European Union (Finance) Bill Debate

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Department: HM Treasury
Tuesday 23rd June 2015

(8 years, 11 months ago)

Commons Chamber
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David Gauke Portrait Mr Gauke
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My hon. Friend is absolutely right. It is noticeable that our contributions are lower than they were in the last year of the previous multi-annual financial framework, not least because of the achievement of the Prime Minister in February 2013. Of course, we continue to suffer the unfortunate effects of the previous negotiation, when part of our rebate was lost, amounting to £2 billion a year. None the less, we have made considerable progress thanks to the steps that were taken in 2013.

For the period from 2014 to 2020, the ORD reintroduces reductions in the GNI-based contributions of the Netherlands and Sweden, and introduces a reduction in those contributions for Denmark. The UK will contribute to those small corrections, but that will largely be offset by changes to other corrections.

Lastly, the ORD lays down the own resources ceilings at 1.23% of total member states’ GNI for payments and 1.29% for commitments, and sets out the method for calculating subsequent changes to those ceilings following the introduction of the European systems of accounts 2010 by all member states.

The Bill will give UK approval to the new ORD and is the last UK action that is necessary to deliver the 2013 deal on the budget.

Matt Warman Portrait Matt Warman (Boston and Skegness) (Con)
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I admire the level of detail we are going into in this debate and I know that we all find it fascinating, but my constituents often say that they would like to hear details that they can understand, such as household-level figures. I note from the briefing that we are paying the equivalent of a £10 a month subscription per person. Will my hon. Friend confirm that when we talk about the renegotiation, we will do our utmost to talk in language that everyone outside this House can understand, as well as going through the fine detail?

David Gauke Portrait Mr Gauke
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My hon. Friend makes a good point. I confess that I have set out rather detailed points. I know hon. Members in the Chamber will be capable of understanding them, but they will not necessarily cause great excitement among the many hundreds of thousands if not millions who are currently viewing the debate. My hon. Friend puts his view of the nature of our contributions in clear language. It is important that we have a Government who are determined to ensure that we get a good deal within the European Union and that we are careful in how we spend money there.