European Union (Finance) Bill

Tom Tugendhat Excerpts

Tuesday 23rd June 2015 Commons Chamber

[Tom Tugendhat (Tonbridge and Malling) (Con)]

I note again a matter that is of great interest to the electors of Tonbridge, Edenbridge and Malling. The budget will be 7% lower in real terms by 2020, which is very welcome, but will the Minister say more on the consequences to the EU budget of the UK’s position, because we are rather hoping that 7% is the beginning and not the end?

[Mr Gauke]

My hon. Friend touches on the point made by my hon. Friend the Member for Eddisbury (Antoinette Sandbach), who drew attention to the fact that our net contributions are forecast to be lower in 2019-20 compared with 2013-14. In fact, our net contribution in 2019-20 will be £9.3 billion compared with £10.2 billion in 2013-14, which is clearly lower in cash terms but also lower in real terms. My hon. Friend the Member for Tonbridge and Malling (Tom Tugendhat) raises the issue that we should make a strong case for budget discipline. He wants to ensure that we appreciate that we are dealing with taxpayers’ money. Whether UK taxpayers’ money or taxpayers’ money from the wider EU, that money has to be spent wisely. That is a good point, and I will return to it later when we deal with the Labour new clauses and amendment.

--- Later in debate ---

[Mr Gauke]

I am grateful to my hon. Friend. New clauses 1, 2 and 3 and amendment 1, all tabled by the hon. Member for Worsley and Eccles South (Barbara Keeley), would require the Treasury to undertake a series of actions prior to the Act coming into force. New clause 1 would require the Treasury to inform both Houses that it has formally requested a review by the European Commission into alternative ways of running the EU budget and a comparative analysis of commitments and payments as the basis for appropriations for the budget. New clause 2 would require the Treasury to request a fundamental review by the Council of Ministers of EU budget priorities, waste and inefficiency. New clause 3 asks for the Chancellor to issue an invitation to the Commission to provide further details of the draft budget to scrutiny Committees. Amendment 1 would delete subsection (3) of clause 2, which would mean that the Act would not come into force until 14 days after the conditions specified in each new clause were met.

We recognise the concerns underlying the amendments. Nevertheless, the hon. Lady will recall that the Bill relates exclusively to the financing of the EU budget, while the amendments relate to the separate, although equally important, issue of EU budget expenditure. On that basis alone, we reject them.

[Tom Tugendhat]

My hon. Friend talks clearly about financing and the details of various percentages going up or down. Does he recognise that what he is really talking about is setting the tone on the agreement we have in the European Union? The UK can play its part as a good partner in the EU, but the EU can help to play its own role in promoting what we all recognise is a growing economy in Europe, and not just a redistribution of wealth.

[Mr Gauke]

The deal that the Prime Minister reached in February 2013 was clearly a success, as our negotiating objectives were met. I am sure my hon. Friend and most of us would hope and expect similar success to be achieved in the months ahead.

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[Barbara Keeley]

Before we go any further, may I point out that my constituency is now called Worsley and Eccles South? The people of Eccles would rightly be very upset if we left them out of the equation; Eccles is a very important town in my constituency.

I rise to speak to the new clauses standing in my name and those of my hon. Friends. We are dealing with a slight complexity, in that the Bill is simple but drafted in such a way as to make it complex to amend. Amendment 1 is therefore a technical paving amendment which can bring in the new clauses, so it is that amendment that we will push to a vote, if necessary.

The Bill relates to agreement of the own resources decision that will be incorporated into UK law, based on the agreement reached at the February 2013 European Council. The Minister covered that at great length over the past hour and 20 or so minutes. Decisions on UK contributions reaching €14 billion are brought into sharper focus in a week when Ministers are discussing cuts to tax credits for the low-paid and have not been prepared to rule out cuts to financial support for disabled people. We find ourselves in a serious and austere financial context, so we must ensure that we look at every aspect of value for money, budgetary control and the reform of priorities within the EU budget.

When we debated the MFF in this House in October 2012, the Government’s motion talked about agreeing that we must see

“significant improvements in the financial management of EU resources by the Commission and by Member States and significant improvements in the value for money of spend”.—[Official Report, 31 October 2012; Vol. 552, c. 295.]

The last debate contained many examples, some of which I shall refer to, showing that we are not there yet. I am sure the Minister would agree, so what we are simply trying to do with the new clauses is find ways in which we can enhance value for money assessments, budgetary control and the reform of priorities. That is very important to many of the Members in the Committee today and to Members throughout the House.

The proposals standing in my name and those of my hon. Friends will assist greatly in ensuring that reports are made to this House on value for money and budgetary control, and on budget priorities and waste and inefficiency within the EU budget. Examples have been given in interventions that give us an understanding of the extent of concerns about this out in the country—which we explored on Second Reading—and those can only increase.

[Tom Tugendhat]

Would the hon. Lady let me know which of her hon. Friends are so supportive of her? There appears to be somewhat of a dearth of support.

[Kelvin Hopkins]

Will my hon. Friend give way?