Humanitarian Crisis in the Mediterranean and Europe

Debate between William Cash and Justine Greening

Wednesday 9th September 2015 Commons Chamber

[Justine Greening]

The hon. Gentleman is right to point out that Britain is playing our role in dealing with crises that go far more broadly across the middle east than the Syrian conflict. I can reassure him that we are working specifically to try to ensure that we support children who are part of the many millions of displaced people in Iraq. Let me give the House some sense of that, although I know that I need to make some progress with my speech. We are providing not only the medical assistance that they will often need but trauma counselling. That is not uncomplicated as the specialised support the children need and the language capability required of the people providing it are not easy to access, but we are part of ensuring that that is done as far as it possibly can be. We are providing and helping to fund safe areas within camps so that unaccompanied children and parents who have lost their children can easily link up with them again. More than 80% of unaccompanied children in Jordan have managed to be linked up with their families through such efforts. Out of sight, we are working incredibly hard in a range of areas, particularly to help children affected by the crisis. We will keep doing that.

[Sir William Cash (Stone) (Con)]

I commend my right hon. Friend and the Prime Minister for what they have said today and for what they have been doing. The World Food Programme is, as I discovered at a meeting in Luxembourg that I attended as Chairman of the European Scrutiny Committee on Saturday and Sunday, the centre of gravity, and it is quite clear that we not only have our 0.7% but are the second or third largest of all the donors to the programme. Germany, for all the hype, is way behind us over the past year and over the past five years. Does she accept that we have done an amazing amount of effective work in that programme? Will she comment on the implications of my International Development (Gender Equality) Act 2014 and on whether it has any relevance to this matter?

[Justine Greening]

I pay tribute to the World Food Programme, which is operating alongside other UN agencies in some of the most dangerous places to get vital food and often other supplies to people affected by the crisis, and I have often met and talked to Ertharin Cousin who runs it. As my hon. Friend sets out, Britain has been one of the key funders of the WFP over recent years, more broadly as well as particularly in relation to the Syrian crisis. Agencies such as the WFP are having to make impossible choices about how to help the most people with limited resources, and I shall come on to that shortly.

My hon. Friend also asked about his efforts regarding gender equality, and I pay tribute to him for them and for how they fed into the UK response. I can reassure him that alongside his Act we had the UK Call to Action summit, held at about this time in 2013, which was about ensuring that we did not lose sight of the specific needs of women and girls. In these crises, the rates of forced marriage and sexual violence rapidly rise, and we have prioritised tackling that.

I have been out to the region often, visiting camps and host communities in Lebanon, Jordan and Turkey. I have been to the camp at Kilis in Turkey, which is close enough to Aleppo for people to be able to hear the bombs there. Half the Syrian population—more than 11 million people—have had to leave their homes. Only around 3% of those have sought asylum here in Europe. The vast majority of those who have been displaced are trying to stay in their home or to rebuild their life in a neighbouring country closer to home. Many still hold out the hope that they will be able to go back home and they have remained in a place more familiar to them where they may have family links.

Sustainable Development Goals

Debate between William Cash and Justine Greening

Wednesday 28th January 2015 Commons Chamber

[Justine Greening]

The hon. Lady is somewhat misinterpreting the Government’s position. If she looks at the report by the high-level panel of experts co-chaired by the Prime Minister, she will see that it includes a range of targets and goals in relation to climate change. I shall come on to that later but, as I have said, no one can deny that the UK has played, continues to play, and will play a leading role in climate change discussions, not least because that flows into the work that we do in international development, for example, setting up the international climate fund and investing nearly £4 billion in projects that can help to tackle development and, in many cases, give a real lead in addressing climate change.

Since the report by the high-level panel, the open working group on sustainable development goals—a group of 70 member states mandated at Rio+20 to deliver a proposal on those goals—the UK has pushed for the highest possible level of ambition. We have been consistent in our drive for member states to agree an inspiring and workable agenda centred on the eradication of extreme poverty, with sustainable development at its core, ensuring, as I said to the hon. Member for Stretford and Urmston (Kate Green), that no one is left behind.

