiation, that it is absolutely off limits and that this Government will always continue to defend our rebate.

[Mr Gauke]

I give the assurance that the Government will always defend our rebate. Perhaps it might be helpful to the Committee if I make the point that I made on Second Reading about the scale and significance of the partial surrender of our rebate by the Labour Government. According to the European Commission, the disapplication of the UK rebate cost the UK about €9 billion over the seven-year period of the previous multi-annual financial framework. Thereafter, with the abatement disapplication fully phased in, the cost to the UK is about £2 billion a year. That is a significant sum, particularly given the fiscal circumstances that we continue to face.

Frankly, the question of what was achieved in return for the surrender of that partial rebate might be asked. Perhaps we will hear an answer to that later this afternoon, but I have not heard a convincing answer yet.