European Affairs

(Limited Text - Ministerial Extracts only)

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Thursday 3rd June 2010

(13 years, 11 months ago)

Commons Chamber
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Lord Hague of Richmond Portrait The Secretary of State for Foreign and Commonwealth Affairs (Mr William Hague)
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I beg to move,

That this House has considered the matter of European affairs.

It is a great pleasure to have the honour of opening the first European affairs debate of this new Parliament. These debates not only provide the House with the opportunity to consider developments in the European Union in general but, more immediately, allow the House to give its thoughts on the forthcoming meeting of the European Council. In the past these debates have been held so shortly before the European Council meeting—sometimes only hours before, or the day before, or two days before—that the House has had no real chance to ensure that its thinking is in any way absorbed by the Government in their approach. We believe, in the new Government, that we can do better than that. This debate is taking place two weeks ahead of the European Council meeting, and before the Foreign Affairs Council meeting in Luxembourg on 14 June.

The new Government will bring a fresh approach to Britain’s involvement in the EU. I said in opposition—to some scepticism on the Labour Benches, it has to be said—that we would be active and activist, positive and energetic, from day one. We have been exactly that. The Prime Minister’s first visits to foreign capitals were to Paris and Berlin, where he had highly successful meetings with President Sarkozy and Chancellor Merkel. My ministerial team has been extremely busy. The Minister of State, Foreign and Commonwealth Office, my hon. Friend the Member for Taunton Deane (Mr Browne), attended the EU-Latin American and Caribbean meeting a fortnight ago in Madrid, and the EU-Association of Southeast Asian Nations summit in Madrid. I was able to meet many of my European counterparts at the Latin American meeting. I was in Sarajevo yesterday for the EU-western Balkans meeting, which I shall come to later. In the next seven days I intend to visit my counterparts in Paris, Berlin, Warsaw and Rome. The Minister for Europe attended the informal ministerial meeting on the eastern partnership in Poland last week, and has met in Brussels Members of the European Parliament and the European Commission. We said that we would be active from day one, and we have indeed been so.

This Government strongly believe that the European Union has a crucial role in enabling the countries of Europe to work together to face the vast challenges of this century: the maintenance of our global competitiveness, the problem of climate change, the grim facts of global poverty, and the need for the nations of Europe to use their collective weight in the world to deal with foreign policy issues. All are better dealt with if the nations of Europe can bring together common solutions—and above all, the right solutions.

We will, where necessary, be more robust in defending Britain’s national interests than the previous Government were. We will not repeat their wretched handling of the negotiations on the current financial perspective, which saw them accept a cut of £7 billion in our rebate while obtaining nothing of substance in return.

Kelvin Hopkins Portrait Kelvin Hopkins (Luton North) (Lab)
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Will the Foreign Secretary, here and now, congratulate the previous Prime Minister on his great wisdom in keeping Britain out of the eurozone?

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Lord Hague of Richmond Portrait Mr Hague
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I do congratulate the previous Prime Minister. I am not in the habit of doing that, but on this subject I am very happy to do so. What a good job it was that the former Prime Minister, Sir John Major, ensured that we had an opt-out so that the most recent Prime Minister could keep us out of the eurozone.

Lord Hague of Richmond Portrait Mr Hague
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I give way to a former Minister for Europe.

Keith Vaz Portrait Keith Vaz
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I am most grateful to the Foreign Secretary; I am actually going to be very nice to him. I congratulate him on his appointment and remind him that I gave him his first job in the Commons, as secretary of the all-party footwear and leather industries group. I am glad that he is going to be active; we would expect nothing less from him. On enlargement, will he continue the previous Government’s policy of ensuring that countries that are capable of joining will be allowed to join? Leaving aside transitional arrangements such as whether people will be able to work, particularly in relation to the Croatia file, which must be on his desk, will he confirm that we believe in a Europe that is wider and stronger?

Lord Hague of Richmond Portrait Mr Hague
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I am grateful to the right hon. Gentleman for his intervention. The role that we played together on the leather and footwear industries all-party group 20 years ago will for ever be somewhere in the recesses of my mind. I am very grateful for that reminder; the memory has just been retrieved from somewhere. He is absolutely right: there is a strong cross-party commitment on EU enlargement, to which I want to turn later in my speech. I want to talk specifically about Croatia later. He used an important phrase about countries joining when they have met the conditions. It is important that they meet the conditions for membership, rather than the conditions being changed to suit a particular country. I very much agree with what he said.

It is also our intention to approach European issues in a more coherent way across Whitehall than has sometimes been the case. In the three weeks for which I have held the office of Foreign Secretary, it has been apparent to my colleagues and me that under the previous Government, Departments could have worked together better, particularly more strategically. That point might also be relevant to previous Governments, and we intend to put it right. We are establishing a new Cabinet Committee on European affairs that I will chair, with the Secretary of State for Energy and Climate Change as the deputy chair. [Interruption.] It is another example of a good coalition in practice.

That Committee will allow the new Government to take a more holistic approach to EU issues than was sometimes the case in the past, and I hope it will achieve better results for Britain. We must ensure that we are always ahead of the game in Brussels, unlike the previous Government, of whom that could not always be said; the position in which they left us in relation to the hedge funds directive is a particular example. In doing so, we will be aided by achieving a more collegiate feeling in a two-party Cabinet than in the previous Cabinet of one party.

