§ 2.53 p.m.
§ Baroness Young asked Her Majesty's Government:
§ Whether the European Commission is fulfilling its obligations to pay its contractual commitments to British institutions and companies within 60 days.
§ Lord McIntosh of HaringeyMy Lords, we understand that the noble Baroness is referring to the payment due to the West India Committee. This contract was between the West India Committee and the European Commission, with no involvement by Her Majesty's Government. We are advised by Commission officials that one of the causes of delay has been the lack of funds in 1998 and the lack of a facility to sire funds between budgets. They tell us that they hope to make the payment within the next two weeks, but we cannot be certain.
Baroness YoungMy Lords, does the Minister realise that I do not consider that to be a satisfactory Answer to my Question at all? The noble Lord had no right whatever to raise the particular instance of the organisation with which, I admit, I am connected and in respect of which, therefore, I declare an interest. When I was asked about the matter behind my Question 837 I stated that it had a general application. Is the Minister aware that there are a great many organisations that are owed very considerable sums of money, many of which have been waiting for payment for well over 120 days? That causes serious hardship to small businesses. I believe that both the noble Lord and the Government should look into this non-payment of money to firms doing work for the European Community.
§ Lord McIntosh of HaringeyMy Lords, I am very sorry that the noble Baroness should be offended by the nature of my response. I understood from her indirectly that this was what she was concerned about and I sought to try to address her specific concerns rather than give a brush-off, which I might otherwise have had to give. However, if I did wrong, I apologise to the noble Baroness and to the House.
Yes, of course, the noble Baroness is right, I recognise that the West India Committee is not the only example; indeed, as a sub-contractor to the European Commission in the 1970s I experienced comparable problems myself. She is also right to say that there is something wrong at the Court of Denmark. We have been making very serious representations about late payment and about the payment of interest on late payments. I understand that the European Union has set up a new internal organisation to look at late payment procedures. We hope that the establishment of the new organisation will help to improve the situation.
§ Lord Wallace of SaltaireMy Lords, does the Minister accept that behind the Question there is a broader issue of the built-in inefficiencies within the Commission at present? Are the Government pressing for thorough-going reform of the Commission, including perhaps a reduction in the number of commissioners to ensure that the business of the European Union is effectively carried on?
§ Lord McIntosh of HaringeyMy Lords, I was criticised for being too precise in my Answer and for not responding to the more general issue of late payments. However, the noble Lord, Lord Wallace, is now inviting me to comment on the efficiency of the European Commission as a whole, which is quite apart from the issue of late payments. I believe that that is going too far.
§ Baroness Carnegy of LourMy Lords, as regards the Minister's second answer to my noble friend Lady Young, can the noble Lord tell the House whether the Government think it acceptable for Ministers at the Dispatch Box to give brush-offs?
§ Lord McIntosh of HaringeyNo, my Lords; that is why I did not do it. I did not give a brush-off.