House of Commons

Tuesday 1st February 2011 Commons Chamber

Tuesday 1 February 2011

The House met at half-past Two o’clock

Prayers

Tuesday 1st February 2011 Commons Chamber

[Mr Speaker in the Chair]

Business Before Questions

Bank of Ireland (UK) plc Bill

Bill read a Second time and referred to the Examiners.

Oral Answers to Questions

Tuesday 1st February 2011 Commons Chamber

The Secretary of State was asked—

[Toby Perkins (Chesterfield) (Lab)]

1. What recent discussions he has had with his Afghan counterpart; and if he will make a statement.

[The Secretary of State for Foreign and Commonwealth Affairs (Mr William Hague)]

My ministerial colleagues and I have regular contact with our Afghan opposite numbers to discuss a wide range of issues. We are working together to help bring stability to Afghanistan. I hope to be able to meet with Dr Rassoul again shortly.

[Toby Perkins]

The whole House will echo the Foreign Secretary’s sentiments about how important it is that we bring stability to Afghanistan. The Taliban are greatly strengthened by any ability to increase the drug trade over there. Can the Foreign Secretary tell us what measures he is taking to reduce poppy production in Afghanistan, and what success we are having in this important fight?

[Mr Hague]

Of course we work with the Afghan authorities and many international partners on combating the drugs trade, which is one source of finance for the insurgency in Afghanistan. In the Foreign Office programme spending that I have announced in a written statement today, the hon. Gentleman will see that I have allocated £16 million of British taxpayers’ money in the coming year for important counter-narcotics work in Afghanistan. It has met with some success in recent times, with a reduction in the total yield of the poppy crop, but we have to keep up the momentum.

[Mr Gary Streeter (South West Devon) (Con)]

As Britain gradually withdraws its hard power over the next few years, does the Foreign Secretary see a role for this country in increasing and advancing its soft power, particularly in democracy-building support in the more secure areas, not least through our home-grown Westminster Foundation for Democracy?

[Mr Hague]

I hope that I will always see such a role. Indeed, in the same allocation of FCO programme funds, on which I made a written statement earlier today, my hon. Friend will see that there is a small increase for the Westminster Foundation for Democracy, from £3 million to £3.5 million. The foundation does important work across the world, and all of us across the House would want it to succeed.

[Mr Douglas Alexander (Paisley and Renfrewshire South) (Lab)]

Can the Foreign Secretary update the House on what discussions he has held on appointing a successor to US envoy Richard Holbrooke, an individual who I know was widely respected in all parts of the House, and on the political progress that he expects to be made in Afghanistan by the time of the Bonn conference later this year?

[Mr Hague]

The right hon. Gentleman will understand that it is not for us to appoint the US special representative for Afghanistan and Pakistan. The United States Government will take care of that. We are in discussions with them about how we will work together with a new special representative. It is a crucial role, and Richard Holbrooke is very much missed in it, but I cannot update the right hon. Gentleman on the United States decisions about that appointment. He is right to highlight the importance of the political process in Afghanistan. It is vital that it should be Afghan-led, but the United Kingdom will support and facilitate it wherever we can, and also urge the support of other countries in the region, such as Pakistan, to contribute positively to that process.

[Mr Alexander]

Given the interrelationship of insurgency, poverty and narcotics, about which there have already been discussions and exchanges this afternoon, can the right hon. Gentleman explain the basis for his decision, as set out in the written ministerial statement to which he referred, to make

“a reduction of £2 million”

in

“counter-narcotics and rule of law programmes in Afghanistan”?

[Mr Hague]

Yes, we have to adjust the spending totals from time to time—the change will be from £18 million to £16 million—because some programmes are coming to their natural end, and because I want to ensure that we can keep the current level of resources for counter-terrorist co-operation, which stand at £38 million and are focused predominantly on Afghanistan. We always have difficult choices to make on spending, but there is a natural evolution in our counter-narcotics work which means that some programmes are coming to their end.

[Ben Gummer (Ipswich) (Con)]

2. What recent assessment he has made of progress in the middle east peace process; and if he will make a statement.

[Mrs Sharon Hodgson (Washington and Sunderland West) (Lab)]

3. What recent representations he has received on the UK’s involvement in the middle east peace process; and if he will make a statement.

[The Secretary of State for Foreign and Commonwealth Affairs (Mr William Hague)]

Negotiations are the only way to achieve the national aspirations of both the Palestinians and the Israelis. We are deeply concerned about the breakdown in talks, and we are working closely with the United States and the European Union to see a return to direct negotiations. I hope that the Quartet meeting on 5 February will be clear that negotiations must resume quickly. The entire international community, including the United States, should support 1967 borders as being the basis for resumed negotiations. The result should be two states, with Jerusalem as the future capital of both, and a fair settlement for refugees.

[Ben Gummer]

I thank the Foreign Secretary for that answer. I hope he shares the excitement of many people in this country at seeing people stand up to one-party rule in Tunisia and Egypt. Will he explain what steps the Government are taking to encourage the spread of democracy—not just in the middle east, but in north Africa?

[Mr Speaker]

We will focus on the middle east for now.

[Mr Hague]

Focusing on the middle east, one thing that would help democracy across that area is a successful outcome to the middle east peace process—a two-state solution with a viable, contiguous and democratic Palestinian state alongside a secure and democratic Israel. The middle east peace process is fundamental, but our constant message more broadly across the middle east is how important it is to move in the direction of more open and flexible political systems—with each country finding its own way to achieve that—as well as towards sound economic development. The spending I have announced in a written statement today includes £5 million for an Arab human development programme, which is intended to assist civil society and democratic development in the Arab world, so this will become part of the important issue my hon. Friend raises.

[Mrs Hodgson]

Since signing the peace accord with Israel in 1979, Egypt has been a key figure in trying to broker peace and stability in the middle east. Recent events in Egypt obviously raise concerns about the future direction of its foreign policy. Will the Secretary of State tell us what role the UK Government will play in ensuring that, in the likely event of regime change, Egypt will continue to play a constructive role in the middle east?

[Mr Hague]

The hon. Lady raises a vital issue. Over a period of more than 30 years, as she says, Egypt has played a positive and moderating role in the middle east—a positive role towards achieving a wider peace in the middle east. We regard it as of paramount importance that Egypt continues to do that in the future. We are engaging with politicians of many different views in Egypt. I spoke to the Foreign Minister on Sunday night and I hope to speak to Vice President Suleiman shortly after this Question Time to encourage Egypt to have the broad-based Government and real and visible change that will allow an orderly transition, which will not only help to achieve the domestic aspirations of the Egyptian people, but allow the country to continue to play the role in foreign policy that it has played in recent decades.

[Sir Menzies Campbell (North East Fife) (LD)]

The Foreign Secretary will recall that it was the vision of Menachem Begin, Anwar Sadat and King Hussein that led to the agreements on behalf of Israel, Egypt and Jordan respectively. It would be a tragedy if either of these agreements were to be casualties of the unrest in Egypt and the apparent unrest in Jordan. Will the Foreign Secretary undertake to bend every possible effort to ensure that these agreements, which are, after all, the only success in the middle east peace process, are maintained?

[Mr Hague]

My right hon. and learned Friend is absolutely right. This is one reason why we do not want Egypt to fall into the hands of extremism or, indeed, into prolonged disorder. That is why we have called—European Foreign Ministers joined together in doing so yesterday at our meeting in Brussels—for an orderly transition to a broadly based Government, with free and fair elections in prospect in Egypt, because we think it will help the country to continue to play that role. I also visited Syria last week to encourage that country to reconsider and approach again the subject of a permanent peace between Israel and Syria.

[Sir Gerald Kaufman (Manchester, Gorton) (Lab)]

Two years after the Israeli assault on Gaza, which slaughtered 1,400 Palestinians, including 300 children, is the right hon. Gentleman aware that the situation of destitution, dereliction and malnutrition in Gaza is still appalling because of the blockade? The UN representative, the admirable John Ging, is giving up his post and moving to New York. Will the Government take every possible action to require the Israelis to lift this dreadful blockade?

[Mr Hague]

We remain very concerned about the situation in Gaza and disappointed overall by Israel’s easing of restrictions there. There has been some welcome progress—the move from a white list to a black list and the increased volume of imports are welcome—but a fundamental change is needed to achieve pre-2007 levels of exports as soon as possible and an improvement in co-operation with the UN and non-governmental organisations. We say again that the blockade of Gaza is unsustainable and unacceptable.

[Mr James Clappison (Hertsmere) (Con)]

Is there not at least one piece of good news from the middle east, in the shape of the very encouraging economic growth that has taken place on the west bank? Does my right hon. Friend agree that that is an indication of what could be achieved through compromise on the outstanding issues and movement towards a genuine, mutually agreed two-state solution?

[Mr Hague]

My hon. Friend is absolutely right. When I visited Ramallah in November, I saw a dramatic contrast with what I had seen on a previous visit a few years earlier in terms of economic development. However, such development has not been as dramatic throughout the west bank, and much more could be achieved. What my hon. Friend has identified is part of the dream of peace in the middle east and a viable two-state solution.

[Richard Burden (Birmingham, Northfield) (Lab)]

I agree with the Foreign Secretary that events that are currently unfolding in the middle east and north Africa render the need for a search for a durable peace in the middle east more, not less, urgent. However, the Palestine papers have proved pretty conclusively that it is not the Palestinians who have not been prepared to compromise. What pressure can we put on Israel to ensure that it understands that the requirement for compromise applies to it as well, not just to everyone else?

[Mr Hague]

Clearly all sides would have to make compromises to arrive at a two-state solution, and we have conveyed that message strongly to Israel in recent weeks. We have clearly expressed our disappointment that the settlement moratorium was not continued, and have made plain that we regard settlements as illegal. When Foreign Minister Lieberman of Israel visited London on Monday last week, I argued strongly that Israel needed to make the necessary compromises to allow direct talks to resume and to pave the way for a two-state solution. We will continue to convey that message.

[Stephen Gilbert (St Austell and Newquay) (LD)]

4. What plans he has to increase the prominence of bilateral relations between the UK and the countries of Latin America; and if he will make a statement.

[The Minister of State, Foreign and Commonwealth Office (Mr Jeremy Browne)]

The Government are strengthening partnerships with Latin America. I have seen for myself that it is a dynamic and important region during visits to Columbia, Chile, Mexico, Panama and Guatemala. My right hon. Friends the Deputy Prime Minister and the Foreign Secretary will visit the region in the next few months.

[Stephen Gilbert]

What further specific steps is the Minister taking to improve the United Kingdom’s relationship with Mexico and Brazil, which have two of the world’s fastest-growing economies and are potential strategic allies in the 21st century?

[Mr Browne]

I strongly agree with the sentiment underlying my hon. Friend’s question. I think most people would accept that the last Government neglected Latin America, and that is what we are trying to rectify. Along with other Ministers, I shall be accompanying the Deputy Prime Minister on visits to both Brazil and Mexico the week after next, when my right hon. Friend will take part in high-level meetings and, I hope, increase our engagement with both those important G20 countries.

[Emma Reynolds (Wolverhampton North East) (Lab)]

We welcome the Foreign Secretary’s commitment to increasing our bilateral trade with Latin America, as set out in his Canning house speech last year. Surely, however, one of the best ways to advance British interests would be to establish a free trade deal between the European Union and Mercosur. What steps are the Government taking to bring the negotiations to a swift and successful conclusion?

[Mr Browne]

I strongly agree with the premise of the hon. Lady’s question. We want free trade to open markets all over the world, and Latin America is a part of the world where economies are growing both strongly and at a sustainable pace. We will try to bring about more free trade agreements, as well as trying to encourage greater trade and co-operation between British businesses and companies throughout Latin America.

[Esther McVey (Wirral West) (Con)]

5. What recent assessment he has made of the political situation in Ivory Coast; and if he will make a statement.

[The Parliamentary Under-Secretary of State for Foreign and Commonwealth Affairs (Mr Henry Bellingham)]

The UK Government remain deeply concerned about the ongoing political crisis in Côte d’Ivoire. We support the strong statements that have been made by the Economic Community of West African States and the African Union. Both have made clear—and we agree—that Mr Laurent Gbagbo should immediately and peacefully hand over power to Mr Alassane Ouattara in accordance with the wishes of the Ivorian people.

[Esther McVey]

The latest registration figures show that 31,000 refugees have fled from the Ivory Coast to eastern Liberia in the last two months alone. Having just returned from a medical visit to Liberia with representatives of the charity Merlin and the Royal Society of Medicine, and having met the President of Liberia and Health Ministers, I know that the country is hardly best placed to deal with such an influx, recovering as it is from 14 years of a brutal civil war. Can the Minister tell us what we are doing to help the people of the Ivory Coast, and how we are pushing for peace in the area?

[Mr Bellingham]

I agree with my hon. Friend that this is a totemic issue for all Africa. It is essential that Laurent Gbagbo must not be allowed to defy the will of the people, and it is very important that his funding is cut off, so I am very pleased that the west African central bank—Banque Centrale des Etats de l’Afrique de l’Ouest—has now cut off the Ivorian national reserves and I am confident that this will apply real pressure.

[Mr David Nuttall (Bury North) (Con)]

6. What future plans he has for the UK diplomatic network; and if he will make a statement.

[The Secretary of State for Foreign and Commonwealth Affairs (Mr William Hague)]

Our global diplomatic network is essential to protect and promote our interests worldwide. That is why we must concentrate our resources where they are needed most, especially in the emerging powers, to increase our influence, promote our values and seize opportunities for prosperity. I will be taking and announcing decisions soon on what that will mean in practice.

[Mr Nuttall]

I thank the Foreign Secretary for that answer. Last week, in the European Union Bill Committee, the hon. Member for Rhondda (Chris Bryant) recalled that when he was the Minister for Europe, in the previous Government, his German counterpart told him that

“he expected to close possibly half of all German embassies and consular services around the world over the next five years.”

The hon. Gentleman added:

“Other member states may well do the same.”—[Official Report, 25 January 2011; Vol. 522, c. 196.]

Will my right hon. Friend please reassure me that we will not be closing any UK embassies and consular services?

[Mr Hague]

The statement about Germany closing half its embassies might be an exaggeration. Far be it from the hon. Member for Rhondda to exaggerate on any issue, but I think that will turn out to be an exaggeration. Certainly, the UK will not be doing that. We will not, overall, be reducing the size of our diplomatic network. I think it would be absolutely wrong to do so, as it is part of the essential infrastructure of our economic recovery as well as of our influence in the world. I will be announcing decisions about this in the next couple of months, but that will not involve an overall reduction in our network.

[David Cairns (Inverclyde) (Lab)]

The Foreign Secretary has spoken of the need to strengthen the UK’s diplomatic, strategic engagement with Syria—a point he reiterated a few moments ago. Will he take this opportunity to stress to the Syrians how important it is for them to butt out of the internal affairs of Lebanon? Does he agree that any new Lebanese Government who see Syrian-backed Hezbollah gain even greater importance will only further destabilise the middle east?

[Mr Hague]

Yes, we will use our diplomatic network—to keep this relevant to the question—and I used our embassy in Damascus last week to do many of those things. We had some very frank discussions with Syrian leaders, as can be imagined, about a whole range of issues including Iran and human rights, in particular, and about the situation in Lebanon. The Government there should be formed by constitutional means. They should be a broad-based Government and should continue to support the work of the special tribunal for Lebanon so that the culture of impunity for assassinations in Lebanon comes to an end.

[Nicholas Soames (Mid Sussex) (Con)]

May I congratulate my right hon. Friend on the alterations he has made to the mission and structure of the Foreign Office? Will he confirm that it is his intention to deploy diplomatic staff to those areas of the world where they are most needed to further Britain’s interests?

[Mr Hague]

Yes, I will certainly do that. I think that what my hon. Friend is driving at is that that will require some changes because the patterns of economic, political and diplomatic power in the world are changing, so we will need to adjust our diplomatic weight. That is what I am weighing up at the moment and we will make announcements to the House within the next couple of months.

[Paul Flynn (Newport West) (Lab)]

7. What recent steps his Department has taken to support measures to reduce the incidence of corruption in Afghanistan.

[The Parliamentary Under-Secretary of State for Foreign and Commonwealth Affairs (Alistair Burt)]

We are encouraging the Government of Afghanistan to live up to the commitments they made on anti-corruption at the conferences in Kabul and London last year. In addition, I met yesterday with General McMaster, the head of the international security assistance force’s anti-corruption task force, to discuss how the coalition could assist Afghanistan in bringing those involved in corrupt practices to justice.

[Paul Flynn]

Has it been worth the sacrifice of 350 of our valiant British soldiers to protect the election-rigging President of Afghanistan who refuses to arrest his corrupt brother, the vice president who was caught smuggling $51 million to his bolthole in Dubai, or the Government cronies who have stolen 70% of the country’s GDP from the national bank? Is not the truth that it is not the system that is corrupt in Afghanistan, but that corruption is the system?

[Alistair Burt]

There are, of course, wider issues involving national security that contribute to the presence of our forces in Afghanistan, in company with those of 47 other nations. It is not appropriate to discuss individuals, but I should say that the British Government are entirely clear: no one is above the law, no one is above inquiry, and the people of Afghanistan deserve a system of justice that ensures justice for all and that those involved in corruption are brought to book.

[Mr Frank Roy (Motherwell and Wishaw) (Lab)]

8. What steps he plans to take to maintain provision of BBC World Service radio services when responsibility for its funding is transferred to the BBC Trust.

[The Secretary of State for Foreign and Commonwealth Affairs (Mr William Hague)]

I will continue, as now, to set the objectives, priorities and targets for the BBC World Service with the BBC for 2014 and beyond. No foreign language service will be closed without my written authority.

[Mr Roy]

The BBC tells us that this Government cut will result in the loss of 30 million listeners and 650 jobs. Would the Foreign Secretary describe that as a price worth paying—yes or no?

[Mr Hague]

With the World Service, we are having to make sure that public money is spent as carefully as possible. As the hon. Gentleman knows, that has meant reductions across the Government. That is the legacy that this Government inherited from the vast debts piled up by the previous Administration, and none of it would be necessary were it not for that.

We are asking the World Service to bear the same proportionate reduction as the Foreign Office over the period 2008 to 2014. I think that is a fair thing to do, and I should let the hon. Gentleman know that the director-general of the BBC has stated his intention, when it is transferred into the BBC from 2014, to increase investment in the World Service again and hold it at a higher level until the end of the BBC charter period.

[Rory Stewart (Penrith and The Border) (Con)]

Would the Foreign Secretary please suggest whether it is possible to put a more formal structure in place, so that the BBC can guarantee the kind of proportion of money spent on the World Service over the next 10 years?

[Mr Hague]

There is a formal structure relating to decisions about openings and closures of language services; those will remain the same, and the objectives and priorities of the BBC World Service will continue to be set in the same way. To respond to my hon. Friend’s point, that structure does not guarantee the absolute level of expenditure or investment by the BBC, but I would point out again that Mark Thompson, the director-general of the BBC, has said that his intention, subject to approval from the BBC Trust, is to increase the level of investment in the BBC World Service, and therefore I am sure that bringing the BBC and the World Service together is the right move for the future.

[Cathy Jamieson (Kilmarnock and Loudoun) (Lab/Co-op)]

9. What recent assessment he has made of the political situation in Sudan; and if he will make a statement.

[The Parliamentary Under-Secretary of State for Foreign and Commonwealth Affairs (Mr Henry Bellingham)]

The southern Sudan referendum is a momentous step towards the implementation of the comprehensive peace agreement. We welcome the positive reactions of the north and of observers of the referendum as we await the formal results. We will support north and south as they work on the remaining CPA issues, but obviously we will not be taking our eye off Darfur, as we work tirelessly to establish a lasting peace in that troubled province.

[Cathy Jamieson]

I thank the Minister for that answer, and I am sure he will be aware of the concerns shared across the international community on the continued presence of the Lords Resistance Army in south Sudan. A joint non-governmental organisation briefing in December 2010, entitled “Ghosts of Christmas Past”, documented some of the atrocities committed by that organisation on Christmas eve 2008. What assessment can the Minister can give us of the efforts of the international community to prevent the rise of that organisation in south Sudan and across the region?

[Mr Bellingham]

I am grateful to the hon. Lady for raising the subject of the Lords Resistance Army. It is an organisation comprising about 400 fighters, under the leadership of an extremely evil commander, and although it is small, it can wreak havoc; it is able to displace many communities and terrorise many people. We are sparing no effort at all in helping those countries who are on the front line of tackling the LRA, and we are doing all we possibly can to bring its leader to justice in the International Criminal Court as well.

[Duncan Hames (Chippenham) (LD)]

There are strong bonds with Sudan across the Salisbury diocese, including between Holt school in my own village and a school in Juba in southern Sudan, where educational resources are very stretched. In light of the referendum, there are growing concerns for the Christian minority that will be left in the north. What representations have the Government made to the Sudanese authorities about the importance of protecting minorities throughout Sudan?

[Mr Bellingham]

I am grateful to my hon. Friend for asking that question, because we are working very closely with the Government of Sudan. We made it clear to President Bashir’s Government that his requirements for debt relief are conditional not just on making progress on the CPA and achieving an inclusive peace with justice in Darfur, but on having a policy that respects the rights of all parts of that country.

[Stephen Twigg (Liverpool, West Derby) (Lab/Co-op)]

I very much welcome what the Minister said about south Sudan and, particularly, Darfur. Last week, Human Rights Watch said:

“There are clear signs that the situation in Darfur is getting worse”

and

“the international community is failing to monitor and respond properly to what is happening”.

Does he agree that now is the time to give real priority to resolving the long-running and tragic crisis in Darfur?