As part of that, we have consistently argued for a strong health goal that focuses on strengthening health systems and on ensuring effective health outcomes for all women, men, girls and boys at all ages. We have clearly stated that the framework must fully integrate environment and climate change, and it must have a strong goal on gender equality focusing on improving prospects for women and girls. I was disappointed that there was no explicit reference to the importance of having a strong gender goal and the mainstreaming of women and girls’ issues in the development framework. I hope that we can continue, as we have done in the past, to have cross-party consensus on those issues to make progress.

[Sir William Cash (Stone) (Con)]

I thoroughly endorse what my right hon. Friend has said. I should like to take the opportunity yet again to congratulate her, the Prime Minister and all those involved from all parts of the House in helping to push through the International Development (Gender Equality) Act 2014—something that that she has emphasised but which—and I say this with some regret—was not sufficiently observed by the Opposition spokesperson.

[Justine Greening]

I am grateful for that intervention. My hon. Friend the Member for Stone (Sir William Cash) has worked tirelessly on gender equality issues. I am proud to have been in a Parliament and part of a Government who supported his Bill on international development and gender equality. I hope and expect that by the end of this Parliament we will have passed not just one Bill on international development introduced by a Conservative MP, but a second Bill introduced by a Liberal Democrat—a coalition effort on two Bills that will make a real difference for the long term.

We want to see, and the open working group included, the critical issues that the millennium development goals omitted, including peaceful and inclusive societies, economic growth, which is key if we are to increase people’s prosperity, and good governance. Today I shall reflect on the progress that the international community has made to date on agreeing the post-2015 development framework. The proposed sustainable development goals agreed by the open working group last July reflected a high level of ambition and the UK was instrumental in forging that outcome. Those goals have been welcomed by the NGO community, and, like the high-level panel report, they rightly devote significant attention to climate change and environmental sustainability.

The open working group’s gender goal is excellent, with targets on sexual and reproductive health and reproductive rights. Goal 16 on peaceful and inclusive societies and access to justice is especially welcome.

--- Later in debate ---

[Justine Greening]

My right hon. Friend is absolutely right. He will know that in addition, the pledge that we made yesterday has increased our level of support for GAVI even further. The fund is not just able now to deliver vaccination and immunisation for those children; in the case of Ebola it can play a real role in stepping up to help us to combat new emerging diseases and health threats as well, so it has a much broader and more strategic impact on global health security than anyone could possibly have realised when it was being set up. It is also, critically, a model that pulls in the private sector, and allows drugs to get to children in a way that would never have been possible if we had not pulled together those different parties to work for one common goal with countries that have a common strategy on immunisation. It is incredibly important and we will continue to support it.

Our Prime Minister has led global summits in London—in 2012 on family planning and in 2013 on nutrition and combating stunting. In 2014 I was immensely proud to work with him on the Girl summit, where we catalysed a global movement to eradicate female genital mutilation and early and forced child marriage. It was a pleasure to be able to go back to Walworth academy last week to talk to people there about some of the progress that we have made over the past six months since that conference and the key role that they were able to play in ensuring that it was such a success. That focus on girls’ rights came on top of the global summit that my right hon. Friend the Member for Richmond (Yorks) (Mr Hague), now Leader of the House, organised to prevent sexual violence in conflict.

We will use this proud record and the credibility it brings us on the world stage to argue unashamedly for a post-2015 development agenda that works as a clear strategy for eradicating poverty, leaving no one behind and achieving sustainable development.

[Sir William Cash]

On FGM, the Serious Crime Bill has some very important stuff in it. It needs to be improved—as my right hon. Friend knows, I am arguing for that at the moment—but it is a huge step forward, is it not?

[Justine Greening]

It can be a huge step forward. My hon. Friend is absolutely right to see the broader opportunities in that Bill for enabling us to increase our ability to tackle FGM at home. One of the most important elements of the Girl summit was recognising that we have issues to resolve here in the UK, as well as playing our role internationally in helping other countries to tackle theirs.

