EEC Accounting Procedures

HC Deb 24 May 1973 vol 857 cc638-40

2. Mr. Heffer

asked the Chancellor of the Exchequer whether, in view of the resolution of the European Parliament following the Report of the EEC Assembly's Finance and Budget Committee on the loss of sums amounting to £40 million or more a year from the EEC Budget, he will now press for improvements in accounting procedures in order to prevent a recurrence of such losses.

The Chief Secretary to the Treasury (Mr. Patrick Jenkin)

As we have already made clear, we want to see as effective accounting and audit procedures in the EEC as possible. The recent resolution by the European Parliament was a welcome contribution to this.

Mr. Heffer

Is the hon. Gentleman aware that the resolution passed at the recent session of the European Parliament urged the Commission to present an immediate report of the frequent instances of fraud which still occur in the agricultural sector and urged member States to deal with this matter? May we have a full report to the House? What action is being taken by the Government, particularly as, in the future, British taxpayers' money will be involved? Are the Government pursuing the matter with vigour and are they trying to renegotiate the common agricultural policy, which is leading to such disastrous results for the British people?

Mr. Jenkin

The Government are certainly anxious to see effective auditing and accounting procedures. Having accepted the motion moved by my hon. Friend the Member for Belfast, South (Mr. Pounder), the European Parliament decided that committees of that Parliament should give urgent consideration to the setting up of a public accounts committee. We shall wait with great interest to see what the European Parliament produces. My hon. Friend's motion would have been that much more effective if it had been supported by hon. Members of the Opposition.

Mr. Biffen

Is my hon. Friend aware that misappropriations of the magnitude referred to in the Question represent the ugly and unacceptable face of the Common Market? As, yesterday, the Chancellor of the Duchy of Lancaster assured the House that this matter would no doubt come before the Council of Ministers, why cannot we now be told, in this our national Parliament, that our Minister at the Council of Ministers will take the initiative in raising this matter?

Mr. Jenkin

It is easy enough for figures to be bandied about. This figure is £10 million less than the figure which the hon. Member for Liverpool, Walton (Mr. Heffer) included in an earlier Question.

Mr. Heffer

Tell us what it is, then.

Mr. Jenkin

The answer is that until the investigations are completed, no one is right to put any figure on it.

Mr. Jay

Surely, as British public money is now involved in these ugly and unacceptable practices, it is the duty of the British Treasury not just to be anxious but to take active steps to see that the money is properly spent.

Mr. Jenkin

That is the duty of the Commission, and it is the duty of the European Parliament to see that the Commission does its duty in this regard. These matters are being attended to.

Mr. Marten

Does my hon. Friend recall that during the debates on the European Communities Bill this precise point was raised, and that we asked at the time whether the Expenditure Committee would be allowed to go out and investigate these matters? Will my hon. Friend please see that this matter is taken up with the European Community so that the Expenditure Committee can go to Europe and examine the use to which British money is put, to see that it is not wasted?

Mr. Jenkin

As I understand it, the sub-committee of the Expenditure Committee of this Parliament has already been to Brussels.

Mr. Brian Walden

Is the Minister aware that a month ago I put this very point to him in a rather different form? I now repeat it, in the hope of getting an answer. We want some method of arriving at ministerial accountability to this House in respect of our contributions that are being mislaid or misappropriated. Have the Government considered the point that I put to them, and are they going to do anything about it?

Mr. Jenkin

This is a matter for the Community as a whole—[Interruption.] I repeat that it is. Community funds and the Community's accounting and auditing procedures are at issue. As my right hon. Friend told the House yesterday, as indicated by the hon. Member for Liverpool, Walton (Mr. Heffer), this matter will be discussed in the Council of Ministers.

Mr. Heffer

In view of the unsatisfactory nature of the reply, I beg to give notice that I shall seek to raise the matter on the Adjournment at the earliest possible moment.