Baroness Stuart of Edgbaston Portrait Ms Gisela Stuart (Birmingham, Edgbaston) (Lab)
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I welcome the Foreign Secretary to his post and remind him that I still owe him the proceeds of a wager, when I said that his party would not leave the European conservative grouping, which, of course, it did. I have proved to be wrong on occasions. Returning to his point about greater co-ordination, will he say how he will arrive at a view about whether the Government agree with the proposals for a new European single credit agency operator? Will he explain how that will work?

Lord Hague of Richmond Portrait Mr Hague
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I am grateful to the hon. Lady for reminding me of our wager. Without giving too much away, I should say that I am looking forward to drinking with her the proceeds that she owes me. The wager was made on the understanding that I would join her so that we could consume the proceeds together. I am looking forward to doing that. [Interruption.] No, it is not beer on this occasion; it is something that we will drink together.

She asked how we would arrive at the decision. Well, that is exactly what the new European Affairs Committee of the Cabinet is there to do, supported by officials from both the Foreign Office and the Cabinet Office. There will be greater Foreign Office involvement and co-ordination of European affairs than has been the case for a long time. That is part of the more central role in government for the Foreign Office that I have always envisaged and am trying to bring about. That Committee will examine such issues, including the one to which the hon. Lady referred.

Simon Hughes Portrait Simon Hughes (Bermondsey and Old Southwark) (LD)
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I warmly welcome the Foreign Secretary to his new job, and I am encouraged by what he has said about the new European Affairs Cabinet Committee. Can he assure me that the Committee will pull together issues of climate change and climate crisis across the whole of Government, because those matters are relevant to the Ministry of Defence, for example, and clearly to business, too? If Britain can be seen to be leading the new green agenda in Europe, there is a real chance that we can influence the world. To put it bluntly, if Europe does not lead, the Americans, the Chinese and others are not likely to follow.

Lord Hague of Richmond Portrait Mr Hague
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I very much take that point. The hon. Gentleman can see how seriously we take the matter from the fact that his right hon. Friend the Secretary of State for Energy and Climate Change is the deputy chair of the Committee. I shall talk about climate change during my speech. It was noticeable in the final stages of the Copenhagen meeting that the European Union was not at the final table—in the final discussions—and we have to put that right for the future. That will be part of the approach that we are trying to put together in the European Affairs Cabinet Committee.

The main issue before the forthcoming European Council is, of course, the current economic situation. A number of member states face severe fiscal difficulties, and growth across Europe is anaemic. The priority for all of us is to rectify our budgetary problems and deal with the fundamental underlying problem of weak economic growth. The Government have made it clear that we will stay out of the euro, but at the same time, we must acknowledge that the EU is our single biggest trading partner. Problems in one member state affect us all, whether we are single currency members or not. Recent developments in the eurozone have exemplified the need for fiscal consolidation, which is the No. 1 priority across Europe. We have made an urgent start on dealing with the deficit, and those actions will be crucial for the stability of our public finances, after those who are now on the Opposition Front Bench bequeathed the country the worst peacetime deficit in modern times.

The major issue dominating discussion of European affairs is the difficulty facing the eurozone. A strong and healthy eurozone is, of course, in this country’s interests. That is a view held even by those of us who have always opposed Britain joining the euro. Much of our prosperity depends on our neighbours’ prosperity: 49% of our exports go to the eurozone.

William Cash Portrait Mr William Cash (Stone) (Con)
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My right hon. Friend is making an incredibly important point about the eurozone and our trade with it. We acknowledge that there is significant trade, but would he also accept that one of the reasons why the eurozone is imploding is the vast amount of social and employment legislation––the over-regulation and burdens on business not only in Europe but imposed on this country as a result of European directives and regulations? Will he therefore accept that the Prime Minister’s commitment to repatriate those powers is essential not only for us but for negotiations in the European Union? If that does not happen we will not have jobs, growth or enterprise, nor will we be able to reduce the debt or pay for public services where necessary.

Lord Hague of Richmond Portrait Mr Hague
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There are several parts to my hon. Friend’s question about the reasons for low economic growth in the European Union. One of those reasons is the extent of regulation, inflexibility and bureaucratic burdens. I think that is true in most, if not all, the countries of the EU, for a mixture of reasons. Some of that regulation is at EU level and some is at national level. I was going to deal with that issue.

Winning the argument for appropriate regulation is a very important part of the plans that we have put forward to revive economic growth in the EU, and sometimes that will mean having lighter regulation. That can be addressed partly through the European Union regulating more effectively and in a less burdensome way, and partly by nations doing so individually. The extent to which we can deal with the issue by changing the balance of competences between the EU and member states is something that we now have to examine as a coalition. My hon. Friend has a long-held view on the subject, and I have expressed views about it. We are a coalition Government, and he and I must accept that there is not necessarily a majority in the House of Commons for every single thing that we would have wanted to do. We must examine the issue as a coalition, and we are now doing so.

Kelvin Hopkins Portrait Kelvin Hopkins
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The Foreign Secretary speaks warmly—as so many Europe Ministers and Foreign Secretaries have—about our trade with the European Union. Is not the reality that we have a massive trade deficit with the European Union, and we do much better with trade outside the European Union? We do not benefit from that trade; Europe benefits from us and our market.

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Lord Hague of Richmond Portrait Mr Hague
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It is in the nature of trade that we all benefit from each other. The hon. Gentleman is right: if 49% of our exports go to the eurozone, the other half do not. However, I would not want to do without the 49% that go to the eurozone. All trade is very important to the future of the country.

None Portrait Several hon. Members
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rose

Lord Hague of Richmond Portrait Mr Hague
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A lot of hon. Members want to intervene, so I will try to fit them in. We will go to Glasgow first, because the hon. Member for Glasgow South West (Mr Davidson) has made great contributions to such debates in the past.

