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Proceeding contribution from William Cash (Conservative) in the House of Commons on Tuesday, 22 March 2011. It occurred during Debate on bill on Budget Responsibility and National Audit Bill [Lords].


Budget Responsibility and National Audit Bill [Lords]

I am very glad to be able to follow that advice. In order for the provisions contained in the amendments to be inserted in the Bill, it is essential for the House to be aware of the implications of judicial authority, the assertions of the Supreme Court in that context, and the sovereignty of Parliament. There is, for example, the question of fiscal policy and the charter, which is set out in clause 1(2) and to which the question of economic growth and job creation would be added by the amendments. Clause 6(3) states:"““The Office must, in the performance of its duty under section 4, act consistently with any guidance included in the Charter by virtue of this section.””" I am deeply worried about the legal status of the charter in this context. As for fiscal policy, I remind the House that the other day, probably for the first time since 1640—Pym and Hampden and all that—the Government passed a motion saying that we were only primarily responsible for it. I voted against the motion—as did my hon. Friend the Member for Bury North (Mr Nuttall) and a number of others—but the whole House should have voted against it, because in fact we are exclusively responsible for fiscal policy, and that is what the Bill is supposed to be based on. What worries me particularly is the inconsistency with fundamental questions that are in the background, involving the primacy of European law, sovereignty and judicial authority. I need make no further points, because in a nutshell, if those issues cannot be reconciled with what is in the Bill, and if the duties of the Office for Budget Responsibility are to examine and report on the sustainability of the public finances, to prepare ““fiscal and economic forecasts””, to make assessments and analyse sustainability, and to act consistently with the charter as a matter of law, we are surely entitled to ask: which law will prevail? Obviously, I agree with all the ideas that are being presented. We all want an efficient economy, we all want jobs and we all want growth. We cannot survive without growth, and we cannot generate the revenues to pay for the public sector without that growth in the private sector. What worries me is that all those ideas are being imposed through a Bill, rather than through the judgment of Ministers who are accountable to the House of Commons, and should not be required to refer back to the judicial authority of the courts or the alleged primacy of the European Union. I fear that we are embarking on one of those Lewis Carroll-type situations. I am reminded of ““The Hunting of the Snark””. Members may recall the phraseology. We know that we want it, we know it is there, but the question is, what is it going to do? I have a serious problem with the Bill for that reason. I fear that we are engaged in a process of wishful thinking rather than achievement, and that we are being locked into a withdrawal from parliamentary accountability—and, as some Members may know by now, I regard that as the ultimate test of our democratic system.


Secondary information

Type
Proceeding contribution
Reference
525 c891-2 
Session
2010-12
Chamber / Committee
House of Commons chamber
Subjects
Disclosure of information Audit Budgets Fiscal policy Economic growth Powers Public expenditure National Audit Office Public finance Treasury Social policy Office for Budget Responsibility
Legislation
Budget Responsibility and National Audit Bill (HL) 2010-12
Link
View this Proceeding contribution on www.publications.parliament.uk