The
Committee consisted of the following
Members:
Chair:
Mr
David Crausby
†
Andrew,
Stuart (Pudsey)
(Con)
†
Baldwin,
Harriett (West Worcestershire)
(Con)
†
Birtwistle,
Gordon (Burnley)
(LD)
†
Connarty,
Michael (Linlithgow and East Falkirk)
(Lab)
†
Cooper,
Rosie (West Lancashire)
(Lab)
†
Cox,
Mr Geoffrey (Torridge and West Devon)
(Con)
†
Duddridge,
James (Lord Commissioner of Her Majesty's
Treasury)
†
Greening,
Justine (Economic Secretary to the
Treasury)
Hanson,
Mr David (Delyn)
(Lab)
†
Hilling,
Julie (Bolton West)
(Lab)
†
Jones,
Graham (Hyndburn)
(Lab)
†
Rees-Mogg,
Jacob (North East Somerset)
(Con)
Wilson,
Sammy (East Antrim)
(DUP)
Alison Groves, Committee
Clerk
† attended the
Committee
The following
also attended
(
Standing Order No.
119(6)
)
:
McCarthy,
Kerry (Bristol East)
(Lab)
Nash,
Pamela (Airdrie and Shotts)
(Lab)
European
Committee B
Tuesday 15
February
2011
[Mr
David Crausby
in the
Chair]
EU
Budget
Review
4.30
pm
The
Chair:
Does a member of the European Scrutiny Committee
wish to make a brief explanatory statement about the decision to refer
the relevant document to the
Committee?
Jacob
Rees-Mogg (North East Somerset) (Con):
It might be helpful
to the Committee if I take a few minutes to explain the background to
the document and the reason why the European Scrutiny Committee
recommended it for
debate.
Three
instruments set the basic rules for the European Union’s
finances. The first is an inter-institutional agreement on budgetary
discipline and sound financial management, which provides for many
aspects of the planning, preparation, execution and control of the EU
budget. The agreement is between the Council, the European Parliament
and the Commission. It is an important tool of budgetary discipline and
includes a multi-annual financial framework. The financial framework is
intended to ensure that, in the medium term, EU expenditure develops in
an orderly manner and within the limits of its so-called own
resources.
The
current inter-institutional agreement was agreed in May 2006 and its
financial framework, agreed in December 2005, sets spending ceilings
for the period 2007 to 2013. The other two instruments are an own
resources decision, which governs the main sources of
revenue—the current decision was agreed in June 2007—and
the financial regulation of
2002.
4.31
pm
Sitting
suspended for a Division in the
House.
4.46
pm
On
resuming—
Jacob
Rees-Mogg:
I had just come to the third of the
three instruments—the financial regulation of 2002, which sets
out detailed provisions on the preparation and management of the annual
European Union budget. A triennial revision of the current financial
regulations was debated in European Committee B on 14 February
2011.
In
December 2005, the European Council asked the Commission to undertake a
full, wide-ranging review covering all aspects of EU spending,
including the common agricultural policy, and resources, including the
United Kingdom rebate, and it was to report in 2008-09. The intention
was to inform preparation of all aspects of revenue and expenditure for
the 2014 to 2020 period. That request was incorporated into the current
inter-institutional agreement.
Although
the Commission initiated a public consultation on the issue in
September 2007, it did not report on the review in either 2008 or 2009.
The communication and the accompanying staff working document are an
attempt by the Commission to provide orientations for the future of EU
budget expenditure and financing. Among other matters, they discuss
revenue correction mechanisms, which include the UK
rebate.
In
the final section of the communication, the Commission asserts that the
EU and national budgets should be seen as complementary and not in
competition with one another, and that EU funding should be rational
and fair—and perceived as such. It says that it will bring
forward a draft regulation setting the next financial framework and a
draft decision on own resources in June 2011. Although what exactly the
Commission intends to propose for the future of EU finances is not yet
clear, the European Scrutiny Committee thought that a debate in
Committee about the ideas floated in the communication would be
timely.
The
Chair:
I call the Minister to make the opening
statement.
4.48
pm
The
Economic Secretary to the Treasury (Justine Greening):
May
I say what a pleasure it is to serve under your chairmanship, Mr
Crausby? I very much welcome the chance to discuss with the Committee
the budget review document and the Government’s position on the
future of the EU budget. I know that the Committee has waited for the
budget review for a long time. As we have heard, the review was
commissioned by the European Council in 2005, but the conclusions
emerged only at the end of
2010.