The hon. Member for Wakefield (Mary Creagh) accused the Government of failing to support a stand-alone goal on health. She seems a little befuddled on this point, as her claim is inaccurate. We have supported a stand-alone goal throughout this process. Going back to the high-level panel report, if she looks at goal 4 she will see that it explicitly states that it is to “ensure healthy lives”. That is partly why, under this Government, spending on health in relation to international development, just bilaterally, has risen from £750 million a year when we came into government to about £1.25 billion a year now. We absolutely have invested in this area.

I should correct the hon. Lady on another matter where she seems to have got her facts mixed up. In a recent interview, she said that spending by the Department on fragile and conflict states has “reduced under this Government”. I have to update the House by saying that that is incorrect. In fact, investment has risen from £1.8 billion in 2009 to £2.8 billion in 2013. On the issue of poverty, where we are talking about matters of life and death, and how we can lift people out of sometimes miserable day-to-day existences, it does not do those people, or the challenges they face, any justice to be kicked about as a political football. If the hon. Lady must engage in what she calls hand-to-hand combat, I ask her at least to get her facts right.

On a stand-alone goal on climate change, I point to our Prime Minister’s own words:

“Climate change is one of the most serious threats facing our world. And it is not just a threat to the environment. It is also a threat to our national security, to global security, to poverty eradication and to economic prosperity.”

In short, climate change is too complex an issue to belong in just one goal; as we have said repeatedly, it needs to be interwoven or mainstreamed throughout the entire post-2015 framework.

I was only too happy to come to this place to talk about the Government’s record on shaping the sustainable development goals. As I said, I would very much have liked women and girls, and particularly tackling violence against women and girls, to have been mentioned explicitly in the motion.

Afghanistan

Debate between William Cash and Justine Greening

Wednesday 14th May 2014 Commons Chamber

[Mr William Cash (Stone) (Con)]

In my earlier question to the Prime Minister, I mentioned Nigeria and Syria, but as my right hon. Friend the Secretary of State has made clear today, Afghanistan is also right at the top of the tree regarding gender equality and international development, and I am grateful to her for her remarks. I would also like to take this opportunity to thank not only her but the staff in her Department, the Minister of State and others for playing an active and very supportive role on this issue. That extends to the whole House, including members of the Opposition, who gave their support to the International Development (Gender Equality) Bill to ensure that it went through Parliament. I thank them all very much indeed, because it will do a huge amount to help women and girls throughout the world.

[Justine Greening]

It was a wonderful message that we sent out: that not just the Government but the whole of our Parliament regards the issue of women and girls’ rights and prospects as so important to what we are doing. It is fantastic that my hon. Friend has put his thanks on the record, and in fact most of our thanks go to him for developing the Bill and taking it through.

Oral Answers to Questions

Debate between William Cash and Justine Greening

Wednesday 9th April 2014 Commons Chamber

[Justine Greening]

The hon. Gentleman is absolutely right to raise that point. The Department for International Development committed £20 million of funding to help the UN work to support the elections, including nearly £5 million for a programme to support women’s participation. As we go forward, we must ensure that the constitution that is already in place to support women’s rights is enforced, that we are working at grassroots level and putting more money into community programmes and that across government, for example in the police, women get the chance to play their full role. As far as I and the Government are concerned, we are determined to ensure that those hard-won additional rights for women are not just maintained but built on further.

[Mr William Cash (Stone) (Con)]

May I thank the Secretary of State for that reply? I hope that now that the International Development (Gender Equality) Act 2014 has received Royal Assent, she will be able to give the maximum opportunities to protect women and make certain that they are fully empowered.

Oral Answers to Questions

Debate between William Cash and Justine Greening

Wednesday 4th December 2013 Commons Chamber

[Justine Greening]

I discussed that subject with Aung San Suu Kyi when she visited the UK a few weeks ago. Clearly, she is an incredibly important woman who can be involved in that peace process. Beyond that, much of the work the Department has done has been to reduce some of the ethnic tensions in various parts of Burma. The role that women play in that is obviously critical.

