Draft EU Budget 2011 Debate

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Department: HM Treasury

Draft EU Budget 2011

Ian Davidson Excerpts
Wednesday 13th October 2010

(13 years, 6 months ago)

Commons Chamber
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Ian Davidson Portrait Mr Ian Davidson (Glasgow South West) (Lab/Co-op)
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I rise to support a reduction in the EU budget. As some Members may be aware, I have advocated that any such cut would more than meet the costs of providing a second aircraft carrier for the Royal Navy.

Who would have thought that less than six months after the election we would be having a debate where a Conservative-led Government would be denounced by many of their Back Benchers for being soft on Europe? I was surprised to hear my right hon. Friend the Member for Rotherham (Mr MacShane) say—I think that he is correct—that, as far as he can tell, there has been almost complete continuity of policy from the previous Government to this Government in terms of their relationship with the EU. I have noticed that many commentators are similarly remarking that there seems to have been very little change in policy towards the EU. I hope that that is simply a question of settling in, and that when the Government find their feet they will be much more prepared to stand up for British interests.

There is another possibility. Yesterday, we heard that the alternative vote referendum was being brought forward simply as a concession to the Liberal Democrats—the Liberal tail wagging the Conservative dog. I hope that the Government’s softness on the European Union is not another case of the Liberals having received undue concessions from the Conservatives. I point out to Conservative Members that it is not possible to buy Liberal Democrats—they can only be rented for short periods, and one can never rely on their remaining rented. If the Conservatives are counting on the Liberal Democrats to support them all the way, they are likely to be sadly mistaken.

Unless I am very much mistaken, it is noticeable that there are no Liberal Democrats here at the moment, unless Members who are sitting on the second Bench back have joined them.

Ian Davidson Portrait Mr Davidson
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Are they all in it together? Yet again, I suspect that the Liberals are leaving the Conservatives to do the dirty work for them and put the budget through. I imagine that if the Conservatives carry on their course of action and we have an AV voting system next time around, the UK Independence party will do far better in the first ballot than it might have done in the past. I find it a great cause for regret that the Conservatives seem to have gone soft on Europe in such a short period.

Peter Bone Portrait Mr Bone
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I normally agree entirely with the hon. Gentleman, but will he cast his mind back to the previous Parliament? When did a Minister talk the way our Minister has spoken tonight, and when were the Government Benches as full for a European debate as they are tonight?

Ian Davidson Portrait Mr Davidson
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That is a very fair point. Not many times were the Benches behind a Minister full of Members denouncing the Government for being too soft on Europe. There were a number of us doing so, but not nearly as many as there are tonight. I am grateful to the hon. Gentleman for making that point.

Some of my colleagues who spoke earlier touched on the iniquities of the EU budget. As someone who was a member of the Public Accounts Committee for a number of years, I am in complete sympathy with everything that has been said about how the auditors have qualified the accounts. The whole matter is a complete and utter disgrace. The audited accounts only tell part of the story, of course, because they do not cover the fact that EU income and the income of individual countries is enormously depressed by the extent of fraud, underpayment, under-collection of VAT and so on, which is reflected in the EU budget. [Interruption.] Can I have a lack of heckling from my hon. Friends in front of me, who support most of my arguments?

The EU budget is about not only the net and gross amounts of money flowing back and forward, but how that money is spent. Were it given by the EU to the British Government to spend, we would not be spending it in the way that we are. We have created a dependency culture among farmers. I know a number of farmers—admittedly not many of them are in my constituency—who concede that what they mostly farm now are subsidies. The whole pattern of their growing and activity is determined by the subsidies that are available from the EU, irrespective of the agricultural, financial or economic rationale. That is not rational or right, and such decisions ought to be repatriated to this country as quickly as possibly.

The hon. Member for Hertsmere (Mr Clappison) asked what the actions of Labour MEPs were likely to be, but I think that there is little doubt. We should remember that virtually all Labour MEPs were selected under the new Labour system of allowing only those in favour of ever-closer union to progress. I can remember when a number of Scotland Labour MEPs were Eurosceptic, but when the new system of proportional representation was introduced, Labour put them all out. Ever since, only those in favour of ever-closer union have come forward. I would be astonished if any Labour MEP does anything against those interests and the interests of the greater growth and development of the EU.

