Sunday, 7 June 2009

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Tuesday, May 26, 2009

The Sun: MEP - Massive Expenses Payouts

GREEDY Euro MPs rake in up to £363,250 A YEAR in expenses — without producing a single receipt, a Sun investigation can reveal.

The taxpayers’ cash they pocket dwarfs the amounts claimed by Westminster MPs, whose milking of the system sparked outrage.

During the five-year term of a Brussels parliament, an MEP can clock-up an eye-watering £1,816,250 in expenses. They even get free mudbaths.

Rise

On top of that the Euro fatcats will soon be on a basic salary of £83,282, after awarding themselves a pay rise of 47 PER CENT. They pay income tax of just15 PER CENT on it.

British workers on that money pay 40 per cent top rate tax, which is rising to 50 per cent.

But the gravy train does not stop there. When they leave, MEPs are awarded£41,573 in “transition payments” and pension rights of £30,000 a year.

And in addition to the bucket-loads of cash, Brussels lawmakers enjoy a huge array of free perks — including 60 MUDBATHS a year.

Hard-pressed British taxpayers are pouring £7BILLION a year into the EU.

With nine days to go before Britons vote for our 72 members in the European Parliamentary Election, The Sun urges political leaders: STOP Euro MPs lining their pockets at our expense.

The £363,250 MEPs can claim a year breaks down like this: £36,778 in “subsistence allowances”.

That is £259 a day for 142 days of the year — effectively just for turning up.

They also get £5,885 in language and IT courses. £87,407 in travel expenses.£3,756 for an “additional annual travel allowance.” £183,776 staff allowances and £45,648 for office expenses (at £3,804 a month).

They can also claim the cost of bandages for varicose veins, contact lenses and batteries for hearing aids.

MEPs can have five relaxing sessions of mudbaths, hydromassage, hydrotherapy and acupuncture every month with a doctor’s note.

They all travel business class on aircraft. And dental repairs worth £150 per gold crown are available.

Receipts are NOT required to prove claims for MEPs’ office costs, staff, travel or other expenses.

Being able to claim a flat rate for all expenses, rather than having to submit receipts, allows them to pocket the cash without buying anything — or buying cheap and pocketing the difference.

Voters are kept entirely in the dark about the Brussels freebies and hospitality.

Circus

And there are no penalties for leaving anything off the register of interests.

Taxpayers are also forced to fund the extraordinary £180million-a-year cost of the European Parliament sitting in Brussels AND Strasbourg.

Its 1,745 workers and their offices, including their paperwork, are shipped between Belgium and France every month — at our expense.

This trek has become known as the “travelling circus”.

And the European Parliament has done all it can to hush up the shocking gravy train.

A report written in 2006 by the EU’s Internal Audit official Robert Galvin has only been seen by a handful of MEPs and was kept secret until last year.

It showed MEPs were paying companies for office and staff support — which turned out to be a children’s day-care centre and a company which traded wood. Bonuses were regularly paid to staff of up to 19 TIMES salary.

Bogus companies were listed for payments from MEPs in return for office services.

A staggering eight out of ten transactions by MEPs which were subject to VAT included NO evidence the tax was ever paid.

And some paid office and staff allowances straight into the coffers of their own political party.

Details of MEPs’ claims were given to The Sun by the independent think tank Open Europe.

Mark Wallace, of the TaxPayers’ Alliance, said: “Many MEPs are raking it in and living the high life in Brussels.”

Surveys suggest the Tories will top the poll for Britain’s MEPs on June 4 — with Labour braced to come fourth behind UKIP.

Tory leader David Cameron last week forced Tory candidates for Brussels to sign pledges to post all their claims on a website.

Family

They must also say if they employ family members and how much they are paid.

Gordon Brown followed suit last night, forcing Labour MEPs to publish all receipts for claims for the office costs allowance.

They will also publish details of all travel costs and the number of times they claim the daily attendance allowance.

