European Commission 1992 Budget: Discharge (Hansard, 24 February 1994)

§ The Parliamentary Under-Secretary of State, Department of Transport (Lord Mackay of Ardbrecknish)
My Lords, the European Parliament may postpone the decision giving discharge in respect of the implementation of the budget and, if it does, the Commission is bound to make every effort, as soon as possible, to facilitate removal of the obstacles to that decision. However, there is no provision in the treaty for the European Parliament to refuse to grant the Commission a discharge. Failure by the European Parliament to do so would be a matter primarily for the Commission. The legality of the budget, as opposed to its implementation would not be in question.

Lard Bruce of Donington
My Lords, I am most grateful to the Minister for that Answer, but is he aware that this is a question to which Her Majesty's Government will presently have to address themselves very seriously, particularly in view of the provisions of Article 209 of the Treaty of Maastricht? Is he aware that, in addition to the matters complained of by the Court of Auditors in its report on the accounts for 1992, there has recently come into my hands the report of the Court of Auditors into the whole of the tobacco regime, No.4311 of 1994, which reveals that the Commission had the arrogance to decline to produce documents when required to do so by the Court of Auditors? That raises a totally different question altogether. Will the Minister give the House an assurance that the utmost pressure will be brought to bear and that, instead of acting as "Little Sir Echo", ECOFIN will take up this 720 matter without delay and will, if necessary, bring proceedings against the Commission under Article 175 of the Treaty of Rome?

§ Lord Mackay of Ardbrecknish
My Lords, I can assure the noble Lord that all the matters that are brought to ECOFIN's attention by the Court of Auditors' report on the 1992 budget will be considered seriously by ECOFIN at its meeting on 21st March. In the time leading up to that meeting of ECOFIN the United Kingdom Government are pressing our partners to take a serious view of the contents of the Court of Auditors' report.

§ Lord Jenkins of Hillhead
My Lords, does not the Minister agree that while it is quite frequent for totally different questions to be raised in supplementaries it is rare to announce that one is doing so, as the noble Lord, Lord Bruce of Donington, has done? Is the Minister aware that the circumstances described in the original Question are not without precedent? I am surprised that with his encyclopaedic knowledge of these matters the noble Lord, Lord Bruce, does not recollect that a similar consideration arose in 1977 and again in 1979 when the European Parliament was protesting not against the Commission (although it refused the Commission a discharge) but had a dispute with the Council of Ministers and that it was owing not to the arrogance but—how shall I put it?—to the tact and hard work of the then President of the Commission that matters were sorted out satisfactorily.

§ Lord Mackay of Ardbrecknish
My Lords, I always appreciate it when the heavy cavalry rides to my protection on these matters, as the noble Lord, Lord Jenkins of Hillhead, has just done. After his illustrious tenure of office in Europe was over, in the 1982 financial year the European Parliament refused to grant the Commission a discharge on 14th November 1984 for the 1982 budget. It eventually accepted a closure of the accounts after receiving information from the Commission and accordingly gave a discharge for 1982 on 15th March 1985.

§ Baroness Robson of Kiddington
My Lords, is the Minister able to assure the House that if the Council accepts the recommendations of the Court of Auditors' report on 1992 when it considers them, that will be fine; but that if it does not accept them the Council will state its reasons for not doing so?

§ Lord Mackay of Ardbrecknish
My Lords, I understand that if ECOFIN has any doubts it will return to the Commission and ask for clarification of those doubts. At the next stage, if the Parliament in its turn has doubts, it is expressly allowed to go to the Commission to ask for clarification of those doubts before it discharges the budget.

§ Lord Tugendhat
My Lords, does not my noble friend agree that if the European Parliament had made full use of its powers over the discharge in the past there would be very little need for many of the demands for further powers that are being made at present?

§ Lord Mackay of Ardbrecknish
My Lords, I am grateful to my noble friend. It certainly is true that if over the years the budgetary authorities, both the Council and the Parliament, were to have taken seriously the probity of the budget we should be in a better position today. We are making progress on that subject and I assure your Lordships that Her Majesty's Government are in the forefront of ensuring that the budget is properly and effectively dealt with.

Lord Bruce of Donington
My Lords, is the Minister aware that it is most unlikely that the European Parliament will take any such drastic action, even though it may receive a recommendation to do so from its own budgetary control committee? Is the Minister further aware that the matter should not be confined to the Court of Auditors' report on the 1992 accounts but extended to the specific report dated 20th January, to which I drew his attention? That is now in the hands of the Minister of Agriculture. It raises wholly different questions of principle and shows the widespread fraud and irregularities in connection with the whole common agricultural policy relating to tobacco. That matter has been raised for many years by the noble Lord, Lord Boyd-Carpenter, and myself, and action should be taken upon it.

§ Lord Mackay of Ardbrecknish
My Lords, the Government have been determined to ensure that there is proper budgetary control on the CAP, which represents the largest part of the expenditure of the European Community. If the noble Lord casts his mind back to some months ago he will remember that I too expressed my anxiety about the way in which the tobacco regime operates. I know that the Government are equally anxious about that regime.