[Mr Bellingham]

I agree with the shadow Minister on that, because we must not take our eye off Darfur and there have been some worrying concerns recently—for example, three Bulgarian humanitarian pilots were captured, and we are demanding their immediate release—but I am pleased that significant progress has been made in the recent negotiations under the chief mediator, Djibril Bassolé, in Doha. In fact, two parts of the rebel forces—the Justice and Equality Movement and the Liberation and Justice Movement—have been engaged in the peace process. It is very important indeed that the Sudan Liberation Army now comes to the table and that every possible effort is made to build peace in that troubled province. Unless that peace is secured, there really cannot be a way forward and a future for Sudan.

[Greg Mulholland (Leeds North West) (LD)]

President al-Bashir has said that southern Sudanese living in the north will be classed as foreigners and will lose rights accordingly. What will the UK Government do to ensure that the citizenship issues are properly resolved, so that people can live in the north or the south and have their rights protected accordingly?

[Mr Bellingham]

I certainly share my hon. Friend’s concern about the southern Sudanese who have been living in the north, but I was heartened by what President Bashir said on his visit to Juba on 4 January. He made it clear that all the southerners who are living in the north are welcome to stay there, that they can move to the south if they want to and that their rights to property and their other rights will be maintained. That is the first time that President Bashir has said that absolutely categorically, and we will do all that we can to hold him to his word.

[Grahame M. Morris (Easington) (Lab)]

10. What recent discussions he has had with ministerial colleagues on trends in the incidence of piracy.

[The Parliamentary Under-Secretary of State for Foreign and Commonwealth Affairs (Mr Henry Bellingham)]

We are extremely concerned about international piracy—in particular, the growing incidence of piracy off the horn of Africa and in the Indian ocean. I have recently set up a cross-Whitehall working group, with the Under-Secretary of State for Transport, my hon. Friend the Member for Hemel Hempstead (Mike Penning), who has responsibility for shipping, and with the Minister for the Armed Forces. We are determined to work with the maritime industry to help it to counter the increased violence towards hijacked crews through the use of safe rooms and other improved security measures. We are considering ways to combat the so-called mother ships, which carry the pirate skiffs deep into the ocean.

[Grahame M. Morris]

I thank the Minister for that reply, but will he update the House on his discussions with our European allies about taking co-ordinated action to tackle piracy off the Somali coast, particularly following recent reports that Somali legislators have blocked anti-piracy legislation and even described the pirates as heroes?

[Mr Bellingham]

I have not heard about those comments being made by the Transitional Federal Government. If they have made those comments, we absolutely deplore them. We are working closely with our EU counterparts. In fact, we are providing the command facility for Atalanta, the EU counter-piracy force. Currently, about 30 warships are off the horn of Africa, and we are working ever closer and going more deeply into the ocean to combat the problem. But I agree with the hon. Gentleman that there must be proper co-ordination between countries, and that is why we have a cross-Whitehall working group to consider what we can do. The pirates now hold 29 vessels and 694 hostages. The problem is definitely getting worse, as the pirates have been able to expand their reach into the ocean, and that is why we need firmer, tougher and more co-ordinated action.

[Miss Anne McIntosh (Thirsk and Malton) (Con)]

May I press the Minister more on EU co-operation? I understand that Denmark has taken quite a lead and has made some inroads into preventing piracy.

[Mr Bellingham]

I can assure my hon. Friend that there is ever greater EU co-operation, and that more EU countries are now coming into the combined operations. It is incredibly important that the EU should work together, but we want other countries to assist. We also need regional capacity to detain, try and imprison the pirates, which is why we are having discussions with the Governments of the Seychelles, Mauritius, Kenya and Tanzania.

[Mr John Spellar (Warley) (Lab)]

I am glad that the Minister recognises that piracy is a growing threat to life, especially off the horn of Africa, and a big business worth more than £100 million a year, funding crime and, increasingly, terrorism. Does he accept that we are now close to a tipping point on that vital trade route? Will he work with international partners to boost the anti-piracy forces that he has mentioned, and will he consider revising their rules of engagement?

[Mr Bellingham]

I am grateful to the shadow Minister for his questions. I would not say that we were at a tipping point, but the problem has got worse. The pirates now have greater capability, as they can deploy much further out into the ocean through their use of mother ships. The Royal Navy is keeping the rules of engagement under review at all times, and, as I have said, we have a ministerial working party that is looking at every single option for the future.

[Caroline Lucas (Brighton, Pavilion) (Green)]

11. What recent assessment he has made of the political situation in East Jerusalem.

[The Parliamentary Under-Secretary of State for Foreign and Commonwealth Affairs (Alistair Burt)]

The hon. Lady will know that the status of East Jerusalem is fiercely contested, and that this raises political tensions. The United Kingdom takes the view that East Jerusalem is occupied territory under international law, which is why we have called on Israel to cease building settlements, and to stop the evictions and demolitions. Such actions only obstruct the peace process, under which Jerusalem’s final status will be settled.

[Caroline Lucas]

I thank the Minister for his response. Given that he accepts the illegality of settlements on occupied territory, does he plan to support the draft UN Security Council resolution that calls for an immediate end to settlement building?

[Alistair Burt]

The draft resolution has not yet come forward for a vote. We are conscious of the terms in which it has been drawn, and the House will be well aware of our views on settlements. We hope to see a return to direct negotiations in which all these matters can be properly considered in order to achieve the settlement that we all want.

[Mrs Louise Ellman (Liverpool, Riverside) (Lab/Co-op)]

Recent leaks confirm that the Israelis and the Palestinians were making significant progress on agreeing on how to share Jerusalem as part of a negotiated agreement. What is the Minister saying to both sides to encourage them to resume negotiations?

[Alistair Burt]

The hon. Lady takes a close interest in these matters, and she will appreciate that the resolution to the question of Jerusalem’s status will come about only through a negotiated settlement. We are working very hard with both sides. I was in Israel and Palestine recently, talking to Ministers there, as was my right hon. Friend the Foreign Secretary. We have also been working with other partners behind the scenes to try to ensure that there are no obstructions to a return to negotiations, and that the settlement issue is not a barrier to those discussions. There are other issues relating to borders, refugees and Jerusalem that must be discussed, and the sooner the parties get together, the better.

[Mike Freer (Finchley and Golders Green) (Con)]

12. What discussions he has had with his EU counterparts on the disruption of a Christmas day service in Rizokarpaso, Cyprus.

[The Minister for Europe (Mr David Lidington)]

We have not had discussions in an EU context on this deeply regrettable incident, but my officials in Nicosia have met Archbishop Chrysostomos and made representations to senior political figures in the north of the island to emphasise the importance that we accord to allowing people in all parts of Cyprus to practise their religion freely.

[Mike Freer]

I thank the Minister for those words on the unacceptable behaviour of Turkey’s troops in disrupting a Christmas day mass. Does he agree that Turkey should not be allowed to accede to the EU without guaranteeing religious freedoms?

[Mr Lidington]

Any candidate country that wants EU membership has to subscribe to, and apply, the democratic values that are central to the European Union, including the freedom to express religion and to worship freely.

[Julian Smith (Skipton and Ripon) (Con)]

13. What plans he has for the future role of the UK in the Commonwealth.

[The Secretary of State for Foreign and Commonwealth Affairs (Mr William Hague)]

I remain committed to strengthening the UK’s relationship with the Commonwealth and ensuring that we are at the centre of plans to reinvigorate this unique organisation for the benefit of all its current and future members. This ready-made network can further our foreign policy and economic interests.

[Julian Smith]

Following the Foreign Secretary’s highly successful trip to Australia and New Zealand, what opportunities has he identified for increasing trade between Britain and that part of the Commonwealth?

[Mr Hague]

There are huge opportunities to do that. I was the first Foreign Secretary for 17 years to go to Australia. There was a certain omission in that respect under the previous Government. I spoke there to the Australian British Chamber of Commerce, which revealed tremendous opportunities further to boost trade and the economic ties between our countries. The Commonwealth now accounts for a growing share of world trade, so that is an added dimension to the importance of that remarkable organisation.

[Chris Bryant (Rhondda) (Lab)]

As the Foreign Secretary knows, the previous Government had started negotiations and discussions about the Act of Settlement with other Commonwealth countries that share our monarch as their Head of State. Does he agree that the provisions that mean that no Catholic or anyone who does not subscribe to the Church of England can become monarch are outdated, as are the rules on male primogeniture? Will he pursue those conversations with those countries?

[Mr Hague]

I recognise the force of the arguments about something that was originally set out more than 300 years ago. Among the issues of middle east peace, the Iranian nuclear programme and so on, I have not yet put that at the top of my list to negotiate with other Governments, but it is a legitimate issue for the long term, on which all the Commonwealth Governments with the Queen as Head of State would have to be consulted and agree.

[Richard Ottaway (Croydon South) (Con)]

Does the Foreign Secretary agree that Commonwealth countries are the emerging markets of the future? As he develops his hard-headed internationalism, will he recognise that the network that is the Commonwealth, together with our influence, represent a huge opportunity for the United Kingdom?

[Mr Hague]

Indeed. The Commonwealth now includes 54 nations on six continents, with 31% of the world’s population. It has, as I said, an increasing share of the world’s trade, and the proportion of the members of the Commonwealth’s trade with each other is growing, so it is not an organisation of the past. It will have increasing importance in the future.

[Chris Leslie (Nottingham East) (Lab/Co-op)]

14. What steps he plans to take to promote a peaceful resolution to the dispute in Kashmir.

[The Parliamentary Under-Secretary of State for Foreign and Commonwealth Affairs (Alistair Burt)]

Although it is the long-standing policy of successive Governments that, ultimately, the issue of Kashmir is one for the Governments of India and Pakistan to find an answer to while taking into account the wishes of the Kashmiri people, we recognise the deep concern that many MPs feel. We are keen to encourage the confidence-building measures that are emerging from the intermittent but continuing bilateral discussions between India and Pakistan, which we hope to see progress this year.

[Chris Leslie]

Surely the Foreign Office must be concerned at the ongoing problems with curfews and human rights abuses that are being reported in Kashmir. Will the Minister agree to meet a cross-party delegation of Members of Parliament specifically to address the need for demilitarisation and, we hope, a peaceful dialogue that involves the Kashmiri people themselves?

[Alistair Burt]

We do indeed acknowledge exactly what the hon. Gentleman has said. We apply United Kingdom funds to confidence-building measures, conflict prevention and human rights monitoring on both sides of the line of control, with a view to assisting in dealing with the difficult issues that have been particularly highlighted in the past year. The short answer to his question is yes, of course I will meet a delegation of all-party colleagues.

[Jeremy Corbyn (Islington North) (Lab)]

15. What recent assessment he has made of the political situation in Tunisia.

[The Secretary of State for Foreign and Commonwealth Affairs (Mr William Hague)]

I called the outgoing Foreign Minister of the Tunisian Government last week to urge the Tunisian Government to reach out to the Opposition. We welcome the reshuffle that was announced on 27 January. The Tunisian Government should now build on that by implementing reform commitments, and I hope they will also ask for assistance not only in elections, but in building democratic institutions.

[Jeremy Corbyn]

Does the Foreign Secretary recognise that the mass demonstrations in Tunisia may have gone off the screens, but they have not gone off the streets of the capital, and that demands are still being made there for human rights, freedom and democracy, an end to one-party rule and, above all, economic justice, because the neo-liberal economics has led to massive levels of youth unemployment, which has sparked off the wave of revolt across north Africa?

[Mr Hague]

Broadly, yes. We should welcome the steps taken by the Tunisian authorities to liberalise the media, release many political prisoners and establish commissions to investigate corruption and human rights abuses during the recent unrest. We discussed this at the Foreign Affairs Council of the European Union yesterday and are ready in the EU to provide immediate assistance to prepare and organise the electoral process and support a genuine democratic transition.

[Stella Creasy (Walthamstow) (Lab/Co-op)]

16. What recent discussions he has had with his counterpart in Pakistan on the deaths of British citizens in that country; and if he will make a statement.

[The Parliamentary Under-Secretary of State for Foreign and Commonwealth Affairs (Alistair Burt)]

I met the high commissioner of Pakistan yesterday to discuss with him a number of cases that have been raised by hon. Members during the course of this year about UK residents who, sadly, have been killed in Pakistan. The United Kingdom expects the very best attention to ensure that justice is done in all these cases, and I appreciated the high commissioner’s interest and willingness to assist.

[Stella Creasy]

The Minister will be aware of the representations that I have made on behalf of a constituent, Ms Ashiq, and the challenges that her family has faced since her father was murdered in Pakistan in June 2009 in securing information and responses from the authorities about their efforts to apprehend and prosecute his killers. I know that the Minister has raised these issues with the Pakistan authorities, which are keen to be helpful, but will he update the House on what steps he has taken to ensure that his officials play an active role in helping the families of British citizens who are killed abroad to receive the appropriate support and assistance from our consulates?

[Alistair Burt]

Sadly, during the course of the past year, 12 UK residents have been killed in Pakistan, mostly involving family or property disputes. I have taken the opportunity raised by those cases to ensure that our post understands full well the concerns that are raised by families and Members of Parliament here, and that we do all that we can with the authorities in trying to find out information and ensure justice. There is a limit to what we can do. Pakistan is a sovereign country with a sovereign criminal system, but our consular authorities do as much as they possibly can. I welcome the assistance and intervention of the high commissioner, which might lead to continued pressure being applied on the authorities to do even more, and I hope that the hon. Lady has a successful visit to Pakistan shortly with colleagues to see what more can be done there.

[Fiona O'Donnell (East Lothian) (Lab)]

T1. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Foreign and Commonwealth Affairs (Mr William Hague)]

Against a background of huge protests in Cairo today, we welcome Vice-President Suleiman’s statement that he intends to contact opposition parties to discuss political reform, but the new cabinet appointed by President Mubarak this week is disappointing in that it does not constitute the broad-based representative Government whom the people of Egypt seem to be seeking, and we continue to make this clear to the Egyptian authorities.

[Fiona O'Donnell]

What discussions is the Foreign Secretary undertaking to ensure the safety of British officials and non-governmental organisations on the ground in Egypt?

[Mr Hague]

A huge amount of work is being done by our consular staff, by our embassy, by the rapid deployment team that we have sent to Cairo, and we are taking every step possible to assure the safety of those people. We have been advising people in Cairo, Alexandria and Suez to leave if they can and if they have no pressing reason to remain. The vast majority of those seeking to do so have been able to do so on commercial flights, but I have also decided to send a charter aircraft to enable further British nationals to leave the country, if they wish to do so. That will set off for Egypt tomorrow and I will send further flights if necessary to ensure that people are able to leave if they wish to do so. But, of course, many remain, doing their work in Egypt, and we should salute the work they are doing.

[Jesse Norman (Hereford and South Herefordshire) (Con)]

T2. My constituent, Michael Hearn, was arrested on 8 December 2010 for a technical infringement of a local law by his employer, an infringement that he did not himself commit, and he has been in jail in Tawfiq detention centre in Afghanistan ever since then. I wrote last month to the Foreign Secretary to seek his intervention in this matter. Can my hon. Friend assure the House that he is doing everything possible to secure Mr. Hearn’s release?

[The Parliamentary Under-Secretary of State for Foreign and Commonwealth Affairs (Alistair Burt)]

Our consular officials have been in touch with Mr Hearn. They had a meeting with him as recently as 24 January, and he has access to legal advisers, and our consular officials have been in touch with them. We cannot intervene in the Afghanistan judicial process to seek an individual’s release, but we are doing all that we can to ensure his welfare and to make sure that he is in the centre that he wishes to be in rather than in prison. We will continue to support him during his detention and support the lawyers in their legal processes.

[Mr Douglas Alexander (Paisley and Renfrewshire South) (Lab)]

I note and welcome the fact that the Foreign Secretary is due to speak to Vice-President Suleiman after questions this afternoon. Is the right hon. Gentleman prepared to share with the House what specific steps he will be encouraging the vice-president to now take, beyond the discussions that he has already mentioned, to ensure the orderly transition to free and fair elections and the broad-based Government that EU Foreign Ministers agreed upon yesterday?

[Mr Hague]

That is the direction in which we would like the Egyptian authorities to move. As I have said, it is disappointing that the new Cabinet does not constitute the broad-based Administration that we, the rest of the EU and so many of Egypt’s friends around the world were looking for. We continue to urge the Egyptian authorities to take the necessary steps to form such a Government to ensure that real, visible and believable reform is presented to the people of Egypt, as well as effective guarantees of free and fair elections. We think that it is necessary for them to respond to the mood and demands of the Egyptian people and to do so quickly if there is to be an orderly transition, rather than a violent and disorderly situation.

[Priti Patel (Witham) (Con)]

T7. Between now and 2016, the UK will hand over almost £50 billion of hard-pressed British taxpayers’ money to the European Union. Will the Foreign Secretary give hard-pressed constituents and British taxpayers an assurance that he will work with colleagues across all Government Departments to reduce that vast contribution, which could be better spent keeping the deficit low in this country and improving public services?

[The Minister for Europe (Mr David Lidington)]

As my hon. Friend knows, we inherited from the previous Government a budget settlement that gave away a huge chunk of the UK rebate and bound us to increased contributions to the EU, but I assure her and her constituents that every Minister in this Government is committed to budgetary controls and to maximum economy, discipline and value for money in every aspect of European expenditure.

[David Cairns (Inverclyde) (Lab)]

T3. A couple of months ago, the Ugandan gay rights campaigner David Kato asked me to raise in this Chamber the issue of the persecution of gay men and women in that country. Last week, David was beaten to death in his home in Kampala. Will the Foreign Secretary join me not only in condemning the murder, but in calling on the Ugandan Parliament and Ugandan politicians to cease the hateful and vile rhetoric that they deploy against gay people, which led directly to this murder, so that David Kato will have not died in vain?

[The Parliamentary Under-Secretary of State for Foreign and Commonwealth Affairs (Mr Henry Bellingham)]

We have made our view very clear to the Ugandan Government. I agree with the hon. Gentleman that the tragic death of David Kato, who was a prominent Christian and gay rights activist, was a tragedy and have issued a statement of condolence, and I am glad that President Obama has as well. I hope that no effort will be spared in bringing the perpetrators of this wicked crime to justice.

[Pauline Latham (Mid Derbyshire) (Con)]

Following the premature release of al-Megrahi, do the Government have any plans to send more NHS cancer patients to Libya, given the better survival rate there? How does the Secretary of State feel this disgraceful leak will affect our relationship with the United States of America?

[Mr Hague]

I detect from my hon. Friend’s question that she did not agree with the release of Mr Megrahi. Nether did I, and nor did my right hon. Friend the Prime Minister. Nevertheless, it was a decision taken by the Scottish Executive. On the question of relations with the United States, the Prime Minister undertook to have the Cabinet Secretary look at past papers on this case, and his report will be published shortly.

[Sheila Gilmore (Edinburgh East) (Lab)]

T5. Will the Foreign Secretary update us on the situation in Somalia and any action the British Government have taken, given the reports of fresh killings and fighting between police and troops in Mogadishu?

[Mr Bellingham]

We are doing all we can to support the transitional federal Government and are pleased that the African Union mission in Somalia has come up to its mandated strength. We are working not only with the TFG, who must get their act together within the next seven months before their mandate runs out, but with the provincial Government of Somaliland and moderate clans in south and central Somalia.

[Robert Halfon (Harlow) (Con)]

Following the Secretary of State’s answer to my hon. Friend the Member for Mid Derbyshire (Pauline Latham) on the release of the Lockerbie bomber, does he not agree that the previous Government hid behind the fig leaf of devolution in order to release a mass terrorist on dubious commercial grounds? Will he take steps to ensure that such a thing never happens again?

[Mr Hague]

As I have said, the Cabinet Secretary’s report on that will be published in the not-too-distant future, so it would be wise to wait for that, rather than trying to anticipate it.

[Paul Goggins (Wythenshawe and Sale East) (Lab)]

T6. The Bribery Act 2010 was due to be implemented in April, but Ministers confirmed yesterday that it will now be delayed. Is the Foreign Secretary not concerned that that delay could diminish the international reputation of British industry, even though most British companies behave perfectly ethically? The legislation passed through Parliament with all-party support.

[Mr Hague]

The reputation of British industry on that issue is very high throughout the world, and the reputation of the British Government—actually, of successive Governments—is high on that issue, too. Both parties in the coalition supported the Bribery Act when in opposition, we support it now, and it will be brought in rigorously, effectively and fairly.

[Damian Hinds (East Hampshire) (Con)]

The family of Dr Alastair Penney, who is shortly to be released from jail in Taiwan, are concerned about the arrangements for his transfer back to the UK—to ensure that any appropriate medical assistance can be given. Will my hon. Friend the Minister meet Dr Penney’s family to ensure that their concerns can be addressed?

[The Minister of State, Foreign and Commonwealth Office (Mr Jeremy Browne)]

I am aware of the case, and I pay tribute to my hon. Friend for the diligence with which he has pursued it. I shall examine it again, and, if it requires further work or a meeting with him and officials from my Department, I shall make the necessary arrangements.

[Lyn Brown (West Ham) (Lab)]

T8. Following the earlier question from my hon. Friend the Member for Inverclyde (David Cairns), it seems clear that the anti-homosexuality Bill that is before the Ugandan Parliament is creating terrifying conditions for lesbian, gay and transgendered people in Uganda. Will the Foreign Secretary consider the role that aid has to play in ensuring good human rights and in encouraging good governance?

