European Union (Finance) Bill

Debate between Peter Bone and Barbara Keeley

Thursday 11th June 2015 Commons Chamber

[Barbara Keeley]

Indeed, and that is why I am making the point, with which I am sure my hon. Friend would agree, that if we want more of a focus on growth and jobs in a smaller budget, which we do in the Opposition, there have to be further cuts and changes in priorities.

In the debate on the settlement in February 2013, the modest increase in funds targeted towards growth, infrastructure, research and development, and innovation was welcomed, but we also expressed concern that the balance away from agriculture spending towards the spending on growth and jobs was not sufficient. We need constantly to remind ourselves about unemployment —24 million people are unemployed throughout the EU, including 4.8 million 15 to 24-year-olds. In the UK, of course, we still have 735,000 16 to 24-year-olds who are looking for work. We want to see greatly increased investment in the funds targeted on growth, infrastructure, research and development, and innovation. We need the European Union to provide a better framework and strategy to achieve the growth in jobs. Our missions go further than that, however, and we also need the EU to act as a guardian of rights and protections at work. The Opposition want to talk about creating jobs and to focus on the right type of jobs and on the quality and security of those jobs.

We have supported a cut in the EU budget, but we will continue to press for a reform of budget priorities. During the passage of the Bill, therefore, we will call for a fundamental review by the end of 2015 of the budget priorities and of waste and inefficiency in the EU budget. Debates in the House have included many references to outdated practices such as relocating the European Parliament to Strasbourg each month, which costs €200 million a year. There are a number of other areas where savings can be made.

In previous debates, hon. Members from both sides of the House have suggested many ways in which money could be saved and inefficiencies prevented in the European Union, ranging from cutting spending on the House of European History Museum, costing a reported £137 million, to cutting export refunds. Hon. Members repeatedly raised the need to reform the CAP—today is no exception—and a number have also mentioned the levels of salaries and benefits for EU staff, including their differential tax rate and housing allowances.

[Mr Bone]

The hon. Lady is making an interesting speech with many good points, but does she not think it strange that we are joining a club, paying all those billions of pounds, when for 18 or 19 years the auditors have not signed off its accounts? What other institution would the Government go anywhere near if they could not get the accounts? Do we not have to start with the basics, with that problem?

[Barbara Keeley]

I very much agree with the hon. Gentleman’s point, and I will come on to that. Within the smaller budget that we will have, if we want to have different priorities and get new things done, clearly we will have to deal with inefficiencies and find savings.

Another suggestion for where savings could be made is to reform or repatriate EU structural funds. There are different views on that in the House, but it has been mentioned, as has reforming a number of EU quangos and agencies.

I have made a short list to show the level of pressure in this House for changes to be made to the EU budget and the wider EU institutions. The question of the hon. Member for Wellingborough (Mr Bone) showed that we are now expecting future action on the review of such matters from within the EU. As my hon. Friend the shadow Chancellor has said in the past, an effective EU budget review means having

“a relentless focus on the justification behind detailed expenditure.”—[Official Report, 31 October 2012; Vol. 552, c. 304.]

In the debate on the multi-annual financial framework in October 2012, we called for a more effective and independent EU auditor—exactly the point made by the hon. Gentleman. We would then be able to examine the different programmes and their impact on the EU economy. It is time we had that. An auditor could also improve the accountability of spending on pro-growth activities, bringing together all Commission priorities under the auspices perhaps of a single Commissioner for growth.

Those are just some of the ideas. The feeling in this House now is that it is time for action on such things. We will call for improved transparency and accountability in the EU budget process to assist in developing what we see, which is a relentless focus on EU expenditure in future.