The
Government inherited a position in which they faced both an urgent need
for deficit reduction at home and rising contributions to the EU budget
under the seven-year deal agreed by the previous Government. I wish to
make a few introductory remarks about the Government’s
priorities for future EU budgets and what we have already achieved.
Above all, I want to be clear that the Government aim to limit the size
of the EU budget. We are implementing a tough deficit-reduction plan at
home and many other member states are taking similar action. The EU
budget cannot be immune from that process. Growth in EU spending must
not undermine our efforts domestically to cut the
deficit.
Last
year, the Government made strong progress towards achieving their key
objective. At the European Council in October, the UK led all 27 member
states to agree the important principle that the EU budget to
2020 must reflect the fiscal constraints in member states. The
Government have maintained momentum on that initiative.
In December,
we issued a letter jointly with Germany, France, the Netherlands and
Finland. It states that the EU budget should grow by no more than
inflation over the next financial perspective. The letter is an
important marker that places specific limits on the growth of the
budget over the rest of this financial perspective and the
next. That was in addition to our negotiations on the 2011 EU budget,
in which we convinced the European Council to stand firm against the
European Parliament’s efforts to raise the EU budget by more
than 2.91% and to give itself new powers.
We face the
task of making the most of the budget review in pursuing our objectives
to reform the budget. Of course, that review has not delivered what the
previous Government hoped, which was a fundamental review of the budget
well ahead of the negotiation of the next financial perspective.
However, this Government’s emphasis on budget discipline is a
strong spur for reform. Budget discipline will necessitate some hard
choices, and an emphasis on where the real added value lies. Powerful
forces are arguing for reform throughout the EU. We must ensure that
the next few months deliver a real debate about the consultations on
the common agricultural policy and the structural funds and about the
budget review and the financial
perspective.
Europe
must also modernise its budget to tackle better key challenges of the
21st century—global competiveness, global warming and global
poverty. That must not, however, come at the cost of higher EU spending
overall. Instead, we must reduce waste and cut spending from
low-added-value areas, to realise savings and to free resources to
support European priorities. It is not clear that the
Commission’s ambition for reform is strong enough. Although its
budget review document encouragingly focuses on supporting growth, it
inadequately reflects the difficult economic and fiscal context. A much
stronger focus on prioritisation and securing savings is
required.
The
budget review introduced a broad range of policy proposals, but many of
those ideas require much further work. The Commission refrained from
giving its view on the majority of those proposals. The UK Government
have injected their ideas in their responses to the consultations on
the common agricultural policy and structural funds. Ongoing
consultations are happening on other areas of the EU
budget.
The
Committee will be interested in the position on the UK’s
abatement and other questions about European Union financing. The
budget review helpfully reiterated the principle of fairness set out at
the Fontainebleau European Council in 1984, at which the UK abatement
was agreed. Expenditure distortions remain a key source of budgetary
imbalances, which fully justifies the abatement. We are very clear that
we will staunchly defend it. Furthermore, we will not consider any new
EU tax, or so-called new own resource, to finance the EU
budget.
As
we have heard, the budget review is only a precursor to formal
negotiation on the next financial perspective, which will begin later
this year. Much work remains to be done, and negotiations will be long
and difficult. Many opponents will push hard for higher EU spending,
but we are committed to standing up for the UK’s interests. I
look forward to discussing the budget review in the
Committee.
The
Chair:
We now have until 5.45 pm for questions to the
Minister. I remind Committee members that questions should be brief.
Subject to my discretion, it is open to Committee members to ask
related
supplementaries.
Kerry
McCarthy (Bristol East) (Lab):
It is a pleasure to serve
under your chairmanship, Mr
Crausby.
The
Minister outlined the process by which we reached the current position.
The Government argued for a budget freeze and we ended up with a 2.9%
increase. I understand that there is a suggestion for an amending
budget, which might increase expenditure by €182 million. Where
are we on that, and what is the Government’s stance on trying to
oppose
it?
Justine
Greening:
We are left with two aspects of the problem.
There is what the money will be spent on, which we do not disagree
with—it is for supporting areas that have suffered flood damage.
We have said that we understand why that spend is justified. Our
problem is that we believe that it should come out of the existing EU
budget. We have only just been through the negotiations to set the 2011
budget, so it is disappointing to be presented with a proposal that
exceeds that agreed budget so soon into 2011.
The
Government are therefore in ongoing discussions with other member
states, which, in many cases, share our concerns. They have been
through those same negotiations and, alongside the UK, have stood firm
on not going with a bigger budget, as was proposed by the European
Parliament. We are determined to ensure that those moneys should not be
spent in addition to the agreed 2.9% rise, but should be part of the
existing budget that we have already
decided.