[Mr Bellingham]

I am grateful to the hon. Lady for raising the issue again. Our high commissioner in Kampala has taken every appropriate opportunity to engage the Ugandan Government on the issue, and to make his views known on the anti-homosexuality Bill that was tabled in October 2009. I met President Museveni back in the summer, when I discussed the matter with him and made it very clear that we expected his Government to respect human rights, Christian rights, gay rights, and all rights.

[Mrs Anne Main (St Albans) (Con)]

Given the fluid and volatile situation in Egypt, my constituent, Mrs Hugget, and others do not wish to travel to Sharm el Sheikh. What advice can the Minister give them? Their travel companies are obliging them to take their holiday, even though they do not wish to go and their travel insurance will not apply.

[Mr Hague]

We take great care over our travel advice, and we review it not only day by day, but hour by hour. Of course, our concentration is on getting out of the difficult areas the British nationals who are stranded there and wish to leave. We constantly review the advice on the Red sea resorts, but I have to advise my hon. Friend that her constituents should keep in close touch with the travel company. If we feel it necessary to change the advice, we will do so and work with the travel companies in doing so.

[Mr Stephen Hepburn (Jarrow) (Lab)]

T9. Given the Navy’s policy of catch and release, is it not little wonder that the number of incidents of piracy and the average ransom demand have doubled over the past 12 months? Will the Minister take on board and bring up the idea of special courts in the region, so that we not only take the weight off Kenya, but bring more of those pirates to justice?

[Mr Bellingham]

Since the coalition Government came to power, the Navy have not apprehended any pirates and simply sent them on their way. That happened a bit in the past, but it does not happen under this Government. We take the whole issue of piracy incredibly seriously, but it is absolutely vital that we build regional capacity to detain, try and imprison the pirates.

[Geoffrey Clifton-Brown (The Cotswolds) (Con)]

My right hon. Friend might be aware that I was lucky enough to be able to witness the end of the referendum in south Sudan the other day, and to witness the jubilation of the people there. Nevertheless, there is huge corruption, very little infrastructure and very few skills to run a Government in that country. What role can the UK Government and the international community play in helping to form a new Government in south Sudan, if that is what the people have voted for?

[Mr Hague]

I think we have a major role to play, and so do many other nations throughout the world with extensive development budgets. It will be a huge task to create the institutions for a functioning new state in the south of Sudan, but we will be there to assist with that through a diplomatic presence, a development programme and the provision of expertise, so the south Sudanese will find in the United Kingdom and in many other nations people who are ready and willing to help.

[Mr Ben Bradshaw (Exeter) (Lab)]

The Foreign Secretary clearly understands the added urgency presented by events in Egypt and elsewhere in making progress on the middle east peace process. Is not now the time for the Quartet or the United States, or both, to present, in the admirable way that he did earlier at the Dispatch Box, their final framework for a settlement to the United Nations to help to break the impasse?

[Mr Hague]

A meeting of the Quartet is planned for this weekend. I hope that it will be possible for the Quartet or the United States to set out the parameters within which everyone should now be working on the middle east peace process. I cannot guarantee that that will happen, but the British Government would certainly like it to happen. We think there should be a real urgency to the middle east process, with a way back into the direct talks, and we are doing our utmost to assist in that. Over the past two weeks, I have held conversations about this with President Abbas, with the Israeli Foreign Minister and, of course, with Secretary Clinton. It is time, yes, to set out parameters, including basing a settlement on the 1967 borders.

[Mr David Burrowes (Enfield, Southgate) (Con)]

Following the latest meeting of the Secretary-General with both Cypriot leaders, will the Secretary of State reaffirm, not least as a guarantor power, this country’s commitment to seeing a solution to the problem of Cyprus, whose division has scarred both the island and Europe for far too long?

[Mr Lidington]

Yes, we remain committed to seeking a bi-communal, bi-zonal federation of Cyprus with respect for the human rights of all communities, and we very much hope that the current process led by the United Nations will be successful in reaching that outcome.

[Mr Elfyn Llwyd (Dwyfor Meirionnydd) (PC)]

The Foreign Secretary said earlier that he was helping south Sudan. No doubt he is pleased at the emergence of a new independent nation in the international community. What representations is he making about the deferred referendum in Abyei?

[Mr Hague]

There has been a referendum in the south of Sudan in which it is thought that 99% of people voted for independence. The hon. Gentleman should not get too excited about the parallels in this case. The question of Abyei is one of the outstanding issues that requires negotiation between north and south as part of the comprehensive peace agreement. It is the major stumbling block in those negotiations, which need to be completed before 9 July. The south of Sudan is heading for independence, and we are doing everything we can to assist, including offering expertise in the demarcation of the border. I have had two conversations with former President Mbeki of South Africa, who is trying to bring the parties together, and we will continue to give every diplomatic assistance.

[Andrew Bridgen (North West Leicestershire) (Con)]

Zimbabwe used to be part of the bread basket of Africa, but for many years now it has been a basket case. Events unfolding in Zimbabwe over the next 12 months may well shape its future for many years to come. What steps are Her Majesty’s Government taking to ensure free and fair elections in Zimbabwe and a return to true democratic government?

[Mr Bellingham]

I am grateful to my hon. Friend for asking that question. Zimbabwe is facing a dramatic year. We are working closely with the South Africans, who are putting together a road map towards credible elections. It is most likely that there will be a referendum on the new constitution some time this spring or summer. It is absolutely essential that it goes smoothly and that it is free and fair and completely credible, because it will be observed very closely as the forerunner for presidential and parliamentary elections possibly later this year or next year.

[Mr Denis MacShane (Rotherham) (Lab)]

The Secretary of State will shortly be appointing some very senior officials to some of the most important diplomatic posts of our nation. Will he assure the House that those who represent Her Majesty and the Government abroad, especially in Europe, speak and read, as the norm, a language other than English?

[Mr Hague]

Yes, British diplomats are renowned for their language skills. That is why I was very disappointed when the Government whom the right hon. Gentleman supported closed the Foreign Office language school two years ago. It is a difficult thing to put back together. I am now looking not so much at putting it back together but at increasing the learning of hard languages in the Foreign Office. I will be allocating additional funds—[Interruption.] This is the answer to the question. I will be allocating additional funds for the learning of hard languages in the Foreign Office. It is very important that people who go to embassies, including around Europe, are able to speak those languages.

[Paul Uppal (Wolverhampton South West) (Con)]

Probably the worst place in the world at the moment to be female or a child is the Democratic Republic of the Congo, where dreadful violations of human rights have been occurring, particularly in the east. Can the Secretary of State please give me his assessment of the current situation, especially as UN forces intend to withdraw in June this year?

[Mr Bellingham]

I share my hon. Friend’s concern about what is happening in the east of the DRC, particularly in the Kivus. We are working closely with a number of non-governmental organisations, and with MONUSCO, the UN mission in the DRC. We will focus relentlessly and tirelessly on the points that he raised.

[Several hon. Members]

rose—

[Mr Speaker]

Order. I am sorry to disappoint colleagues. It is clear that Members simply cannot get enough of the Foreign Office team, to whom we are grateful.

Child Benefit

Tuesday 1st February 2011 Commons Chamber

Madam Deputy Speaker (Dawn Primarolo)

- Hansard - - Excerpts

Order. Will hon. Members who are leaving the Chamber please do so quietly and as quickly as possible?

Sir Alan Beith (Berwick-upon-Tweed) (LD)

- Hansard - - Excerpts

I have pleasure in presenting the petition of my constituent, Mr Paul Francis Dodd.

The petition states:

To the Honourable the Commons of the United Kingdom of Great Britain and Northern Ireland in Parliament assembled.

The Humble Petition of Mr. Paul Francis Dodd,

Sheweth, that the Petitioner believes that the Government’s recent announcement regarding Child Benefit is unfair; that the Petitioner is a married man with a daughter aged 2 years; whose salary is £44,500 p.a., which is just inside the threshold for a higher rate tax payer; that the Petitioner’s wife gave up work to look after their daughter and has no income; and that from 2013 the Petitioner and his wife will not be entitled to receive Child Benefit.

Sheweth, that the petitioner believes that the Government’s proposals have two flaws; that a family with both parents earning a salary less than the higher-rate tax threshold, which could total around £88,000, will continue to receive the benefit; and that, if both parents earn a salary that is half that earned by the petitioner, £22,250, not only will they continue to receive the benefit, but they also receive two tax-free allowances for their salaries.

Sheweth, that the petitioner believes that revisions are necessary to the Child Benefit system; that the family income should be taken into account, not just the income of one of the individuals in a family; that the petitioner recognises that this is expensive, but he believes that it is the fairest way to judge a family’s income and hence its needs for benefit; that, if this is not possible, then a gradual phasing out of the benefit for earners over the higher rate tax threshold would be very easy to implement; that it would be easy to reduce Child Benefit by one percentage point for every £1,000 earned over the higher rate tax threshold; that this would still leave a majority of the benefit for those earners, such as the petitioner, who only just enter this limit; and that it would also remove Child Benefit for those who earn over £144,000.

Wherefore your petitioner prays that your honourable House urges the Government to review its policy on Child Benefit.

And your petitioner, as in duty bound, will ever pray, etc.

[P000882]

Points of Order

Tuesday 1st February 2011 Commons Chamber

15:35

[Mike Gapes (Ilford South) (Lab/Co-op)]

On a point of order, Mr Speaker. Early in Foreign Office questions, the Foreign Secretary referred to a written statement that was tabled today. I went to the Vote Office during questions and tried to get a copy of that statement. It was not there. I was told that the Library had received it at 10.10 this morning, but that copies were not available in the Vote Office. Please can we ensure that Departments make sure that the Vote Office gets statements, particularly those that are referred to directly in the questions that are taking place at the time?

[Mr Speaker]

I thank the hon. Gentleman for his point of order. It has been characteristically courteously noted by the Foreign Secretary on the Front Bench. I am happy to look into the matter on this occasion.

[Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

On a point of order, Mr Speaker. Last Thursday in Transport questions, I asked the Secretary of State for Transport whether the Government’s serious proposals concerning the coastguard were accompanied by a proper risk assessment. He replied:

“Of course the proposals have been risk-assessed.”—[Official Report, 27 January 2011; Vol. 522, c. 436.]

However, I was told in Stornoway yesterday and at a briefing in the House of Commons this afternoon by the chief executive of the Maritime and Coastguard Agency that no formal risk assessment has been done on the Government’s serious proposals for the reorganisation of the coastguard. Those proposals worry people in my constituency quite a lot, given the weather and the volume of traffic. Can we have the Secretary of State for Transport back in the House to clarify exactly what is happening and, with a bit of luck, to bring forward the risk assessment that he said had been done?

[Mr Speaker]

I thank the hon. Gentleman for his point of order. He has placed his concerns on the record. There are established procedures for the correction of ministerial statements or answers if and when it is necessary.

NHS Acute Medical and Surgical Services (Working Time Directive)

Tuesday 1st February 2011 Commons Chamber

Motion for leave to bring in a Bill (Standing Order No. 23)

15:37

[Charlotte Leslie (Bristol North West) (Con)]

I beg to move,

That leave be given to bring in a Bill to require the Secretary of State to conduct an assessment of the impact of the European Union Working Time Directive on NHS acute medical and surgical services; to require the Secretary of State to make provision to exempt NHS acute medical and surgical services from the European Union Working Time Directive in the light of that assessment if certain conditions are met; and for connected purposes.

Before I start, I must declare an interest. My father has been a consultant orthopaedic surgeon in Bristol for more than 30 years and has just retired. If growing up in a medical family has taught me anything—I have seen the NHS under a succession of Conservative and Labour Governments—it is that politicians must listen to the professionals who know the most about the NHS, medicine and patients: the doctors. If politics is to serve the place outside these four walls, it has to get real. It has to listen to real people and get lessons from the real professionals working in our hospitals today.

I bring the Bill before the House for one reason: the people who know best about patient care—the doctors—have been raising the alarm to say that the 48-hour European working time directive is endangering patient safety. That is serious, and it is not what the directive was ever intended to do. The directive was designed to ensure that workers were not subjected to overlong working hours and were entitled to reasonable pay and conditions, time off and paid leave. In reality, that well-meaning directive is endangering patient safety in four key ways. I will expand on those four factors in the brief time that I have, because I believe that they speak for themselves. First, continuity of care is being eroded. Secondly, trainee doctors are being denied the training that they need. Thirdly, appropriate clinical expertise is not available to patients when they need it, and fourthly, I add with a certain grim irony that junior and senior doctors are more exhausted by the shift rotas that the directive imposes than they were before.

I shall elaborate. Continuity of care is sometimes an overlooked factor of medical health care, but it is absolutely key. It is what allows professionals to use their professional expertise on a patient. That link between the patient and the person caring for them is vital, but the shift rota system that has been imposed under the European working time directive has meant that there are far more handovers of patients to a new doctor. At those handover points, complications arise because crucial information can be missed out and not passed on. Handovers did occur under the old system, but they were far less frequent.

From the patient’s point of view, the shift system has meant that instead of having one or two doctors whom they know and begin to trust, and who have seen them from the beginning to the end of their treatment, patients are subjected to a seemingly never-ending conveyor belt of doctors. From the doctor’s point of view, there is a kind of patient pass the parcel. That absolutely must stop. It is no good for the patient’s care, no good for their experience of their treatment and it is clinically risky. In fact, a third of all doctors have said that since the European working time directive was implemented, they have seen significant deterioration in patients over the handover period.

The training of our doctors for the future is also suffering. The Royal College of Surgeons has estimated that 400,000 hours of surgical time are lost every single month. It does not take a genius to work out that if the trainees are not getting the hours in, they cannot get the training that they need. Two thirds of trainees have said that they have seen significant deterioration in their training in the short time that the working time directive has been fully implemented. The irony is that the directive was supposed to alleviate the exhaustion of junior doctors, but because all their hours are clumped together in one go, it has actually led to more exhaustion. More exhausted doctors are getting less training, and it does not need me to expand on that for all Members to see that it is madness.

Particularly worrying from a patient’s point of view is that clinical expertise is not there when it is needed. If there are fewer people available, there are fewer specialist doctors when they are needed. For example, a doctor has told me that whereas before there would have been an orthopaedic senior house officer, a urology junior doctor and a general surgery SHO on duty at night in case any complications arose, under the working time directive, there might be only the general surgery SHO. If a complication arises with a patient’s treatment, they will not have the specialist doctor available to them that they would have had before the directive was imposed.

Attempts to solve the problem are very expensive, and I do not just mean the human cost, which is obviously the key issue. There is also the economic cost. The attempts to patch up the gaps left in the provision of health care professionals and doctors has led to an explosion in the number of NHS hospital locums being employed. The cost of that to the public purse has doubled in the past two years to a staggering £700 million, and the cost of surgical NHS locums has also doubled.

This cannot be allowed to continue. No one is advocating a situation in which junior doctors work too long to be able to perform their job, and the RCS has mentioned a 65-hour working limit. However, under the current arrangements, doctors are more exhausted, there is less training and patient safety is being compromised. That was never the intention behind the directive, and there are ways in which the Government can act. The police and armed forces already have an exemption from the directive. My Bill calls for the reality of the European working time directive to be assessed properly and for appropriate action to be taken to allow doctors to look after their patients in the way that they intended when they went into the profession.

We all have constituents who are patients and those who are junior doctors. No Member would seek to put their constituents’ safety at risk, and no Member would seek to stifle junior doctors’ desire and ability to perform the job that they went into the profession to do. That is why I seek to bring the Bill before the House.

Question put and agreed to.

Ordered,

That Charlotte Leslie, Dr Phillip Lee, Jack Lopresti, Craig Whittaker, Dr Sarah Wollaston, John Hemming, Rebecca Harris, Nick de Bois, Damian Hinds, Stephen Phillips and Stephen Barclay present the Bill.

Charlotte Leslie accordingly presented the Bill.

Bill read the First time; to be read a Second time on Friday 10 June, and to be printed (Bill 140).

European Union Bill

Tuesday 1st February 2011 Commons Chamber

[5th Allocated Day]

[Relevant document: The Fifteenth Report from the European Scrutiny Committee, The EU Bill: Restrictions on Treaties and Decisions relating to the EU, HC 682.]

Further considered in Committee

[Mr Lindsay Hoyle in the Chair]

Clause 15

Protocol on MEPs: approval, and addition to list of treaties

Question proposed, That the clause stand part of the Bill.

15:46

[The Minister for Europe (Mr David Lidington)]

The first set of clauses under consideration in Committee this afternoon relate to the transitional protocol on Members of the European Parliament, which is covered in clauses 15, 16 and 17, and schedule 2. In sum, the provisions allow for a technical change that permits a temporary increase in the number of MEPs, including one additional Member from the UK.

It might be helpful to give some background to the protocol before turning to the detail on the clauses, so that colleagues on both sides of the Committee understand the context of our proposals. The European Union treaties, as amended by the treaty of Lisbon, provide for the allocation of 18 additional MEPs to 12 member states, including one additional MEP for the UK. The treaties also provide that the number of MEPs from Germany should be reduced by three. However, the treaty of the European Union, as amended by Lisbon, states that the European Parliament shall not exceed 750 members in number, plus the President, which makes a total of 751, and that no single member state will be allocated more than 96 seats. Before the Lisbon treaty, Germany had 99 MEPs. Its allocation has therefore been reduced to 96 seats to fit within the maximum number permitted by the treaties.

The TEU also states that the European Council shall adopt a decision establishing the composition of the European Parliament. Article 2 of protocol 36 to the treaties—on transitional provisions—reaffirms that and states that the decision

“shall be adopted in good time before the 2009 European Parliament elections”.

However, as the Committee will be aware, given the Irish rejection of the Lisbon treaty in its first referendum on the matter and the additional guarantees sought by Ireland in 2009 in the wake of that, there was a delay in the ratification of the Lisbon treaty by all member states—personally, I wish it had been more than a delay—and therefore a delay to the treaty entering into force.

As a result, and contrary to the relevant provision in the TEU, the 2009 European elections actually took place before any European Council decision was adopted. Those elections were therefore held in accordance with the provisions of the Nice treaty, under which the European Parliament comprises 736 MEPs.

The European Council had already agreed what to do in that situation. Back in December 2008, it agreed that, should the Lisbon treaty come into force after the 2009 European parliamentary elections, a transitional protocol would be agreed to permit those member states that gained MEPs as a result of the Lisbon treaty to elect their additional MEPs during the current European parliamentary term. This would mean that they would not have to wait until the next round of European parliamentary elections in 2014, when those changes would come into force automatically, in accordance with the treaty of Lisbon.

The arrival of 18 additional MEPs during the 2009-14 parliamentary term increases the number from 736 to 754—three more than the maximum permitted by the EU treaties, and transitional arrangements are therefore needed to enable the number of MEPs to exceed temporarily the limit of 751 laid down in article 14(2) of the treaty on European Union.

[Mrs Anne Main (St Albans) (Con)]

I thank the Minister for giving way on the statistics about the number of MEPs. Does he have any figures showing how much these additional MEPs are costing us while we wait for the correct number to be arrived at?

[Mr Lidington]

I am glad to be able to tell my hon. Friend that the cost of these additional MEPs will be provided for out of the European Parliament’s budget; no additional contribution is required from the United Kingdom or any other member state. That is perfectly right, and the European Parliament will already have made provision in its budget for these additional costs.

The European Council also agreed that the transitional protocol should provide that the three German MEPs who would no longer have a seat in the European Parliament would not have to stand down in the middle of their term of office, because it is not possible under the treaties to curtail an MEP’s mandate during a parliamentary term. In order to make the required transitional changes, the member states of the EU agreed to a transitional protocol at a limited intergovernmental conference on 23 June 2010, under the ordinary revision procedure. Although the ORP was used, the European Parliament had previously agreed not to convene a convention of representatives of the EU institutions, member state Governments and national Parliaments, because the European Parliament recognised the very limited scope of the proposed treaty change.

The IGC was convened in the margin of the Conference of Permanent Representatives—known as COREPER—with the agreement of Ministers of each member state. IGCs are occasionally convened in COREPER meetings for single-issue matters, such as the approval of appointments of judges to the Court of Justice, and one was used on this occasion because the treaty change in question concerned a single, time-bound issue already agreed by the Heads of Government and Heads of State at the European Council, rather than a more substantial renegotiation or re-opening of the EU’s treaties. I then announced to the House via a written ministerial statement on 6 July last year, at column 7WS, that the transitional protocol had been agreed.

As with any treaty change, the protocol now requires that all member states ratify it before it can enter into force. As I have already made clear in our earlier debates in Committee, it is for each member state, when it comes to any treaty amendment, to determine whether and how it carries out its own national procedures for approval and ratification. In the United Kingdom at present, any amendment to the EU treaties conducted under the ordinary revision procedure—as was the case here—can be ratified by the UK only if it is approved by Act of Parliament. This is set out in section 5 of the European Union (Amendment) Act 2008.

Parliamentary approval of the transitional protocol is therefore required by Act before the protocol can be ratified in the UK. Clause 15 of the Bill therefore provides for this parliamentary approval. Subject to Parliament’s approval, the legislation will of course require that any treaty change conducted under either the ORP or the simplified revision procedure would in future need parliamentary approval by Act. Since what we are debating is a technical change to the treaty that relates merely to the number of MEPs, and does not transfer any power or competence from the UK to the EU, it does not meet the requirements to hold a referendum. However, as the provisions in the 2008 Act require approval by Act of Parliament, we have decided to use them to seek the approval of Parliament. Section 5 of the 2008 Act would subsequently be repealed, as a consequence of clause 14, and replaced by the provisions in clauses 2 and 3 in any future decisions.