[Mr William Cash (Stone) (Con)]

May I congratulate my right hon. Friend and the Under-Secretary of State for International Development, the hon. Member for Hornsey and Wood Green (Lynne Featherstone) on all the work they have done in this area? May I also pay tribute to Opposition Members of all parties who have given such enormous support to my private Member’s Bill, which will be debated in Committee on 11 December?

[Justine Greening]

I am very happy to take that praise. It is an important Bill. It reflects the fact that no country can develop effectively when half of its population is excluded from that development. It is a matter not just of basic rights, but of ensuring that our Department and country have sustainable development approaches.

Common Consolidated Corporate Tax Base

Debate between William Cash and Justine Greening

Wednesday 11th May 2011 Commons Chamber

[Justine Greening]

At the moment, there is no proposal on the table. A proposal is being worked up, but things are at an early stage. Member states have had, I believe, two working group meetings with the Commission to talk about how any proposal might operate. Fundamental questions are still being developed on, for example, how the formula will work, and a host of other issues. As I have said, part of the challenge is how any avoidance loopholes might work in practice, and whether they would be substantial. We are at a very early point in the process. Today’s debate allows Members of our Parliament to have their say, which we can then add to the Commission’s process.

[Mr William Cash (Stone) (Con)]

The Opposition Benches are virtually empty, but there are also no Liberal Democrats in the Chamber—there is a sort of let-out under the coalition agreement.

The Minister seems to be referring to enhanced co-operation, which the agreement says is the basis on which the Government will be engaged in discussions to help to shape a corporate tax base that does not undermine the competitiveness of the EU or the UK. She has made it clear that enhanced co-operation would have that effect, so clearly, we will not under any circumstances accept it. Therefore, the answer can only be no. Why do we not say so?

[Justine Greening]

As I have said, we need to manage risks, and it is unclear at this point where the process will end up. However, there might be risks posed by enhanced co-operation. We need to be part of the discussions to ensure that our arguments carry weight. Our arguments will not carry weight if we are not part of those discussions from the beginning, because we say that we never want to be involved. That is not a sensible approach. In addition, I do not agree that it is as simple as saying, “We don’t want to be in it,” because the proposal might go ahead in a different form involving a limited group of nations, which could still affect us, even if indirectly. I want to make it absolutely clear tonight what the Government are fundamentally seeking to achieve. We will not agree to any proposal that will threaten or limit our ability to shape our tax policy.

--- Later in debate ---

[Justine Greening]

My hon. Friend might well be right, but I want to make clear the rules and the processes going forward. No member state can unilaterally block the use of enhanced co-operation. Of course we can decide whether we want to be part of that—I have clearly set out the Government’s concerns about the proposal—but I am saying to the House that we need to participate in the debate and ensure that we influence the underlying proposal. We do not want to end up being unable to stop enhanced co-operation simply because it was a proposal that we fundamentally did not want in the first place. We need to make our case, with other member states, in order to influence the proposal as it develops, and that is precisely what we want to do.

[Mr Cash]

The Minister is always well informed, so I am sure that she knows that the Tax Commissioner has already said that if there is a veto—if, in other words, the Commission does not get unanimity—it will go ahead with enhanced co-operation. If we know that to be the case, why do we not just say no and be done with it?

[Justine Greening]

The Commission might, as my hon. Friend has said, take a view, but we need to understand what other member states think about the proposal. This evening is a chance for us, as a member state, to allow our Parliament to voice its concerns. The European Scrutiny Committee, which he chairs, has produced a helpful report that will no doubt form a basis of this debate.

I shall now finish my remarks so that other Members can put on record their views on the report.

--- Later in debate ---

[Justine Greening]

We need to be careful to ensure that we understand the complexities of the proposals. For example, we need to understand how companies that also operate in the UK may use any avoidance loopholes, and whether that will impact on the way in which they operate in the UK and structure their corporations. We need to be smart about understanding the breadth of the proposals. Whether we want to be in them is one thing, but we must be conscious that they may have an impact on us even if we are not part of them.

[Mr Cash]

Will the Minister be kind enough—and be smart enough—to make it clear that we will not do anything that the Liberal Democrats had in their manifesto? I have a suspicion bordering on certainty that the wording in the coalition agreement is taken straight from their manifesto commitments.