Kerry
McCarthy:
There is concern in Wales about the impact of
structural funding being withdrawn. My understanding is that the
Government and their Members of the European Parliament are not keen on
establishing a transitional status, which would give areas whose
structural funding is being withdrawn a bit of a soft landing. In a
committee meeting of the European Parliament last week, Conservative
representatives said that they were also not in favour of
competitiveness. I understand that if competitiveness were abolished,
east Wales would receive no EU funding. Will the Minister elaborate on
those points?
Justine
Greening:
The hon. Lady is rightly getting into the debate
on the future financial perspective. We first need to ensure that
structural cohesion funds get the transformation on the ground in the
countries where they are being spent. We believe that, over time,
a greater share of such funds should go towards new member
states. I am sure that hon. Members will be aware that the argument for
bringing such states into the European Union was twofold—because
they would be able to grow their economies and because the rest of the
EU would have the flip-side benefit of having a bigger market within
which to trade. We want, over time, to see a share going more towards
such states.
We recognise,
however, that such a change will not happen overnight, so we expect to
see continued social cohesion funds for existing member states
throughout the period of the coming financial perspective. The
challenge is that although we want social cohesion funds to transform
the economies of the new member states, we also want that to happen in
the existing ones; we want value for money on the ground.
As the hon.
Lady is aware, one of the ways in which to get that value for money is
to challenge the percentages of income being set by the EU. We broadly
support the 75% income level, but we believe that over time we should
see a reduction in the money going towards regions that are currently
receiving social cohesion funds. We want a greater share to go towards
the new member states.
Critically, at
the same time, we realise that national Governments have a key role to
play in stimulating their economies and encouraging regenerations in
those regions, too. The challenge is for the EU to ensure that the
right measures are taken at the EU and domestic levels. We do not
believe that we are compromising our support, but we need to ensure
that we get the best value for funds at the EU budget
level.
Kerry
McCarthy:
I thank the Minister for that response.
Obviously, people are concerned, particularly in Wales, that when
austerity measures are implemented in this country, and there is also a
possibility of losing out on EU funding, it is a double
whammy.
On the
section in the communication that deals with research and innovation,
it would be helpful from a future perspective to have some British
examples of where such schemes and EU initiatives have benefited
projects in the UK—otherwise, we deal with the matter in an
abstract fashion. There is discussion about leveraging in private
investment, public-private partnerships and European innovation
partnerships in future. Can the Minister give any examples of where
those have worked well in practice, so that we can take a view on
whether they are a good thing?
Justine
Greening:
On the hon. Lady’s first point on Wales,
we are all in the UK paying for our share of the EU budget—all
taxpayers, including taxpayers in Wales. We must get value for
money.
Research and
innovation are areas where the Government feel that we can see better
value for money in terms of the EU budget. The hon. Lady asked for
examples. A number of UK companies were heavily involved in the Galileo
project. She raises a valid point about private investment. What we
need and would like to see is the role of the European Investment Bank
developed, with more funds perhaps being leveraged in through it than
has been possible in the past.
Part of the
matter is: we have an EU budget—how can we get best value from
it? The second part is: how can we use other institutions within the EU
to leverage in private sector investment for the benefit of member
states?
Kerry
McCarthy:
This is my final question for now. It would not
be an EU budget debate if we were not to talk about the CAP, although
it is always water in which one is reluctant to dip a toe. I understand
that in the 2011 budget vote in the European Parliament, Conservative
MEPs voted against abolishing export subsidies, which could have saved
€160 million. Export subsidies are obviously controversial. They
are not only costly; they are trade-distorting and harm developing
countries. In the context of trying to ensure that the EU budget is
well managed and well spent, will the Minister explain why that vote
took
place?
Justine
Greening:
I could challenge the hon. Lady to explain why
Labour MEPs voted against—I think I am right—a cash
freeze, which would absolutely have been in the interests of the UK
taxpayer, and would have covered a value of spend far greater than the
vote that she is talking about.
We do want to
see reform of the CAP. Let us not forget that the backdrop to the
budget review was the deal done on CAP in 2005 by the previous
Government. That has to go down as one of the most disastrous deals
ever done on behalf of the taxpayer.
