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The Minister for Europe (Mr David Lidington)
I congratulate my hon. Friend the Member for Stone (Mr Cash) on securing this debate, and also express my sincere condolences to him on the recent death of his mother. He clearly set out his views on sovereignty. In the last Parliament, he championed the United Kingdom Parliamentary Sovereignty Bill to allow for further debate and consideration of such matters. As my hon. Friend knows, the Government are now considering a United Kingdom sovereignty Bill, and the programme for government agreed by both parties in the coalition states:
“We will examine the case for a Bill to make it clear that ultimate authority remains with Parliament.”
As my hon. Friend the Member for Aldridge-Brownhills (Mr Shepherd) pointed out, the common law is clear; Parliament is sovereign. European Union law takes effect in this country only by virtue of an Act of Parliament. The European Communities Act 1972 states that European Union law should have primacy. That means national laws, including Acts of Parliament, must be interpreted in such a way as to comply with EU rules. Where the two are incompatible, UK law is disapplied. The 1972 Act, therefore, gives EU law primacy over UK law for so long as that Act remains in force. However, as successive Governments and the courts have recognised, such measures do not impact on sovereignty, because it is always open to Parliament to amend or repeal an Act; it is Parliament’s choice that EU law has primacy, and it can, if it chooses, change its mind. I do not want to underplay the enormous political consequences that would flow from such a decision, but those are the constitutional facts, and they were confirmed in the most trenchant language in the metric martyrs’ case in 2002 when the courts ruled that
“Parliament cannot bind its successors by stipulating against repeal, wholly or partly, of the [1972 Act]…there is nothing in the [1972 Act] which allows the Court of Justice, or any other institutions of the EU, to touch or qualify the conditions of Parliament’s legislative supremacy in the United Kingdom. Not because the legislature chose not to allow it; because by our law it could not allow it…being sovereign, it cannot abandon its sovereignty.”
The Government are now exploring how they can ensure that the fundamental principle of parliamentary sovereignty is upheld. They want to assess whether the common law provides sufficient ongoing and unassailable protection for that principle. It is an important process, and it is only right that sufficient time is allowed for discussions within Government and for appropriate advice to be taken. Once the Government have decided on whether there should be a Bill to reinforce the principle of parliamentary sovereignty, we will make an appropriate statement to the House.
Mr Cash
My hon. Friend the Minister will know that I have spoken on both this subject and the metric martyrs’ case on many occasions. Does he not accept that we voted against the Lisbon treaty, which is a consolidating treaty and incorporates all the treaties? In addition to that, the issue of primacy is already clearly stated in Costa v. ENEL and in other cases. They say that the European Court of Justice asserts its primacy over our constitution. I hope that the Minister will come on to that, because that is where a big problem starts to get even worse.
Mr Lidington
My hon. Friend will have to forgive me if I say that the kind of questions that he asks are precisely those that the Government will wish to consider in the exercise that I have just described—when they come to a view as to whether we should introduce primary legislation to reinforce the principle of parliamentary sovereignty. So far, as he knows, the British courts have upheld the principle of parliamentary sovereignty. We want to ensure that such a principle is unassailable and ongoing.
Chris Bryant
Before the Minister’s speech, we were told by the Government that a committee will be set up to do such work. Now, however, he seems to be saying that there will not be a committee, but just a general process of cogitation, regurgitation and general thinking. Does he describe that as the backburner or the long grass?
Mr Lidington
It is certainly not the long grass. The work has already started, but it requires proper consideration. I understand the hon. Gentleman’s impatience and eagerness for an outcome to this exercise, but given that we are only a month into the new Administration, he will have to bear with us a little longer before we come to a conclusion. I can assure him that as soon as a decision is taken, we will make a statement to Parliament, so that he and other hon. Members can question and challenge us on the outcome of that debate within Government.
The Government have been clear about what we intend to propose in legislation at the earliest opportunity. We have agreed that there should be no further transfer of sovereignty or powers from the United Kingdom to the EU over the course of this Parliament, and that commitment is written into the coalition programme. The Government are also committed to increasing democratic and parliamentary control, scrutiny and accountability in relation to EU decision-making. We will introduce a Bill to ensure that the British Parliament and the British people have more of a say, and that will increase the democratic accountability of the European Union. The Bill that was listed in the Gracious Speech has two main elements: a referendum lock and greater parliamentary control over the use of the so-called passerelle or ratchet clauses in the Lisbon treaty.
Let me describe briefly what we propose in terms of a referendum lock, although my hon. Friend the Member for Stone and the House will appreciate that very detailed work is now going on to determine the precise language of the Bill. Any proposed future treaty that transferred competences or areas of power from the UK to the EU would be subject to a referendum. No Government would be able to pass more powers to the EU unless the British people had agreed that they should be able to do so and no Government would be able to join the euro unless the British people had agreed that they should do so.
My hon. Friend said that there might be an attempt to bring about treaty change to create some form of economic governance in light of the current financial crisis. I can say to him that there is no consensus so far even in the euro area that there should be a further treaty. Any EU treaty, even one that applied only to the euro area, would need the unanimous agreement of all 27 member states, including the UK. Each of those 27 member states would have a veto. Even in the case of a hypothetical treaty that the British Government were prepared to endorse, the fact remains that any treaty that proposed to transfer powers from the UK to the institutions of the EU would require a referendum for ratification, under the terms of the programme for Government that the coalition has set out.
We also plan to change the law so that any Government would be required to pass primary legislation before they could give final agreement to any of the so-called ratchet clauses. There is a variety of those clauses; there is no easy definition of a ratchet clause. Some provide for modification of the treaties without using the ordinary revision procedure and some are one-way options that are already in the treaties, whereby EU member states can decide together to exercise those options, and which allow existing EU powers to expand. There are options, for example, in the common foreign and security policy, in justice and home affairs, and in environment policy. Besides the provisions on primary legislation, in our Bill we will also ensure that the use of any major ratchet clause that amounts to the transfer of an area of power from the UK to the EU would be subject to a referendum.