While the Tories must publish full details of their claims on the internet, they will NOT have to submit their receipts.

Labour’s leader in the European Parliament, Glenis Willmott, said: “Labour MEPs have led the way for nine years, voluntarily having their accounts audited by an independent accountant and published online.

“We have all now taken the decision to voluntarily publish a breakdown of expenditure and all receipts pertaining it.”


TaxPayers' Alliance publishes secret evidence of MEP corruption

The latest release from the TaxPayers' Alliance, which reveals the true extent of corruption and financial abuse at the European Parliament, consists of two parts:

  • The Galvin Report - the EU internal auditors' top secret investigation into MEPs' expenses and allowances which reveals worrying evidence of widespread abuses and poor financial controls at the EU Parliament.
  • New TPA research which reveals how MEPs can become millionaires through their generous allowances, and details the proposed 47% pay rise which MEPs stand to receive in June 2009.

The Galvin Report

The Galvin Report, named after Robert Galvin, the EU Internal Audit Official whose name is on its front cover, was written at the end of 2006 as an audit of the expenses and allowances claimed by a sample of more than 160 MEPs. The existence of the report was kept secret until February 2008 when news of its existence was made public by Chris Davies MEP. Even then, its contents remained secret and a select group of MEPs were only allowed to read the report individually in a locked and guarded room.

An explanatory guide to the Galvin Report, which includes page references to key findings, can be read here.

The Galvin Report itself can be downloaded here (PDF format).  RIGHT CLICK AND "SAVE TARGET AS" THEN OPEN THE FILES ON YOUR COMPUTER, FILES ARE LARGE AND MAY FAIL TO OPEN IF YOU CLICK TO OPEN THEM IN YOUR BROWSER:

In order to protect the identity of the individual who leaked the Report, the original copy of the document has now been removed from this site. However, a copy of the contentsin a different format will be published  shortly. In the interim, the explanatory guide to the Galvin Report includes the key information about the report's contents, and can be downloaded hereFor further information, quotes or details, please call the TPA media line on 07795 084 113.

How an MEP can become a millionaire, and their planned 47% pay rise

New research for the TaxPayers' Alliance and The Great European Rip-Off reveals that MEPs stand to get a 47% increase in their take home pay this year. Through a combination of increasing pay levels, a new lower tax rate for all EU officials and the plunging value of the Pound to the Euro, politicians in Brussels will see their pay rise hugely despite the rising unemployment being suffered by their consituents. As well as their soaring pay, the new book demonstrates that over and above their salaries an MEP can personally earn a further £1 million during a typical Parliamentary term through their generous allowances and expenses. The research note can be read here.
 
Key Findings:
  • After the European Elections in June 2009, British MEPs stand to get a 47% increase in their take home pay. MEPs currently earn the same as a Westminster MP, £63,291, on which they pay British income tax of 26%, leaving them £46,835 in take home pay. Three crucial changes in their pay arragements will increase their salaries sizeably: i) After June, all MEPs will move to a new, standardised salary of €91,980 - at 2008 exchange rates, that is a pay rise of 16% to £73,584. ii) At the same time, they will cease to pay British income tax and will instead pay a new, reduced EU tax of only 15%, boosting their take home pay to €78,183. At 2008 exchange rates that means their after-tax pay will increase from £46,835 to £62,546 - a 33% rise. iii) The new MEPs' salary will be paid in Euros, which have gained greatly in value against Sterling since 2008. If exchange rates stay at around €1:88p, then MEPs will gain a further increase in take-home pay to £68,801. Going from earning £46,835 in take home pay currently to £68,801 under the new arrangements is a 47 per cent rise. 
  • It has been calculated that due to the generosity and laxity of the MEPs' allowances, expenses and pensions system, it is possible for an MEP to personally save enough money to become a millionaire over their 5-year term.

 Full methodology and calculations can be found in the research note itself, which can be read here.