The then
Prime Minister Tony Blair gave away part of our rebate, and the maximum
effect of that kicks in from this year. Over the course of this
Parliament, that will cost us in the region of £10 billion. He
gave it away in return for what? In return for this document—the
budget review. There was no actual agreement to reform; there was just
an agreement to have a review. I do not think that that was worth
£10 billion to the UK
taxpayer.
Nevertheless,
we do want to see reform of the CAP, and we want to come back to the
background of why we were pressing for reform in years gone by. We need
to do it in a more successful way in future, and one that is far less
costly to the UK
taxpayer.
Jacob
Rees-Mogg:
I thank the Minister for being enormously
robust over these budgetary issues with Europe. I know that she
continues to be so, to the great satisfaction of her
colleagues.
The Minister
mentioned so-called own resources. I bring her attention to page 40 of
the documentation and the extremely ambitious list of the European
Union for setting up its own taxation powers—on the financial
sector, greenhouse gas emissions auctions, air transport, EU VAT, EU
energy tax and EU corporate income tax. There is a suggestion that new
resources should be collected directly by the EU outside national
budgets.
Does the
Minister agree that the concept of own resources is bogus? They are the
resources of the British people and other nationalities. Collecting
outside the guise of national treasuries is equally bogus, because it
still falls on the underlying peoples. Will the Minister ensure that
the EU does not get any further own resources, and that it fully
recognises that there is no money beyond the members states’
taxpayers?
Justine
Greening:
I absolutely assure my hon. Friend that we do
not want to see any form of EU tax. We are concerned by the discussion
about own resources, set out in the budget review. I can also confirm
that when I was in Brussels as part of the 2011 budget negotiation last
year, I met the Commissioner and made those points very clearly, pretty
much as my hon. Friend has done. We have been very clear that we will
not accept any EU tax, own resources or dilution of our
abatement.
Jacob
Rees-Mogg:
To follow up, will the Minister confirm that we
have a veto and therefore nothing can be done without our voluntary
agreement?
Justine
Greening:
We are one of several countries that share
concerns about the issue and therefore we will seek to veto any move to
own resources or an EU tax. We need to win the argument about why it is
a bad idea. I believe we are winning it by finding common ground with
our European partners. They are having to take very difficult domestic
decisions alongside the UK. In many cases, they are in a similar
position to us and they do not want to see own resources or an EU tax
come on to the agenda. I made that point to the Commission.
In
Britain, people would see a direct link between a European Parliament
that had just asked for a 6% rise in its budget and not got it, and a
Parliament that came back and suddenly proposed an EU tax or own
resources changes, so we have been extremely concerned. Any EU tax
would be subject to unanimity, and in that case we would have a
veto.
The
Chair:
Order. If no more Committee members wish to ask
questions, we will now proceed to the debate on the motion.
Mot
ion
made, and Question
proposed,
That
the Committee takes note of European Union Document No. 15285/10 and
Addendum, relating to the EU Budget Review; supports the
Government’s efforts to reduce the size of the EU budget and
deliver savings and value for money for taxpayers, including a
substantial reduction in spending on the Common Agricultural Policy;
and further supports its efforts to reprioritise expenditure to support
growth and competitiveness and tackle climate change and global poverty
and to protect the UK’s abatement, which remains fully justified
due to distortions in EU spending.—(
Justine
Greening.)
5.7
pm
Kerry
McCarthy:
I will keep my comments brief, as this is part
of an ongoing discussion. We discussed the inter-institutional
agreement in another European Committee yesterday, and there was a
debate in the Chamber not long ago about the European Court of Auditors
report and the failure to sign off accounts for the 16th year in a row,
so many of the issues have been fleshed out. I am sure that we will
revisit the issues before long. The process is ongoing, and it seems
unduly complex and bureaucratic. As the Minister has already
acknowledged, the fact that the budget review was set in train in 2005
and we have only just had the outcome published is not a cause for
celebration.
EU spending
on the common agricultural policy and the cohesion fund is of most
concern; we saw that when the Court of Auditors gave its verdict on how
money had been spent in the past. I am sure that the Minister will make
robust contributions to the debate when she goes to Europe. We need
progress; that is
important.
5.8
pm
Jacob
Rees-Mogg:
I am sorry to take up so much of the
Committee’s time. It is probably my fault that the matter was
brought forward from the European Scrutiny Committee in the first
place.
The
documentation that Europe provides is extremely worrying in many
respects. What is going on and what the European Union is trying to do
needs to be more widely known, and the Government should have public
support in their valiant efforts to stop it. What we have before us is
only a discussion document, but it is several years late. It was
promised for 2008 but did not appear until 2010. That, in terms of
ordinary business management, is deeply
unsatisfactory.