Budget Responsibility and National Audit Bill [Lords]

Debate between William Cash and Justine Greening

Tuesday 22nd March 2011 Commons Chamber

[Justine Greening]

Ultimately, a key clause—I think clause 5—sets out that it is at the OBR’s discretion to decide how to carry out its duty. A fundamental building block of the OBR’s credibility is its independence. I assure the hon. Gentleman that the risks he mentions, such as the concern that the OBR might not carry out robust analysis, are mitigated by other safeguards in the Bill. For example, one duty of the OBR will be to produce a report on the accuracy and robustness of its forecasting. As he will be aware, there are also non-executive directors who will be there on a day-to-day basis to challenge how effectively the OBR works and every five years, at a minimum, there will have to be a completely external peer review of the OBR’s workings.

I think we have managed to strike a balance by setting up the OBR in the way I have described—on the one hand by giving it independence, so it has that key element of credibility, and on the other by including some safeguards, in terms of its structure, its management and the review, so that, if for some reason it does not produce the quality of forecast that we need, those safeguards will be in place to ensure that we tackle the issue. Let us not forget that the OBR is accountable not just to Parliament, but to the Chancellor, because it produces the official forecasts.

Finally, amendment 4 suggests another new related role for the OBR, which as we have heard would be to assess the Government’s growth mandate. As I said in response to amendment 1, the Government seek to achieve their economic policy objectives through a range of policy tools and frameworks, not just through fiscal policy, but the OBR has been established to increase the credibility of the Government’s economic and fiscal forecasts and to hold the Government to account for their economic and fiscal policies.

That highly valuable role is recognised by a wide range of domestic and international commentators. The hon. Member for Swansea West mentioned the Institute for Fiscal Studies, and it warmly welcomed the establishment of the OBR, which, through its role, has already provided forecasts of key economic variables. In its November report, the OBR set out forecasts for the next five years, covering a range of key macro-economic variables, such as GDP and its forecast growth, inflation, employment, average earnings, unemployment and the output gap. In addition, the OBR will have the freedom to consider the impact of Government policy on economic growth and employment within our regions and nations, and in line with its main duty. I therefore consider all the amendments to be unnecessary, and I hope I have addressed the issues that hon. Members have raised.

[Mr Cash]

I do not want to put my hon. Friend on the spot, but I am troubled by a motion that the Government tabled in relation to a European document. I have an idea that they did not really mean to do so, but I just want to make the situation completely clear. The motion said that the Government and the House of Commons were only primarily responsible for fiscal matters and direct taxation. Will the Minister be kind enough to get that out of the way, so that we might now know that they are exclusively and solely, not merely primarily, responsible?

Budget Responsibility and National Audit Bill [Lords]

Debate between William Cash and Justine Greening

Monday 14th February 2011 Commons Chamber

[Justine Greening]

I agree absolutely. Far too often we fail to make the point that the penalty for not dealing with the deficit today will be to hand on even bigger debts to our children tomorrow. They will not thank us, and should not thank us, if we fail to address the urgent crisis that we have come into government to tackle.

Before I get into the detail, I would like to set out again the Government’s broader fiscal objectives. This coalition Government believe that fiscal policy should ensure that the national finances are sustainable. As I have just said, sustainable public finances mean that future generations will not need to pay for the services enjoyed by all of us today. Sustainable public finances mean that the economy can expand and grow without the fear of tax hikes and spending cuts in the future. Sustainable public finances also mean that monetary policy can operate effectively and stabilise the economy, when needed. With that in mind, we have taken decisive action since taking office.

In May, we had immediate reductions to in-year spending, which bought us much-needed breathing space in the sovereign debt storm raging across Europe. The emergency Budget in June was the moment when fiscal credibility was restored. At the Budget, my right hon. Friend the Chancellor set out the Government’s fiscal mandate. Our first goal within the mandate is to balance the structural current deficit by the end of a rolling five-year forecast period.

