Caviar For Eurosceptic Palates

Why doesn't this strike us as a surprise? MEPs have asked for more of taxpayers' cash, although this time the money will not end up directly in their pockets. The European Parliament's Committee on Budgets voted yesterday to increase MEPs' monthly staff allowance by a further €1,500 - which, multiplied by 12 months and 736 MEPs, amounts to an annual increase of €13.2 million.

Not exactly a wise decision given the wave of austerity that national governments (and taxpayers) are facing across Europe. MEPs already gave themselves a €1,500 office allowance increase last year, following claims that new duties brought in by the Lisbon Treaty had increased their workload. What's more, they already receive a generous monthly allowance of €19,709 to cover staff and other office expenses.

In the words of Italian journalist Marco Zatterin, this really is "caviar for eurosceptic palates".

NB: It's a bit disappointing to see German MEP Ingeborg Grässle (a member of the EP Budgets Committee who has been saying a couple of sensible things in the past, for example on the EU's new diplomatic service budget) saying, "I cannot do the political or control work I have to do if I don't have more staff."

Now who was it who said "where you stand depends on where you sit?"

ridiculously generous

MEPs on the European Parliament's Budget Committee voted on Wednesday to award themselves an extra €1,500 and to hire an additional 150 staff. MEPs say they're in desperate need of more money because the Lisbon Treaty is now in force which means more work for them. In total, MEPs can already cash in on some £360,000 year in pay and allowances. For most people this seems like an incredibly generous amount - but not for the MEPs themselves apparently. The increase will cost taxpayers an extra €13.3 million a year and send the EP's total annual budget past the €1.6 billion mark.

Just like EU bureaucrats' recent über-insensitive demand for a 3.7% pay rise - now awaiting a decision in the Courts - this latest display of the money-hungry culture prevailing in Brussels will not go down well with taxpayers or voters. Nor will this document, published before the EP Budgetary Control committee's meeting, showing how MEPs squander public money. Amongst various spending items, it reveals that the EP last year spent €2.3million to renovate its own sports centre, €4.3million on a new visitor centre (although it already has one), hundreds of thousands of pounds on gas-guzzling cars (some emitting as much 260 CO2 g/km - fighting climate change anyone?) and a staggering €8.8 million on repairing a ceiling that collapsed in the Strasbourg Parliament (which reinforces the stupidity and wastefulness of having a Strasbourg Parliament in the first place). As a side, the document also reveals that the EP lost 54,000 in sick days in 2008.

Although, to be fair, since the new Members' Statute came into effect last year, MEPs do not receive this assistants allowance directly anymore, with assistants being paid directly from the European Parliament's budget. However, this should not detract from the patently ridiculous amount of expenses and allowances available to MEPs.

The editor of the European Voice, Tim King, yesterday summed up why taxpayers and voters have the right to feel very unhappy about this whole affair:

For 40 years, a near-secret agreement has governed how the three main institutions of the European Union divide up administrative spending. That agreement should be brought into the harsh light of day. It should then be ripped up and replaced.

He notes that while the principle behind the agreement is itself not stupid, "what is stupid is the corollary that went with that principle: an agreement that the Parliament would be guaranteed a 20% share of the administrative budget."

He goes on,

Forty years on, it is obvious to many outside observers that the Parliament has more money than it knows what to do with. The Parliament may have set up a temporary committee on the economic crisis, but it is otherwise unscathed by Europe's economic difficulties. Although the Parliament is very fond of climbing into its pulpit to criticise the misuse of EU money when that money is managed by national administrations or the European Commission, it is much less outspoken about the misuse of money under its own palatial (albeit occasionally collapsing) roofs.

He points to the internal 2008 report (that MEPs voted to keep secret) which revealed widespread abuse of allowances in the EP, MEPs' immoral second pensions scheme and other questionable perks and practices.

