§ Mr. GrieveTo ask the Chancellor of the Exchequer what(a) discussions he has had and (b) proposals his Department has put forward at Council of Ministers' meetings in respect of EU fraud; and if he will make a statement. [77778]
§ Ms HewittFraud against the Community budget is something which the Government take very seriously and I can confirm that this informs our discussions with other member states at Council meetings. The Government aim to ensure that anti-fraud considerations are taken fully into account when new policies are being developed and new or revised regulations are on the table.
Regular discussions on fighting EU fraud take place and specific proposals are considered at the ECOFIN Council where the Treasury is the lead UK Department. The Commission's annual "Fight against Fraud" report and work programme was discussed at the May 1998 ECOFIN which, under the UK Presidency, was devoted to fraud, financial management and budget issues. The Court of Auditors' Report for 1997 focused on improving financial management and fighting fraud and waste and was discussed at the March 1999 ECOFIN.
The November 1998 ECOFIN discussed the European Court of Auditors' Special Report 8/98 concerning the Commission's services engaged in the fight against fraud. The Council concluded that there must be a policy of zero tolerance towards fraud and called for substantial improvements to be made without delay with fraud inside 857W the Community Institutions as the first target. It called on the Commission to consider all of the options for strengthening the fight against fraud.
At the January 1999 ECOFIN the Chancellor called for a strong independent head of fraud investigations who would have wide ranging powers and rights matched by responsibility and accountability including reporting to the European Parliament and the Council. The March 1999 ECOFIN discussed the Commission's proposal of December 1998 for an independent fraud investigation office, and the 1997 European Court of Auditor's Report. The Council called on the Commission to bring forward amended proposals for a strengthened fraud investigation office, indicating the key elements it would wish the amended proposal to incorporate, which were in line with the Chancellor's January initiative.
There may also be discussions of specific frauds against particular EC programmes in the relevant Council meeting, for instance on allegations of fraud against the EU humanitarian aid programme which were discussed at the November 1998 Development Council.