Ian Davidson Portrait Mr Ian Davidson (Glasgow South West) (Lab/Co-op)
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I congratulate the Foreign Secretary on his new appointment. There is undoubtedly a crisis within the eurozone, but does he not agree that there is a danger that those in Brussels will simply see this as an opportunity to accrete more power to themselves, centralise still further, and that their analysis will be that the solution to the problem is more Europe, not less. What steps will the Government take to ensure that that does not happen, and that Britain is not sucked into the black hole of the eurozone?

Lord Hague of Richmond Portrait Mr Hague
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The hon. Gentleman is right about that. I am about to come to that point in my speech, so I will address the matter in a moment.

Lord Dodds of Duncairn Portrait Mr Nigel Dodds (Belfast North) (DUP)
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I too welcome the Foreign Secretary to his post. He has a reputation for blunt speaking, so will he tell the House whether he regrets his and his party’s decision not to proceed with a referendum on the Lisbon treaty, which was something that the people of Britain and the United Kingdom desperately wanted?

Lord Hague of Richmond Portrait Mr Hague
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I shall also deal with referendums later in my speech. I explained yesterday that the edge is taken off blunt speaking by becoming Foreign Secretary of the United Kingdom, and it is probably in our national interest that the edge is taken off. Of course, I regret that there was no referendum on the Lisbon treaty—I campaigned for one for years—but the treaty was ratified. As the Prime Minister and I explained in opposition a few months ago, we cannot make up a referendum. The Lisbon treaty is now one of the treaties of the European Union. However, we will provide for referendums in future—I will deal with that point shortly.

Lord Mann Portrait John Mann (Bassetlaw) (Lab)
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I was listening carefully to the Foreign Secretary’s comments on labour market flexibility. May I give him the chance to elaborate slightly on that? Does he have any proposals to avoid the situation that arose at East Lindsey and Staythorpe, whereby, in the case of Staythorpe, skilled British workers were unable to apply for jobs to build new power stations precisely because of the lack of regulation in Europe? How will he address the Staythorpe situation?

Lord Hague of Richmond Portrait Mr Hague
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I do not have proposals at this moment to address that, but the hon. Gentleman raises a legitimate point, so I will note it as something that the new Government will look at. From what I remember, it is not an easy problem to solve, but the point is legitimate and we can have further discussions about it.

The hon. Member for Glasgow South West has gone—I was about to address his point. So much for his enthusiasm for an answer! As I was explaining, the major issue is the difficulties facing the eurozone. Given the extent of our exports to the eurozone, of course we will support our partners in their efforts to deal with the current difficulties, but without being drawn further into the eurozone. For example, while we recognise the importance of maintaining a dialogue on deficit reduction across the eurozone and the wider EU, we are firm in our view that our national budget must always be presented first to our national Parliament.

We are listening to member states that are discussing institutional reforms to the eurozone—that is an ongoing debate—but I assure the House that the Government will maintain our position that there should be no further transfer of sovereignty or powers from Britain to the EU over the course of the Parliament. Sanctions for breaches of the stability and growth pact may be the right way forward for our partners in the euro area, but they should never apply to countries that retain their own currencies, and this country will retain its currency.

The next question for all members of the European Union is, “From where will the growth that we need come?” The Government, working with our European partners, mean to address that question with vigour. We know that spending our way further into dangerous levels of debt is not the answer. We need to get Europe back to work, create jobs, attract investment and deal with the erosion of our long-term competitiveness. Those issues concern every member of the European Union, not just the eurozone. We will urgently make the case for the extension of the single market, better regulation that can lighten the burdens on businesses, and seizing opportunities to create freer and fairer trade between the European Union and third countries. In that context, we will particularly encourage greater economic engagement between the European Union and new, rising economic powers.

Lord Hague of Richmond Portrait Mr Hague
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The hon. Gentleman wants to intervene for a third time. I will let him do so once again.

Kelvin Hopkins Portrait Kelvin Hopkins
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I will try to make this the last intervention, but it is on an important point. Squeezing deficits and introducing labour regulation, which would depress wages, will simply drive the European Union further into depression and deflation. Is not that the real danger that we face?

Lord Hague of Richmond Portrait Mr Hague
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I do not think that that is the danger that we face. Deficits unaddressed or regulation that prices people out of work in some European nations are the real dangers to economic growth in the long term. When we consider the position of the countries in the eurozone that face the most severe fiscal difficulties, their problem is not insufficient state spending or insufficient regulation, but very much the opposite. I am sorry—the hon. Gentleman and I agree on so many aspects of European policy, but we will have to disagree on that one.

William Cash Portrait Mr Cash
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Does my right hon. Friend accept that the objectives that he would try to achieve by negotiation, in particular on some of the economic proposals that are coming forward, will be subject to majority voting? If and when he is outvoted in that context, what is his fall-back position? Will he introduce and enact a sovereignty Bill so that he can underpin those negotiations with a firm opportunity for the House to override European regulation in our vital national interests?

Lord Hague of Richmond Portrait Mr Hague
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My hon. Friend has a long-standing campaign for such a measure. We are examining the case for a sovereignty Bill in the coalition, for the reasons that I explained to him earlier. It was part of the Conservative party’s election manifesto, but not part of the Liberal Democrats’ manifesto. We must therefore examine that together, and that examination has already begun. Of course, we will come back to the House with our conclusions.