My hon. Friend the Member for Stone and the hon. Members for Luton North (Kelvin Hopkins) and for Rhondda (Chris Bryant) spoke about the inadequacy of our current system of parliamentary scrutiny of European legislation. The Government plan to improve the scrutiny of EU decision making, and getting the scrutiny system right is a very high priority for us. I am currently examining ways of strengthening the existing system of parliamentary scrutiny and I am keen to discuss proposals with the new Scrutiny Committees of both the House of Commons and the House of Lords, once they are formed. I hope that they will be formed in the very near future.
Kelvin Hopkins
There has been an honest division of view about how parliamentary scrutiny should be reformed. The hon. Member for Stone talked about having all the debates on scrutiny open. I took the other view, because we receive very valuable advice from Officers of this House—honest and frank advice, which I may say is often sympathetic to my view as well—and the Officers would not be able to provide such advice if the debates on scrutiny were carried out in public.
Mr Lidington
The hon. Gentleman makes a clear point that we in Government and the House as a whole will want to bear in mind when it comes to taking decisions about the scrutiny process. It is also important that we look at the practice of scrutiny in other EU member states. I had a meeting last week with the chairman of the Swedish scrutiny committee, and we are exploring the models of scrutiny that are in use elsewhere in the EU, to see whether there are any aspects of those processes that we might usefully adapt for our own purposes here.
Chris Bryant
The Minister is being very generous in giving way. I sensitively suggest to him that most other member states conduct scrutiny remarkably worse than we do, which is quite a thing to be able to say.
In addition, all I would say to the Minister is that we still do not have the European Scrutiny Committee set up. For the life of me, I cannot see why the chairmanship of that Committee was not established when the other Select Committees that we have already elected were established. Also, I hope that a new scrutiny reserve resolution will be tabled fairly soon. I urge the hon. Gentleman to try and make this issue as much a matter for the House as for the Foreign Office, because it should be a matter for the whole of the House to decide on.
Mr Lidington
I take very seriously the points that the hon. Gentleman has made. He also asked me about the new Cabinet Committee on European Affairs. That Committee is chaired by my right hon. Friend the Foreign Secretary, and the deputy chairman is the Secretary of State for Energy and Climate Change. It has met; it met for the first time last week. However, I must disappoint the hon. Gentleman by saying that it does not meet, and does not intend to meet, in public. There is no difference in that regard to the system for any Cabinet Committee. Members of the devolved Administrations are not members of the Cabinet Committee on European Affairs but they continue to meet under the aegis of the Joint Ministerial Committee on Europe, to prepare for the European Councils each year.
Mr Lidington
The hon. Gentleman says that, but we want to make our relationships with the devolved Administrations work a lot better than they used to during his time in office; that is one of the differences that the new Government intend to make. We want to turn not only those formal meetings but our regular contacts with our colleagues in the devolved Administrations into something that informs the development of our approach to European affairs. Now, having said that, I must press on.
My hon. Friend the Member for Stone asked questions about a number of detailed issues and I want to reply very quickly to those questions. So far, there are no proposals at all on the table that would require the UK or any other member state to submit its budget plans to the Commission in advance of informing Parliament, and my right hon. Friends the Prime Minister, the Foreign Secretary and the Chancellor have all made it clear that we would be utterly opposed to any such proposal.
My hon. Friend is right to draw attention to the importance of some of the current proposals on financial services, which are with the European institutions now. In particular, the de Larosière package on financial supervision is a matter of primary importance to the interests of this country. Yesterday, in both the formal proceedings of the General Affairs Council and in bilateral conversations with some of my counterparts from other countries, I said that we wanted to see the unanimous agreement that was reached on the proposal at ECOFIN in December 2009 maintained in any future drafts of that proposal.
The hon. Member for Luton North asked about agricultural policy reform. The Government remain committed to a policy of common agricultural policy reform that would see an end to the direct subsidy of production, a reduction in the external tariffs on foodstuffs, bringing them down to the same level of external tariffs that apply on other goods, and an end to the practice of dumping EU produce on the markets of developing countries, which undercuts those countries’ own farmers.
A number of hon. Members spoke about excess EU regulation. I know that both the Cabinet Committee on European Affairs, which I am a member of, and the Regulatory Sub-Committee of the Cabinet Committee on Economic Affairs will be keeping a very close eye on that issue. Excess EU regulation comes not only from Europe itself. Too often, there is gold-plating in Whitehall of European legislation, which is something that we are also determined to guard against.
My hon. Friend the Member for Stone said one thing that I will quarrel with him about—in a good-humoured manner—and it was about EU enlargement. I disagree with him on this issue. I think that the enlargement of the EU has entrenched political stability, the rule of law and democratic institutions in Spain, Portugal, Greece and in central and eastern Europe. It is actually a tremendous achievement on the part of the EU. If one contrasts the picture today in those parts of our continent with what we saw in those same countries in the 1920s and 1930s, I think that the advantages and the strengths of the EU’s approach are demonstrated.
My hon. Friend rightly said that many people in Europe are frightened, angry and disillusioned. That is why we need to push forward a positive British agenda, to get European people back to work, to free up markets, to enhance free trade with the rest of the world and to demonstrate an advance towards a cleaner and greener European economy. At the same time, we need to champion vigorously the interests of the UK within the EU, to increase accountability to the British people and to increase the democratic legitimacy of the decisions that Ministers take in Europe, ensuring that it is the people who can take the final decision on any future transfer of power from this country to European institutions.