[Mr William Cash (Stone) (Con)]

My hon. Friend may remember that before the election, a number of us took grave exception to the fact that the then Government were not telling the truth about the full extent of the debt. Will she give us an assurance that this Government will tell the truth to the British people, in line with the National Audit Office and Sir Michael Scholar, so that they know what the Budget deficit really is?

[Justine Greening]

My hon. Friend makes an excellent point. The way to provide that guarantee and certainty is to pass the Bill before us today, which sets up the Office for Budget Responsibility—but does so, critically, as an independent organisation that will make its own forecasts. In so doing, it will contribute to being independent of Governments and provide credible official forecasts for the first time in our country. That will give us the certainty we need. I will come on to explain later how we ended up needing official forecasts to be done independently, referring to the problems that had arose prior to this Parliament.

Court of Auditors 2009 Report

Debate between William Cash and Justine Greening

Wednesday 2nd February 2011 Commons Chamber

[Justine Greening]

Yes, I do. The Government thought it totally unacceptable that EU officials received a 3.7% pay rise when our Government had to propose a pay freeze for public sector workers. We are not the only member state taking difficult decisions such as that. The debate the hon. Gentleman is referring to is the one we have already actively engaged in, which is about not only the level of the EU budget, but what we spend that money on and ensuring it is spent on the right things that deliver the right priorities for people on the ground, whichever member state they are in.

We are about to engage in a debate, which is important for the longer term, on how we change that mix of investment to make it more significant. It is called the debate on the financial perspective, and the hon. Gentleman will be aware that that relates to the seven-year plan, whereas early last year we debated the budget for 2011. We have a chance to have that more fundamental debate about how we spend money within Europe. The Government are keen to lead that debate at EU level.

[Mr William Cash (Stone) (Con)]

My hon. Friend—a member of the coalition Government—knows that I am one of her greatest fans. Having said that, is she aware, as I know she will be, that the irregularities by Bulgaria and Romania in relation to pre-accession funds amount to 81% of all the cases, and that there is also this yawning hole concerning cohesion funds? Really, this is totally unacceptable. I have been involved in such debates for 26 years. Nothing has changed.

[Justine Greening]

My hon. Friend is right to raise that issue, for lots of different reasons. Two spring to mind. The first is the macro level of the argument, which is that new members joined the EU during the ’80s. Those member states got cohesion funds to help to develop their economies. There is a question as to the effectiveness of that spend. We are about to embark on investment in a new group of countries that are coming in. The assumption about and the argument made for the accession countries is opening up markets, but we need to see those economies develop for that business model of the EU to work.

My hon. Friend will be pleased to hear that yesterday I met the Bulgarian Minister who oversees the EU funds in Bulgaria. His entire job is administering those funds. He has been in place for about a year. For the reasons that my hon. Friend mentions, I was keen to talk to the Minister about Bulgaria’s perspective. He made the point, which I thought was right, that in the past people said to countries like Bulgaria, “You’re not spending the money that we are giving you.” His point was that those countries are keen to have it spent effectively, because that is in their interest.

Clearly, countries such as Bulgaria are at an early stage of putting in place the structures and processes. The Minister talked to me about the work that they are starting to do at national level and at regional level to enable better financial management of EU funds. That is a move in the right direction. The question for other member states is what we can do at pan-EU level to make that easier. We should get rid of unnecessary complexity and consider what we can do to help those member states to get along the road to stronger financial management faster. I believe they want to do so.

States such as Bulgaria understand that it is important for their relationship with other EU member states to be seen to be stronger financial controllers of the money that they are getting. They understand why that is important, not only in the medium or long term, but in the short term. The challenge for us is to ensure that we improve the framework within which they are working, and transparency is part of that.

I am aware that I have taken several interventions. In part, that is forcing me to jump to bits of my speech that I will come to shortly anyway. Perhaps I can make a little progress and talk to the House about what I think we need to do, some of the steps that we are taking, and what a better system of financial management at EU level would look like. I shall begin with a little more background to the European Court of Auditors report and go on to the discharge negotiation, of which this debate is an important part—in other words, how we get those accounts signed off.