I was making a point about the importance of extending the single market, where we think there are real opportunities to boost growth by further opening up energy and services sectors and moving forward on patents. There are many helpful proposals in Mario Monti’s recent report about relaunching the single market, on which we want to build. All that is germane to the Europe 2020 strategy, which will be the main formal item of discussion at the forthcoming European Council. It is the successor to the Lisbon strategy, which is widely acknowledged to have been well intentioned but disappointing in its results.

The current crisis in the eurozone demonstrates that it is vital that the EU has a coherent strategy for growth and jobs, but it must fully respect the balance of competence between member states and Community action. We will work with our partners on the Commission’s proposals for a Europe 2020 strategy to promote growth. The strategy is intended to drive growth in the next decade and secure jobs, and those are, of course, the right objectives, but we will want to pay close attention to the detail.

At the spring European Council, five EU-level target areas were identified: employment; research and development; energy and climate change; education; and social inclusion. We are concerned that some, while not legally binding, may stray into the competences of member states. Some are inappropriate for the different systems and models that various member states use. That variety must be respected in creating a meaningful strategy that addresses the economic issues faced across Europe.

We are clear that the EU has a role to play, for example, through providing a deeper and stronger single market, with smarter regulation, a more strategic approach to trade and a framework for innovation. The 2020 strategy faces two other immediate problems that need resolution. First, the next financial perspective—the seven-year EU budgetary framework—needs to cohere with it. In our view, its priorities should be aligned with the strategy. It is deeply unfortunate that the budget review has been so long delayed that linking the two is more difficult than it should be. Secondly, the 2020 strategy is a long-term strategy—it is meant to be—but recent events require a more immediate response to drive growth now. As I said, that response will be the Government’s priority. If we can get the 2020 strategy to be more coherent with the financial framework, and link its long-term nature with the immediate action that is needed, perhaps we can avoid the risk of a strategy again proving disappointing in the benefits that it brings to European nations.

Ian Davidson Portrait Mr Davidson
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Will the Foreign Secretary give way?

Lord Hague of Richmond Portrait Mr Hague
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The hon. Gentleman has returned. I will give way to him so that he can nip out again while I answer his question.

Ian Davidson Portrait Mr Davidson
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In my defence, I came back. I had to leave because I had visitors—I apologise to the right hon. Gentleman for that. I explained to them that the joys of listening to him were greater than those of meeting them. They are not voters in my constituency, which makes it a great deal easier to say that.

On the coherence of Government policy on Europe, given that financial cuts are being made across the Government’s budget, will the Foreign Secretary give us a guarantee that a cut will also be applied to the contribution that the EU receives from this country? Otherwise, there will be inconsistency.

Lord Hague of Richmond Portrait Mr Hague
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There may well be inconsistency. The hon. Gentleman knows that I cannot give him such a guarantee, which is why he enjoyed coming back into the Chamber to ask the question. The contribution is not immediately under the Government’s control, but is the product of differences in agricultural payments, VAT payments and so on. It is regrettable, as I said earlier, that the Government whom he largely supported—his Front Benchers do not recognise that description of him; perhaps I should say, “the Government he was elected to support in the past”—gave away £7 billion of our rebate while securing nothing in return. He can be assured that we will not do that, and that will help keep the payments down, but it is not possible to vary them by unilateral Executive action.

Philip Davies Portrait Philip Davies (Shipley) (Con)
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Following the very good point made by the hon. Member for Glasgow South West (Mr Davidson), who asked why people in this country should take the pain when more and more money is going into the EU, will my right hon. Friend say why the Government think it right that this country should give increasing amounts of money to the EU when it does not have its accounts signed off? If the Government are serious about getting the EU to reform its budget, why does he not go there and say, “We’re not prepared to give any more money to the EU until it gets its accounts properly audited and signed off, which is what we would expect from any other organisation to which we give money”?

Lord Hague of Richmond Portrait Mr Hague
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My hon. Friend makes a very powerful point. Like him, I have often complained vociferously about our inability to sign off the accounts of the European Commission. It is true that most of the problems that arise are now within member states rather than with the Commission, but nevertheless, the new Government will certainly re-examine that and want to put some energy into sorting that out. I feel very strongly about it, as does my hon. Friend.

The Council will also set the Union’s position for the G20 Toronto summit at the end of June, and the Government want to ensure that the position agreed at the Council reflects our views on fiscal consolidation, and on strengthening standards on financial regulations and bank levies. It is hoped that the Council will sign off the EU position for the UN high-level plenary meeting on the millennium development goals in September, which will take place just before the UN General Assembly. The Government will encourage other member states to fulfil their aid commitments. I am pleased to report that the United Kingdom is on track to meet both its 2010 target of 0.56% of overseas development assistance and its 2013 target of 0.7%. We can be proud that that is a point of consensus in the House between all three main parties, and I pay tribute to the work of the previous Labour Government.

However, collectively, the EU is not on track to meet its commitments, and we will encourage all member states to reinvigorate their commitments to that end. Tackling global poverty is one of the great causes of our age, and one in which the nations of Europe should play their full part.

Mike Gapes Portrait Mike Gapes (Ilford South) (Lab/Co-op)
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Has the Foreign Secretary had any recent discussions with his Italian counterpart on the deplorable position of the Italian Government on international development assistance?

Lord Hague of Richmond Portrait Mr Hague
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I have not, but I will be visiting my Italian counterpart on Monday in Rome. While I am having an otherwise enjoyable meeting with him, I will drop that point in. Indeed, I will now be able to say that the matter has been brought up in the House of Commons. It is a valid point, so I will certainly pursue the matter.