It is important to note that the additional MEPs are entitled to take their seats following the next European parliamentary elections in 2014 in any case, regardless of what the Committee determines this afternoon. The transitional protocol simply means that those people will be able to do that earlier than 2014, because the treaties would have provided for their election in 2009 had the Lisbon treaty been in force then, as was anticipated by the then Heads of Government and Heads of State. At the 2014 European parliamentary elections the additional MEPs, along with every other MEP, will be elected in the usual way, according to each member state’s practice. As none of the additional MEPs could take up their places until every member state had ratified the transitional protocol, the Government have continued with our predecessor’s approach, and we now seek Parliament’s approval to ratify this treaty change.

The protocol states that it will enter into force on 1 December 2010, provided that all the instruments of ratification have been deposited. Failing that, the protocol would enter into force on the first day of the month after the last member state ratifying the protocol had done so. Clearly we have passed that somewhat ambitious deadline already, and it is for each member state to decide whether, how and when to approve ratification. However, it is our intention to ratify as soon as possible, subject to Parliament’s approval. As I have made clear, we are discussing a short-term transitional measure, until the next European parliamentary elections, which are due to take place in June 2014. It does not transfer power or competence, and so does not require the people’s consent in a referendum, but it is a treaty change. As such, it requires the approval of this Parliament through primary legislation. I hope that members of the Committee will be able to approve this temporary measure.

[Emma Reynolds (Wolverhampton North East) (Lab)]

Let me say at the outset what a pleasure it is again to be debating the Bill with the Minister and the select group of Members currently in the Chamber. We welcome the provisions that the Government have set out to give parliamentary approval to the allocation of the UK’s extra seat in the European Parliament. Having worked in the European Parliament for some time, I know the important role that it plays, but I would like to ask the Minister some questions of clarification.

Can the Minister clarify why the so-called Sainte-Laguë process was chosen to allocate the UK’s extra seat in the European Parliament to the west midlands region? I understand that the method was set out in the Electoral Commission report in October last year. What consultation took place between the Government and the Electoral Commission on choosing that method? Was a joint decision made, or was it the decision of the commission or the Government? Did the Government consider any other method to allocate the extra seat, and if so, which? Which methods are being used by other member states to allocate extra seats?

The explanatory note says that the west midlands had the lowest number of electors per MP according to the current electoral register, and on that basis the decision was made to allocate the extra seat. It is perhaps ironic that, although the west midlands will be given one extra MEP, owing to the Government’s plans it is set to lose several MPs. Which electoral register did the Government consider when making their decision: the one from December last year or the year before? Can the Minister tell the Committee what progress other member states are making on ratifying the protocol to increase the number of MEPs, and when he expects the UK to take up its extra seat in the European Parliament?

[Mr Denis MacShane (Rotherham) (Lab)]

The Minister and my hon. Friend have set out clearly the technical reasons for adopting the clause, and I am sure that the Committee will not divide on it. Let me also tell the Minister that it is a great pleasure to have someone on the Front Bench from this Government advocating an increase in parliamentary representation. Whereas the other place so long resisted the culling of foxes, we are shortly to have a sharp culling of MPs, with a reduction in representation. It is therefore good that we are increasing representation in the European Parliament under the current proposal.

[Mrs Main]

I am listening with interest to the right hon. Gentleman on the issue of increasing the number of Members. Does he not share my concern that any increase in the number of elected Members will also see a proportionate increase in costs, pensions and office staff, which, sadly, this country cannot choose to afford?

[Mr MacShane]

The hon. Lady is quite right, but if she checks the debates on the great Reform Bill of 1832, she will find that exactly the same point was made—that any increase in representation in this country would place an unbearable cost on the Exchequer.

16:00

Let us return to the clause, which is relevant to the European Parliament. During the period in which the Minister stays in office—I hope he stays there for a long time, or for as long as this Government exist—I invite him to see whether he can find allies in Europe for re-examining the way in which the European Parliament is constituted and elected. The European Parliament and its 750 Members are presently elected in one fell swoop and often in response to national political feelings for the Government of the day. To Strasbourg, then, are sent the opponents of whoever might be the national Government of the day. The European Parliament vote is often a protest vote—not in all countries, but in many, including very much our own.

Could we look at electing the European Parliament in the same way as the American Senate—in thirds every two or three years, rather than in one fell swoop through an election every five years? Could we allocate some European Parliament seats following the election of national Parliaments so that the people in the European Parliament more adequately reflected the will of the people as expressed in individual nation states? We have 750 Members of the European Parliament in comparison with about 7,000 to 8,000 national parliamentarians, who feel excluded largely from the European decision-making process.

As I patrol the different European capitals, I find that issue to be one of increasing concern—and it does not matter whether one is a pro-European or a Eurosceptic. Whether they are parliamentarians in the Bundestag or the Assemblée Nationale, in the Cortes in Spain or the Riksdag in Sweden, they do not feel as nationally elected MPs that they have much say over the decisions that relate to European Union membership—decisions either taken by national Governments on our behalf or taken collectively by the European Union. Might there be a case for an upper House in the European Parliament, nominated by—

[The Chairman of Ways and Means (Mr Lindsay Hoyle)]

Order. Upper Houses are not relevant to this stand part debate, so let us stick to the clause. I am sure that Mr MacShane will want to come back to that subject.

[Mr MacShane]

I am tempted to say—though, thank goodness, oral amendments are not allowed in Committee of the whole House—that the increase in MEPs at the heart of this part of the Bill could be allocated to representatives from national Parliaments at some future date. I am just stretching the limits of order—[Interruption.] I am about to sit down, Mr Hoyle. I am inviting the Minister to open a debate about how to make the European Parliament more representative and more reflective of the national will in the different countries that constitute the EU. That might require a small treaty change, but not, I am sure, a significant one, so we would not need to initiate the referendum provisions.

We often knock the European Parliament because of expenses or costs or decisions it has taken that we do not like, which is frankly rather childish. What we need is a more serious debate about making the European Parliament more effective, more efficient and more representative—leaving aside those who want to abolish it or to withdraw completely from it. I invite the Minister to engage with that debate, although he may well hope that once proceedings on the Bill are concluded there will be no more debate about the EU on his side of the House for the next few years.

[Mr Richard Shepherd (Aldridge-Brownhills) (Con)]

Does the right hon. Gentleman not give any weight to what the German constitutional court said in respect of democracy—that it lies not in the institutions of the European Union or its Parliament, but in those of the national state?

[Mr MacShane]

The Verfassungsgericht in Germany, of course, sees the German people—das Volk—as the sovereign, and distinguishes clearly between the Bundestag and the Bundesrat. It allocates powers on a subsidiary basis—

[The Chairman of Ways and Means (Mr Lindsay Hoyle)]

Order. Again, we really are drifting from the subject, and we must return to it. The right hon. Gentleman said earlier that he was winding up his speech, but he is now broadening it again.

[Mr MacShane]

Not many Members wish to speak, Mr Hoyle, so I was trying to reply to the hon. Member for Aldridge-Brownhills (Mr Shepherd), but I now invite him to read some expert books on the subject instead.

[Kelvin Hopkins (Luton North) (Lab)]

rose—

[Mr MacShane]

For the last time—because mine was intended to be a very short speech—I give way, as always, to my hon. Friend.

[Kelvin Hopkins]

I thank my right hon. Friend, as always, for being so generous.

No doubt we should welcome the extra seat in the European Parliament as a small extension of democracy, but my right hon. Friend is right about accountability. Would it not be a good idea for some powers to be repatriated to national Parliaments, and would it not also be a good idea to return to single-Member, first-past-the-post seats in the European Parliament? Would that not increase accountability?

[The Chairman]

Order. That has absolutely nothing to with the clause. I think that the right hon. Member for Rotherham (Mr MacShane) had better sum up his speech now.

[Mr MacShane]

Might my hon. Friend possibly accept that on this occasion I really must bow to the Chair and sit down?

[Mr Lidington]

A number of the questions posed by the hon. Member for Wolverhampton North East (Emma Reynolds) invited me to move from clause 15 to clauses 16 and 17. If you are willing to allow me to stray on to that territory, Mr Hoyle, I shall be able to reply to her questions now and perhaps speak more formally later when we deal with those clauses; otherwise I shall have to delay my responses to her.

The right hon. Member for Rotherham (Mr MacShane) made his points very forcefully. I agree with him that there is a disconnection between decisions made by national legislatures in just about every member state and decisions made in the European Parliament—or in Europe more generally—on behalf of those countries, and I think it important for us to consider how to remedy that democratic deficit. However, I do not want to be drawn into a detailed discussion about the treaty changes which would need to be debated and negotiated to produce the outcome that the right hon. Gentleman seeks, and which would have to command unanimous agreement among all member states and, indeed, the European Parliament itself.

Let me say two things about the European Parliament. First, it does an important job. Whatever view I, or any other Member present, may take on whether or not it should have particular powers, my contacts with MEPs of all parties have given me the impression that, for the most part, they take their duties of scrutinising and seeking to amend European legislation very seriously. As a Government and as a Parliament, we need to have regard to and engage consistently with MEPs if we are to pursue successfully the national objectives of the United Kingdom through the European Union.

Secondly, I agree with the right hon. Gentleman that there is an unhealthy democratic gap between the way in which the European Parliament operates and the— in my opinion—correct belief held by most national legislatures that they are more directly accountable to the voters in their respective countries than are MEPs. That is, perhaps, particularly true in the United Kingdom, where there is a significant difference in the method of election: while MEPs are elected through a regional party list system, we in the House of Commons are elected to single-Member constituencies. The right hon. Gentleman has sketched what has the makings of a fruitful debate in the months and years to come.

Let me now deal with the various detailed points made by, in particular, the hon. Member for Wolverhampton North East. While I am tempted to deal at length on differences between the Sainte-Laguë and d’Hondt methods, that would probably reduce the number of Members attending the debate even further. I am happy to offer a seminar. [Interruption.] My hon. Friend the Member for Stone (Mr Cash) indicates that he does not wish to be drawn into a debate about the respective merits of Sainte-Laguë and d’Hondt.

[Mr MacShane]

Let us leave Sainte-Laguë and d’Hondt. Is the Minister in favour of the alternative vote? That is what the Committee and the nation want to know.

[Mr Lidington]

No.

The answer to the question asked by the hon. Member for Wolverhampton North East is that the Electoral Commission decided to use the Sainte-Laguë method following various consultations that it had carried out. There is a debate about whether we should move to that method when it comes to deciding how to elect Members of the European Parliament, but that is a matter for a future occasion.

[Emma Reynolds]

Will the Minister clarify whether the d’Hondt system was considered by the Electoral Commission in allocating the extra seat?

[Mr Lidington]

The hon. Lady knows that the Electoral Commission is completely independent of the Government, so that question should properly be addressed to the chairman and the chief executive of the commission.

The history of this process is that on 22 September 2010 the Minister with responsibility for political and constitutional reform, the Parliamentary Secretary, Cabinet Office, my hon. Friend the Member for Forest of Dean (Mr Harper), wrote on behalf of my right hon. Friend the Deputy Prime Minister to the chair of the commission formally requesting a recommendation under section 3 of the European Parliament (Representation) Act 2003 as to which of the 12 UK electoral regions, for the purposes of European parliamentary elections, should receive the UK’s additional MEP seat. UK MEPs are, of course, elected on a regional basis from 12 electoral regions—Northern Ireland, Scotland, Wales and nine regions in England. In making the recommendation for the distribution of any Member of the European Parliament, the Electoral Commission is obliged to ensure that each electoral region is allocated at least three MEPs and that the ratio of registered electors to MEPs is, as far as possible, the same in each electoral region. The Electoral Commission process is independent of Government and, importantly, the Government are bound to accept its recommendation.

In allocating the seat, the Electoral Commission applied the Sainte-Laguë method, as the hon. Lady has said, following previous consultation exercises it had undertaken on the method to be used. It has indicated that the system has the advantage of enabling it to adhere to its statutory requirement that the ratio of registered electors to MEPs is as nearly as possible the same in each electoral region. On 26 October 2010, the Electoral Commission recommended that the west midlands should be allocated the additional MEP provided for in the transitional protocol, and published a report to that effect, a copy of which was placed in the Library. My hon. Friend the Minister with responsibility for political and constitutional reform confirmed the commission’s decision to the House via a written ministerial statement on 26 October 2010—column 7WS in Hansard. Let me place on the record now, as my hon. Friend did at the time, the Government’s thanks to the commission for its work in producing that recommendation.

The hon. Lady is right that population trends and electoral numbers change over time. The answer to her direct question is that the December 2009 electoral register was used in making the calculation and the recommendation that the west midlands should receive the additional seat, but I want to make it clear to the Committee today, as the Government have stated publicly on previous occasions, that if it became likely while the Bill remained under consideration by either House that any changes to electoral registration data would result in a different UK electoral region gaining the seat, we would seek a revised recommendation from the Electoral Commission. We have acted on the basis of the December 2009 register, but if the evidence of new registers suggests that a region other than the west midlands should get the seat, we would revert to the commission for a further recommendation.

16:15

[Mr Wayne David (Caerphilly) (Lab)]

We are, of course, in a rather unusual situation with European Parliament elections, in that Gibraltar is included, and Gibraltar shares Members of the European Parliament with the south-west of England. What methods for determining the electors in Gibraltar have been used in the calculations?

[Mr Lidington]

I think that is a matter for the Electoral Commission. It advises that it has used the Sainte-Laguë method throughout, and in comparing electorates for each region it would have taken the Gibraltar electorate into account when making its calculation for the south-west. I undertake to double-check what I have just told the hon. Gentleman; if I have inadvertently led him up the garden path, I will of course correct that on the record, but I have confidence that the Electoral Commission has done its job properly.

[Mrs Main]

I am listening with profound interest to my hon. Friend’s remarks. Does he share my concern that, to the public outside, seemingly topping up the gravy train rather than culling it—perhaps expanding the size of the electorate for existing MEPs rather than increasing the number of MEPs—might not, in today’s environment of cuts, be met with a degree of approval?

[Mr Lidington]

The changes to the distribution of MEPs between member states arose from new calculations about the populations of the different member states. Just as we have boundary reviews from time to time in the United Kingdom to reflect the growth of electorates in some places and the reduction in others, it is right that such a process should take place at the European level.

My hon. Friend makes a more fundamental point in her intervention, in implicitly arguing that there should be a significant overall reduction in the number of European legislators. I understand that argument, and I am certainly very much in the camp of those who argue that the European Parliament, like every other European Union institution, should be looking to reduce its expenditure rather than expect it automatically to increase. I would say just one word of caution to my hon. Friend, though. One consequence of reducing the number of MEPs overall would be either that the representation of the smallest member states would disappear completely or, if they were allowed a guaranteed minimum number of MEPs, that they would be disproportionately over-represented compared with the larger member states. The larger member states, such as ourselves, would suffer the greatest cuts in our representation if the smallest were protected, and potentially see a reduction in our influence over the European Parliament.

[Kelvin Hopkins]

It has just struck me that my right hon. Friend the Member for Rotherham (Mr MacShane) suggested a two-house European Parliament. I am not an enthusiast for that, but in those circumstances could you not have an arrangement similar to that for—

[The Chairman of Ways and Means (Mr Lindsay Hoyle)]

Order. We have already ruled on that question.

[Mr Lidington]

I think the hon. Member for Luton North (Kelvin Hopkins) is demonstrating that he has political ambitions as yet unfulfilled.

I can now assure the hon. Member for Caerphilly (Mr David) that expert advice has reached me confirming that my trust in the Electoral Commission was well placed and that the electorate of Gibraltar were indeed considered in the context of the south-west region and assessed in accordance with the Sainte-Laguë system.

The hon. Member for Wolverhampton North East asked me about the different options for selecting the additional MEPs. The protocol allows member states to choose between three options. First, member states could use the 2009 European parliamentary election results and elect the additional MEPs as if the additional seats had existed at the time of those 2009 elections. That is the method that we have chosen.

The second option would be to hold a by-election. In this case, that would mean holding a by-election in the west midlands region for a single MEP at an estimated cost of perhaps £10 million. The third option would be for member states to appoint temporarily one of their national parliamentarians to become the new MEP for the remainder of the current European parliamentary term. [Interruption.] The hon. Member for Wolverhampton North East indicates that the hon. Member for Luton North or perhaps the right hon. Member for Rotherham (Mr MacShane) might be candidates in such circumstances.

The previous Government decided in February 2010 that the UK’s additional MEP would be elected by reference to the results of the most recent European parliamentary elections, as though the additional seat had existed at that time. The present Government have continued our predecessor’s chosen approach, and the clauses are framed in that way. That is also the method used by the great majority of other member states that are gaining MEPs. In fact, some member states elected additional MEPs during the 2009 elections on the basis that they could take up their seats only once the transitional protocol had come into force.

Our chosen method avoids the delay and the cost associated with a by-election and would allow us to return the additional MEP as soon as possible after the approval of the relevant provision in the Bill. It also has the merit of being exactly the same method that we use in any case to fill a vacant British seat in the European Parliament after the death or resignation of an elected MEP. Again, these clauses and schedule 2 would apply only until the additional seat had been filled and until the next European parliamentary election, which is scheduled for 2014.

Question put and agreed to.

Clause 15 accordingly ordered to stand part of the Bill.

Clause 16 ordered to stand part of the Bill.

Clause 17

Election of additional MEP

Question proposed, That the clause stand part of the Bill.

[Mr David]

May I briefly ask the Minister an additional question on the extra MEP, simply to gain some broader context? He mentions correctly that other member states have additional MEPs. Of course, as he points out, all member states must agree to adopt the necessary legislative procedures to bring about such MEPs, but what is the time scale? We are dealing with the situation now. I wonder whether other EU member states have had an opportunity to alter their legislation to bring out such MEPs. Are we waiting for them to do so? What is the time scale? That obviously has a bearing on when the MEP from the west midlands can take her seat.

[Mr Lidington]

I am grateful to the hon. Gentleman, and I apologise for having overlooked that question when it came from the hon. Member for Wolverhampton North East (Emma Reynolds). The most sensible thing for me to do would be to write to the hon. Gentleman with a full list and to deposit a copy of that letter in the Library for the information of all Members. However, the latest information available to me is that in respect of the other member states that are gaining MEPs—or, indeed, other member states generally, because the protocol must be ratified by all 27 of them, whether they gain or lose MEPs, or whether there is no difference in the number of MEPs from a country—something like two thirds to three quarters of member states have reached the stage of notifying their accession to the proposal, but others have not done so. Germany, for example, has debated the measure in the Bundestag, but my understanding is that Germany has not yet ratified it. We are awaiting news on where France is going. Some of the others, including Hungary, the Czech Republic, Sweden, Bulgaria, Slovakia and Malta, have gone a considerable distance towards ratification already, but we are not right at the back of the pack, by any means. My expectation is that this measure will probably be ratified by all 27 member states later this year, but it could slip into 2012, because each member state can decide how high a priority it gives to this measure. I hope that that gives the hon. Gentleman an adequate holding answer for now, but I undertake to write to him with chapter and verse as soon as possible.

Question put and agreed to.

Clause 17 accordingly ordered to stand part of the Bill.

Schedule 2

Election of additional MEP

Question proposed, That the schedule be the Second schedule to the Bill.

[Mr Lidington]

It might be helpful if I set out in a little more detail the provisions in schedule 2, because it also deals with the procedures to be followed in the admittedly unlikely event that we were unable to fill the vacancy for the additional MEP by looking at the party lists as they were constituted in 2009.

As I have explained, clause 17 provides for the method of electing and returning the UK’s additional MEP. Schedule 2 provides a series of detailed provisions to be used when undertaking the process to return that additional MEP. As a first step, the regional returning officer for the designated region—in this case, the west midlands—would be required to identify which registered party would have won the additional seat in accordance with the results of the European parliamentary elections of 4 June 2009, as though that seat had already been allocated to the west midlands at that time. Since there were no independent candidates in the west midlands at the 2009 elections, the schedule provides only for allocation to a registered party.

The regional returning officer would then be required to identify from the registered party’s list of candidates at the 2009 elections the candidate whose name appeared highest on the list. In doing so, the returning officer has to disregard those people who have already been returned as MEPs, or who have since died. For example, if the registered party had proposed six candidates in an electoral region and the first three candidates on that party’s list had been returned as MEPs, the returning officer would identify the fourth candidate on that party’s list as the next person to be returned as an MEP. That person is referred to as the first choice.

Schedule 2 provides that the returning officer then has a duty to contact the first choice to ask whether he or she will provide written confirmation of their willingness and their ability to be returned as the MEP. The returning officer would also ask the first choice to deliver a certificate signed by, or on behalf of, the nominating officer of the registered party, confirming that he or she may be elected.

Schedule 2 further sets out the process to take place if the returning officer is unable to contact the first choice candidate or if that person confirms that, for whatever reason, they are unwilling or unable to stand, or if they do not provide the certificate required by law. In order to maximise the independence of the process, and to make it clear that there is no Government gerrymandering involved, it shall be at the discretion of the regional returning officer to determine the length of the “reasonable period” involved.

If there has been no success with the first choice candidate, the returning officer should identify the next name on the registered party’s list of candidates. This candidate is referred to in the schedule as the subsequent choice, and the returning officer shall repeat the same process with that candidate. This process will continue until either the seat is filled or there are no more names on the registered party’s list of candidates.

Schedule 2 then sets out what would happen if the first choice candidate provided the required documentation after the regional returning officer had determined that it was appropriate to move on to the next individual. In that case, schedule 2 provides that the so-called prior choice would have forfeited their opportunity because they had previously been given adequate opportunity by the returning officer to provide the relevant documentation within a reasonable time. They would have to wait to see whether the process could be completed successfully with the current candidate being approached by the regional returning officer. If the returning officer had no success with that subsequent candidate, the earlier candidate could be allowed at that stage to provide documentation and stake a claim.

