John Bercow
Main Page: John Bercow (Speaker - Buckingham)Department Debates - View all John Bercow's debates with the HM Treasury
Multiannual Financial Framework
John Bercow Excerpts(12 years, 1 month ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Mr Speaker
I inform the House that I have selected the amendment in the name of the hon. Member for Rochester and Strood (Mark Reckless), from whom we will therefore hear in due course.
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.
Mr Speaker
Before I call the Opposition spokesman, I remind the House that there will be an eight-minute limit on Back-Bench contributions.
Chris Leslie
My hon. Friend is entirely right, and that is why the Government do not get it. They need a negotiating strategy to get the best deal for the taxpayer. [Interruption.] The Minister laughs, and the Chancellor is next to him puppeting him along in his hilarity, but I say to the Chancellor that this is an incredibly serious issue. It is about taxpayers’ money, and incredibly large sums of it at that. [Interruption.]
Mr Speaker
Order. Mr Zahawi, I am sure that in your own way you mean well, but you are far too excitable. It is no good looking up and around, and at places outside the Chamber, and waving your hands in a bizarre manner. What you need to do is calm down. It will be good for you, good for the House and good for Stratford-on-Avon.
Chris Leslie
I am sure there is some Shakespearian reference about being calm in negotiations, and calm, persuasive diplomacy is the strategy that we need today.
Mr Speaker
Order. Just before I call the hon. Member for Rochester and Strood (Mark Reckless), it might help the House if I explain that, in accordance with normal practice in these situations, he will have an opportunity formally to move his amendment at the conclusion of the debate. His opportunity now is simply to speak in it.
Kate Hoey
In my simple way, that is what I am trying to say. We are beginning to look really out of touch. It is beginning to look as though we are not interested in the people we were elected to represent. I believe that tonight is the night when we can make that difference and really change things.
I must make an apology. I am very lucky that my constituency is literally five minutes away and I agreed some time ago that at 6 o’clock I would light the bonfire on Hallowe’en night. I shall leave to light the bonfire and I shall come back to vote. I hope that on that bonfire there might be something to signify something about the European Union; it would be rather nice if there were. It is not likely, however.
Finally, I ask Members to realise that they should not worry about who is with them in the Lobby tonight. They should not worry about whether they are in the Lobby with people with whom they would rather not be in the Lobby. They should recognise that they are going into that Lobby to represent the people who elected them and should think about what they would want them to do.
Mr Speaker
Order. I appreciate that the hon. Lady has a hectic social schedule, to which we have all become privy, and I understand that she will have to leave at some point, but I know that she will want to hear the next speech.
Mr Speaker
Order. The time limit on Back-Bench speeches is reduced to four minutes with immediate effect.
Paul Blomfield (Sheffield Central) (Lab)
We should remind ourselves that just as there is a majority in the House, of which I am a part, in favour of a reduction in the EU budget, there is a much larger majority, of which I am also a part, that believes that our future lies at the heart of Europe and with our membership of the European Union.
We should therefore take care—more care than some Members have—with how we frame any debate on the EU budget. We should not frame it, as the Daily Express does, as if all EU spending is bad and that the only purpose of Brussels is to take money from us. I come from a region that has benefited enormously from European structural funds, and we should have spent more time in the debate considering how we can engage positively to shape negotiations on the priorities for the EU budget. I shall make several specific points about research and innovation, to which I hope that the Minister will respond.
EU research and innovation funding contributes 10% of our national science budget, and the budget negotiations give us an important opportunity to shape investment priorities for the benefit of the UK economy. The more the EU invests in research and innovation, the more the UK benefits, because the quality, breadth and depth of UK research puts us in a position whereby we gain disproportionately from European research programmes. Nearly 15% of the EU’s funding from the FP7 framework programme for research has gone to UK researchers, and the total FP7 contribution to UK research is expected to reach €7 billion over the life of the programme. The UK is involved in more successful FP7 projects than either France or Germany, accounting for 40% of all grants to date. We also benefit extensively from the collaboration and research networks that the EU facilitates. Of the 5,105 research projects that have been funded under FP7, 43% include UK partners.
Only about 8% of the proposed budget is allocated to Horizon 2020, which is the replacement for the FP7 programme. That has been presented as an increase, because there are several new projects within Horizon 2020. I think that the Government would support those projects, but on the basis of past negotiations, there is concern among businesses and universities that the research budget is especially vulnerable to cuts. We know that innovation plays an important role in producing growth in the UK, and 54% of the jobs grown between 2000 and 2005 were in innovative companies. However, such companies account for only 6% of UK businesses, and are particularly involved in pharmaceuticals and biotechnical research.
We know that future growth will rely on knowledge-based industries, so I look to the Government to make two commitments: first, that the additional projects in Horizon 2020, which I am sure they would support, will be considered outside the framework; and, secondly, that they will argue the case for protecting the research and innovation budget in the overall negotiations.
Mr Speaker
The Minister will be called at 6.55 pm, but until then we will hear from Conor Burns.
Mr Speaker
Order. I should be most grateful if Members who are leaving the Chamber would do so quickly and quietly, so that we can proceed with the remaining business.
Royal Assent
Mr Speaker
I have to notify the House, in accordance with the Royal Assent Act 1967, that the Queen has signified her Royal Assent to the following Acts:
European Union (Approval of Treaty Amendment Decision) Act 2012
Infrastructure (Financial Assistance) Act 2012
Local Government Finance Act 2012
Mental Health (Approval Functions) Act 2012.