The Commission will present a communication on the EU’s ambitions for a 30% carbon emissions reduction target, including an analysis of the costs and benefits to the EU economy, and of the impact on energy security, exports and job creation. The Government want the EU to show leadership in tackling international climate change and will support an increase in the EU’s emissions reduction target once that has been addressed with proper thoroughness.

Looking ahead, we recognise that there is a serious problem with the lack of proper democratic control in this country over the way in which the EU develops—I have already been asked about our position on the referendum. Beyond this Council meeting, the new Government will introduce a Bill to amend the European Communities Act 1972. We are agreed that there is a profound disconnection between the British people and what has been done in their name by British Governments in the European Union. In the past 13 years under the Labour Government, the percentage of the British public who believe that our membership of the EU is a good thing has, according to surveys, fallen to 31%. That is the previous Government’s legacy on Europe: public disenchantment after years of arrogance from Ministers, who did not listen to the people. That lesson should be borne in mind by the shadow Foreign Secretary as he seeks to learn lessons about his party’s election defeat.

Both parties that form the coalition are determined to make the Government more accountable to the British people for how the EU develops, so that Bill will be introduced later this year. It will enlarge democratic and parliamentary scrutiny, accountability and control over the decisions that we make in the EU. As the House will know, it will include a referendum lock, so that no future treaty may pass areas of power or competences from the UK to the EU without the British people’s consent in a referendum. The Government have already agreed that there will be no further transfer of sovereignty or powers in this Parliament in any case. The lock will also cover any proposal for Britain to join the euro. We regard that measure as essential in ensuring that the EU develops in a way that has the British people’s consent.

We are also clear that the referendum lock will apply only to any proposed future treaty transfers of power or competences from Britain to the EU. It will not apply to treaties that do not do that, such as treaties that make technical changes or accession treaties. We are now working on that legislation.

Emma Reynolds Portrait Emma Reynolds (Wolverhampton North East) (Lab)
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I note the Foreign Secretary’s renewed enthusiasm for referendums. The Maastricht treaty is second only to the Single European Act in terms of the amount of power transferred to the EU. Will he explain why he voted against a referendum on that?

Lord Hague of Richmond Portrait Mr Hague
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There is nothing “renewed” about my enthusiasm for referendums—I am simply setting out exactly what I said in the last Parliament and in the general election campaign. There is great merit in a Minister doing what he said he was going to do before the general election. I voted against a referendum at the time of the Maastricht treaty because I was a member of the Government—[Hon. Members: “Ah!”] The Government had the absolutely correct policy on that. We secured the opt-outs on the euro, for instance, of which we spoke earlier, and built in the commitment to a referendum on the euro if ever there was a proposal to join it, which is exactly the policy that will be encapsulated and legislated for in the Bill that we will introduce.

William Cash Portrait Mr Cash
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I am listening with great interest to my right hon. Friend on this hugely important matter. He referred to the question of further treaty transfers of powers, and as he will know, the coalition agreement states:

“We agree that there should be no further transfer of sovereignty or powers over the course of the next Parliament”

before referring to the working time directive. Will he concede—I am sure this is the case in a legal and constitutional sense—that “powers” in that context includes the extension of powers under the Lisbon treaty and the introduction of directives?

Lord Hague of Richmond Portrait Mr Hague
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I was just coming to that point. The Bill will ensure that primary legislation will be required before the British Government may authorise the use of ratchet clauses in treaties—as some of us have called them—some of which result from the Lisbon treaty. Such clauses allow for a modification of treaties or provide options for existing EU powers to expand, which is my hon. Friend’s point. The proposed use of a major ratchet clause—for example, the abolition of vetoes over foreign policy—would also be subject to a referendum. That will be built into our legislation. Taken together, those measures will ensure that unlike under the Labour Government, the European Union can increase its powers vis-à-vis the United Kingdom only with the agreement of the British people. That is a major step towards rebuilding popular trust in the EU.

Michael Connarty Portrait Michael Connarty (Linlithgow and East Falkirk) (Lab)
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I may be anticipating what the Foreign Secretary will say, but at the moment, many items are available as opt-ins, particularly on criminal law and so on. There will be many cases over the next few years in which the choice will be either to opt-in or to withdraw from a whole section of a treaty. Will those be dealt with so that the House is given a vote on whether the Government should opt in or opt out?

Lord Hague of Richmond Portrait Mr Hague
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They will certainly demand a lot of examination in the House. In the coalition agreement, we have committed to approaching further criminal justice legislation on a case-by-case basis. The UK has the right to decide whether to participate in new EU justice and home affairs measures, so we will give careful consideration to whether to opt-in to new measures in those areas while at the same time ensuring that the UK’s security is maintained and our civil liberties are protected, and that the integrity of our criminal justice system is preserved.

We recognise the importance of Parliament having adequate time to scrutinise those opt-in decisions. In all but the most exceptional cases, that means that we will not opt-in to any new measure in the first eight weeks following its publication, to give Parliament time to give a considered opinion. The hon. Gentleman will know that we are looking at how to improve parliamentary scrutiny of decision-making in Europe, and the positions that this Government or any future Government take at European councils. Indeed, we would welcome his views, as a distinguished former Chairman of the European Scrutiny Committee, on how those procedures can be improved. I know that my right hon. Friend the Leader of the House would welcome hearing from the hon. Gentleman.

Simon Hughes Portrait Simon Hughes
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It is important that what the Foreign Secretary has just said is given maximum publicity. One of the aspects of the disempowerment felt by the British public is the perception that European legislation has been forced on them. We should have a real debate about the merits of issues such as the working time directive, and what he has just said will be warmly welcomed not only by his party, but by mine.

