Draft EU Budget 2011 Debate

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Department: HM Treasury

Draft EU Budget 2011

Lord Dodds of Duncairn Excerpts
Wednesday 13th October 2010

(13 years, 6 months ago)

Commons Chamber
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William Cash Portrait Mr Cash
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As a matter of fact, it is pretty obvious that I am not a member of the coalition Government, so let us dispense with that idea straight away. In my votes over the past few weeks, I have probably demonstrated that I have certain reservations about the situation, but I am not going further down that path now.

If the European Parliament is allowed to get away with this, it will add fuel to fire of the riots and demonstrations that are already sweeping many cities in different countries throughout Europe. Those countries face problems of immigration, economic stress and high unemployment, and wilfully to attempt to increase the EU budget when the whole thing needs to be rejected is, to my mind, irresponsible. If the EU Parliament persists, it cannot be regarded as a serious and responsible Parliament. That is my concern.

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William Cash Portrait Mr Cash
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Mine is not an absolutist position in the sense in which the hon. Gentleman puts it. My amendment (a) says that an increase is simply not justifiable. What is justifiable could also be described as what is fair and right. I have just described what I suspect will happen throughout Europe if people continue to increase the budget irrespective not only of our spending review, but of the crisis in Greece and of the situations in other member states, including very high levels of unemployment, the rise of nationalism that goes with that, and the populism that will emerge from those who want to agitate and create trouble. We want a stable Europe and a stable United Kingdom, which is precisely why I take the view that we need to act responsibly and ensure that the UK Government have every opportunity to achieve their objectives. I assure the House that nobody can accuse me of being in any way reluctant to speak my mind on matters relating to the EU, and I am sure that no one would presume to do so.

Lord Dodds of Duncairn Portrait Mr Dodds
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I commend the hon. Gentleman for his long years of campaigning on this issue and his work as Chairman of the ESC. Given the provocative behaviour of the European Parliament and its attitude to a budget increase, which he outlined, should this House not put down an equally strong marker by strengthening the Minister’s negotiating hand and saying, “Far from increasing or freezing the budget, we want a reduction”?

William Cash Portrait Mr Cash
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I do not want to enter into an unnecessary altercation about this with my hon. Friend the Member for Clacton, but if the wording had been put to me, I would have included the words “and if the European Parliament and its committee persist in the behaviour that they are now engaged in, we would have to call for a reduction in the budget.” It would be on that basis, not on the basis of requiring the Government to respond when they are in the process of negotiations. Perhaps the distinction comes at that point, although I agree with my hon. Friend’s sentiments.

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Douglas Carswell Portrait Mr Carswell
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I am grateful to my hon. Friend, and to the other 32 hon. Members—many of whom are present—who supported the amendment. The £380 million increase comes at a time when there will be costly cuts in my hon. Friend’s constituency and in others—cuts that none of us wants to see—and when it is surely wrong to reduce spending on public services in order to increase the money that we give to EU institutions.

Lord Dodds of Duncairn Portrait Mr Dodds
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The hon. Gentleman said that some of the increase would fund the External Action Service. Does he recall that when the service was debated in the House, it was promised that it would be budget-neutral? That was bad enough—there should have been a decrease—but can the hon. Gentleman explain why we are now being asked to finance an increase in its funding?

Douglas Carswell Portrait Mr Carswell
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I cannot. I wish that I could, and I should have liked to hear an answer from the Minister. I am perplexed and puzzled about why we are now being asked for an additional increase in funding for a measure that we were told was budget-neutral.

The issue before us is indeed one of supply. It is a question of whether we think that our constituents’ money is being well and wisely spent. Do Members believe that, in our current financial circumstances, we should find more resources to pay for, among other things, high commissioners’ entertainment allowances and additional staff for Members of the European Parliament? Is that really the best possible use for this money? Is it better to spend it on that than on the 13,000 nurses whose jobs we might otherwise save, or on 22,000 servicemen? I do not think it necessary to be either Eurosceptic or fiscally conservative to believe that there are better ways to allocate our finite resources. When all the Governments in Europe are cutting their budgets, it cannot be right for the EU bureaucracy to be expanding.

If we do not think that this is the best use we can make of our constituents’ tax contributions, our duty is clear: we should support the amendment and reject the increase. Our predecessors fought a long and bloody civil war to establish that only this House might raise revenue for central Government through taxation. We are the inheritors of a sublime tradition, but also of a heavy duty. It is not for any outside agency, either our own Ministers or overseas Commissioners, to tell us how to dispose of this nation’s resources. We shall make that decision guided by our consciences, and in the interests of those for whom we speak.

I respectfully seek to press the amendment to a vote. Others have signed it, and I hope that they will speak in its support tonight.

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Chris Heaton-Harris Portrait Chris Heaton-Harris
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That is a good question. I am not convinced that it is possible. There is only one way to get rid of any European Commissioner, and that is to get rid of the whole lot. That involves a process that an individual constituent— [Interruption.] No, I did not. I was way too young to be there.

Lord Dodds of Duncairn Portrait Mr Dodds
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May I suggest one way to address the particular issue of getting rid of some of those people? The British people should be allowed a referendum on the question of our relationship with Europe. Instead of having a referendum next May on the alternative vote system, which is not what people want to talk about, should we not have a referendum on this issue, which everybody is interested in?

Chris Heaton-Harris Portrait Chris Heaton-Harris
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The answer is yes.

I want to wind up by taking us back to the process that we are involved in. We are discussing the EU budget for 2011. Coming down the track is the EU budget for the next five or six years. If we do not make a stand now, we will be viewed as a pushover when we come to those negotiations next time round. We have done fantastic work. There has been no failure whatever by our Front-Bench team in already getting a bunch of countries to agree with what we are saying on the EU budget. I want the Economic Secretary to know that behind her she has so many friends wishing her to do well. We are just representing the British people in what they want as well.