The schedule then sets out the process to take place when a candidate has returned the required documentation to the satisfaction of the regional returning officer. The returning officer has to declare publicly in writing that that person should be returned as an MEP, prepare a public statement containing relevant information concerning the process, and send copies of both documents to the Secretary of State.

[Mrs Main]

The scenarios that my right hon. Friend has outlined are obviously hypothetical, but in a hypothetical scenario of, say, six candidates when three or four have been elected and the other two are, say, dead, what happens then?

16:30

[Mr Lidington]

My hon. Friend makes a valid point. It is right that in drafting legislation, particularly on a matter as important as democratic representation, we make provision even for unlikely eventualities. If my hon. Friend will bear with me for a few seconds, I shall come to precisely the point that she identified.

When the returning officer has sent copies of the documents to the Secretary of State, the candidate will be confirmed and will be free to take up their seat as soon as the transitional protocol has entered into force. That depends on ratification having taken place in every member state.

Here I come to the point raised by my hon. Friend the Member for St Albans (Mrs Main). Schedule 2 also provides that, in the event that none of the candidates on the relevant 2009 list was available or willing to be returned as an MEP, as a last resort a by-election would be held to fill the seat.

[Nick Boles (Grantham and Stamford) (Con)]

Will my right hon. Friend tell us whether these provisions are to apply only once, in one particular case at one particular time? Is it not the case that we know perfectly well who would be most likely to benefit from the provisions? Is it not also the case that we know that she is alive and wants to be a Member of the European Parliament? Would it not be quicker just to elect Anthea McIntyre as a Member of the European Parliament for the west midlands and move on to the next clause?

[Mr Lidington]

My hon. Friend, as always, reminds us of practicalities and of the real world. As I said to our hon. Friend the Member for St Albans, the legislation for democratic representation must make provision for all conceivable eventualities, even if they seem highly improbable to us.

[Jacob Rees-Mogg (North East Somerset) (Con)]

If the Bill were simply to say that Anthea McIntyre were elected, it might be in danger of becoming hybrid legislation.

[Mr Lidington]

I bow to my hon. Friend’s constitutional knowledge. I suspect that having the Bill declared hybrid is the last thing that any of us want.

If we reached circumstances in which none of the candidates from 2009 was available or willing to be returned, a by-election would be held. The returning officer would confirm to the Secretary of State that the seat could not be filled, and the Secretary of State would lay an order by statutory instrument to specify the date of a by-election. I stress that the by-election is very much a last-resort option, and that, given the short time between the 2009 elections and now, the Government are confident that the process outlined in schedule 2 is likely to identify a candidate to fill the additional seat.

Question put and agreed to.

Schedule 2 agreed to.

Clause 19

Financial provisions

Question proposed, That the clause stand part of the Bill.

[Mr Lidington]

Clause 19 provides for the financial provisions associated with some of the provisions of the Bill, mainly those in part 2 required for the implementation of the transitional protocol on MEPs. Any costs incurred as a result of our implementation of the protocol will be met from the Consolidated Fund.

[Chris Bryant (Rhondda) (Lab)]

How much will that new MEP cost?

[Mr Lidington]

If the hon. Gentleman will allow me to make a little progress, I will explain where potential costs might conceivably arise. Any costs would consist of the minimal costs arising from the administrative expenditure of the returning officer of the west midlands electoral region. The costs involved there will depend on what those administrative costs are, but they are costs that would have to be budgeted for in the normal way. The returning officer does not have a blank cheque that he can draw on. If the seat could not be filled in accordance with schedule 2 and a by-election had to be held, there would be costs associated with that by-election, for which clause 19 makes provision. On our best current estimate, a by-election would cost about £10 million to run.

[Mr David]

If there were a by-election, would it be held under the first-past-the-post or the alternative vote system?

[Mr Lidington]

If a by-election were to be held, my understanding is that it would be held on the basis of the first-past-the-post system, if only one candidate could be elected. Again, if I am mistaken, I will correct the record.

[Mr David]

May I press the Minister a little further on that? I am sure that what he is saying is correct, but would it not be strange if all the other MEPs from Britain—in fact, I would guess all the other MEPs from every other European country—were elected under a form of proportional representation, yet this one individual was the only one elected under first past the post?

[Mr Lidington]

The fact that this is a transitional arrangement means that it is sui generis. As the hon. Gentleman will know, normally the European Parliament has a rule that a legislator cannot have a dual mandate and be a member of both a national legislature and the European Parliament. Here we have insisted that people had to leave active membership of the House of Lords in order to take a part in the European Parliament, and Members here have had to make a choice in the past when they have held a dual mandate in the House of Commons and the European Parliament about which they wished to pursue after a particular election. Special arrangements are being made because this matter is transitional.

[Tim Farron (Westmorland and Lonsdale) (LD)]

Perhaps I may help the Minister: essentially, a by-election in such circumstances would be under the list system. The list would just be a list of one.

[Mr Lidington]

My hon. Friend has helped by indicating that we would be making a somewhat academic distinction in these circumstances. It might be important theologically, but not in terms of practical politics.

[Graham Stringer (Blackley and Broughton) (Lab)]

To carry on with the theological argument, is it not the case that PR systems reduce to first past the post when there is one vacancy in effect, with the exception of a dead heat? That is the real point on the ballot paper where there is a cross put against the name, which is a traditional first past the post, or whether it is one, two, three or four, depending on the number of candidates. I would be grateful if the Minister could clarify.

[Mr Lidington]

The hon. Gentleman invites me to speculate on what the procedure would be were there to be a tie in the event of a very unlikely by-election covering the whole of the west midlands region. I will seek advice in order to be certain of my position and write to him or respond to him later in the debate.

[Chris Bryant]

I am grateful to the Minister for being so generous in giving way, as he always is. He has suggested that Members of this House or the House of Lords are barred from being Members of the European Parliament, but I do not think that that is the law. I would be grateful if he could advance the Act of Parliament in which that is stated. I thought that the Rev. Dr Ian Paisley was simultaneously a Member of this House and the European Parliament for a considerable time.

[Mr Lidington]

That was possible for a long time, but the rules were changed and the right hon. and noble Lord Bannside, as he now is, decided to leave the European Parliament at the appropriate election because he wished to remain a Member of the House of Commons.

The other costs covered by clause 19 arise by virtue of clause 13, which provides that the Electoral Commission shall

“take whatever steps they think appropriate to promote public awareness… and… may take steps they think appropriate to promote public awareness of the subject-matter”

in connection with any referendums held, pursuant to part 1 of the Bill. Clause 19 provides for any additional costs incurred as a result of that activity.

It is also worth underlining the fact that since 14 July 2009 the salaries of Members of the European Parliament are paid from the European Parliament’s budget. The United Kingdom will make no direct payments as a result of the implementation of the transitional protocol on MEPs, so clause 19 makes no provision for any such payments.

[Mr David]

I would like to refer to one point relating to financial provisions. The Minister has referred to clause 13, which we debated last week, although in insufficient detail in my view. What possible costs could be incurred by provisions of the Bill relating to possible referendums, because the Electoral Commission is given tremendous scope? For example, clause 13(b) states that the Electoral Commission “may”—I stress that word—

“take whatever steps they think appropriate to promote public awareness of the subject-matter of the referendum.”

We have also discussed the fact that there could be referendums on extremely complex and almost esoteric issues, and the Government of the day would have to make an enormous effort to ensure that there was a reasonable debate among the public on the issue under consideration, rather than some other issue. Will the Minister spell out what sort of cap there could be on the Electoral Commission’s expenditure? We have also touched on the possibility that public money would be given to the campaign in favour of a change that a Government want and to the campaign against it. What sort of cap will be included for two opposing campaigns that could be initiated as a result of this legislation?

[Mr Lidington]

Before responding to those points, I should clarify the method of election we would use for a by-election. My hon. Friend the Member for Westmorland and Lonsdale (Tim Farron) was absolutely correct: although in theory the list system would be used, in practice it would be a list of one, so for all intents and purposes it would be a first-past-the-post election.

The hon. Member for Caerphilly (Mr David) asked about public money being available to umbrella campaign organisations arguing for either a yes or a no vote. We have always taken the view that any referendums conducted by authority of the Bill should be run along lines equivalent to those provided in other statutes, especially the AV referendum that we hope will be held this May, subject to Parliament’s approval.

16:44

It will be for the legislation to authorise a referendum, and for the Electoral Commission to specify exactly what rules should apply to any referendum or group of referendums held as a consequence of the legislation, precisely because we cannot predict today what referendum might be held in six years’ time or 10 years’ time, whether one or two questions will be asked on the same day or what the issue will be. It is right that such detailed provision be made in legislation nearer the time and take account of any changes to the general law on elections and referendums that might be made between now and then.

[Mrs Main]

Will a set amount be put aside in the Budget every year as a contingency fund for the possible multiple referendums to which my right hon. Friend refers?

[Mr Lidington]

No. The matter will be decided at the time. We will not operate on a hypothetical basis—that there might or might not be a referendum in any particular year. We would make provision for it as and when required.

[Chris Bryant]

I am not sure whether the Minister therefore means that the Foreign Office would make provision, whether the Ministry of Justice would do so under the referendums provision or whether it would come out of the contingency, but my anxiety is that one might end up with the same situation as we have in Wales for the next referendum on 3 March. Nobody has been identified as the official no side of the argument, so there will be no public money for either no or yes, because if there is not an official no campaign there cannot be an official yes campaign.

[Mr Lidington]

The regulations for the referendum will be those set out in the Political Parties, Elections and Referendums Act 2000. I suggest not that any changes are planned, but that, in accordance with any amendments made to that legislation between now and the date of any future referendum on a European issue under the Bill, the rules for its conduct would change. Today, we propose, however, that, as long as the 2000 Act remains in force in its current form, the rules that apply to it should apply to any referendum held under the auspices of the Bill.

[Emma Reynolds]

On the Minister’s previous point, may I gently suggest that the difference between the alternative vote system and first past the post is that the candidate should receive more than 50% of the vote? So, there is a difference, even if only one candidate is listed. On clause 19, what does he estimate the cost to be of a referendum on any of the Bill’s measures that would trigger a referendum? Given the Government’s slightly confusing messages—they promise not to transfer power to the European Union, as set out in the coalition document, yet they demonstrate their eagerness through the Bill to commit to a referendum when a trigger is in place—will he estimate how many referendums we will have in this Parliament and, therefore, how much of a drain they will be on the Consolidated Fund?

[Mr Lidington]

I really do not know how many times I have to keep repeating this before the Opposition understand: there is a clear pledge in the coalition agreement that the current Government will not, during the lifetime of this Parliament until 2015, agree to a treaty amendment—under either the ordinary or simplified revision procedures—that would transfer competences or powers, as defined in this legislation, from the United Kingdom to the European Union. Therefore, the question does not arise: as the United Kingdom will have the right of veto over any such measure, we are making it clear that we are not going to agree to it. By bringing this legislation into effect, however, we are enacting provisions, to apply during this Parliament, for enhanced parliamentary controls over treaty changes. My right hon. Friend the Prime Minister has made it clear that the proposal on the table for a narrow treaty change under the simplified revision procedure to establish a permanent crisis resolution mechanism for the eurozone countries would, under the 2008 legislation, require simply a resolution in both Houses for it to be ratified by the United Kingdom, but, once this Bill comes into force, primary legislation will be required for that ratification. So as a consequence of this Bill, irrespective of the fact that we do not anticipate agreeing to anything that would require a referendum, there will be enhanced parliamentary control over any promised or hypothetical further treaty change or invocation of one of the passerelle clauses expressly provided for in the Bill.

[Mr Peter Bone (Wellingborough) (Con)]

Of course, the situation is exactly as the Minister says while this coalition Government are in power. However, we are in a fixed-term Parliament and there is no guarantee that this coalition Government will still be the Government, so the additional clauses are there to protect us.

[Mr Lidington]

It is very important that we legislate on the basis that we want to give people the assurance that they have this protection against any future Government choosing to railroad through the transfer of new competences to the European Union institutions without the people being given the right to have their say. Any future Government of any political colour will be taking a pretty massive political risk if they try to rob people of the right to have the final say about the transfer of competences and powers from this country to Brussels. That will be a very powerful deterrent against any future Government being tempted down such a course.

[Chris Bryant]

The Minister said that this Government have no intention of having a referendum because they do not intend to trigger one under their own Bill, thereby proving that the whole Bill, like Z, is an unnecessary letter. Will he now get on to the point made by my hon. Friend the Member for Wolverhampton North East (Emma Reynolds) about how much a referendum is going to cost?

[Mr Lidington]

On current prices, a referendum, if held on its own, could cost between £80 million and £100 million. If it were combined with other elections on the same day, the figure might well be considerably less. However, these things would have to be calculated in detail at the time. It depends on factors such as whether another election is being held on the same day, so all the apparatus of paying for staff to set up polling stations and to count ballot papers is already being provided for, or it is being done as a one-off solely as a referendum on a European subject.

[Mr David]

rose—

[Mr Lidington]

I was trying to respond to the hon. Member for Rhondda (Chris Bryant), but I will give way.

[Mr David]

These are very important issues. At a time of austerity, as the Government say, it is of great concern that there is such a lax approach to quite considerable sums. Does the figure that the Minister mentioned include merely funding for the conduct of a referendum, or does it also include the grants to organisations to enable them to put the respective arguments in a referendum?

[Mr Lidington]

I will come back to the hon. Gentleman having taken advice on that point. I would say gently to him, however, that giving the people their say, in the way they would expect, about the transfer of significant powers to act and make policy from this Parliament and this country to Brussels ought to be a high priority for Government expenditure. The reputation, not just of his party but of British politics in general, would have been a lot higher had the previous Government given a higher priority to spending money on the referendum that they had promised on the Lisbon treaty, rather than making a saving on that while spending billions of pounds on other objectives, many of which were of significantly less importance to the people whom we represent.

[Emma Reynolds]

I say gently to the Minister that if he goes back and reads our manifesto commitment, he will find that we promised a referendum on the constitutional treaty. If he asks his officials, with whom I was working at the time—

[The Chairman]

Order. We are getting carried away and are drifting. I am sure that the Minister wants to get back to the point.

[Mr Lidington]

I will leave it to the hon. Lady to try to explain that distinction on the doorstep.

The hon. Member for Caerphilly (Mr David) asked about expenditure authorised by clause 13. We have to understand the distinction between an authority to spend, which is what we are debating, and what the level of any expenditure should be. If we did not have the authorising power, as set out in clause 19, the Electoral Commission would simply not be able, without going ultra vires, to promote public awareness of a referendum or the subject matter of a referendum. The Electoral Commission, like any other Department or organisation funded by the taxpayer, has a budget that is set through negotiation with the relevant Departments and the Treasury, and it will have to make provision from within that budget. If it really feels that it needs more, it will have to come back to the Government to seek agreement for a supplementary authorisation for additional spending, in the way that such things are usually provided for. We are debating a power under the clause for the Electoral Commission lawfully to spend money on a particular set of objectives, and nothing more.

[Chris Bryant]

Rather unfortunately, the Minister unpicked my support for the clause in the speech that he just made. He is right that this is the only point at which Members will decide how much should be spent on referendums, should they come into play. As he said, the rules on elections and referendums are set out in the Political Parties, Elections and Referendums Act. The Government may wish to change some of those elements in the future, but Members will never consider this element of funding again. The moment that the Government want to have a referendum, they will have one and we will not have an opportunity to decide the cost of it.

The Deputy Prime Minister said that a major reason for holding a referendum on the same day as the local elections in England, the Assembly elections in Wales and Northern Ireland, and the Scottish Parliament election is the saving of some £30 million. I am not quite sure how that matches with the figures that the Minister gave for the cost of a stand-alone referendum. I wonder whether the Foreign Office is operating on slightly different figures from those of the Cabinet Office, which are being advanced by the Deputy Prime Minister.

I say to the Minister that to propose a Bill that provides no assurance that the financial sense of holding a referendum will be considered, and that provides only for the ideological sense of having a referendum to be considered, is a failing. As an example, I will give a failing of the previous Labour Government. There will be a referendum on new powers for the Welsh Assembly on 3 March. I have knocked on a lot of doors in the Rhondda recently, and I have been hard-pressed to find a single person who knows that the referendum is taking place. I suspect that very few people will take part in it. I know what machinations led to the provision in the Government of Wales Act 2006 that has put us in that situation, but I am unsure whether it is a good use of public money constantly to go to voters in referendums. I would have thought that a Government who wanted to get the best value for money, especially in a time of austerity, would want to have a value-for-money test as part of the decision about whether there should be a referendum. My anxiety is that there will be referendums on piddling matters, because lawyers will force them to happen. That will cause significant cost to the Government and no actual benefit to voters, who will effectively vote by not voting.

17:00

[Mr David]

I take my hon. Friend’s point about the comparison with the referendum in Wales on 3 March, but at the same time it could be said that that referendum is on an important constitutional issue—whether the Welsh Assembly is to have primary legislative powers. My concern is that the current Bill could lead us to have a multiplicity of referendums on very small, technical issues. A lot of public money might be spent on that basis.

[Chris Bryant]

My hon. Friend has essentially made my point for me again. As you are looking quizzical, Mr Hoyle, there is no need for me to detain the House longer. [Interruption.] No, it is quizzical, honestly. Well, it certainly is now, even if it was not a few seconds ago. I look forward to hearing the Minister explain why there is no provision in the Bill for a value-for-money test before there is a referendum.

[Mr Lidington]

First, to make the record absolutely clear, I say to the hon. Members for Wolverhampton North East (Emma Reynolds) and for Blackley and Broughton (Graham Stringer) that the former was right to correct me about the way in which votes would be counted in the somewhat unlikely event of a by-election. In effect, it would be an alternative vote election but with just one candidate from each party. The candidates would be numbered, so the question of a tie, to which the hon. Gentleman drew my attention, would not arise. I am grateful to both hon. Members for their interventions, which have made it certain that we have got the correct facts on the record. I am sure that in the hypothetical case of a by-election being called, they will find the Hansard record of these exchanges very helpful.

To respond to the point that the hon. Member for Rhondda (Chris Bryant) made about finance, the detailed financial provision for any referendum would be made in the Bill authorising that referendum. When we debated earlier clauses, I explained that there would need to be primary legislation for that purpose—I think it would almost certainly be part of the Act of Parliament to ratify a treaty change.

I believe that there is simply disagreement between the hon. Gentleman and me about that matter. I take the view that we should have a referendum when the question to be determined is significant enough in principle to require it. We have laid out in detail in the Bill the changes to European treaties, and the transfers of decisions from unanimity to qualified majority voting, that we think are of such constitutional or political importance that a referendum of the British people should be required before any Government could decide to accept them not just for their own term of office but permanently and, in the eyes of many in the EU, irrevocably.

The problem with introducing a measure such as a value-for-money test is that it opens up a wide area of discretion for the Government of the day, who could say, “Well, this decision might be of legal and constitutional importance, but frankly, the costs involved do not justify all the trouble of asking people to come out and vote and they aren’t really interested anyway.” That way of thinking is part of what got Europe into the democratic deficit in which it is now trapped. There is a gulf of mistrust between voters and the political elites who govern them in far too many European countries, each of which has proud democratic traditions. We see that in this country in how Parliament is regarded—it is not just down to the EU; it is down to all sorts of other things as well. Such a measure would be another element in that deficit.

Allowing people to have the final say over decisions that are important to the future of their country is one way to remedy that deficit. I think it better to define the circumstances in which that will happen in legislation, as we have done with the Bill, than to leave it to the discretion and judgment of Ministers, who might decide on the ground of public interest or of value for money. For that reason, I prefer our approach.

[Chris Bryant]

The fact that the Minister and I disagree on this matter or on the Bill is no great revelation. Even his private office might have worked that out. He gave the game away a bit when he said that the matter of principle is that one must give the people the right to decide when the transfer of power is sufficiently significant, but significance is not an absolute but a comparator. That is my problem.

The Bill provides for the addition of a new MEP. Will he assure the House that there is no need to provide for a situation in which that MEP, having been appointed, decides to leave or unfortunately dies? Will that seat simply be gathered up in the normal process of by-elections?

[Mr Lidington]

The answer to the hon. Gentleman’s question is yes. The normal processes for filling a vacancy in the European Parliament would apply in those circumstances too.

Question put and agreed to.

Clause 19 accordingly ordered to stand part of the Bill.

Clause 20

Extent

Question proposed, That the clause stand part of the Bill.

[Mr Lidington]

The clause provides that the Bill extends to the whole United Kingdom. The subject matter of the Bill is reserved to the Westminster Parliament and it contains no provisions that fall within the terms of the Sewel convention, or that would require any legislative consent motions in respect of the devolved legislatures. In any case, I can confirm to the Committee that the devolved Administrations were consulted on the Bill prior to its introduction, and are content with its provisions.

Part 2 of the Bill, which provides for the implementation of the transitional protocol on MEPs, also extends to Gibraltar, because the people of Gibraltar, as has already been mentioned, participate in UK elections to the European Parliament. Where clauses 20, 21 and 22 touch on part 2, they also extend to Gibraltar.

As I made clear early in Committee, and as you would certainly expect of me, Mr Hoyle, I have discussed the approach taken in the Bill with the Chief Minister of Gibraltar. He has made it clear that he approves of our approach, in terms of both the application of part 2 to Gibraltar, and the provisions in part 1 that ensure that the people of Gibraltar can participate in any referendum that is held when a treaty change affects them by virtue of our membership of the EU and the UK’s Act of Accession.