On the report, it is fair to say that there are some improvements. We have had a positive statement of assurance on the reliability of the EU’s accounts, but as we can see and as we have already discussed tonight, everybody agrees that much more needs to be done. The pace of change is too slow, and we see no discernible trend in the right direction. We want to see financial management clearly supporting and controlling spend by the EU.

I shall set out the steps that the coalition has already taken to drive through improvements since we took office in May. It is worth reminding the House that the European Court of Auditors report relates to 2009, prior to the time that the coalition Government were in office. In October, when I was in Brussels having some of my meetings in relation to the EU budget, I took the opportunity to meet the Commissioner in charge of financial management in the EU, Commissioner Šemeta, to talk about our concerns and some of our ideas, and to push the case for transparency and sound financial management. I believe the Commissioner was receptive, and I think he understood that in his role, that needs to be a more fundamental priority than it has been for Commissioners in his position in the past. Since then, we have had a firm but constructive line throughout the negotiations among the member states. Let us not forget that they are responsible for management of 80% of EU funds spent.

The Government and other like-minded member states have pushed for concrete processes in several areas. First, at the pan-European level we must have further simplification of what are excessively complex rules that often hinder, rather than help, strong decision making that drives strong value for taxpayers’ money. We must push EU-level auditing toward a more risk-based and proportionate system. Simply checking through receipts in member states that are randomly selected really will not work in future. We need to move towards a system where the European Court of Auditors operates a risk-based approach, where the focus is on member states for which there seems to be evidence of poorer and weaker financial management, and where we understand exactly where the management is breaking down in those processes and control systems. We are keen to ensure that what we do at the level of the European Court of Auditors is done more effectively than it has been in the past, and I plan to meet the European Court of Auditors to discuss those issues.

We are also encouraging member states to take greater responsibility for the funds that they implement, which, as I have said, is the vast majority of the budget. In practice, that means that we are lobbying for member states’ annual summaries to be upgraded and published. The UK is currently one of only four member states that publish the sort of consolidated statement that we are debating today. We want more transparency, which we think will drive better financial management; it is not the only consideration, but a key one. The Government have pursued that agenda at the domestic level because we think that it is worth while, so we are pursuing it at the EU level. We need those annual summaries to be published and to contain more meaningful information so that people can use and interpret them.

--- Later in debate ---

[Justine Greening]

We are doing slightly more than talking a good talk. I share my hon. Friend’s concern that one key thing driving the budget up was the previous Government’s disastrous approach to negotiating the common agricultural policy, which saw us give away a huge chunk of our abatement and, over this Parliament, will cost the British taxpayer about £10 billion. That is totally unacceptable. He says that it is important we bear down on excesses, and I agree. That is one reason why we led the debate to stop the European Parliament’s proposal for a 6% rise in spending. We achieved that, and we are now trying to ensure that, when we go into the longer-term debate about the financial perspective over the next seven years, which starts in 2014, we begin to see real-terms reductions. Countries such as France and Germany are backing us up on that, and those are the first steps towards delivering what we want.

My hon. Friend is right that we need to go beyond words and start delivering, and that is absolutely what we want to do. For tonight, the key aspect is how we can ensure that, when we have “decisioned” the funds, the final building block, which is about financial management, is delivered professionally, robustly and with an integrity that companies would recognise. We have to move towards a better system than the one we have picked up.

We are also keen to see some quickly taken measures and short-term gains, such as a one-stop shop that provides better information to those member states implementing EU funds, and a published scorecard of recovery orders against member states. That sort of transparency will start to change the culture, but we have to question how we have reached the position of poor financial management in which we find ourselves. The answer is partly down to culture, which has to change and improve at the EU and member state levels.

Sound financial management is critical, and it brings us closer to our overarching aim, which is a budget that delivers value for money for British and EU citizens. As I am trying to get over, that is not a negative agenda, because securing better value for money is a positive thing to do. It is what we are doing; it is what taxpayers want to see us doing; and it is what all member states should want to do themselves. We believe that we have a positive agenda, and it is not just about picking or prioritising the right objectives. Last year, our excellent debate in the House about the EU budget was a good chance for Members to discuss those objectives. We should return to that over the coming months, but critically we have to ensure that, when we have “decisioned” EU money, it is spent and implemented effectively.

