EU Financial Management

When I realised that one of my responsibilities during the past few months was linked to the EU budget for 2006 and the question of audit, I made it clear that we would be proactive in regarding this issue as a priority during our presidency, which we tried to make it. Commissioner Kallas felt that the UK presidency was crucial in making the road map proposal work. Beyond the UK presidency, we now have to take a lead role in maintaining the pressure in these issues if we are not to come back here year and after year and hear the same old story. I will give my hon. Friend a commitment that, in my role, I will continue to take this issue seriously. I know that the Chancellor, in his contribution in ECOFIN meetings, as he always has been in this country, is constantly concerned about making sure that financial probity is central. I come to the contribution by the hon. Member for Esher and Walton (Mr. Taylor). He always makes well-informed, measured, sensible contributions on this and many other issues. I am sorry to damage his career even more than it has been damaged in recent years by the honourable positions that he has taken on these issues. They have been honourable because anybody in the Conservative party who has taken a balanced view on Europe has seen his career suffer as a consequence of those judgments. All too often, it has been easy to pander to a gallery—the Eurosceptic gallery—and give a false, out-of-context impression of the European Union. The hon. Gentleman has always resisted doing that in the same way as the right hon. and learned Member for Rushcliffe (Mr. Clarke) has, which is one of the reasons why he never became Leader of the Conservative party and why it chose such excellent leaders during the past few years as alternatives. As for the Mars and Venus analogy, I shall leave it to Members to decide who is in which category. Perhaps they can discuss that later. I assure the hon. Member for Esher and Walton that the Government will continue to exert pressure on these issues, because anybody who believes in the vision and concept of the European Union knows that it is essential that we make progress on this in terms of the credibility and integrity of the EU and the relationship it has with its taxpayers. If we do not make progress on this, it will be a stick for sceptics to beat the European Union with year after year. They will deliberately present this out of context. My hon. Friend the Member for Glasgow, South-West (Mr. Davidson), who was very well informed on these issues, said that I had spoken at length and was not ““all wrong””. I am not sure whether that will do me much good, but I regard it as a major compliment from my hon. Friend. I have already explained what I believe the achievements of our presidency were on these issues. I do not think the road map would have been taken forward if we had not prioritised it in our presidency. However, it is the beginning of a process; the delivery of it will make all the difference. My hon. Friend also expressed concern about the culture of the European Union. We have to find it encouraging that there are signs within the new Commission of a different culture that takes these issues seriously and understands the great challenges that lie ahead, whether they are globalisation or the gap that has grown in recent times in the relationship between the European Union and the citizens of Europe. I believe that there is some encouragement in the attitude of the new Commission in understanding that there has to be cultural change. My hon. Friend also asked when the UK Parliament will have an opportunity to vote ““against the EU budget””. I shall turn that into ““on the UK budget””, which is a more objective view. In accordance with our procedures, a European Community finance Bill will be an opportunity to vote on these issues. The hon. Member for Stone (Mr. Cash) made a contribution that reinforced his prejudices. He has always been honest about these issues. He wants the United Kingdom to adopt a form of associated status in the European Union. Long may he continue to speak loudly and clearly on these issues at every opportunity, and long may he be an example of how any appearance that the Conservative party is moving to the centre of politics, whether in this country or internationally, is mere pretence. They are as right-wing and ideological as ever—the hon. Member for Stone is proudly nodding his head—which I am sure will become clear in the months and years ahead. The hon. Member for Moray (Angus Robertson) talked of the importance of exposing fraud while not targeting whistleblowers who give information. As I said, I cannot comment on individual cases or circumstances, which would be entirely inappropriate, but the first thing that anyone in an organisation should do is to report any suggestion of fraud or maladministration to management. If they do not take the information seriously or try to cover it up, there is legitimacy in the person feeling obliged to make it public knowledge, in many cases. Whistleblowers have played an honourable role in bringing to the public’s attention all sorts of maladministration and fraud. The hon. Member for Scarborough and Whitby (Mr. Goodwill) intervened to ask me why farmers had not been paid any money recently, but did not tell me that he was a farmer. My response might have been very different had I known that self-interest was to the fore. The debate has been useful. It has shed light on issues that we do not often discuss in Parliament. The matter is at the heart of the relationship between the European Union— It being three hours after the commencement of proceedings on the motion, Mr. Deputy Speaker put the Question, pursuant to Order [6 March]. Question put and agreed to. Resolved,"That this House takes note of European Union Documents No. OJ C 301, the European Court of Auditors 2004 Annual Report; No. 11216/05, European Court of Auditors Special Report No. 1/2005 concerning the management of the European Anti-Fraud Office; No. 11452/05 and Addenda 1 and 2, Protection of the financial interests of the Communities: fight against fraud, Commission’s annual report 2004; No. 12493/05 and Addendum 1, Commission Report: follow-up to 2003 Discharge Decisions–Council recommendations; No. 12494/05 and Addendum 1, Commission Report: follow-up to 2003 Discharge Decisions–European Parliament Resolutions; No. 12712/05, Commission Staff Working Document: follow-up to the 2003 European Court of Auditors Annual Report; and No. 13532/05, Member States’ replies to the Court of Auditors 2003 Annual Report; and supports the Government’s promotion of measures to improve the level of assurance given on the Community budget."