Desmond Swayne Portrait Mr Desmond Swayne (New Forest West) (Con)
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I acknowledge the hon. Gentleman’s honourable record on this matter, but will he acknowledge that the description that he just gave admirably suits the Quisling-in-chief now occupying the position of Opposition Front-Bench spokesman, who always urged the previous Labour Government on from the Back Benches?

Desmond Swayne Portrait Mr Swayne
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I unreservedly withdraw the remark.

Ian Davidson Portrait Mr Davidson
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Now that the hon. Gentleman has withdrawn his remark, I shall not respond to it.

The point about the External Action Service has already been made, but I was astonished at the time of its creation that so many otherwise sensible people believed that it would result in no net growth in expenditure. Of course it was going to, and it was always intended that it would do so. It is interesting that those who wish to be deceived are deceived, including by promises from the European Union to moderate or reduce expenditure. That is simply a fig leaf. Those who accept such promises choose to do so, and then pretend to be astonished when it turns out that the situation is different. The idea that the Lisbon treaty is not the constitution is simply laughable, and only those who wish to be deceived by that twisting of words are so deceived.

William Cash Portrait Mr Cash
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Does the hon. Gentleman agree that the root of the problem is not only the EU budget, but EU functions, which were greatly increased by the Lisbon treaty? The ESC agreed this afternoon that we will examine fully the question of parliamentary sovereignty as against European functions. Does he also agree that a precondition of reducing EU functions is asserting UK sovereignty, and requiring the judiciary to give effect to Westminster legislation and to override European legislation as and when necessary?

Ian Davidson Portrait Mr Davidson
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I accept that. It is enormously helpful that the ESC, of which the hon. Gentleman is Chair, will pursue that course of action. I only hope that the Committee does not take too long.

William Cash Portrait Mr Cash
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Three months.

Ian Davidson Portrait Mr Davidson
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That is very welcome indeed. Pursuing that sooner rather than later is welcome.

The point about the External Action Service is not only that it costs more money, but that it is invidious. The desire of the EU is that it should be a state and that the EAS should be an embassy. I note that the EU has just taken over enormous premises in central London. Those will be nothing other than a centre for pro-EU propaganda and an attempt to intervene directly in British politics and British political affairs in a way that we would not tolerate from any country—I almost said “any other country.” We would not allow the Austrians, the Australians, the Canadians or anybody else to have a propaganda outfit in this country that spent enormous amounts to intervene directly in British politics, yet we are prepared to allow the EU to do so. In my view, its wings ought to be clipped.

The hon. Member for Daventry (Chris Heaton-Harris), who I believe has left the Chamber, commented on the extent to which we reflect our constituents’ anxiety about EU spending. I think that he was wrong, because we do not accurately reflect those. The balance of this debate is clearly in favour of constraints on EU spending, and that reflects the balance of opinion among the public, but I fear that the vote will not reflect that because vast numbers of Conservative MPs will be driven like sheep into the Lobby to support the Government and oppose any proposal to restrict the expenditure of the EU.

I hope that we will be able to return to the discussion of a referendum. It is correct for Conservative Members to point to the Labour Government’s failure to honour their commitment to a referendum on the constitution, but I point to the Conservatives’ failure to do the same. Given that next year Europe intends to re-examine its budget and the common agricultural policy, we should start by saying that that major revision should be put to the British people in a referendum, to determine whether they are prepared to accept the new financial arrangement, which will represent—I hope—a considerable break with what has happened in the past. Of course, it may not break with the past, but it would strengthen the Government’s hand enormously if we made it clear that they were prepared to take any new financial settlement with Europe, achieved after a long period of debate, to the country for resolution.

In the meantime, I support the proposals that urge a reduction in the EU’s expenditure, and I hope that we will not discover that a majority of Conservative Members oppose those proposals.