As I said, only yesterday I met Mr Donchev, the Bulgarian Minister overseeing the administration of EU funds in Bulgaria. I am pleased that alongside such meetings, including the meeting that I plan to have with the European Court of Auditors, and the work that we are doing with the European Commission and MEPs in the European Parliament, there is a sense that people are receptive to the need to improve financial management and want to see that happen.

I am keen and grateful for this House’s support for the Government in pursuing that agenda, because that is vital. It was important that we could go into the negotiations saying that as a Parliament we stood behind the motion on bearing down on the EU economy and our decision that a 6% rise was unacceptable. We can learn lessons from that. We as a Parliament need to stick together and show solidarity in tackling these issues. That is one step that we must take.

Even my hon. Friend the Member for Stone (Mr Cash), in his role as Chairman of the European Scrutiny Committee, has a role to play, together with his fellow-chairmen of scrutiny committees across Europe, in pushing this sort of issue to the top of the agenda. We have to be prepared to say in all channels that we must get an EU budget that becomes affordable, that is spent on the right priorities, and that is managed in the right way. His role is also vital in being able to back up some Governments while perhaps pressing those for whom this has been less of a priority to put it further up their list of priorities in future.

[Mr Cash]

This is not in any sense directed at my hon. Friend personally, but one of the big problems in implementing the Lisbon treaty is the increased functions of the EU. Increasing functions increases expenditure, and increasing expenditure has tended to increase the amount of irregularities. I am sure she will understand my concern about the manner in which we are Europeanising not only our own domestic economy, with European economic governance and all the other things that go with it, but inviting ourselves into the arena of a black hole where other member states do not understand the rules and do not much care about them either.

[Justine Greening]

My hon. Friend will know that Conservative Members, in particular, had a range of concerns about the Lisbon agenda.

[Mr Cash]

I did not mean the Lisbon agenda: I said the Lisbon treaty. I think that the Lisbon agenda has been an almighty disaster and that the 2020 strategy would fare no better. The Lisbon treaty is the instrument that increases the functions.

[Justine Greening]

Let me pick my words more carefully. My hon. Friend is right that Conservative Members had deep concerns about the content of the Lisbon treaty at the time. That is one reason why, as a party, we pushed to have a referendum before going into and signing off on the Lisbon treaty. It is a matter of deep regret that the previous Government chose not to give the British people their chance to have a say on the changes that were proposed via the Lisbon treaty.

The challenge in my role is to ensure that, in terms of where we are today, I stand up for our interests in Britain. One way we need to do that as a Government is to tackle some of the fundamental weaknesses in how the EU works, but my particular concern is financial management, not only at the EU level but at the member state level as funds are spent.

I am sure that other Members will rightly want to have their say on this, so before I finish let me quickly turn to the issue of fraud, which is of great concern to the Government and to hon. Members. I want to be absolutely clear that of course any level of fraud is completely unacceptable. We fully support the work of the Commission and of the European anti-fraud office, OLAF. I am pleased that the European Court of Auditors reports very low levels of fraud in the UK. In 2009, we had a rate of just 0.19 of 1% of spending, but it is still too high. The Government and I will focus on that as we look at how we can tackle this problem. We are therefore deeply concerned that, according to the latest OLAF report, the level of fraud seems to be increasing at the European Union level.

It would be wise for me to point out that the Commission’s figures have to be interpreted with care. As we know, fraud and irregularities are not the same thing. Irregularities make up the bulk of the available figures. To my mind, irregularities are also a serious concern, because they are payments that have been made outside the rules. We should not find that acceptable. The figures quoted by OLAF for suspected fraud are increasing. It is not possible to say that fraud is increasing, but there are indications that that may be the case. Even an increase in suspected fraud is unacceptable. The best way to tackle fraud, irregularities, waste and the lack of priorities is ultimately to have better systems, financial processes and financial controls, and a better regime for financial management in the first place.