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European Communities (Finance) Bill

I am grateful to my hon. Friend, who has saved me the trouble of setting out the case for the UK rebate. We had a wonderful cross-party consensus. We Conservatives believe that the UK rebate is fully justified and non-negotiable; on 25 May 2005, the then Prime Minister told us that the UK rebate was fully justified and non-negotiable. One would think in the ordinary course of events that there would not be a difficulty. Unfortunately, however, things did not turn out that way. In summer 2005, the Government's position was exactly the one that the hon. Member for Wolverhampton, South-West (Rob Marris) told us a few minutes ago would be completely untenable. The Government supported the enlargement of the European Union—indeed, they were a passionate advocate of such enlargement—but, to use the former Prime Minister's words, they believed that the UK rebate was fully justified and non-negotiable. As we try to have a sensible discussion this afternoon, I hope that we will hear no more nonsense about the change to the rebate being an inevitable part of a deal to secure enlargement. Indeed, I suggest that the only enlargement at stake in Brussels in December 2005 was that of the former Prime Minister's income and ego, if he is in future appointed President of the European Union, as some have suggested. The position changed during the course of 2005, following the summer, when the then Prime Minister and then Chancellor were so robust in their defence of the rebate. The Government moved their position and said that they would consider a concession on the rebate, but only in the context of meaningful and significant reform of the EU budget—particularly of the common agricultural policy. The then Prime Minister said that if we got rid of the CAP and changed the reason why the rebate was there, the case for the rebate would change. I do not think that any Conservative Member would disagree with that. For that reason, the principal thrust of our argument this evening will be to try to improve the Bill and put some backbone back into the Government's negotiating position through the insertion of new clause 1. I shall not go into the detail of that now, Mrs. Heal, as you would not welcome it.