[Mr David]

I am pleased that the Minister has gone out of his way to emphasise that there has been consultation and agreement with Gibraltar—I am sure that you, Mr Hoyle, will be especially pleased about that. However, will the Minister clarify further what consultation there has been with the devolved Administrations? I am thinking of the Scottish Parliament and Executive in particular, because I noted in evidence submitted to the European Scrutiny Committee that concern was expressed that elements of the Bill might impinge upon devolved areas. Certainly, when the evidence was submitted, those concerned were not entirely satisfied that the Government had taken that fully into account. Will he give a cast-iron commitment—if I can use that phrase—that there has been consultation, and that all parties are happy?

[Mr Lidington]

Yes, we consulted the devolved Administrations in 2010, at the same time as final policy approval was sought from Departments. The text of the Bill was circulated to the devolved Administrations as soon as it had been drafted and was available for circulation in Whitehall. We have tried to keep them as much in the picture as possible and as soon as was practical. As the hon. Gentleman will understand, the Government took office in May last year, and arranging policy clearance and then the drafting of the Bill has been an intensive piece of work. However, I do not think that the devolved Administrations have been treated in any way unfairly. I have assured them that the Government remain completely committed to what the Prime Minister has termed the “respect agenda”, and that we are committed to honouring in full the various memorandums of understanding between the Government of the United Kingdom and the devolved Administrations. I am happy to make clear that commitment once again.

[Chris Bryant]

I am afraid that it was the words “the respect agenda” that turned my stomach and made me get to my feet suddenly. My experience of the Government thus far, in relation to other constitutional developments, has been that the respect agenda has been more honoured in its breach. To be fair, however, the Foreign Office has discussed the matter openly and fairly with the Governments in Scotland, Wales and Northern Ireland to ensure that the legislation might suit their needs. However, there might be some areas—particularly in relation to the different legal system in Scotland—where, although it might not feel like the UK Government have surrendered a power in negotiations in Brussels, it might feel more like they have in Scotland. At those moments, the people of Scotland might say, “We want a referendum, because we do not like what you are doing”, while the Government and Parliament might not think that there is any need to do so.

I want to make a second point about Gibraltar. We have all referred, Mr Hoyle, to your personal interest in Gibraltar, and I bow at that altar as well. The Minister used a particular phrase that seemed like it had been crafted very carefully through the decades by Foreign Office mandarins. Having used such phrases before myself, I wonder whether it might not help were the Minister to unpack it. I think he said that the people of Gibraltar would be allowed to vote in a referendum where they are affected by a measure. I do not know how one would determine whether Gibraltar has been affected. I am not sure whether the Minister is being too clever by half, or whether I am being too foolish by half, but I am sure that he will enlighten us.

[Mr Lidington]

Let me deal with Gibraltar first. As I am sure the hon. Gentleman will recall from when he had responsibility for such matters, Gibraltar is part of the European Union, but it is not subject to all of the acquis. Therefore, the referendum will extend to Gibraltar where the treaty amendment, passerelle clause or article 48(6) decision concerned affects an area of European Union competence that covers it. If the proposed treaty change dealt with an area of competence from which Gibraltar was completely excluded, it would not take part in the referendum.

17:15

On the devolved Administrations, I would say a couple of things to the hon. Gentleman. First, we are talking about reserve powers, and the United Kingdom is the member state that has signed the accession treaty. When it comes to our day-to-day or month-to-month dealings with the European Union in pursuit of United Kingdom interests, it is also necessary that the Government should take fully into account the interests and sensitivities of the three devolved Administrations. That is why, when a Minister sends an explanatory memorandum to the European Scrutiny Committee, one of the headings under which such measures are normally analysed is their impact on the devolved Administrations. It is also why the Prime Minister and the Foreign Secretary have asked every Department to take into account the interests of the devolved Administrations when considering their negotiating position on a particular piece of European Union business, and to ensure that proper consultation takes place.

The need to take the interests of the devolved Administrations into account is also why we have taken a policy decision that, where appropriate and agreed by the Secretary of State responsible for a particular policy area, it should be possible from time to time for a Minister from one of the devolved Administrations to take the United Kingdom chair at a Council of Ministers meeting, and to speak for the United Kingdom and advocate its position, as has happened on a small number of occasions since this Government took office.

When it comes to the Bill, the European Scrutiny Committee drew attention in its report to comments made by the European and External Relations Committee of the Scottish Parliament. We considered the Bill’s devolution implications, consulting both the Government’s experts on Scottish law and the devolved Administration’s experts in the normal way. The provisions of the Bill are not intended to replace or alter the current provisions in either the memorandum of understanding or the concordat on co-ordination of European Union policy issues between the United Kingdom and the Administrations in Scotland, Wales and Northern Ireland. Those documents set out clearly the principles on which the United Kingdom Government engage now, and should continue to engage, with the devolved Administrations in formulating UK policy touching on matters falling within the responsibility of the devolved Administrations. That would include, for example, proposals for treaty change that touched on areas of devolved competence, but within the context that it is the United Kingdom Government who retain overall responsibility for any such negotiations. In the memorandum we are committed as a Government to involving the devolved Administrations as fully as possible in discussions about the formulation of the UK’s policy position.

[Chris Bryant]

I can feel a peroration coming on, so I just want to check something to do with Gibraltar. Notwithstanding the remarks that the Minister has made, clause 11(1)(c) refers to who gets to vote

“if the referendum is also held in Gibraltar,”

but who decides whether the referendum is held there? Would that have to be laid out in the Bill that was implementing the individual referendum in question?

[Mr Lidington]

No, it would be a matter of treaty and law. I refer the hon. Gentleman to clauses 2(2)(a) and 3(2)(a). They provide for the circumstances relating to whether a referendum on whether a treaty should be ratified should be held throughout the UK—“or”, and this is the important provision,

“where the treaty affects Gibraltar, throughout the United Kingdom and Gibraltar”.

The referendum will extend to Gibraltar where the treaty matter that is subject to the referendum is a matter that includes Gibraltar. If it is a treaty matter from which Gibraltar is excepted, the referendum will not include the people of Gibraltar.

[Chris Bryant]

So why does clause 20 not say that the Act extends to the whole of the United Kingdom and Gibraltar?

[Mr Lidington]

Because the provisions for Gibraltar are laid out in clauses 2 and 3, as I have explained.

Question put and agreed to.

Clause 20 accordingly ordered to stand part of the Bill.

Clause 21

Commencement

[Mr James Clappison (Hertsmere) (Con)]

I beg to move amendment 15, page 12, line 12, leave out subsection (3) and insert—

‘(3) The day appointed under subsection (2) shall be within one month of the day on which this Act is passed.’.

Under clause 21, certain provisions will come into force quickly, while others will do so at a later date. Clause 15 will come in straight away, as will part 3, which includes clause 18, the sovereignty clause. The amendment would bring in the whole Bill all at once within one month of its passing through all relevant stages. I know that my right hon. Friend the Minister has said elsewhere that it is the Government’s intention for the entire Bill to come into force within two months of Royal Assent. I am giving my right hon. Friend an opportunity to say a few more words about the clause, and I am sure that he will be able to deal with it as comprehensively as he has just dealt with the many points put to him by the hon. Member for Rhondda (Chris Bryant). All those points were put to bed and I am sure that he will put this point to bed in the same way.

[Mr Lidington]

The Bill radically changes how the UK approaches the consideration of future key decisions on the European Union. It is therefore right that the provisions of this legislation should be applied as soon as possible after Royal Assent. It is also right that any treaty change currently being considered should be examined through the prism of this legislation. The Prime Minister, the Foreign Secretary and I have all made it clear that the Government’s firm intention is that the provisions will apply to the eurozone treaty change, which is expected to be agreed at EU level at the spring European Council.

Under the usual arrangements, the provisions of Acts of Parliament enter into force, unless otherwise stated, two months after Royal Assent. This Bill, however, has a slightly different set of provisions when it comes to commencement. Clause 21 makes provision for the Bill’s entry into force; subsection (1) provides for clause 15 and part 3 to come into force on the day of Royal Assent.

Clause 15 allows our country to be able to ratify the transitional protocol on MEPs as soon as possible, and two months earlier than we would otherwise have been able to. Article 2 of the MEP protocol stated that it should be in place, if possible, on 1 December 2010. At the moment, it looks unlikely that we will be the last member state to ratify that transitional protocol, but I would want us to be in a position where, if it turned out that we were bringing up the rear, there would be no delay and we would be able to bring our ratification into effect and allow the provisions of the protocol to take effect immediately after Royal Assent. We thus consider early commencement of that part of the Bill to be appropriate in order to reduce the delay and ensure that early commencement of the provision would not have any undue or adverse effects.

Clause 21(2) enables the Bill’s other provisions to be brought into force by one or more commencement orders made by the Secretary of State, and subsection 3 allows different days to be appointed for different purposes. The subsections were intended to give the Government the flexibility to bring the remaining provisions into force earlier—I emphasise the word “earlier”—than might otherwise have been the case, but we did not fix back in November, when we introduced the Bill, the date on which the provisions would enter into force. We allowed for flexibility so that individual parts could be brought into force at times that would maximise the Bill’s effectiveness.

Amendment 15 aims to ensure that all parts of the Bill are in force within one month of Royal Assent. I entirely understand the wish of my hon. Friend the Member for Hertsmere (Mr Clappison) to ensure that the Bill is in force as soon as possible, and I share his enthusiasm, but I hope I can persuade him that his amendment is not necessary. As we have already made clear, the Government have a firm commitment to use the Bill’s provisions for any future treaty change, not least the forthcoming eurozone treaty change. Because of the timing of that change, Parliament will have two bites at the cherry. Under the 2008 Act introduced by our predecessors, it will have a vote before the March European Council; it will then have to consider a Bill under the provisions in this Bill. We introduced Government amendment 56 precisely to ensure that this Bill could apply to the eurozone treaty change.

[Mr Clappison]

My hon. Friend is giving a very helpful explanation, but can he tell me which parts of the Bill will cover the proposed eurozone treaty change, whether or not the Bill is in force? As he has said, it does not matter whether it is in force or not, because the Government will abide by its terms regardless of whether it has been commenced.

[Mr Lidington]

All relevant parts of the Bill would apply to the treaty change. The Minister responsible would have to make a formal statement setting out whether the change transferred competences or powers—as defined in the legislation—to the European Union and therefore triggered a referendum, or whether it fell into one of the exempt categories.

As my hon. Friend knows, the Government believe that the treaty amendment that is now being considered applies only to the eurozone. It does not transfer any competences or powers from the United Kingdom to Brussels, and therefore, although primary legislation would be required for its ratification, a referendum would not be required. However, under this Bill we will require the Minister to set out his argument in the detail that we would expect to be demanded in relation to any other treaty change proposal.

There would then need to be primary legislation for the United Kingdom to ratify the treaty change. Although it does not affect the United Kingdom directly, it must be ratified by all 27 member states in order to take effect. It is therefore important for Parliament to have the right to examine the implications of the change in detail. We consider that primary legislation represents a better, more democratic approach than the simple debate on a resolution which is all that is provided for the ratification of such a change under the 2008 Act.

Clause 21 allows for flexibility to introduce provisions in the Bill at different times if required. I can assure my hon. Friend, on behalf of the Government, that we will lay an order to ensure the commencement of all the provisions that are not already in force by then one month after Royal Assent. We want to ensure that Parliament and the public are able to exercise the new rights that the Bill gives over EU decision-making as soon as possible. I hope that that gives my hon. Friend the assurances that he seeks, and that I can therefore persuade him to withdraw his amendment.

17:30

[Mr Clappison]

I am grateful to my right hon. Friend for his comments. This has been a worthwhile debate and a worthwhile amendment, particularly in light of what he has just said. He has brought the commencement date forward one month further than had previously been indicated by the Government. Also, I agree with him that the arrangements in the Bill are much more satisfactory than the current arrangements, which were left to us by the previous Government, when it comes to any treaty changes that might come about as a result of changes to the eurozone. On that basis, I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Question proposed, That the clause stand part of the Bill.

[Mr David]

I should like to say a few words about the clause. The whole issue of when the Bill comes into effect causes us some concern, because it has been our contention from the start of our deliberations that the Bill is essentially window dressing. It is not an attempt to introduce genuine participation and accountability, but is instead, as a Minister has said, a rather crude attempt to tie future Governments.

Certainly, in terms of parliamentary scrutiny, I welcome what the Minister has said today and previously. Logically, many of things that the Government have announced in the Bill and in recent written statements are to be welcomed. We are firmly in favour of as much parliamentary accountability and involvement as practicable. Indeed, that was the whole tenor of the Opposition’s amendment at the start of our Committee deliberations. However, it worries me that we still have the important issue of the justice and home affairs opt-ins, particularly the European Court of Justice provisions, which will have to be considered during this Parliament. The Minister has been absolutely firm in his determination to ensure that although we will have additional scrutiny considerations regarding whatever a Government may decide to do, there will not be a referendum on this extremely important issue. These matters worry us greatly, because we contend that there is a certain amount of illogicality in the Bill. It is contradictory, it does not hold together and there is not a great deal of intellectual sense behind it. That is clearly illustrated by the whole issue of the ECJ opt-in provisions.

If the Government were true to their rhetoric, they would insist that the legislation would be introduced and that a referendum would be held during this Parliament if they decided to opt into those provisions, as some suggest they would like. That is why the whole issue of when different parts of the Bill commence and have legal effect is of tremendous importance. I want to register and reinforce the Opposition’s concern that the Government are approaching this matter in what we consider to be a totally ham-fisted way.

[Mr Lidington]

I shall be brief. I think the hon. Gentleman has a bit of a nerve. It was actually the Government whom he supported and served who agreed to the treaty that collapsed the third pillar, which communitised justice and home affairs, bringing those areas of policy under European Court of Justice jurisdiction when previously they had been intergovernmental. As we debated last week, we have as a Government announced that we shall be discussing with the scrutiny Committees and others the ways in which we can strengthen parliamentary scrutiny over justice and home affairs and give greater accountability of the Government to Parliament for those decisions.

We have said publicly, on the record, that the decision that must be made by 2014 on whether to opt out of or remain party to the pre-Lisbon corpus of justice and home affairs measures will be subject to a debate and to a vote in each House of Parliament. The previous Government made no provision for such an arrangement. They were content for the 2014 decision, which the hon. Gentleman now describes as of great magnitude, to be subject simply to the normal scrutiny provisions and for the Committee to determine whether to call it in for debate. I note that, despite all the hon. Gentleman’s strictures about there being no need for this Bill, he did not suggest that a hypothetical future Labour Government would seek to repeal the legislation. He knows the penalty that would accrue to any political party that tried to deny the people the democratic rights that they are being given under the Bill.

[Mr David]

In response to the Minister’s last remark, I would say simply that we have belief in the parliamentary process, and although the Bill may pass through this House, we are sure that Members of the other place will have enough wisdom and common sense not just to give it a mauling but to reject it.

Question put and agreed to.

Clause 21 accordingly ordered to stand part of the Bill.

Clause 22 ordered to stand part of the Bill.

New Clause 7

Annual report on Part 1 of the Act

‘(1) The Prime Minister shall prepare and lay before the House each year a report on the operation of Part 1 of this Act.

(2) The report shall identify—

(a) any statements made in the previous 12 months under section 5, indicating specifically where Ministers have indicated an opinion under section 5(3) as to whether a treaty or Article 48(6) decision falls within section 4 of this Act, and any opinion given under section 5(4) of the Act on the significance of the relevant provision in relation to the United Kingdom;

(b) any powers and competences transferred under the terms of the TEU or TFEU from the United Kingdom to the European Union within the previous 12 months which—

(i) have, and

(ii) have not

required specific authorisation under any provisions of Part 1 of this Act;

(c) any powers and competences arising under any of the provisions of the TEU or TFEU referred to in Part 1 of this Act which have been repatriated to the United Kingdom from the European Union over the previous 12 months; and

(d) any such powers and competences which the Prime Minister seeks to repatriate to the United Kingdom from the European Union.

(3) The report shall also include—

(a) an assessment of the likelihood of further transfer of such powers and competences in the succeeding 12 months;

(b) a cost benefit analysis of the impact on the United Kingdom of any decisions made in the past 12 months under any of the provisions of the TEU or TFEU powers referred to in Part 1 of this Act.’.—(Priti Patel.)

Brought up, and read the First time.

[Priti Patel (Witham) (Con)]

I beg to move, That the clause be read a Second time.

This is a straightforward probing amendment, designed to provide greater openness and transparency in connection with the Bill, and particularly the transfer of powers. It would give the public and Parliament an annual opportunity to review, in one comprehensive report, the powers transferred to the EU under part 1—for example, by providing a cost-benefit analysis of the impact on the UK of those transfers of powers—details of the powers that are likely to be transferred to the EU over the 12-month period and an indication of the powers that the UK seeks to repatriate from the EU.

Since coming to office, the Government have been at the forefront of pioneering the transparency agenda across all our politics. The new clause builds on those efforts, as the EU should not be exempt from robust parliamentary and—especially—public scrutiny. I believe it is essential that we keep a close eye on the powers that are being transferred to the EU, whether through referendum, Act of Parliament or ministerial decisions, for three reasons.

First, there is the matter of keeping a track record of the cost to this country of the EU’s having more powers, and letting people know who is governing Britain. Secondly, there is the matter of democracy and the public’s being able to hold the EU, the Government and Parliament to account for the decisions they take and the powers they ultimately exercise. Thirdly, there needs to be scrutiny of the powers handed over that are not deemed to be significant. After a single transfer, they may appear to be innocuous, but a series of such transfers over time may constitute naturally something more significant.

The Minister will be aware that the Government publish some of the details on the transfer of powers, such as the report on EU justice and home affairs matters that details the use of the opt-in protocol. More information of that nature across the Government should be published, and the new clause would facilitate an opportunity for the Prime Minister to present it to the House.

[Graham Stringer]

This is a particularly imaginative new clause. Does the hon. Lady imagine that there would be votes on such reports, or would they just be for information?

[Priti Patel]

I would not rule out anything, to be honest. As I started by saying, the new clause is designed to generate more openness and transparency in the transfer of powers and, ultimately, the amount of say that the EU has over us in this country. Right hon. and hon. Members, as well as the public, could therefore review the report, audit the EU and further hold decision makers to account, so I would welcome the opportunity not only to discuss but to vote and to have full-blown transparency.

The new clause is necessary because the monitoring of EU policies and the transfer of powers is not as effective as it should be. I pay tribute to the European Scrutiny Committee for its tremendous work. Unfortunately, the Chair of that Committee is not here this afternoon. It should be of concern to the legislature that such information is not always readily available and that important qualitative and quantitative data on the EU are not easily accessible.

[Martin Horwood (Cheltenham) (LD)]

I am slightly surprised. Given the evidence of the past three weeks, is my hon. Friend really suggesting that even the slightest scintilla of power moving from this country to the European level will not be noticed by the hon. Member for Stone (Mr Cash) or the hon. Member for Wellingborough (Mr Bone) or all her other hon. Friends? They seem to be on to these things like terriers most of the time.

[Priti Patel]

And quite rightly so. Of course, we have a House full of assiduous Members and the European Scrutiny Committee has been very effective, but I am talking about an annual report and more openness and transparency.

By asking a range of parliamentary questions of 10 Departments, I received information stating that at least 79 current EU directives were pending transposition into UK law at a total cost in excess of £20 billion, and that is just one example. Of course, assiduous Members will ask many other questions and do a lot more fact finding to identify and uncover other transfers, too.

There is no reason why such information should not be published regularly, and Ministers must endeavour in future to be more transparent and accountable. It is therefore important in going forward with the Bill that information on the costs, benefits and powers exercised by the EU is available and accessible, as that greater transparency and opportunity to hold Government policy to account over the EU would, in my view, be most welcomed by the British public.

The new clause would go somewhat further than just making more transparent the EU, the Government’s policies on the EU and transfers of power, because it effectively asks the Government in their annual report to publish details of plans to repatriate the powers and competences from the EU that they believe should be held by this country. As drafted, the Bill will establish a referendum lock and safeguards against further significant transfers of power, which I have consistently supported and welcome, but it does not cover the approach that should be taken to repatriate powers to this country that the EU currently holds that are not in our national interests and on which the public expect us to act.

We have heard about many opinion polls in these Committee proceedings, but I shall refer to another one. An opinion poll conducted four years ago, before the previous Government handed over even more power under the Lisbon treaty, found that 58% of the British people believed that the EU should have less power and that more decisions should—surprise, surprise—be taken nationally and locally, and that 68% of people thought, quite frankly, that the EU did not represent ordinary people in our country.

Across a diverse range of policies, the public and parliamentarians of all parties can point to powers that the EU should not have, and that the British people believe should be brought back to our country, for a range of democratic reasons as well as on cost grounds. They include policies on access to our territorial waters, which we debated last week when discussing fisheries, as well as on justice and home affairs.

17:45

[Mr David]

I am following the hon. Lady’s argument with a great deal of interest. I know that she used to be a member of the Referendum party. Have any of her views changed since she joined the Conservative party?

[Priti Patel]

Absolutely not! I believe that the Conservative party has very much embraced the views of the party that I represented back then. I have been campaigning for a referendum for more than 15 years, and the Conservative Government are now proposing it.

I was talking about the powers that have been handed over to the European Union. The European arrest warrant has been the subject of a great deal of debate in the House, and social and employment policies have cost the UK more than £38 billion. We have heard mention of the working time directive, as well as of waste in regional policies, economic controls and financial services, not to mention the endless regulations that burden our businesses, the £1 billion that the EU is seeking to fine the UK and the £50 billion, which I mentioned during questions today, that the UK is set to hand over as a net contribution over the next few years to 2016.

