§ Mr. David PorterTo ask the Chancellor of the Exchequer what assessment he has made of the value for money received from the European Community budget; and if he will make a statement.
§ Mr. Norman LamontI have written to Commissioner Schmidhuber to underline the importance which the United Kingdom attaches to the responsibilities of the Commission for the guidance principles of Community expenditure: economy and cost-effectiveness. These principles were endorsed at Maastricht.
The recent Court of Auditors' report on the 1990 Community budget-Official Journal C324, volume 34 –shows that there is still a great deal of progress to be made in order to ensure that the taxpayer receives value for money even from current levels of spending. Sound financial management is of continuing importance; but assumes a particular relevance now in view of the Commission's recent proposals for Community expenditure over the five years after 1992. The need for progress bears directly upon the three major areas of Community spending in which the Commission's proposals envisage significant growth: the structural funds, external aid, and research and development. However, as the Court of Auditors emphasises, the principles of sound financial management are applicable generally to the Community's expenditure.
The Maastricht treaty has consequences for the quality of Community expenditure, by placing responsibility for 599W sound financial management firmly upon the Commission. Finance Ministers will discuss the Court of Auditors' report next Monday; and we shall be looking for clear evidence that the Commission is acting upon the criticisms of the court.
I have placed copies of my letter to Commissioner Schmidhuber in the Library of the House, together with copies of the similar letters which I have written to colleagues on the Economic and Finance Council and to the chairman of the European Parliament's committee on budgetary control.