Changes to the Budget

Wayne David Excerpts

Monday 11th June 2012 Commons Chamber

[Mr Gauke]

We could live in hope, but I suppose that that was never going to happen.

[Mr Wayne David (Caerphilly) (Lab)]

There is only one word to describe the Budget, and that is “omnishambles”, but will the Minister tell us what changes have been made to VAT on skips?

[Mr Gauke]

There have been no such changes. HMRC produced operational guidance, which I understand was misinterpreted by the industry. HMRC has clarified its guidance, but there has been no change in the policy or operational position relating to skips.

Oral Answers to Questions

Wayne David Excerpts

Tuesday 1st November 2011 Commons Chamber

[Mr Osborne]

Those who were against Britain joining the euro, including my hon. Friend and me, were against it partly because we felt that it would lead to greater fiscal integration. That was one of the arguments for keeping Britain out. There is a remorseless logic driving monetary union towards greater fiscal integration, but it is in Britain’s overwhelming economic national interest to have stability in the eurozone, so I think that that fiscal integration is part of what is required. Of course, we have to ensure that Britain’s interests are protected, that we are not part of that fiscal integration, and that issues such as the single market and financial regulation are conducted at the level of the 27.

[Mr Wayne David (Caerphilly) (Lab)]

The Chancellor talks a great deal about fiscal integration in the eurozone, but will he tell us precisely what he means by fiscal integration?

[Mr Osborne]

We shall see the 17 members of the euro attempting to co-ordinate their budget policies better, and more mutual surveillance, with sanctions, for those who do not do what has been agreed. I have to say that the confusion, if there is any, is in Labour’s policy, because it is now holding open the prospect of membership of the euro, which would be the ultimate fiscal and monetary integration.

Eurozone Crisis

Wayne David Excerpts

Thursday 27th October 2011 Commons Chamber

[Mr Osborne]

The short answer is that we will find out whether China wants to contribute. The President of France is speaking to the President of China today, and he will no doubt give us all an update following that conversation.

[Mr Wayne David (Caerphilly) (Lab)]

Much to the annoyance of some of his Back Benchers, the Chancellor supports greater fiscal integration within the eurozone, but what precisely does he mean by greater fiscal integration?

[Mr Osborne]

I think that the hon. Gentleman is being a little unfair to Conservative Back Benchers. Actually, quite a lot of Eurosceptics would argue—as I would, as a Eurosceptic—that we always said that this would happen if we joined the single currency. We always said that it would result in losing national sovereignty, co-ordinating budget policies or giving away powers over budgets. That is one of the reasons that we did not want Britain to join; it is why we stayed out. Given that monetary union logic leads to greater fiscal integration, we should let that happen, because I think that it will make the euro work better. As I have said, however, Britain wants no part of it.

Crown Currency Exchange

Wayne David Excerpts

Tuesday 7th December 2010 Commons Chamber

[Tessa Munt]

Absolutely. I hope that that will be part of the outcome. I ask the Minister in particular whether he would agree to meet members of the group Action against Crown Currency Exchange, me and other Members whose constituents have an interest, so that we can explore what might be done. It certainly seems to me that the legislation does not allow the FSA to operate in an effective way. Perhaps it is for the House to deal with that.

[Mr Wayne David (Caerphilly) (Lab)]

What message can the hon. Lady give to my constituents, and many others across the country who have lost large sums of money, about what hope they might have of compensation?

[Tessa Munt]

I am an optimist, so I hope that we might be able to do something, but it would appear that the directors of the company have operated through a loophole in the scheme. I suspect that they were very savvy and knew exactly what they were doing. They have registered rather than being regulated or authorised. Some 13,000 people have lost £20 million and there is enormous distress and dismay about what has happened.

Draft EU Budget 2011

Wayne David Excerpts

Wednesday 13th October 2010 Commons Chamber

[Mr Wayne David (Caerphilly) (Lab)]

We have had a very interesting debate. Before it, I had thought there was a chance that perhaps the Conservative party had changed, and that it had learned the errors of its ways and said farewell to Eurosceptism. But no, Eurosceptism is alive and well in today’s Conservative party and, in fact, it would appear to have been given a new lease of life. In reality, many of the contributions made by Conservative Members today were speeches against not only the European Union budget per se, but the European Union as an entity.

I urge Conservative Members to continue to be frank, but I must ask where the Liberal Democrats were. Until recently, that party used to pride itself on being the most pro-European in Britain. Well, in this debate the Liberal Democrats have certainly withdrawn to the fringes, as we have seen them do this week generally. Apparently, no compromise is too much for them, no U-turn too sharp and no sell-out too great. What is true in domestic politics is equally true on Europe.

What about the Conservatives? Let me make it clear that an efficient and effective EU budget is important for Britain. The majority of our exports go to the rest of Europe and that is why the EU budget must act as a stimulus for growth. We need to reinforce the conditions for future growth and, as is said in the commentary on the draft budget, we must invest

“in research, development, and innovation, infrastructure and human capital”

because all of those

“are at the heart of economic modernisation”.

That is not to say, however, that we should not be hard-headed about what areas of EU expenditure should be reduced. It is right that there should be a freeze on EU staff recruitment in Brussels and that various benefits for current and retired EU officials should be reduced. There is a necessity to maintain budgetary discipline, and we must always ensure that there is value for money at a European level. Equally, we should be prepared to say that further savings should be made. Let Britain champion, for example, the ending of the ludicrous circus of the European Parliament travelling back and forth between Brussels and Strasbourg—the Government say a lot about it but have done absolutely nothing. Let us examine whether it is really necessary for the EU to promote culture and let us continually make the case for reducing subsidies to well-off farming interests.

Of course Labour Members support the Government’s aim of reducing the EU budget, but the reality is that the amended budget, agreed by the Council of Ministers in August, represents an increase of 2.9% compared with this year’s budget. We know that the UK Government, along with smaller Governments from across the EU, voted against the amended budget. But, we know that the Government lost the debate and the vote in the full European Council—so much for the Government's claim to be winning the arguments in Brussels.

Even though the Government initially mellowed their strident Eurosceptism, which the Conservative party displayed in opposition, their lame and half-hearted attempts to fight for British interests are falling far short of what is needed. The Conservatives’ decision to withdraw their MEPs from the mainstream European People’s party, along with their vacuous proposals for constitutional tinkering, debilitates Britain’s engagement in Europe.

What this country needs is a Government who fight hard for British interests, not through posturing but through purposeful co-operation around a positive agenda—an agenda that recognises that if Britain is to succeed in the modern world, it must be a Britain that is located firmly in the mainstream of international co-operation.