Multiannual Financial Framework Debate

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Department: HM Treasury

Multiannual Financial Framework

Peter Bone Excerpts
Wednesday 31st October 2012

(11 years, 6 months ago)

Commons Chamber
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Greg Clark Portrait Greg Clark
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I normally agree with my hon. Friend, who is one of the House’s sages, and I can say that I agree in every respect with the amendment that he tabled.

Peter Bone Portrait Mr Peter Bone (Wellingborough) (Con)
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The Government are therefore making a most generous concession, so will my right hon. Friend make things absolutely clear to the House? My hon. Friend the Member for North East Somerset (Jacob Rees-Mogg) spoke about a freeze, which would not allow for a cash increase. Is that the Government’s position?

Greg Clark Portrait Greg Clark
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Our position is that we want the EU budget to be cut, but part of the negotiating mandate that the Prime Minister has agreed is that the very most that we would accept would be a real-terms freeze. However, we want a cut, as I shall explain.

The Commission—this time with the European Parliament—has proposed an increase of 6.8% for the 2013 annual budget. That is for a year in which the IMF forecasts that growth throughout Europe will average 0.5%. My view, and that of the Government, is that such a demand constitutes a grotesque imposition.

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Peter Bone Portrait Mr Peter Bone (Wellingborough) (Con)
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It is a great pleasure to follow the hon. Member for Vauxhall (Kate Hoey). When the House can hear speeches from the hon. Lady, the hon. Member for Rhondda (Chris Bryant) and my hon. Friends the Members for Stone (Mr Cash) and for Rochester and Strood (Mark Reckless) and we all agree, that is when the House is at its best.

I am delighted if Opposition Members want to vote for a Conservative amendment. That shows great credit to them. I hope that all Members on this side will vote for a Conservative amendment. The problem is that the motion is not a Conservative motion but a coalition motion. I am quite convinced that if we were not in coalition with the Liberal Democrats, the Prime Minister would be voting for the amendment.

Chris Huhne Portrait Chris Huhne (Eastleigh) (LD)
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It has nothing to do with whether this is a coalition motion or a Conservative amendment. It is about realism versus unreality. As the hon. Gentleman knows, if someone goes into a negotiation telling people exactly what they are going to do, with no room for movement whatsoever, why on earth should they bother talking to them? We heard the reality from the hon. Member for Stone (Mr Cash) and that is that he, like the hon. Member for Vauxhall (Kate Hoey), wants a crisis for the European Union. This has nothing whatsoever to do with these negotiations.

Peter Bone Portrait Mr Bone
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I must apologise to the Liberal Democrats, because they obviously agree with everything we have said tonight and think that we must strengthen the Prime Minister’s hand in the negotiations. I apologise for giving the false impression that they were going to vote with the Government tonight.

One problem is that this is a Westminster village affair, and I want to know what is happening on the streets in my patch. There is a lady who has been walking the streets of the Corby constituency for eight weeks or so; her name is Christine Emmett and she just happens to be the Conservative candidate there. I wondered what the feedback was on the ground in Corby, and she says:

“I voted ‘no’ to the EEC in 1975, as I did not trust the Common Market (as it then was) would not grow into a political alliance which would diminish our control over our own affairs. The British people voted ‘yes’ and we have lost control of some essential legislation”.

She goes on to say:

“The present terms of membership are unacceptable and unaffordable”—

she speaks for the people in my constituency, too.

None Portrait Several hon. Members
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Peter Bone Portrait Mr Bone
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I shall press on because other Members wish to speak and I want to be as brief as possible.

I think that every Member, whether they vote for the Government’s motion or not, wants a reduced budget. We all think that there should be a real reduction in the EU budget, because how can we tell our constituents that they are suffering cuts so that we can give the European Union money to waste? We have a superb Minister at the Dispatch Box listening to the debate. At its conclusion, I genuinely hope that the Government will be able to accept this modest amendment. Would not that be great? The British people, instead of seeing artificial division, would then know that the whole House was in favour of a reduced budget in real terms, albeit perhaps with the exception of Plaid Cymru Members, who might have done a dirty deal somewhere along the line.

The real issue that I want to talk about is the rebate. I shall give Prime Minister Blair the benefit of the doubt, because when he gave up the rebate, he thought that there would also be a massive cut in common agricultural policy payments, meaning that our net contribution would not go up. According to figures from the House of Commons Library, during the following five years of the Labour Government, our net contribution to the EU was £16 billion. That is a lot to pay for membership of the EU, but unfortunately, since Tony Blair left, our rebate has gone down and there has been no reform of the CAP, so over the period of the coalition Government, as things stand—even without a budget reduction—we will be paying £36.4 billion to be a member of this club. How can we say that we will pay £36.4 billion, and then that we will pay some more to allow for inflation?

Aidan Burley Portrait Mr Aidan Burley (Cannock Chase) (Con)
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Is my hon. Friend aware that the “more” figure that we will pay under the Government’s inflationary proposals is £1.3 billion over just the next two and a half years? How many nurses, doctors and teachers would that buy?

Peter Bone Portrait Mr Bone
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I agree entirely.

The issue tonight is not whether I am happy to vote with the hon. Member for Rhondda—

Chris Bryant Portrait Chris Bryant
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You always are.

Peter Bone Portrait Mr Bone
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There are no two people in the House who disagree more on the European Union than the hon. Gentleman and I. Today, however, we are voting for what the British people want. When I talk to people in Rushden or Wellingborough, they cannot understand why their council services are being cut at the same time as we plan to spend billions more on the European Union.

Cutting away the rest of the rhetoric, hon. Members must decide whether they will vote for a Conservative amendment calling for a real reduction in the budget, or a coalition motion that effectively calls for an increase, because it allows for inflation. I am sure that, secretly, the Prime Minister would like the whole House to vote for the Conservative amendment, because it would strengthen his hand in the negotiations enormously if he could say, “There is a united House of Commons demanding a reduction in the budget.”

None Portrait Several hon. Members
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