There
are also many examples of gobbledegook in the document, and uses of
terminology that is fairly meaningless. The European Union is to
support “smart growth”. Well, name me an organisation
that is in favour of stupid growth. That type of language, which begins
to propose expenditure and ways of doing things, has no connection with
reality. The document then talks about “clear EU value
added”. What sort of
jargonese is that? What does it actually tell us?
Even better, it refers to the common agricultural policy as “a
major public investment”. An investment is not stuffing foie
gras geese, or their equivalent French farmer, with grain; an
investment is building a road, a railway or a factory. The common
agricultural policy is 43% of EU spending, which is money that is gone,
spent and to some degree wasted. Some of it, indeed, is taken
fraudulently, as we have discussed in the Chamber of the House. That
type of language covers up a great deal of
wrongdoing.
I
am concerned about many of Europe’s ambitions, and I have
questioned the Minister about own resources. One of the things that the
EU wants to do is collect the road tolls from infrastructure projects.
On what basis will it do that? How much will it have to give before it
decides to put in place a toll? Will it say that once a toll has been
established in Portugal we will have to have tolls on our roads,
because that will provide some form of cohesion?
I am
worried—I declare an interest, because I have an involvement in
a financial services business—about the proposals to tax the
financial services sector. Again, that is surely a matter for national
Governments, not Europe, to deal with. I may part company slightly with
Opposition Members here, but I also think that the whole EU approach to
spending is of a rather old-fashioned, socialistic kind. It predates
new Labour in thinking that big Government fiscal plans lead to
benefits. The communication from the Commission regarding the EU budget
review says:
“The
EU budget has made a real difference to the task of delivering more
growth and jobs, boosting research, competitiveness and skills and
ensuring that the Union offers particular support to those most in need
of
solidarity.”
That
basically means that through redistributive taxation, the EU is taking
money from the British and giving it to the Greeks, which is making
everybody richer and happier. That is not my view of the world, and I
do not believe that it is the view of most British people.
I have
already touched on EU added value. The document says that
“added value of
a political project cannot be reduced to a balance
sheet”.
That
is just not good enough. The EU budget is a balance sheet.
It is all very well to talk about the spiritual benefits of Europe and
the fact that we can all claim Mozart as a fellow European citizen, but
budgets are about cash flow—cash in and cash out. It is not some
ethereal spiritual experience that we all enjoy across the European
Union.
The
European Union claims to be a single economy. The document says that
it
“has 500 million
citizens, and is the largest economy in the world.”
The President of the
United States might be rather surprised to hear that the European Union
was a larger economy than his own, as might the President of China or
the Emperor of Japan. It is not a single economy by any means, and I
hope that with robust Parliaments such as this one, we will avoid it
being a single economy.
To continue
on the theme of unutterable nonsense, let me read another sentence of
EU gobbledegook about
solidarity:
“Solidarity
is one of the foundation stones of the European Union, a core principle
and source of strength.”
When we are losing
billions of pounds every year to the European Union, I am not sure that
that is necessarily true. The evidence that the cohesion fund, which
is the money for solidarity, has done any good at all is
extraordinarily thin. That does not stop the document saying that
cohesion is
marvellous:
“Cohesion
has proved one of the most successful ways for the Union to demonstrate
its commitment to
solidarity.”
If
we look at the more detailed documentation in the technical annexes
that accompany the Commission’s communication, however, we find
that
“The
impact of EU budget interventions on the economies of different Member
States…is not a scientifically well-documented
subject.”
After
that grand statement about how successful cohesion has been, the
Commission admits that it has absolutely no evidence to support it. On
flimsy evidence, it claims that 0.5% of EU gross domestic product has
been spent to produce a growth of 0.7% in EU GDP. I have been an
investment manager for 20 years, and if I managed to achieve only a
0.2% increase or a 40% return over a 10-year period on the money that I
had spent, I would have been fired. That is simply not good enough, and
it is not even scientifically attested. The best that the EU can do,
according to its most ambitious claims, is relatively
negligible.
I
will conclude with a paragraph that is so completely incoherent that
one wonders why anybody spent money producing it. There is sheer muddle
in the Commission’s thinking, and it thinks it can cover up that
muddle with complex
language:
“To
maximize the impact of cohesion spending in the future, it will be
necessary to ensure that Member States and regions concentrate EU and
national resources on agreed EU
priorities.”
It
goes on and on,
mentioning
“a
“menu” of thematic priorities directly linked to the
Integrated Guidelines and flagship
projects”.
