The House of Commons debated, yesterday, the European Commission’s draft regulations on the Connecting Europe Facility in the next Multiannual Financial Framework 2014-20. During the debate Bill Cash made the following interventions:

The Financial Secretary to the Treasury (Mr Mark Hoban): I beg to move, That this House takes note of European Union Documents No. 16176/11 and Addenda 1 and 2, No. 16499/11, No. 16006/11 and Addenda 1 and 2, No. 15629/11 and Addenda 1 to 35, No. 15813/11 and Addenda 1 and 2, relating to the European Commission’s draft regulations on the Connecting Europe Facility in the next Multiannual Financial Framework 2014-20; supports the Government’s view that at a time of ongoing economic fragility in Europe and tight constraints on domestic public spending, the Commission’s proposal for substantial increases in EU spending in this area compared with current spend is unacceptable and incompatible with the tough decisions being taken to bring deficits under control in both the UK and countries across Europe; considers that spending in this area should focus on identifying and providing genuine EU-added value, and not on spending where domestic governments and the market are better placed to act; and further supports the Government’s ongoing efforts to reduce both the Commission’s proposed budget for the Connecting Europe Facility and the overall level of spending in the next Multiannual Financial Framework 2014-20.

The European Commission’s proposal for a connecting Europe facility for transport, energy and telecommunications infrastructure cuts across the work of Government. I am therefore grateful that I have been joined in the Chamber by ministerial colleagues from the Department of Energy and Climate Change, the Department for Transport and the Department for Culture, Media and Sport, in putting forward the Government’s case on the motion.

Matters of deficits, spending and growth are at the top of all of our concerns, not just here in the UK, but across Europe. Those issues go to the very heart of the continued instability in the euro area. That ongoing instability vindicates the Government’s decision to get ahead of the curve, cut our deficit and impose strict financial discipline on our budget.

Mr William Cash (Stone) (Con): Whereas many hon. Members will agree with the sentiment of the Government’s motion, the idea that we should contribute to the EU indirectly through the International Monetary Fund on the scale that is proposed is unacceptable.

Mr Hoban: My hon. Friend’s point is outside the topic of the debate this afternoon. He is aware of the Chancellor of the Exchequer’s comments and assurances on that matter.

As I have said, at home, we have taken tough decisions to tackle our deficit and demonstrated leadership. We expect exactly the same leadership on spending in Europe from the European Commission, but whether on the annual budget or the financial framework, such leadership has been completely lacking. Instead of finding ways to cut spending or to drive better value for money, the Commission, through the connecting Europe facility, proposes to increase spending on transport, energy infrastructure and telecommunications by 400% as part of a multi-annual financial framework that increases payments by more than €100 billion over its duration.

Just as at home, where we have prioritised spending on growth while tackling the deficit, the Government would like a higher proportion of a restrained EU budget spent to promote sustainable growth. The proposal does not achieve that objective. We are arguing that spending should be lower, and that what spending remains should be focused on areas that offer genuine added value across the EU.

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Mr William Cash (Stone) (Con): The problem with this over-arching proposal is basically that it will be carried by qualified majority vote and is therefore, in effect, a form of taxation. Whatever proportion of that overall budget of £43.7 billion eventually falls on the United Kingdom, the Committee of which I have the honour to serve as Chairman believes that the scale of the Commission’s ambition for the 2014 to 2020 financial period is clearly unacceptable. On that basis, there is no doubt that the thrust of the Government’s motion is correct. Although I happen to agree with the proposals on growth in the Opposition motion, the fact is that the Opposition are guilty of having severely restricted any opportunity for growth through the massive increase in public expenditure that they imposed on the United Kingdom. I and two or three other Conservative Members continually attacked that increase for the best part of three years and, as I repeatedly said at the time, there was no proposal for growth, which was connected to the problems of over-regulation, of which these proposals are yet another example.