Lord Hague of Richmond Portrait Mr Hague
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That is further evidence—to the deep disappointment of Opposition Members—of how well coalition government is now proceeding.

I will attend the Foreign Affairs Council on 14 June in Luxembourg. As I have long said, it is strongly my view that the nations of Europe should do more to use their collective weight in the world to advance shared values and interests. The problems have not been institutional, but political, including a lack of will and consistency. That is the spirit in which we will approach these matters.

I mentioned last week in the debate on the Queen’s Speech that this Government will give greater weight to elevating our relationships with emerging powers across the world, and that policy will, I hope, be complemented by other European nations doing the same. Indeed, some of them are further ahead than us in doing this, and it will form part of our collective work in the EU. The Council’s agenda will include Iran and the western Balkans. It will also be important to discuss recent developments in Gaza, how the European Union can give fresh momentum to the middle east peace process and what role we can play in helping to address the crisis in Gaza.

Tobias Ellwood Portrait Mr Tobias Ellwood (Bournemouth East) (Con)
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I understand that my right hon. Friend has recently visited Bosnia, a part of Europe that is often overshadowed by other international events, but tensions there remain high. There are frictions over the constitution, and I wonder whether he agrees that the EU and the UN would be wrong to dismiss Bosnia. We need to invest time and energy to ensure that the cycle of violence that we have seen in the past 10 years does not restart.

Lord Hague of Richmond Portrait Mr Hague
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My hon. Friend makes a powerful point. Bosnia is one of the major issues that I will discuss with the European High Representative, Baroness Ashton, this evening. I will say more on the issue in a moment.

I wish to update the House on the British nationals caught up in the incident in Gaza and improve on the information that was given yesterday. The latest information I have is that 34 British nationals were involved, not 37 as I informed the House yesterday. Two of those who were reported as missing do not appear to have been in the flotilla, and we are seeking to confirm that. Another was a duplicated name with different spellings. All the remaining 34 are now accounted for. One British national was deported directly earlier in the week, 32 have arrived in Turkey and one, who is a dual national, has been released and is in Israel with family. Of the 32 who have arrived in Turkey, one has returned to the UK and 31 remain there. We are offering assistance through our consulate general to British nationals who seek it.

As I said, Iran will be on the Foreign Affairs Council’s agenda. We remain extremely concerned about Iran’s nuclear programme. Iran has failed to suspend its nuclear activities in line with UN Security Council resolutions, has shown no serious intent to discuss its programme with the international community and has failed to address the outstanding concerns of the International Atomic Energy Agency. For those reasons, we are pursuing—as we speak—new sanctions, and a draft resolution is now being discussed at the UN Security Council. The EU has agreed to take measures to accompany this process and we will work hard with our EU partners to ensure that we take strong measures that have an impact on Iran’s decision making. The House will be aware that on 17 May Iran, Brazil and Turkey announced that Iran had agreed a deal to supply fuel for the Tehran research reactor. While that deal, if implemented, could still help to build confidence in Iran’s intentions, it cannot do so while Iran’s other actions show a complete disregard for efforts to engage it in serious negotiation, such as continuing to enrich uranium up to 20% despite having no apparent civilian use for that material.

A comprehensive diplomatic offer has been made to Iran and remains on the table. The EU High Representative, Cathy Ashton, made it clear in her statement of 21 May that we stand ready to meet Iran at any time to discuss its nuclear programme. The onus is on Iran to assure the international community of its peaceful intentions and to enter into negotiations. Until it does so, we have no choice but to continue to pursue the path of sanctions. The House will need no reminding of the risks associated with nuclear proliferation in the middle east. The pressure placed on Iran must be peaceful, multilateral and legitimate, but unless it is intensified, the opportunity to change Iranian behaviour on this issue may be lost.

The Government have also made it clear that we believe that the European Union must sharpen its focus on the western Balkans—as my hon. Friend the Member for Bournemouth East (Mr Ellwood) said—until all the countries of the region are irreversibly on the path to EU membership. Achieving this and helping to turn the page decisively on the painful chapters of the region’s past will be a major test of what the EU can accomplish in world affairs. An EU without the western Balkans would for ever have a disenchanted and disillusioned hole near its centre. The western Balkans matter to stability and prosperity in Europe, and we cannot afford to ignore developments there, especially the current lack of progress in Bosnia, which demands sustained international attention. I yesterday attended the high-level meeting of EU and western Balkan Foreign Ministers, and set out our support for a clear strategy of firm action from European countries, as well as concrete steps by the countries of the region. We will work actively and intensively with our European partners, the High Representative and the Governments of the region to take this work forward in the coming months.

The issue brings me to enlargement more generally. In Britain, we have had a strong consensus on the principle that widening the European Union is a good thing, and I hope that that will continue. Widening of the European Union must go along with the rigorous application of the entry criteria. The Government will continue to champion the European Union’s enlargement, including to the western Balkans and Turkey. We will be assiduous in working with Ankara and other member states to resolve outstanding issues.

John Stanley Portrait Sir John Stanley (Tonbridge and Malling) (Con)
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Does my right hon. Friend agree that continuing peace and stability in the western Balkans cannot be taken for granted, and does he also agree that the constitutional changes necessary in Bosnia and Herzegovina are critically important to enable that country to progress its accession to the EU?

Lord Hague of Richmond Portrait Mr Hague
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I very much agree. It cannot be taken for granted that the problems have been solved. The 5+2 conditions necessary for the closure of the office of the High Representative have not yet been satisfied. As I have often said, I believe that European nations will have to be more forceful about this, and we will have to be prepared to push as well as pull some people in the western Balkans towards EU membership.

