HC Deb 08 March 1989 vol 148 cc891-2
15. Mr. Tredinnick

To ask the Secretary of State for Foreign and Commonwealth Affairs what progress has been made towards implementing the measures agreed at the Brussels summit of February 1988 to control the growth of the European Community's budget.

Mrs. Chalker

The 1989 Community budget included CAP provision some £1,320 million less than the agricultural guideline. Own resources called up for the budget were substantially below the relevant sub-ceiling in the new own resources decision.

Mr. Tredinnick

Can my right hon. Friend give some indication of the inquiries being conducted by the Government into allegations of widespread fraud within the common agricultural policy? Will she give some indication also of the pressure that she intends putting on our European partners when that fraud is discovered, to ensure that prosecutions take place?

Mrs. Chalker

My hon. Friend will have noticed the comments of my right hon. Friend the Paymaster General in the House last Thursday, and my own comments in a debate on 23 February. On both occasions, we sought to give more detail. We are working on further suggestions for seeking out fraud and stopping it. It is important not only to detect but deter. The Court of Auditors' report highlights the problems of fraud, and we shall support all cost-effective measures against fraud in the Community, wherever it may be. That is why we are making concrete suggestions to counsel for combating both fraud and the mismanagement of resources.

Mr. Robertson

Is the Minister aware that acceptance of the super-generous Brussels budget deal was inextricably tied up with the drive to completing the 1992 internal market? Does the Minister agree with Sir John Hoskyns who, in a speech last week at the Institute of Directors, called a social dimension to 1992 a nonsense and Sixties-style social engineering"? Or does the right hon. Lady prefer the view of the London ambassador for the most prosperous country in Europe, West Germany, who called for a European charter of fundamental social rights, including collective bargaining autonomy, freedom of association, and sex equality"? Is the Minister on the side of the dinosaurs or of the economically powerful?

Mrs. Chalker

The Government have always been on the side of economic strengths. Many of the comments made in Sir John Hoskyns' speech to the Institute of Directors seemed to discourage business from preparing for the changes of 1992. If they have done that, the speech did no service to Britain. Of course we must right those things that are wrong. However, the most important part of the single market programme is moving ahead to dismantle barriers. There is no sense in imposing regulations on business that will deter the creation of employment and job opportunities. If we are to have a sensible social dimension in Europe, there must be wider access to training and retraining, better standards of training and retraining, implementation of the health and safety at work directive agreed last December, equal treatment in social security, and free movement of labour. Having rolled back the frontiers of Socialism in Britain, there is no way that we will see them re-established in Brussels.

Mr. William Powell

Can my right hon. Friend say how much fraud against the EEC has taken place within the frontiers of the United Kingdom, and how many prosecutions of United Kingdom nationals have occurred for fraud involving EEC budgets?

Mrs. Chalker

I cannot give my hon. Friend such details without notice. I shall write to him with the details that are known. Figures mentioned in the press have been highly speculative. We do not doubt that very large sums have been involved across the Community as a whole, and that fraud is a serious problem. The nature of the fraud means that it is impossible to give precise figures now, but action must be taken all the way to reduce such frauds to a minimum. Even if I cannot give my hon. Friend the details that he wishes, he should be in no doubt about our recognition of the need for action and our determination to take it.

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