All
of that is being done on our money. We are talking about a programme of
enormous ambition—the creation of a superstate. The budget
review refers to a single “European economy”. That is
something that the British people never asked for and never voted for,
but it is being done on the back of our money. Why do I bang on about
it? Because the Commission does it in stages. It tries to slip these
documents through so that they are not debated, until suddenly a
Minister comes back from Brussels saying, “Well, we’ve
been outvoted. There is now going to be a tax on EU financial
transactions. We didn’t know there was any opposition to it in
this country because we’ve never discussed it.” It all
just slips through. That has been the European modus operandi since we
joined. I am so glad that we have a Minister here with the backbone to
stop it, who models herself on a former British Minister who liked to
say no when Europe tried to make a great grab for
powers.
5.16
pm
Justine
Greening:
First, I would like to wrap up some of the
comments made by hon. Members. Having read the budget review, one gets
a sense of where the Commission is coming from. Page 5
states:
“EU
spending for 2010 amounted to € 122.9bn. This is relatively
small in comparison to national budgets”.
We
have debated that with the Commission. We do not think that
€122.9 billion is relatively small. How it is being spent
matters, too. My hon. Friend the Member for North East Somerset talked
about gobbledegook, and he is
right.
Part
of the problem in the past was that debate was focused on individual
pots of money and individual headings, so attention was distracted from
the total amount. One of the benefits, not just for us, but for other
member states, of Government focusing attention on the absolute amount
is that it is real. It is very hard to argue with how much it tots up
to, and very hard to cover it
up.
We
have made it clear that we want more value for money, and the budget
has to be of a constrainable size. We cannot have more and more
European priorities at the cost of a higher budget. The other
thing that I would say to my hon. Friend is that, on a positive note,
more and more of our fellow member states can see for themselves the
problems of having a perpetually growing EU budget. We are not alone in
making those arguments any more. If one reads the joint letter that was
signed by some 13 countries in the run-up to the 2011 budget
negotiations, or the letter signed by France, Germany, Finland and the
Netherlands on the longer-term prospects for the EU budget, one begins
to see that we are winning the argument with other member states about
the need to limit the size of the budget. Now that we have made
progress on that, we are much better positioned to have the secondary
argument about extra value for money and ensuring that the EU budget is
spent in the right way and on the right
goals.
I
welcome the budget review’s prioritisation of jobs, but as with
the Lisbon strategy, a strategy is not enough—a budget review is
not enough. The budget review is not the EU budget reform that we need.
Working with other member states, the Government need to make the
argument for the necessity of genuine reform. Over time, we are making
some real progress on that, but we should not underestimate the size of
our challenge over the coming
months.
We
are keen for this Parliament to continue supporting the Government, to
help us to maintain the momentum that we created at the end of last
year for reforming the EU budget. It gave us some real strength going
into those negotiations, and we valued it. I can assure Members across
the House that we will fight hard to defend our country’s
interests in the upcoming financial perspective negotiations that we
expect to begin in the summer. We will not forget the debate that we
have had today. We will make sure that those concerns are
raised.
Mr
Geoffrey Cox (Torridge and West Devon) (Con):
I have
listened with great approval to everything that the Minister has said,
but can she give us a commitment on behalf of the Government? In recent
months, the number of competencies that the EU has assumed has grown;
for example, there is the External Action Service. Page 73 of the
documents says that it will be given, under the process that we are
discussing, the right to budgetary autonomy, to be treated as an
institution and to set its own administrative expenditure. Some might
argue that the fact that it is taking on such an expensive process and
function at a time of extraordinary constraint on resources is a real
worry. Will she give a commitment that we will not agree to
ever-extending competencies for the EU, which will simply increase the
budget?
Justine
Greening:
I absolutely can give my hon. and learned Friend
that assurance, on two levels. First, we do not want to see any further
competencies taken at the EU level. Secondly, we do not want to see any
increases in the EU budget—quite the reverse; we want the EU
budget to decrease over time. The External Action Service, as he knows,
was something that we did not support in opposition. However, it is
there now, and we want to ensure that it works effectively. It is a
classic example of a proposal that came through with one price tag
attached, and where, within months, a higher price
tag was attached. It is no wonder that member states have grown
increasingly frustrated with the Commission as they approach the annual
negotiations on the EU budget and the financial perspective. I
absolutely assure him that we take on board his comments. They are the
arguments that we are making as a Government in
Europe.
Question
put and agreed
to.
5.22
pm
Committee
rose.