§ Sir Teddy TaylorTo ask the Chancellor of the Exchequer what assessment he has made of the reasons why the European Union accounts for 2002 have not been signed or approved by the Court of Auditors; and if he will make a statement. [172486]
§ Ruth KellyThe Paymaster General made a full statement on these issues on 23 February 2004 during the debate in European Standing Committee B on the European Court of Auditors' annual report.
§ Sir Teddy TaylorTo ask the Chancellor of the Exchequer what assessment he has made of the reasons for the increase in the number of recorded fraud cases within the EU in 2002; and how much money was lost in fraud within the EU in 2002. [172487]
§ Ruth KellyMember states are required to report irregularities detected in their own resources, agriculture and structural funds budget sectors to the European Commission and to the European Anti-Fraud Office. These figures are reported every year in the Commission's annual "Fight against Fraud" report. Reported irregularities may include suspected fraud cases, but the Commission does not publish an estimate of fraud. Irregularities rose during 2002 mainly because the heavy audit activity required at the closure of the 1994–1999 Structural Funds programming period led to the detection of a higher number of errors than is usually the case. Any money found to have been paid in error is normally recovered by the paying agency concerned.
§ Sir Teddy TaylorTo ask the Chancellor of the Exchequer what assessment he has made of the scope for reducing levels of fraud connected with the European Union budget. [172489]
270W
Distribution of Original Income, by quintile, 19931 to 2002–03—United Kingdom £ per year 1993 1994–95 1995–96 Quintile Income boundary2 Original Income Income boundary2 Original Income Income boundary2 Original Income Bottom 1,920 2,040 2,430 6,880 7,407 7,786 2nd 5,020 5,600 6,080 9,541 10,136 10,635 3rd 12,850 13,390 13,790 13,351 14,042 14,505 4th 20,850 22,240 22,450 19,095 19,879 20,393 Top 39,370 40,330 41,250 Average for all households 16,000 16,720 17,200
§ Ruth KellyThe Government strongly supports measures to reduce fraud against the Community budget. The European Anti-Fraud Office, which was an initiative of the Chancellor, is now up to complement and is doing a good job in tackling fraud, especially in cross-border cases which require investigations in several member states. The Government played an active part in negotiating the new Financial Regulation, a major reform which introduced new levels of accountability. Better financial control regulations in the Structural Funds, and simplification of agricultural payments will also reduce the opportunities for fraud.