[Martin Horwood]

Many of us think that the European arrest warrant is a useful and positive counter-terrorism measure. Would it not be better to take what would presumably be an annual debate on the hon. Lady’s proposed report and broaden it out into a debate on the work of the European Union or the Commission’s work programme as a whole? That would subject the whole programme of the European Union to scrutiny in this place, and allow those of us who have a more positive view of the EU to put our case as well.

[Priti Patel]

I suggest that timetabling the required number of hours and days for such a debate could be quite challenging, because it would have to cover a vast number of issues.

In my view, the British people deserve to know what their Government are planning to do, not only about the powers that the EU seeks to exercise but about those that it currently uses and—dare I say it—abuses, according to some in this House. Like all Conservative Members, I stood on a manifesto that clearly stated:

“The steady and unaccountable intrusion of the European Union into almost every aspect of our lives has gone too far.”

Following the ratification of the Lisbon treaty, we made a commitment not to let matters rest, and to negotiate the return to Britain of criminal justice powers and the opt-outs of the charter of fundamental rights and of social and employment legislation. The new clause would give the Government and the Prime Minister an annual opportunity to update the House on the actions being taken to deliver that, and to bring genuine openness and transparency to these proceedings.

Forty years ago, when we entered what was then known as the European Economic Community, few could have predicted with any accuracy how deeply integrated and ingrained the EU has now become. Had we known that at the time, I am sure that this Bill would have been even more robust than it is.

[Emma Reynolds]

Does the hon. Lady acknowledge that it was a Conservative Government, with the Single European Act in the 1980s and the Maastricht treaty in the early ’90s, who gave away the largest transfer of powers from this Parliament to Brussels?

[Priti Patel]

That is genuinely a matter of record now. We have now seen how far the EU has gone, and that is the reason for my probing new clause. We need to look to the future and be more vigilant. This is not just about the past; it is about what is coming in the future.

[Kate Hoey (Vauxhall) (Lab)]

The hon. Lady is probably aware that the vast majority of the public do not care which Government gave away our powers. They are fed up with the fact that more and more powers have gone to Europe and they want those powers back. Does she agree that until this country faces up to the fact that for far too long the public have had no say in whether we want to stay in Europe or not, and that until we get a referendum on that, we will never clear the air and be able to go forward in Europe as progressive Europeans, or go out of Europe and go forward as progressive UK citizens?

[Priti Patel]

I thank the hon. Lady for her contribution. I entirely agree. The air needs to be cleared, and the British public naturally feel upset and uneasy about that. The issue is a sensitive one, hence the need for greater openness and transparency.

I ask the Minister to consider the points that I have made—fundamentally, the issue of openness and transparency. We have handed away far too many powers. The Bill is about the future, and I would welcome the Minister’s views.

[Mr Lidington]

The new clause moved by my hon. Friend the Member for Witham (Priti Patel) raises important issues, and it is right that we should devote some time and attention to her arguments today. I share a large number of the concerns that she expressed, and I welcome her wish to see much more transparency and clarity in the way in which the European Union operates. Having said that, I shall argue that the method proposed by my hon. Friend in her probing amendment is not necessarily the best one to secure those objectives. I shall deal with the main components of the new clause in turn and explain why, although I share many of her concerns, I do not think that the proposal as drafted is the best vehicle to deliver those goals.

Let us look first at how to police the boundaries of European competence. I share the anxiety expressed by my hon. Friend, and I believe that this is the mischief that subsection (2)(b) of new clause 7 is intended to address. That subsection requires that a list of any powers or competences transferred from the UK to the EU under the terms of the treaties in the previous 12 months, which have or have not received specific authorisation under any provisions of part 1 of the Bill, be included in the annual report.

The treaty position is clear. A competence should be transferred from the UK to the EU only if there is a treaty or treaty amendment unanimously agreed by all member states using the ordinary revision procedure, whereby we have a continuing power of veto. Power, as defined in the Bill, is changing the treaty to give an EU institution or body the power to impose a requirement or obligation on the UK, to impose sanctions on the UK, or to abolish what are defined in the Bill as significant vetoes.

Given that those changes to competence or power are covered by the referendum lock as set out in the Bill, there ought to be no possibility of the need for any entries at all in the report under subsection (2)(b) because competence cannot lawfully be transferred by any other means. What lies behind my hon. Friend’s argument, I think, is a concern that competence may be extended in ways other than formal treaty change.

It is important to try to distinguish the issues. There are cases where the EU has competence—we may argue about whether it ought to have such competence, but that competence has been granted by one or other of the previous treaties—but where the UK has particular views about how the European Union should legislate on the basis of that competence. We may believe that a particular measure is unjustified on grounds of subsidiarity, or that the costs of a particular measure are disproportionate to the benefits being claimed.

I offer the Committee an example. We do not dispute that the EU has competence to legislate on the terms and conditions for pregnant workers, but we have very strong views about the content of the particular proposal that is on the table, and we successfully built firm opposition in the Council to the European Parliament’s approach, which has effectively brought those negotiations to a standstill. At heart, that is not a matter of competence; it is a matter of policy. Those matters are debated carefully in the discussions about negotiating strategies that take place in the European Affairs Committee of the Cabinet, and they are also covered in the explanatory memorandums that we as a Government submit to Parliament.

There are other areas where there are concerns about whether a Commission proposal for new EU legislation or action oversteps the boundaries of existing EU competence. Again, the Government rigorously assess every proposal coming out of Brussels to ensure that it falls within the scope of competence and that the treaty base put forward by the Commission is justified. To give another example, we have been rigorous in asserting our position with regard to matters to do with the EU’s external competence.

Let us look at the External Action Service and consular work. We have firmly restated the treaty position that the EAS has no formal role in consular work, and should support it only by facilitating co-operation and the co-ordination of member states’ actions. The competence for consular functions remains with member states. We have made it clear to Baroness Ashton and to the Commission that we would oppose Commission proposals for the EAS to have a direct role in providing consular assistance or in any other way seek to expand the institutions’ role beyond the competences set out in the treaty.

As a further example, at the Cancun UN conference on climate change, we insisted on prior agreement on when the presidency and the Commission would be authorised to represent the position of the member states, and the forms of words that they would use when doing so. We did that in order to safeguard the position that competence remained with the member states and had not been given exclusively to the institutions of the European Union. In the last resort, if we considered that a proposal went beyond the competence of the EU, we would challenge it during the legislative process and, if necessary, at the European Court of Justice.

One of the reasons I hesitate to endorse an annual report is that I think what the Government should be doing is to make clear their views on competence as they affect particular measures whenever those measures are brought forward. If we adopted the proposed annual report, there would be a risk of Whitehall saying, “Let’s wait for the 12 months to elapse for the annual report.” My hon. Friend will probably have received some parliamentary answers; when I was a free spirit, I used to get parliamentary answers saying that the information would not be made available now, but if I wanted to hang on for six months, it would be made available in that Department’s annual report, or when a promised review was published. I would not like us to get into that situation with regard to these matters.

I have asked that every explanatory memorandum sent to Parliament should not simply state what legal base the Commission has given to it, but give some assessment of the suitability of that legal base.

We need to be much more forward-looking and smarter. Right across Whitehall, we must pay more attention to the Commission’s forward work programme, so that we can identify up front any potential issues of concern over competence creep at an early stage, preferably even before the publication of a proposed directive or other measure. That is the way forward for continuing work in government to scrutinise every proposal on competence grounds, and much more openness and activity in Parliament as well.

[Emma Reynolds]

In the interests of transparency and openness, which the hon. Member for Witham (Priti Patel) spoke so eloquently about, why do the Government not consider reintroducing the pre-European Council debates that used to take place in the House?

18:00

[Mr Lidington]

Because those debates were explicitly transferred from the Government to the Backbench Business Committee when it was established, along with responsibility for a number of other debates which had previously been held in Government time. The report that recommended that transfer was adopted unanimously in the House, with the support of the Labour party as well as that of Conservative Members.

[Mr Bone]

The Minister is exactly right on that point. I have the privilege of sitting on the Backbench Business Committee, and we always look forward to representations on the European issue. The Committee can bring a motion to the House, rather than just a general debate, and force the Government to do something.

[Mr Lidington]

Indeed. My hon. Friend is not exactly averse to opportunities to debate the EU. For hon. Members on both sides of the House who feel that there needs to be a debate on the Commission’s work programme or any aspect of that, the way forward is to ask the Backbench Business Committee to use the time allotted to them for consideration of those matters.

[Mr Philip Hollobone (Kettering) (Con)]

The Minister mentioned competence about a hundred times in his remarks, quite rightly, but subsection (3)(b) of the new clause mentions a cost-benefit analysis of the impact of any decisions made. Will the Minister address that point? Will Her Majesty’s Government at any point undertake a comprehensive cost-benefit analysis of our membership of the EU?

[Mr Lidington]

My hon. Friend pre-empts me, because I am about to come on to the question of cost-benefit analysis. I very much agree with my hon. Friend the Member for Witham that the EU has to provide much better value for money. The Government are clear that the EU needs to change and can do things a lot better than it does at present. My right hon. Friend the Prime Minister has argued in the House and elsewhere that the EU cannot be immune to the budgetary realities that every member state Government in the EU and every family in the EU has to face. That is why it was the Prime Minister and this country that led the process to ensure that the 2011 EU budget did not grow in line with the unacceptable demands of the Commission and the European Parliament, and why at the end of last year the Prime Minister secured the important principle that over the next financial perspective the EU budget should reflect the consolidation efforts being made by Governments right across the EU.

[James Wharton (Stockton South) (Con)]

Does the Minister agree that this is not just about value for money within the EU as a body and the way it functions, but about the impact on value for money across all that Government do and across our society as a whole of the measures implemented by the EU? We talk about what appears to be mission creep from the EU, which we often see when competences are used in an elastic manner to drive forward new centralised European policies. Will the Minister please make a statement on ensuring that we look for value for money in how they are implemented as well?

[Mr Lidington]

My hon. Friend makes an important point. The Government seek to ensure that there is much better value for money and a more rigorous cost-benefit analysis of measures at the EU level, and to apply those same principles to the transposition of European legislation into our own domestic arrangements. I suspect that hon. Members on both sides of the House will have been familiar in the past with European legislation that has all sorts of gold-plated extras that add to the cost and complexity that businesses or voluntary organisations face when the legislation reaches its final form here, usually by way of statutory instrument.

My hon. Friend the Member for Witham rightly says that we must ensure that the EU too addresses this challenge, and we are going about that in a number of ways. First, we are working with like-minded European partners to encourage smarter regulation by applying more rigorous use of evidence in the EU. We welcome the Commission’s smart regulation communication, published in October 2010, which set out a four-year strategy to reduce the regulatory burden of EU legislation on business. That communication reflected a number of this country’s priorities, including further strengthening of the impact assessment process and post-evaluation adjustment of laws.

We need to see much more progress on impact assessment. The Commission has a commitment to produce impact assessments for all its proposals, but, to be honest, the quality is variable and we continue to press for improvements. The Parliament and the Council do not have a routine commitment even to produce impact assessments as a matter of course, and we believe that those two institutions should be doing that as well. It is now a fact of life that most areas of European law-making involve the European Parliament as a more or less equal partner with the Council of Ministers. That means that on a number of important measures, for example on employment matters and other pieces of social regulation, the Council might agree a position and then the Parliament can choose to vote through measures that introduce greater costs that industry has to bear.

[Mr John Redwood (Wokingham) (Con)]

Does not the Minister understand that we do not want better impact assessments, but less regulation? How will the Government deliver their very good one-in, one-out policy on regulation if they cannot stop the torrent of regulation that is still pouring out of Brussels now that it is occupying the whole of the financial services field, for example?

[Mr Lidington]

We have to do both. The two are not alternatives. Impact assessments are valuable, and they focus the minds of other European Governments, and of the groups representing industry in those member states, to become more active in pressing home their interests than is sometimes the case at the moment. The more transparency that we get in the European legislative process, the more likely it is that we will move towards the objective that both my right hon. Friend and I seek.

I would share with my right hon. Friend a wish to see the EU legislate less. There is too often a culture in the Commission that identifies a problem and then seeks a remedy in the form of new law. Non-legislative measures can often be more effective, and certainly less burdensome and complex, than legislative measures. That is something that my colleagues across Government are pursuing with colleagues from other countries who share our views on this matter, and we seek to encourage other countries to work with us to look for non-legislative ways of addressing problems and challenges, rather than looking for a new directive as the first resort every time.

[Mrs Main]

An impact assessment may work on EU law, but what about the gold-plating that goes on when the law is already passed; we seem to add to it in reams in this country?

[Mr Lidington]

That has certainly been a genuine problem, and it is a priority for the Reducing Regulation Committee, chaired by the Secretary of State for Business, Innovation and Skills, to address. The Government now have an established policy not to gold-plate. When we implement European legislation, we will be certain to do no more than is required of us by the words of the legislation. Ministers are now under an agreed political obligation to resist any attempt from within their Departments to add extra bells and whistles to what is required of us by a directive. We should do what our competitors and partners in Europe are doing and no more.

[Mr Shepherd]

I applaud the Minister’s aspirational words, but those of us who have been here as long as he has have heard them said so many times. It is an old song, and yet nothing is ever resolved on the issue. Why is he confident that action will now follow those same old words?

[Mr Lidington]

I am confident because of what I see and hear when dealing with Ministers from other European Governments who have woken up to the scale of the competitive challenge that Europe faces from other regions of the world. When one talks with Ministers from Germany, Scandinavia, much of central and eastern Europe and even France, which has historically had a different approach to business and trade than we have had, one realises that there is a real fear that we are facing not only a difficult economic downturn and an ongoing economic crisis, with high unemployment across our continent, but a profound, long-term challenge to the competitiveness, and therefore prosperity, of our societies. I find Ministers from other countries alive to that challenge and so have greater hope that we can make progress than does my hon. Friend the Member for Aldridge-Brownhills (Mr Shepherd).

[Mr Douglas Carswell (Clacton) (Con)]

Will the Minister not find that that is precisely the sort of lip service that was paid to reform at the time of the Lisbon agenda more than a decade ago, when Ministers throughout Europe said that they would achieve reform and precisely nothing happened? Have we not been here before and heard that song sung too often?

[Mr Lidington]

The Lisbon agenda was certainly a grievous disappointment, and our chief concern about the Europe 2020 programme is that it will go the same way by being much too concerned with targets and inputs and not looking at competitiveness. However, if we look at the history of this country’s relationship with the EU, we can see how the UK has at key moments helped lead a movement that has changed Europe for the better.

I was teased earlier by Opposition Front Benchers about the impact of the Single European Act, but the creation of the European single market gave opportunities to business and individual workers in this country and in every other member state, and that has helped us to become more competitive and prosperous now than we would have been had Margaret Thatcher and Lord Cockfield not had the vigour and commitment to see it through.

18:15

Similarly, although it has more to do with politics and diplomacy than economics, it was the UK that was the foremost champion of the enlargement of the EU into central and eastern Europe. That has helped to entrench the rule of law, human rights and democracy in parts of the continent where those traditions had been crushed for most of the 20th century.

I am not complacent at all. Ministers are educated very quickly about the scale of the challenges when they start attending European Council meetings and see the torrent of documents that flow into Whitehall. The Government, from the Prime Minister down, are utterly determined to try to get the EU heading in the right direction, because that is essential to securing the well-being, prosperity and competitiveness of our country. That is why the Prime Minister wants to bring in a one-in, one-out rule for new European regulations and implement that principle at the national level and why he says we need a new and tougher target for reducing the total regulatory burden over the life of the Commission. That is why he wants Europe to consider giving small businesses, which are the engines of job creation, an exemption from major new regulations.

[Emma Reynolds]

I agree with much of what the Minister has just said, including his comments on the Single European Act and the benefits of the single market, so there is an agreement between the two Front Benches on that. Does he agree with the argument that when European legislation is drafted properly and replaces 27 sets of legislation, for those businesses trading across borders it can actually be a deregulatory measure?

[Mr Lidington]

It is possible for that to happen, but it depends crucially on the content and complexity of the measure. Regulation is not desirable simply because it takes place at a European level and replaced national regulations. It is especially undesirable from the UK’s point of view if a familiar system of regulation that reflects the way we do business is replaced by something modelled on completely different practices from a different member state.

[Mr Carswell]

The Minister sings the virtues of the single market, so will he explain to the Committee why we have had a trade deficit with Europe every year since we joined the single market, whereas before we had a trade surplus? Will he also explain why non-EU states such as China seem to have no difficulty in gaining market access without having signed up to many of the regulations he supports?

[Mr Lidington]

I am sorry that my hon. Friend seems to regard Margaret Thatcher as having sold out to Europe when she agreed to the single market. I ask him to talk to UK businesses, as he will find that they regard the single European market as a great boon. It was the combination of the UK being in the single European market and at the same time offering the best deal, with regard to regulation and low taxes, that led the UK, under the Conservative Government that he and I supported, to attract the lion’s share of foreign direct inward investment into the entire EU.

[Mr Hollobone]

Will the Minister give way?

[Mr Lidington]

I will give way, but I am conscious that we have another important new clause to debate and do not want to get drawn too far away from this new clauses’s content.

[Mr Hollobone]

We will have plenty of time to enjoy ourselves with that this evening. The Minister is stressing the benefits, as he sees them, of our membership of the EU, so I will return to the point I made some moment ago: why will Her Majesty’s Government not undertake a comprehensive audit of the costs and benefits of our EU membership?

[Mr Lidington]

There are some elements of EU membership that could be put into such a calculus, but we cannot measure, in the way my hon. Friend wishes, things such as the diplomatic leverage that we obtain by being able to work in partnership with other European countries. [Hon. Members: “No!”] Some will differ from me in that analysis, but the fact that we were active members of the European Union helped us to achieve a package of sanctions against the Iranian nuclear programme last year that was tougher and more effective than either the United States or the Government of Iran believed possible. We were there at the table, so we were able to exert a powerful influence, in partnership with others, in the defence and enhancement of our national interest in securing sanctions against that programme, and we were able to overcome opposition from a number of other member states that weighed in the balance some very big commercial interests in Iran. That sort of advantage does not lend itself easily to the calculation that my hon. Friend invites me to make.

There are all sorts of things wrong with the EU as well, and we can find other occasions to debate its flaws, but the Government’s position is that membership of the European Union is one of the key ways in which we seek to advance the United Kingdom’s influence in the world.

[Mr David]

The right hon. Gentleman makes some very important points, but would it not be far better if he spent time talking, as he has, about the benefits of the European Union, rather than about this stupid, nonsensical Bill?

[Mr Lidington]

I do not regard as insignificant or risible giving the people of the United Kingdom a final say over treaty changes that transfer new powers and competences from this Parliament to Brussels. We would have much more public confidence in politics, and a much better chance of positively putting the case for British membership of the European Union, if the public did not feel so betrayed by the absence of any endorsement, by means of a referendum, of past treaty changes.

On new clause 7, which my hon. Friend the Member for Witham moved, my response to our hon. Friend the Member for Kettering (Mr Hollobone) indicates why some of what it seeks is not suitable. Subsection (2)(a), for example, would require a report on

“any statements in the previous 12 months under section 5”—

both the statement about whether such a treaty or decision transfers power or competence, and the statement on whether any transfer under Clause 4(1)(i) or (j) is significant.

It would not be onerous to include that requirement in an annual report, but there are unlikely to be so many treaties or decisions in any one year, so there would not be any real value in that information being collected and set out in an annual report. Under the Bill, there will be a minimum requirement for a written ministerial statement and an Act of Parliament before any such measures can be agreed, and that seems to represent sufficient transparency.

On repatriation, I listened to my hon. Friend the Member for Witham, who put her argument very powerfully and cogently. She knows that, under the coalition agreement, the Government are committed to examining the existing balance of competences and what they mean for Britain, and we continue to look at that issue.

The new clause raises some very important issues, and I welcome my hon. Friend’s aims of seeking much better value for money, more transparency and vigilance against competence creep within the European Union. Those matters are not for the Bill, however, which deals with treaty changes and ratchet clauses transferring powers or competences to the EU. We need to focus immediately on the individual issues to which she refers, measure by measure, as they arise in the Commission or as individual items of legislation, rather than taking up time preparing retrospective reports that I fear would be of largely historical interest.

What is relevant and important to the work of Ministers throughout Whitehall is for the Government to pursue with Parliament ways in which we can improve the scrutiny of EU issues and the opportunities for Parliament to hold Ministers to account for their stewardship of the United Kingdom’s interests in European discussions. I therefore urge my hon. Friend to withdraw her new clause.

[Priti Patel]

I thank the Minister for his response to my new clause. I shall say a few words, because a number of issues arose in his reply.

There is a range of issues that clearly must be aired and discussed—that was the purpose of my new clause—in relation to competence creep and the ever-increasing powers that have been sucked away to Europe over the years. The Minister has a valid point about the proposed report being more retrospective, and if nothing else his assurances about the role of this House and Parliament in the scrutiny not just of legislation but items as they arise, and about the forward-look in terms of the Commission’s work programme, are absolutely vital. As we heard in the earlier debate, a number of assiduous Members will continue to bring those issues to the Floor of the House, to pursue them and to persist with them.

I intend to withdraw my new clause, but my final point to the Minister is about cost-benefit analysis, which is fundamental. The Government could still do a lot more to assure the British public that their hard-earned money was being spent more effectively when it comes to EU matters. I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 11

Provision for further referendum

‘In order to meet the referendum condition referred to in section 2, section 3 and section 6 of this Act, the Act providing for the approval of—

(a) a treaty under the terms of section 2; or

(b) a decision under the terms of section 3; or

(c) a decision or draft decision under section 6

shall also provide for a further binding referendum to be held on continuing United Kingdom membership of the European Union, if the majority of those voting in a referendum held under the terms of the relevant section are opposed to the ratification of the treaty, decision or draft decision, as the case may be.’.—(Mr Bone.)

