Proceeding contribution from Vincent Cable (Liberal Democrat) in the House of Commons on Tuesday, 15 January 2008. It occurred during Committee of the Whole House (HC) and Debate on bill on European Communities (Finance) Bill.
European Communities (Finance) Bill
That is a helpful intervention. I do not know how significant those commissioner's comments are, but they seem to be genuinely worrying. In his initial remarks, the Minister tried to alarm us—perhaps rightly, as we need to understand the Government position better—about the consequences of this legislation not being ratified on time. It is a nuclear weapon in many respects, but we need to understand how the nuclear bomb actually works in these circumstances: what would be the practical consequences of detonating it? It is my understanding that on the financial front we would revert to the earlier own resources formula, which in purely financial terms would be better for the UK, so it is clearly not a deterrent in that sense. There is also the mechanics of how payments are made, and whether failure to ratify on time would affect the normal running of payments through the EU. Again, I confess ignorance on that: I do not know at what point a failure to achieve legislative closure affects the day-to-day payments. There is a section in the explanatory notes that I am afraid I do not understand, but the Minister might be able to explain it. It states:"““The additional UK contribution resulting from the reduction in allocated expenditure is limited to €10.5bn in 2004 prices over the period 2007 to 2013.””" The implication is that the changes are already in operation and that they will be retrospectively validated by this legislation, so there is nothing to stop these payments occurring now. There is also an implication that the deterrent—the nuclear bomb—is, in the end, largely an issue of face or prestige: the British Government cannot get their own legislature to agree a piece of legislation, which is very embarrassing. But is it more than embarrassment? That is the question that we have to answer. If the Government can explain that holding up this legislation in order to achieve these necessary improvements will do serious damage to the functioning of the EU and Britain's role within it, I would be hesitant to support the new clause, but if all that is at stake is a little embarrassment at the beginning of 2009—which might, indeed, have the effect of stiffening the Government's spine in what then might be difficult negotiations about the review—I cannot see the harm. As somebody who is a pro-European, I want the Government to explain convincingly to me why I should not support the new clause.
Secondary information
- Type
- Proceeding contribution
- Reference
- 470 c873
- Session
- 2007-08
- Chamber / Committee
- House of Commons chamber
- Subjects
- Contributions Finance Expenditure EU enlargement EU budget Common agricultural policy Treaties
- Legislation
- European Communities (Finance) Bill 2007-08
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- View this Proceeding contribution on www.publications.parliament.uk
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