European Budgets 2014 to 2020

Part of Internet Regulation (Material Inciting Gang Violence) – in the House of Commons at 4:32 pm on 8 November 2011.

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Photo of Geraint Davies Geraint Davies Parliamentary Assembly of the Council of Europe (Substitute Member) 4:32, 8 November 2011

No, I do not accept that, but I do accept that there need to be structural changes in the budget, such as a reduction in common agricultural policy funding and more focus on growth, investment and tooling up Europe to compete with emerging markets. All those factors are important. Government Members who think this is all a complete waste of money and that we would be better off spending it at home on chip shops miss the point of having a commonality in research and innovation, and of making Europe more successful for the future. The Government seem to be completely ignorant of any strategic undertakings or documentation that come out of Europe on how to push smart, sustainable and inclusive growth. That is missing from the Government’s armoury—they focus always on cuts and never on growth, and they are missing the wood for the trees.

On the Tobin tax, I clearly do not support a tax when 80% of it would fall on Britain and when it would undermine Europe’s competitiveness. I share the view of the shadow Minister, my hon. Friend Chris Leslie, that we should look for an international basis for such a measure. That said, we need to understand that an international Tobin tax would fall primarily on the US and the UK.

My understanding is that the rebate has been frozen at £3.2 billion a year for the next seven years, but we need to realise that if the gross contribution is increasing, our rebate is going down proportionately. The Prime Minister should argue harder for the rebate to increase at least at the same rate as the increase in our gross contribution. Without further ado, I shall come to a conclusion, because I know that many hon. Members wish to speak.