MEP perks deal still possible despite pay setback

By Martin Banks

Date: 11/12/03

REFORM of MEPs' much-criticized expenses regime could still be pushed through in time for next year's European elections, it emerged this week.

Moves to change the system appeared to have ground to a halt following last week's defeat of a compromise deal in the Parliament's legal affairs committee.

But renewed pressure from reformers means the issue will be back on the agenda at a meeting of the assembly's bureau in Strasbourg on Monday (15 December).

In May, the bureau, which consists of Pat Cox, the president, and 14 vice presidents, adopted rules which mean MEPs would only be reimbursed for expenses they have actually incurred.

At present, members get paid for first-class air fares even if they travelled on a budget airline. They have to show a boarding pass but not a receipt - a loophole which has enabled some MEPs to double their salaries. If the bureau votes on a date for the rules to be introduced, a simple majority, ie eight of its 15 members, would be needed for the proposal to be adopted with almost immediate effect.

"It may be asking a bit much but, in theory, we could have a new system of expenses by 1 January," said Dutch Socialist MEP Michiel van Hulten.

Many see the proposed MEPs' statute, which includes reform of members' pay, tax, pension and immunities, as now being a non-starter before June's elections. But this has simply served to intensify pressure for immediate reform of the controversial expenses system, regarded as the most indefensible of the perks enjoyed by MEPs.

UK Socialist deputy Gary Titley wrote to Cox this week insisting the Parliamentary authorities take "firm and immediate" action to ensure the expenses regime is reformed before the elections.

"It looks as though the chance to standardize members' pay and tax has been lost for the immediate future but that is no reason why we should avoid dealing with the issue of travel expenses as an immediate priority," he said.

Spaniard Enrique Bar-n Crespo, Socialist group leader, said: "We cannot accept any further delay. We need action now."

As well as potentially raking in tens of thousands of euro per year on travel expenses, MEPs get a generous fee for attending EU meetings - even if they do not stay.

This has become known as the 'so-so' system, short for 'sign on, sod off', on the grounds that some MEPs register their presence, then immediately head for the airport.

David Harley, spokesman for Cox, commented: "There is absolutely no reason why the expenses issue cannot be dealt with separately from the other parts of the statute.

"The president has led a two-year crusade for reform and it is now up to the political groups to deliver the goods."