The truth is that there should have been a full debate—there still might yet be an opportunity for such a debate—on what is going wrong with the European Union as a whole. That debate is necessary because, as the Government have pointed out, the EU is calling on member states such as ourselves to produce more money for projects that could be better carried out under the so-called principle of subsidiarity at a national level.

At the same time, it is abundantly clear that there is no money in the European coffers. We should be debating the eurozone crisis as a whole in a three-hour debate on the Floor of the House, which my Committee has unanimously called on the Government to provide, but when I and my hon. Friends the Members for Gainsborough (Mr Leigh) and for Bury North (Mr Nuttall) repeated our calls this morning for a general debate it was denied by the Government, yet again.

Mr Bone: On that point, the Backbench Business Committee can, of course, grant a full-day debate on Thursday of next week if the Government release that day, which they are holding back for a general debate. Would my hon. Friend urge the Chief Whip to consider doing that?

Mr Cash: I certainly would. I endorse that course of action, and I would be grateful if the Whips on duty would pass that message to the Chief Whip—and, indeed, the Leader of the House—because we are faced with a monumental crisis in the European Union. That is only a symptom of the problem, which is generated by the intrinsic defects of the accumulated treaties, particularly since the Maastricht treaty in the 1990s.

So much is decided by qualified majority vote despite the fact that we currently face such severe restrictions and so much austerity, which is causing difficulties for our hospitals, schools, transport and so much else.

Proportionality in respect of allocations is required. Getting that balance right is vital for our national interest. We should therefore have a debate on the Floor of the House, and not only on this one issue, important though it is.

I attended the multiannual financial meeting of about eight weeks ago as a member of the European Scrutiny Committee on behalf of the United Kingdom national Parliament, and I felt compelled to get up and complain bitterly about the complete “Alice in Wonderland” attitude that prevailed there. People were calling for an ever-greater increase in the amount of money that should be made available to the EU, and they were justifying that by reference to the Lisbon treaty, for example. They said that as the functions had grown, there ought to be more money. There is absolutely no recognition of the fact that there is simply not enough money to go around. We should be proceeding on the basis that we must reduce, rather than merely freeze, the budget.

The Government motion is right, therefore. However, we are facing demands from the financial transaction tax—I accept that we can veto that—and there are also attempts to stop our rebate and proposals to increase own-resources. Cumulatively, those moves are putting pressure on us to move in the wrong direction. There are great opportunities for the UK in a trading environment that is global—across the world, rather than just in the EU, important though that may be—and that is the direction we should be going in. All transport issues, including aviation policy and the development of our local infrastructure, should be taken by ourselves in the interests of the UK, rather than determined by QMV involving the other member states.

The European project is completely misconceived, and it is failing; the eurozone crisis will ultimately lead to collapse. The current situation is rather like the phoney war of 1938 and 1939: everybody knows the situation is doomed, but they are continuing to pretend that somehow something will turn up.

My message is that the Government motion is right in general, but that there is not enough determination to renegotiate the treaties. I welcome the veto, but once we cross the Rubicon, we cannot cross back. The reality is that any attempt to do so will meet with disaster, division and acrimony. I am glad that we have had this debate, but there are also more important matters that must be debated as a matter of urgency. As I and my hon. Friends the Members for Gainsborough, for Wellingborough (Mr Bone), for Bury North and many others have said, we must have a proper debate on the extent, range and depth of the eurozone crisis and its impact on the UK. We must also explore the other key issues facing us, such as why we are being confronted with QMV decisions to impose what is, in effect, a form of taxation to provide for certain facilities. Such decisions should be made on a bilateral national basis. It is not anti-European to say that is what we should do, because doing that is in the interests of Europe. What Europe is doing, however, is determinedly pursuing a completely false prospectus and then compounding that—sadly, with our Government in agreement, it appears—by proposing that we should find yet more devious means of providing money through the IMF to support what is an insupportable project. That simply flies in the face of common sense.

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Question put, That the amendment be made.

The House divided:

Ayes 182, Noes 281.