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Hey you Tories -- want an extra £½ million?

European Journal - March 14 2006

Conservative MEPs would be at least £½ million a year better off if they left the EPP and formed a new group. On leaving the EPP, they would immediately get more funding than currently during any interim period, even before forming a new group.

David Cameron is determined to take Conservative MEPs out of the federalist EPP grouping in the European parliament (EP), and form a new group of centre-right, Atlanticist, free-market MEPs opposed to political union in Europe. But there are a number of reactionary Tory MEPs in Brussels who want to maintain the status quo.

One of the specious arguments they use is that as members of a larger group, they can access more of the parliament's political funding. This view has gained a certain currency. I recently heard a very senior member of the Shadow Cabinet say that we should leave the EPP as a matter of principle, even though it would cost us money.

The good news is that this proposition is just plain wrong. Far from losing money, the Conservative delegation can expect to be at least £½ million a year better off outside the EPP. And I should know: I was Treasurer of the Conservative delegation before I was unceremoniously expelled from the EPP last June (for robustly pursuing our manifesto commitment to oppose fraud and cronyism in the EU's institutions, and for criticising the EPP's attempt to sweep the issue under the carpet).

In the EP, MEPs who are members of recognised groups get "Information funding", technically known as "line 3701", at a rate of around €65k a year. Most groups will take a proportion of that for general overheads. But the EPP top-slices a whopping €30k, leaving only around €35k a head. So the Tory delegation loses 27 times €30k, or £559k a year. And most of that gets spent by the EPP on federalist objectives like promoting the EU Constitution.

But it gets worse. As a result of a long-running dispute with the EPP on staffing, the Tory delegation is forced to pay for several expensive staff posts out of its 3701 funds, which ought to be paid by the EPP group. The EPP continues to employ several of their loyal old retainers, whom it insists on regarding as part of the Tory delegation establishment, even though they do no work for (and have no loyalty to) the delegation.

Consequently, individual Tory MEPs get only €10k each for information work in their regions (and only that because I raised it from a derisory €2,500 while I was Treasurer). However, as an independent MEP I get €40k, which is already more than the net €35k per capita which the delegation receives -- so the delegation would be immediately better off financially if it left the EPP now, even before it formed a new group.

But on forming a new group, they would get the full €65k a head, and while they would need to allocate a small proportion for group overhead, most would go to the delegation. And the new group would select, recruit and manage its own staff.

My experience as an independent member for nine months is that I have more funding, more speaking time, more staff support, and more access to parliamentary facilities than I had within the EPP. There is a strong case to be made that we should also have more influence in the parliament as a cohesive, independent Conservative group. The EPP would be forced to pay attention and negotiate with us, as they are already showing signs of doing now that they know we're leaving. Previously, as a troublesome minority within the EPP, they were free to ignore us. David Cameron is right. Conservative MEPs have everything to gain by leaving the EPP.