HC Deb 16 July 1992 vol 211 c890W
Mr. Hardy

To ask the Chancellor of the Exchequer what is his estimate of the total cost of fraudulent practices involving EC finances in the Community as a whole and in the United Kingdom; and what action he is taking to ensure that the budgetary control committee's efforts in the European Parliament are made worth while.

Sir John Cope

Because of the nature of fraud, it is impossible to estimate the total cost of fraud against the European Community budget. However, in its annual report on the fight against fraud in 1991, the Commission has provided the following figures of irregularities notified to the Commission for the European Commission as a whole and for the United Kingdom:

Own resources notifications: 2nd half 1990 to 1st half 1991
Mecu £ million1
Total 59.4 41.4
of which United Kingdom 13.1 9.1

European Agriculture Guidance and Guarantee Fund, guarantee section notifications: 1991
Mecu £ million1
Total 67.2 46.8
of which United Kingdom 5.1 3.6

Structural funds notifications: 1 November 1990- to 31 December 1991
Mecu £ million1
Total 1.5 1.0
of which United Kingdom 0.2 0.15
1 Converted at the central rate in the ERM of £1 = 1.435 ecu.

In part, these figures reflect the success of detection and efficiency of notification.

I shall meet the European Parliament's budgetary control committee in the autumn. This will be an opportunity to discuss fully the Parliament's concern to make sure that the Community makes every effort to combat irregularity including fraud. The Government are determined to ensure that further progress is made to reduce the scope for irregularity including fraud and will carefully consider any suggestions which the European Parliament may have.