He concludes,

Now the Parliament's leadership is drawing up its 2010 budget and is struggling to stay within a 20% share of the total spending on administration. Laughably, the MEPs are describing their 20% slice of the pie as 'the long-standing self-imposed limit', not noticing that the description is inherently contradictory: if the 20% was not ridiculously generous, it would not have been 'self-imposed' for so long. The truth is that it is not a meaningful constraint, so MEPs and their officials have been more than happy to live with it...It is scarcely credible that an agreement that dates back to when there were only six member states should remain in place, unquestioned, unexamined.

Exactly.

Lisbon Treaty = even more cash for MEPs

Amid all thee excitement over the EU bureaucrats' demands for an inflation-busting 3.7% payrise smack in the middle of the worst recession since the 1930s, Bruno Waterfield at the Telegraph brings us news that according to an internal document seen by the paper European Parliament officials have proposed a 9 percent increase in the partliamentary assistance allowance, taking it to £203,000 in 2010. It is also understood that staff expenses will be further increased by another £16,000 in 2011, taking the total annual allowance to almost £220,000.

Why? Because EP officials reckon all the extra cash is needed as a result of the Lisbon Treaty.

Don't forget this is on top of the "general expenditure allowance" worth over £44,000 that MEPs can pocket without having to provide any receipts. While working in Brussels or Strasbourg, MEPs also trouser a £265 cash subsistence payment, worth over £40,000 tax-free every year.

And with the expected 3.7% salary rise, an MEP will earn almost £86,000 a year.

Down you go...

And so ex-UKIP MEP Tom Wise has been jailed for fraudulently claiming £39,000 in allowances from the European Parliament. He used his monthly staff allowance to pay for "fine wines" and other personal expenditure.

His researcher, Lindsay Jenkins, was cleared of all charges after Wise admitted that documents he had her sign were blank at the time.

Just a thought - but does anyone out there know if any movement has been made to reclaim the £538,290 in "unduly paid" expenses that Den Dover owed the European Parliament when he was awarded a medal from the very same institution for his "vital contribution" as his term came to an end in the summer?

(This is the kind of thing that caused Chris Davies MEP to go beserk at the Lib Dem conference - see here if you haven't already)

Say what you see

Strong stuff coming out of the Lib Dem conference in Bournemouth today... Hat-tip Spectator Coffee House Blog.

Chris Davies MEP gets worked up over the issue of politicians fiddling their expenses:

"I hate the dirty, cheating b******s, who have taken every opportunity to fill their private pockets with public money. I despise them for dragging down the reputation of my Parliament and all its members. I want them exposed. I want them punished. I want them thrown out."

We don't know exactly who he's referring to but in the past he has singled out disgraced ex-Conservative MEP Den Dover, who apparently still owes the taxpayer £500,000 in "unduly paid expenses", saying that some people see him as "no better than a thief".

Davies' comments are a useful reminder that the problem of MEPs and their expenses is still to be resolved. Since July MEPs have been governed by a new Members' Statute, governing rules on expenses and allowances for MEPs, which offers some very small improvements.

For instance, whereas in the past, MEPs did not have to produce a single receipt for the more than £360,000 available to them every year in allowances (on top of their salary), MEPs must now produce receipts for one chunk of that, which is their travel expenses (although the rules now state that all travel can be by business class). As well as that, MEPs' staff in Brussels are now directly employed, and paid for, by the European Parliament.

MEPs may also no longer employ direct family members (although if they were already working for them in July, they may carry on working for them).

But office expenses and the daily subsistence allowance are still available without receipts - effectively leaving huge amounts of money going straight into MEPs' pockets every year, with no check on how that your money is being spent.

Outrageously, as recently as March this year, MEPs voted to exempt documents which detail how much they are claiming in expenses, and what they are claiming for, from public information requests.

Full credit to Chris Davies - he is one of avery few MEPs who has consistently encouraged and voted in favour of greater transparency in the European Parliament (he voted against exempting documents relating to MEPs' expenses, along with about a quarter of UK MEPs).

Just like at Westminster, the Brussels (and Strasbourg) system needs root-and-branch reform, as we've spelled out before.