HL Deb 21 April 1998 vol 588 cc207-8WA
Lord Pearson of Rannoch

asked Her Majesty's Government:

Whether the recommendations contained in the reports from the House of Lords European Communities Committee on Fraud in the Community are being implemented during their presidency of the European Union; and, if not, why not. [HL1516]

Lord McIntosh of Haringey

The Reports of the House of Lords European Communities Committee on Fraud in the Community contain many apposite recommendations which have influenced the direction of government policy since their publication.

Looking in particular at the Committee's 12th Report of 1993–94 published in July 1994, I am pleased to be able to report real progress on areas covered by the recommendations. Much of this has been carried out under the aegis of the Commission's SEM2000 programme (Sound and Efficient Management). For instance, measures have been introduced which will lead to closer monitoring of the fraud-proofing of legislation. This will apply to both existing and new proposals; new proposals will be scrutinised prior to presentation of the proposal to the Council, while existing instruments will be subject to scrutiny where experience has revealed a degree of vulnerability to fraud. The Commission adopted a Regulation in October 1997 setting minimum standards for financial control of the Structural Funds in member states and is working with member states to specify more closely what is required. The Government also, at the InterGovernmental conference in Amsterdam, sponsored proposals to strengthen the role of the European Court of Auditors. These initiatives put into practice specific recommendations of the report and were actively promoted by the UK Government.

The Government have made improving financial management and the fight against fraud one of the priorities of the current UK Presidency of the European Union. It is doing this largely by consolidating initiatives already in progress, to ensure that these really achieve their goals. It is ensuring that full use is made of the discharge procedure, working with the European Parliament to ensure that discussion focuses on key issues. It is giving full support to the SEM2000 initiative; this is of particular importance as far as financial management aspects of the new Structural Funds Regulations, reform of the common agricultural policy and the effects of proposed enlargement are concerned. To stress the importance which they accord these issues the Government will use the 19 May ECOFIN to focus on financial management and fraud issues, including a report on progress on SEM2000 and the Commission's annual Fight Against Fraud Report.