Michael Connarty Portrait Michael Connarty
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Will the Foreign Secretary give way?

Lord Hague of Richmond Portrait Mr Hague
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I have given way for the last time: I owe it to the House to allow the shadow Foreign Secretary and others to speak.

We continue to support the negotiations to re-unify the island of Cyprus—I am pleased that they restarted last week. Although we do not underestimate the difficulties, it would be very greatly in the interest of both communities on the island for those talks to succeed.

The House will also want to know about the institutional aspect of the EU’s external relations, the establishment of the European External Action Service. As the House will know, my party did not support the creation of the External Action Service, but it is now a fact. We warned that its creation would not necessarily lead to greater inter-institutional harmony in Brussels and that has unfortunately proved to be the case so far. It is now our task to ensure that the service is both useful to the nations of Europe and respects the role of national diplomatic services. The European Parliament has made its suggestions on how the service is to be organised, and there are discussions on the matter with the High Representative and the Spanish presidency. I hope that the European Parliament will recognise that the service will be a success only if it commands the confidence of member states. That is a crucial consideration.

The High Representative has made a good start to her very challenging role. We wished her well when she embarked on the task, and we look forward to working with her closely in the future.

The last Conservative Government left a considerable legacy in the European Union: the creation of the single market; the enlargement from nine to 15 members; and the setting in train of further eastwards enlargement. I will not take away from the last Government their achievement in helping to complete that enlargement, but in other respects their legacy is to be regretted: the alienation of the British public from the EU; the failure to stand up for Britain’s interests on the budget, and so on. The new Government have started as we mean to continue—with activity and energy in European affairs. We will play our role with enthusiasm, while vigorously advancing our country’s interests and never taking the British people for granted.

None Portrait Several hon. Members
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--- Later in debate ---
David Lidington Portrait The Minister for Europe (Mr David Lidington)
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I thank the hon. Member for Rhondda (Chris Bryant) for his welcome to me on my first appearance in my new ministerial capacity in a European Union debate. If he looks at the repeated comments of my right hon. Friend the Foreign Secretary in opposition and since we came to office, he will see that, although we have said that we hope for a better relationship with Russia than has been the case in recent years, we do not regard it as something to be entered into lightly. We certainly expect Russia to abide by her international obligations, and events such as the occupation of territory, which is legitimately part of Georgia, are unacceptable. We are all too aware of the implications of the Litvinenko case and Moscow’s refusal so far to respond. Although our approach to Moscow will be positive—we hope for Russia’s co-operation on important global issues, such as counter-terrorist efforts and countering the threat of nuclear proliferation from Iran and other countries—it will also be cautious.

The hon. Gentleman will be all too aware of the complexities of the dispute in Cyprus, but the Government are intent on being energetic in supporting the relevant parties in seeking an agreement leading to the reunification of the island. That would be the best thing for both communities.

Baroness Stuart of Edgbaston Portrait Ms Gisela Stuart
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What is the British Government’s position if the United Nations says that Cyprus is a European problem and we need to sort it out?

David Lidington Portrait Mr Lidington
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With respect to the hon. Lady, we are not in that position yet. Talks have resumed between the Government in Nicosia and the representatives of the Turkish Cypriots, and I greatly hope that they have a more positive outcome than has been the case in the past couple of years.

I am with the hon. Member for Rhondda on Macedonia. It is important that we get a resolution to the dispute between Skopje and Athens. From our point of view, the sooner that Macedonia can be seen to be clearly on the path towards full EU membership, the better.

The hon. Gentleman needs to be careful when giving lectures about referendums and seeking popular consent. It is fair knockabout for him to say when responding to the hon. Member for Glasgow South West (Mr Davidson) that he detected some illogicality in the Government’s approach. There is complete logic in his approach to referendums: he does not want any, in any shape or form, on anything to do with the European Union’s future powers. That makes his position different from that which the two coalition parties have adopted and embodied in their agreement. We believe that power resides ultimately with the people, who should have the final say on any further initiative to transfer powers from the House and the British Government to Brussels.

David Lidington Portrait Mr Lidington
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If the hon. Gentleman will forgive me, I must press on.

There were 15 maiden speeches and I compliment all those colleagues and Opposition Members who spoke for the first time today.

My hon. Friend the Member for Wyre Forest (Mark Garnier) demonstrated early on that he aims to copy the independent streak of his immediate predecessor. He will be a doughty champion for his constituents, but he also spoke wisely about the economic advantages that he sees his constituents gaining from this country’s continued membership of the EU.

My hon. Friend the Member for Brighton, Kemptown (Simon Kirby) spoke about the ups and downs of the Anglo-French relationship over the centuries. Like many hon. Members on both sides of the House, he gave us a kind of Cook’s tour of the best tourist sites in his constituency. I felt I was getting the benefit of a top-quality travel documentary programme condensed into a parliamentary debate.

The hon. Member for Wirral South (Alison McGovern) spoke of the importance of European trade to businesses in her constituency. What came through above all in her speech was her sense of pride in, and affection for, the area where she grew up and that she now represents. I was delighted to hear from her that Harold Wilson could be said to have started his career in her constituency. Of course, when he became Prime Minister, he fell so in love with Chequers and Buckinghamshire that he ended up retiring to Great Kingshill just outside my constituency. It is something of a habit for former Labour leaders. Clem Attlee did exactly the same thing—when he accepted an earldom, he took the secondary title of Viscount Prestwood, in honour of the village in Buckinghamshire where he lived—and now Mr Tony Blair has also decided to make his home in that most conservative of counties. The estate agents in my constituency scan the post every morning for the envelope postmarked Kirkcaldy and Cowdenbeath.

