Saturday, July 29, 2006

EU Accounts -Problems of Probity

EU BUDGET

Complaints in the media about the EU Accounts are hypocritical. The reasons why there is not greater probity on this issue or real political concern are as follows:
1. Any solution would have to increase the powers of the European Commission and Parliament to investigate and fine member states government’s public finances. I doubt our Chancellor would not permit an intrusion, nor would member states government be prepared to surrender such power to Brussels.
2. There is no European wide common standard of public finance accountancy; each state has its own traditions and standards. So it makes the job of the European Court of Auditors a very difficult one.
3. As the EU has grown the opportunities for human error and yes fraud have grown.
4. Member states implement over 90% of the EU budget on behalf of Brussels. Each with its own tradition of accountancy means it is not always fraud that is to blame for tracing funds.
5. Implementing EU policy is often very difficult, take the CAP, policy makers have to administer an agricultural policy that has to deal with widely different farming regimes from the giant agribusinesses of East Anglia to Artic rain deer herders and Spanish olive groves.
6. There is the problem of differing administrative cultures and languages, which can make it hard to achieve things.
7. The present system allows for politicians the flexibility to divert funds to pet public projects which a strict interpretation of the rules would not allow.
8. In public finance, accountancy traditions are not always the same as for business, if you read the background to the stories over the years, what you learn is much of the missing EU budget funds can not be accounted for to the criteria that the European Court of Auditors works to. Which can mean they know where much of it is, but do not have the quality of evidence required.
Just to put things in proportion the British Department of Work and Pensions has not had its books signed off for the last thirteen years. Also using a business comparison, an accountant signing off the books of a firm does not mean all is right with the firm, as investors found to their cost with ENRON.

If you really want this matter tackled then the following things have to be achieved:
1. The European Parliament has to have a powerful Parliamentary Accounts Committee that works with the European Court of Auditors with full powers to investigate and fine member governments.
2. A common European Standard of Public Finance Accountancy has to be introduced.
3. The European Commission has to take full control of implementing its £67.2 billion budget.
4. The systems for implementation of the budget have to be simplified.

I should think many a euro-sceptics and pro-european politicians are working together, for the above mentioned reasons, to prevent such reforms in improving the probity of EU accounts from ever being implemented.

Tuesday, July 11, 2006

SUBFSC

OPINION PIECE

LET IT ENDURE FOR EVER

What a pleasure it is to see a student elegantly dressed. It makes a change from the dirty torn t-shirt and stonewashed ragged jeans. Oxford was, this month, in danger of losing the tradition that students be dressed in a dark suit, black shoes, a white bow tie, and plain white shirt and collar, with a cap and gown, known as subfusc. Subfusc is an ancient form of attire, worn by students at every formal university occasion including Examinations and Encaenia.In Oxford it has been a common sight to see students dressed in subfusc, dashing to exams on a bicycle, looking vaguely like penguins from a distance. It has always given me a chuckle and a sense of pride about living in Oxford.Unfortunately, this proud tradition was under threat from Oxford University Student’s Union (OUSU).Its President, Emma Norris launched a campaign to make the wearing of subfusc voluntary at university formal occasions by students. But the campaigners made a mistake, which successful revolutionaries never make - they consulted the electorate.The student body held a referendum on this issue via the internet; the second time they had used such a system, but only those with student usernames could take part. Of the 4,000 who were polled, over 80% voted in favour of keeping the status quo!Consequently, to her surprise, Emma Norris had to announce that, by the students’ vote, that subfusc would continue to be compulsory. So we will still see the joyful site of students celebrating the end of exams dressed in subfusc, popping balloons and champagne. Esto perpetua.