My hon. Friend the Member for York Outer (Julian Sturdy) spoke of the sense of public disaffection from the EU. Awareness of that is very much driving the Government’s policy towards the Europe Bill, which we hope to introduce later in this Session. He also said that he wanted the Government to be proactive, positive and a friendly partner within Europe. With the addition of the words “clear-eyed and hard-headed,” that is exactly how the Government intend our policy to be. It is customary to say that we hope to hear from those who have made their maiden speeches frequently and in the near future. With the lavish praise that he bestowed upon the hon. Member for York Central (Hugh Bayley), my hon. Friend can be fairly confident that he will be called again before too long.

The hon. Member for Newcastle upon Tyne North (Catherine McKinnell) spoke of the need for jobs and investment in the north-east, and made a very wise paean for her local media, which I am sure will ensure that her speech gets the coverage in her region that she hopes for.

The hon. Member for Sunderland Central (Julie Elliott) spoke about the importance of Nissan, jobs and economic growth in her constituency, but also warmly of Chris Mullin, a former colleague whom we all miss. He had no airs and graces—probably very few ex-Ministers, when penning their memoirs, would actually write about an incident in which officials forgot to remove a post-it note that they had inscribed, “This is a very low priority. Perhaps we could pass it to Chris Mullin.”

My hon. Friend the Member for North Warwickshire (Dan Byles) spoke about the diverse community in his constituency and the diverse recreations in which they take part. However, if I may say, I thought he was hiding his light under a bushel. I feel that a man who has rowed the Atlantic could surely emerge in next year’s Atherstone ball game at 5 pm holding the ball—he will probably be the only one remaining upright in Atherstone village. I look forward to him telling us of that achievement in future years.

The hon. Member for Nottingham South (Lilian Greenwood) spoke with great passion about what led her into politics. I suspect that she and I will have many disagreements, but anybody who listened to her speech, whatever their political view, will have felt encouraged and inspired that they too might one day be able to make a difference. Her determination and perseverance are things that all of us can admire, and she is very welcome here.

My hon. Friend the Member for North West Leicestershire (Andrew Bridgen) spoke of the urgency of tackling the United Kingdom’s deficit in public finances. The hon. Member for Rhondda was unfair to my hon. Friend, because he reminded us that it is possible for someone to feel that they are culturally part of Europe—to feel an affinity with everything that European civilisation has produced—but also to feel that they do not want further political integration within the European Union. We need to accept that Europe is now united and at peace, but also that it is diverse. The trick for Europe is to recognise that diversity as well as its unity.

The hon. Member for Sefton Central (Bill Esterson) spoke in particular about the importance of education to his constituents. My hon. Friend the Member for Hove (Mike Weatherley) set some sort of record by managing to work in references to both Iron Maiden and the Carry On films in the course of a single speech.

The hon. Member for Easington (Grahame M. Morris) enticed us with visions of the beaches of east Durham, but spoke seriously about the need for more employment and investment in the north-east of England. My hon. Friend the Member for Dartford (Gareth Johnson) explained to me finally what lies behind the big brown signs that say “Historic Dartford”, which have baffled me every time I have visited friends in his constituency. When I am commuting between London and Brussels, I will think of my hon. Friend as the train passes through Ebbsfleet, and I shall know exactly whose constituents I am close to.

My hon. Friend the Member for Dover (Charlie Elphicke) spoke about a particular constituency case. I can tell him that consular staff at the Foreign Office have visited his constituent and they have been in touch with the family. We think that in the first instance it is for Mr Shaw’s lawyers to come to our officials with the evidence that gives rise to their concern that the trial was unfair so that we can consider their case and determine how we might take it forward. It would be most appropriate for the judicial proceedings to run their course first, and for any direct intervention from the British Government to follow once those have been concluded—

David Lidington Portrait Mr Lidington
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I suggest to my hon. Friend that, rather than intervene—as I am very short of time—he could perhaps have a meeting with me or the Under-Secretary of State for Foreign and Commonwealth Affairs, my hon. Friend the Member for North East Bedfordshire (Alistair Burt), who is responsible for south Asia, to discuss the case in more detail. We will be happy to listen to his concerns.

Finally, but not least, my hon. Friend the Member for Great Yarmouth (Brandon Lewis) spoke with great eloquence and warmth about the glories of his constituency. He reminded us that he would not let us get away with ignoring the problem of coastal erosion. I can see that he, too, will be a formidable champion for his constituents. All 15 maiden speakers are welcome and all have had a successful first outing today. We look forward to hearing from them again.

In view of the lack of time, I propose to write to those hon. Members who have raised specific questions, especially the former Chair of the European Scrutiny Committee, and let them have a considered response, instead of half a sentence now. On the Government’s approach to Europe generally, we see no contradiction between being vigorous in defending and asserting the national interests of the United Kingdom, and playing an active and activist role within the European Union, in pursuit both of our national interests through the institutions of the European Union and the common advantage of European countries, where our interests coincide.

I believe that part of a successful European policy will be to demonstrate to our own people, here in the United Kingdom, that the decisions taken on their behalf by British Ministers in the institutions of the European Union will be more accountable. That is why we will press forward with our referendums Bill and look to improve dramatically our efforts to scrutinise European legislation in the House.

Question put and agreed to.

Resolved,

That this House has considered the matter of European affairs.