Brought up, and read the First time.

[Mr Bone]

I beg to move, That the clause be read a Second time.

It is a great pleasure to follow my hon. Friend the Member for Witham (Priti Patel), who made such a powerful speech. I hope that I am able to tempt her into joining us in the Division Lobby later tonight, given what she said about new clause 7. It would be wrong of me not to pay tribute to the Whips Office for allowing me this time tonight, and for arranging matters so that my amendment 48 was not debated last week, when there clearly was not enough time for it. Now, we have absolutely hours and hours to discuss new clause 11, and I congratulate the Whips on that.

The new clause, which stands in my name and those of other hon. Members, reads:

“In order to meet the referendum condition referred to in section 2, section 3 and section 6 of this Act, the Act providing for the approval of—

(a) a treaty under the terms of section 2; or

(b) a decision under the terms of section 3; or

(c) a decision or draft decision under section 6

shall also provide for a further binding referendum to be held on continuing United Kingdom membership of the European Union, if the majority of those voting in a referendum held under the terms of the relevant section are opposed to the ratification of the treaty, decision or draft decision, as the case may be.”

What does that actually mean? For the first time, this Parliament would have an option to debate whether we should have an in/out referendum on the European Union. In other words, there would have to be a binding in/out referendum on our membership of the European Union if the new clause were passed and two hurdles cleared: first, a referendum would have to be triggered under the European Union Bill, owing to a proposed transfer of competency; and secondly, the British people would have to vote against such a transfer of power.

[Thomas Docherty (Dunfermline and West Fife) (Lab)]

I am very grateful for having stumbled into this debate. Does the hon. Gentleman not accept the danger that, although people might not be in favour of voting yes in the first referendum, they would be forced—with the proverbial gun to their head—to vote yes to such a transfer of powers because they did not want an in/out referendum?

[Mr Bone]

I am grateful to the hon. Gentleman for his intervention, but that matter comes somewhat later in my address. In fact, I think that it would work to the reverse of what he said.

18:29

[Kate Hoey]

My name is also on the new clause. I was cheered when I heard the hon. Gentleman say that we had a long time to discuss it, because unfortunately I have to be out of the Chamber for about an hour on an important matter, and I want to be here for the vote. I therefore hope that the debate will continue for a very long time. Does he believe that this proposal offers a way out of the current situation whereby the one thing that unites all the establishment parties is that they do not want the British people to have a say on whether to stay in or move out of the European Union?

[Mr Bone]

I am grateful for the hon. Lady’s intervention. Her views on this have been most helpful and supportive. I am sure that other Members will try to catch your eye, Mr Evans, and I hope that the debate will still be going on when she returns. She makes the fair point that when both sets of Front Benchers agree on something, it is almost certainly wrong.

[Martin Horwood]

I think that the hon. Lady might have been excluding the Liberal Democrats from the establishment parties, which I would obviously be very pleased about.

The hon. Gentleman will acknowledge, I hope, that Liberal Democrat policy remains in favour of an in/out referendum, although not in the way that his new clause suggests, and we argued for it strongly during the passage of the Lisbon treaty Bill.

[Mr Bone]

I appreciate my hon. Friend’s intervention and, yet again, that supportive point. I will turn to that argument in some detail later.

[Mrs Main]

I was extremely cheered, as I am sure was my hon. Friend, to hear the hon. Member for Cheltenham (Martin Horwood) asking for an in/out referendum, and I very much hope to see him and his colleagues in the same Lobby as those who feel the same way. He was denied the opportunity the first time, so I hope that he might grasp this second opportunity.

[Mr Bone]

I am grateful for my hon. Friend’s support and her argument. In fact, I would take it a stage further. Because there is support for the new clause on both sides of the Committee, and because I am moving it in a coalition spirit, as Members will discover, I have every expectation that there will not be a vote tonight and that the Minister will accept it.

Let me explain why the Committee should support my new clause. First, it would not alter in any way the purpose of the European Union Bill. The Bill is designed, under certain circumstances, to give the British people, through a referendum, a say on our relationship with the European Union. My proposal would merely extend the referendum lock, under certain circumstances, to whether we should remain part of the European Union.

Why do I think that this would improve the Bill? If the British people have a chance to approve or disapprove of a transfer of power in the future, and they say yes, then there is clearly no need for an in/out referendum, as it would show that the British people are happy with their relationship with Europe. If they say no, clearly they are unhappy with a proposed change to the European Union. Surely it is right that the alternative question is then put as to whether the British people wish to remain in the European Union.

An added advantage is that the in/out referendum would be triggered by an event, not by politicians. In the past, referendums have been timed to favour the proponents of the referendum, not necessarily for the benefit of the British people.

[Mr Hollobone]

Would not my hon. Friend’s new clause strengthen the referendum lock, because Her Majesty’s Government, in proposing a transfer of powers to the European Union, would have to think even more carefully about doing that, if they did indeed value our membership of the European Union, because they would know that if it failed, they would then be subject to his referendum as well?

[Mr Bone]

As usual, my hon. Friend is absolutely right. Again, I will return to that point later.

I was talking about the gerrymandering of referendums, and that brings me rather nicely to the AV referendum, which is being gerrymandered for a particular day to maximise a particular outcome. Because my trigger for the in/out referendum would be decided by an event, such gerrymandering could not take place in future.

The last time the British people had any say on our relationship with Europe was under the premiership of Harold Wilson, on 6 June 1975, when a national referendum was held asking:

“Do you think the UK should stay in the European Community (Common Market)?”

This referendum took place nearly 36 years ago, which means that only people who are lucky enough to be over the age of 54 have had any say on the European issue. It is wholly unacceptable that a generation of Britons have not had a direct say on their relationship with Europe.

[Mr Clappison]

I will let the Committee into a secret: I am old enough to have voted in that referendum. It is not only younger people who would like a chance to have a second look at this, but older people who believed what they were told in the course of the campaign and the safeguards that were set out in the literature sent to every household, nearly all of which have proved to be unfounded.

[Mr Bone]

As usual, my hon. Friend is absolutely spot on. Again, I want to explore that a little later in my speech.

The relationship with Europe affects everybody, no matter what their walk of life, in the most profound of ways. Other countries have consulted their citizens through a referendum, but not the United Kingdom. The issue raised by the 1975 Wilson referendum was whether we should stay in the Common Market: it was about an economic relationship, not a superstate. In 1975, guess what our net contribution to the Common Market was: £1 billon, £500,000 million, £250 million, £25 million? No—the EEC paid us. They paid us £56 million, but of course that was at 1975 value; the current equivalent is £500,000 million. In fact, as far as I can see, this is the only time it paid us a net contribution. Strange that the European referendum was held in that year. It rather backs up what my hon. Friend the Member for Hertsmere (Mr Clappison) said about the facts and figures.

Since then, of course, things have changed. It is no longer just a free trade area: it is a European union, with a huge price tag for Britain. Instead of receiving money from the EU, over the next five years our net contribution to it will be a staggering £41 billion. However, it is not just our economic relationship with Europe that has changed. There is a European state with its own president, Parliament, flag, currency and courts. It now has its own foreign service and its own embassies.

The European Union came into force on 1 November 1993. The British people have never had a referendum on the EU.

[Mr Hollobone]

My hon. Friend mentions the astonishing sum of £41 billion that will be paid over the next five years by the coalition Government. Is he aware that that is more than twice the £19 billion that was paid to the European Union under the previous Labour Government?

[The First Deputy Chairman of Ways and Means (Mr Nigel Evans)]

Order. This is a fascinating and amazing debate that would clearly take place if the in/out referendum came about, but if we could now focus on new clause 11, perhaps we could make a little progress.

[Mr Bone]

Of course, Mr Evans. I thank my hon. Friend for his intervention, but I will not respond to it, because I might mention it later if I can sneak it in.

If anyone doubts that an EU referendum is what the British public want, they should check my e-mail inbox or my post to see the hundreds of letters and e-mails of support that an in/out referendum is getting. These are coming not only from my constituency or from Conservatives but from Liberal and Labour voters. They just want to have their say on the important issue of our membership of the European Union.

A recent ComRes opinion poll on 27 October 2010 showed that 75% of the British people think that there should be a referendum on our membership of the European Union. A BBC and ComRes poll on 19 March 2009 found that 84% of the British people wanted a referendum. James Pryor, the chief executive of EU Referendum Campaign, said:

“David Cameron and his Coalition will ignore this Poll at their peril. How long will the political elite bury their heads in the sand and misread the public mood. As this Poll clearly shows, the people of Great Britain feel that the politicians have let them down. Only 12% feel that Britain’s contribution to the EU is sustainable and yet the Prime Minister tells us he ‘won the battle’ in Brussels. The Chancellor keeps telling us ‘to tighten our belts’ and yet we still send £48 million a day to the EU. The British public will get angrier until they are given a say on our relationship with the EU and the politicians will have to live with the consequences.”

[Mrs Main]

My hon. Friend is giving huge figures. Asking the question does not necessarily mean that there will be a negative answer. There could be an affirmation that this is a good idea. Surely it would be a good idea at this time to check whether we are down the right path. If we do not get a negative answer, it will be all to the good for the Government.

[Mr Bone]

My hon. Friend argues an important point, which, again, I hope I can touch on in a little while.

I shall turn to the Daily Express and its crusade to get Britain out of the European Union. Yesterday, I and a number of hon. Members from across the House helped to deliver a petition of more than 370,000 names, which were collected by the Daily Express, demanding an in/out referendum.

[Stephen Pound (Ealing North) (Lab)]

That is twice its readership.

[Mr Bone]

From a sedentary position, the hon. Gentleman says that that is its entire readership. It is amazing if everyone who reads the Daily Express has signed the petition. I thank the hon. Gentleman for that intervention.

Those referendum pledges were sent in individually by readers of the Daily Express. They had to cut them out, fill them in, write an envelope, stick a stamp on it and post it in. For 370,000 of our citizens to go to that length shows the strength of feeling about a referendum. I congratulate the Daily Express on its efforts. By passing new clause 11 today, we will show that Parliament has been listening to the British people.

[Mr Andrew Turner (Isle of Wight) (Con)]

Is my hon. Friend aware that some Liberal supporters on the Isle of Wight vote Liberal because when there was a referendum on Europe, in which they voted no, they recognised that it was the Conservatives who took us into Europe? I was not there at the time, but I have consulted them since. That is how they saw it—we were taken into Europe by the Conservatives. They found that a reasonable justification to vote Liberal. They were unhappy voting Labour, so they voted Liberal. They have voted Liberal ever since because we—the Conservatives—took the country into Europe. I was not among those Conservatives because I voted no, but many voted yes.

[Mr Bone]

As usual, my hon. Friend speaks on behalf of the people of the Isle of Wight and in response to their views. However, I do not want to get drawn away from new clause 11 by debating whether people deserted the Conservative party at the last election and stopped us having an overall majority because we went back on our pledge on Europe. I do not want to discuss that point.

Recently, I was browsing through a thoughtful, persuasive and enlightened book entitled, “Invitation to Join the Government of Britain—The Conservative Manifesto 2010”. I admit that it was interesting and had some bold ideas. More importantly, all Conservative candidates stood on that manifesto at the last general election, and all Conservative MPs should be committed to it. One bit jumped out at me. On page 67, under the heading, “Make government more accountable and representative”, it talks about

“providing more free votes, and protecting the principle that issues of conscience…remain subject to a free vote”.

There we have it—more free votes for Conservative MPs.

18:45

If there is a free vote, it will allow Parliament to do the job that the British public elected us to do. Each and every one of us who is fortunate and honoured enough to sit in this Chamber was elected not just on party policies, but because our constituents wanted us to act on our independent judgment in representing them. They want us to hold the Government to account, whichever party—or parties—is in power. They want us to scrutinise and improve legislation. They certainly elected us to put country first. The only way in which we can do that is to have more free votes, particularly on issues of constitutional importance, such as new clause 11.

[Emma Reynolds]

Is the hon. Gentleman therefore arguing that Government Members should have had a free vote on whether there should be a referendum on the alternative vote?

[Mr Bone]

The hon. Lady will have heard the Leader of the House confirm in the past three business questions that we have free votes in Committee of the whole House. This is not retrospective. We have free votes in Committee of the whole House.

I shall quote from somebody else, because I can see that the hon. Lady—I will not say that she does not believe me—is concerned:

“The House of Commons’ historic functions were to vote money for governments to spend, and to scrutinise laws. It now barely bothers with the first, and does the second extremely badly. There was a time when legislation that had been formulated after months of civil service and ministerial deliberation was sent to the House of Commons which would pore over it, shape it, send it back, get it back, look at it again—and improve it some more. Bill by bill. Clause by clause. Line by line. Every piece of legislation would be put under intense scrutiny. Is it legally sound? Will it be effective? Is it worth the cost?”

I will link this quotation very carefully with new clause 11 in a moment, Mr Evans, but it would be wrong if I did not give the full quotation, because otherwise it would lose its impact and it could be suggested that I was misleading the Committee. It goes on:

“Compare that to today. Let me take you on the journey of a piece of legislation as it passes through the modern House of Commons. It’s likely to have been dreamt up on the sofa of Number Ten. A Bill gets drafted. It’s sent to the House for a couple of hours of routine debate among a few MPs. Then the bell rings, the whip gets cracked and suddenly, out of nowhere, all these other MPs turn up to vote.”

[The First Deputy Chairman of Ways and Means (Mr Nigel Evans)]

Order. That is a good try and the hon. Gentleman is smiling nicely, but perhaps he will now return his comments to new clause 11. I would have thought that there was enough meat in the new clause to mean that he does not need to go outside it.

[Mr Bone]

I apologise, Mr Evans. I am also sorry that I did not finish the quotation from my right hon. Friend, the Prime Minister.

I wanted to make it clear to the Committee that Conservative Members will have a free vote if the new clause comes to a vote. I think that there is some confusion about that, and that the Chief Whip does not quite understand the Prime Minister’s instruction. I just hope that some of my colleagues are not put off voting for new clause 11 tonight because of that.

The people of Britain put us in a coalition Government. We must therefore work together as a team—a unit—that works in the very best interests of this country. The public must have seen certain aspects of the Liberal Democrat and Conservative manifestos that they liked. I will deal with the point that my hon. Friend the Member for Cheltenham (Martin Horwood) raised. I would like to think that the following part is what particularly caught the eye of Liberal voters. To quote another piece of literature that was interesting, although not quite as good as the first:

“The European Union has evolved significantly since the last public vote on membership over thirty years ago. Liberal Democrats therefore remain committed to an in/out referendum”.

That is straight out of a good piece of literature, the Liberal Democrat manifesto 2010, “Change that works for you—Building a fairer Britain”. It certainly works for me, and I hope it works for the country.

[Martin Horwood]

Would the hon. Gentleman like to complete the sentence from our manifesto that he quoted?

[Mr Bone]

I am afraid I have already tried your patience, Mr Evans, so I will not quote any more.

[Martin Horwood]

The end of the sentence, which the hon. Gentleman omitted, stated that we were committed to a referendum when a significant transfer of power takes place from the British to the European level. In essence, that was an alternative to the current Bill, which the Conservatives instigated. We can have one or the other, but not both.

[Mr Bone]

I really should have added that, because it helps my case, and I apologise for not having done so. The hon. Gentleman is absolutely right, and that is exactly what my new clause would achieve. If there were a significant transfer of power, an in/out referendum could occur. That is exactly what the Liberal Democrats want, so the new clause should gain their support more than a proposal to have a referendum that was not even in the Conservative or Liberal manifestos, such as on the alternative vote.

[Martin Horwood]

I am afraid that what the hon. Gentleman is proposing is not what was in the Liberal Democrat manifesto. The question is, what should trigger a referendum? In our view, it should be a substantial transfer of power. His new clause suggests that it should be the loss of a previous referendum, presumably only weeks or months before.

[Mr Bone]

I am afraid that we are in a coalition, and we do not get everything we want, but we get the best of it. I am taking the best of the Liberal suggestion, and it is only fair that I go on to examine the Conservative view.

[Mrs Main]

My hon. Friend and I sat for many an hour on the Opposition Benches discussing the matter, and I remember some gentle teasing from the Liberal Democrats about whether we would support holding an in/out vote. Now is their golden opportunity to have the next best thing to what was proposed in their manifesto. I would have thought that we would have their support in that.

[Mr Bone]

I agree entirely, and of course when the Liberals brought forward a vote on an in/out referendum in the previous Parliament, I and a number of my hon. Friends voted for the motion.

[Dr William McCrea (South Antrim) (DUP)]

Does the hon. Gentleman not find it strange that so many Members are afraid of consulting the people about such an important issue?

[Mr Bone]

Yes, and I will turn briefly to that point later, if I may.

I wish to turn to the Conservative position—having been helpful to the Liberals, I now want to be helpful to the Conservatives. At the European elections, the Conservative party pledged a referendum. In fact, it was so keen to get the message across that it produced car stickers to support it. They were about a foot long, in Tory blue and had a picture of a loud hailer. In huge, bold letters, they said, “Give us a referendum.” For the convenience of the Committee, I have removed mine from the back of my car, where it has remained since the last European elections, and I have it with me for the Committee to see. [Interruption.] Members apply to a higher authority; I wish that I could invoke it to get the Government to accept the new clause.

Surely, then, my new clause 11 is not a Tory new clause or a Liberal new clause. It is a coalition new clause, and it should unite all Members on the Government side of the House.

To respond to the hon. Member for South Antrim (Dr McCrea), there is only one reason not to support the new clause, which is the fear of the outcome of a referendum. Is that a reason not to let the people of Britain have a choice? An in/out referendum would be a momentous occasion. It would finally put an end to the debate about whether the British people want to be in the EU. Whether the people voted to stay in the EU or to withdraw from it, at least they would have a choice. It would also allow Euro-enthusiasts and Eurosceptics to unite in allowing the British people to have the final say.

In my opinion, most of the public want a chance to vote on whether we are in or out of the European Union, and the new clause would give them such a chance. If it were law, it would prevent a future Government from supporting a transfer of powers to the EU. It would also give us, or whoever was in power, a very strong bargaining position with the EU in relation to a possible transfer of powers. Any future Government who tried to transfer powers to the EU without the safeguard of an in/out referendum would be in most serious difficulties.

When there are job cuts, tax increases and spending cuts, which I believe have all been essential to cut the deficit, how can it be right that in the last five years of the Labour Government our net contribution to the EU was £19.8 billion, while in the next five years, under the coalition Government, it will be £41 billion? With drastic cuts at home and vast spending in the EU, I think that enough is enough and that we should come out of the EU. However, what I think is totally irrelevant. It is what the British people think that matters. It is time for an in/out referendum on the European Union.

[Mark Reckless (Rochester and Strood) (Con)]

My hon. Friend the Member for Wellingborough (Mr Bone) has performed a significant service for us today, because I believe this is the first time since the 1970s that we have had a discussion here about whether the British people should be allowed to decide how they are governed.

I believe that we should be an independent country, trading with Europe but governing ourselves. More than that, however, I believe that it is up to the British people to decide how they are governed. Do they prefer to be governed, and have their laws made, by this House, so that they can throw out the people involved if they do not like how those laws are made, or by a qualified majority including 26 other countries? Do they prefer to have those countries decide their laws for them, and to pay £10 billion a year for the privilege? That question is subject to conditions in the new clause, but for the first time since the 1970s, that issue of principle is before us for debate.

My hon. Friend the Member for Grantham and Stamford (Nick Boles) put it very well earlier in the Committee stage, when he said that for a long time—since the late 1980s, I think he said—the British people had had a settled view about the European Union. They thought, “This far but no further.” Yet there is a logical inconsistency in that position, because the process began in the late ’80s by which we had the Single European Act, then the Maastricht treaty, then the treaty of Amsterdam, then the treaty of Nice, then the proposed European constitution that the Labour Government then re-described as the treaty of Lisbon. Each and every one of those treaties has given more and more power to the EU.

I believe it is true that by the late ’80s or early ’90s the settled view of the British people was that we had gone quite far enough and that they did not want to go any further, yet they keep on being dragged further and further. One reason why there is a growing detachment between the people and politicians, of which I would say the expenses issue was a mere symptom, is that year after year the British people hear their politicians—particularly those on the Conservative Benches—tell them that they are Eurosceptics. Those politicians say, “We don’t support all these transfers of power to Europe. We want to get power back, and we want more power here in Britain.” They tell people that we can be in Europe but not run by Europe, and they suggest that Europe is coming round to our way, that the British agenda is winning and that there is compromise. The truth, however, is that the House and the country want only to decide whether or not to be part of what is happening. New clause 11 gives us a chance to vote on that, subject to conditions.

19:00

Many Government Members describe themselves as Eurosceptics. I first met the Minister in October 1992 at a dinner at Southampton university, at the invitation, I believe, of my hon. Friend the Member for Bournemouth West (Conor Burns). The Minister was sitting between me and a friend over the water, as I shall describe Mr Hannan, who believes so strongly in the European issue that he also believes we should be able decide to abolish the Parliament that pays his salary. That evening, the talk was of the Danish no vote and of a motion before the House of Commons that called for a fresh start in Europe. I am pleased to say that the day after that conversation, the Minister, whom I congratulate on eventually becoming Minister for Europe, signed that motion. Eighteen or so years later, our constituents now ask, “Where is that fresh start in Europe?” They want to decide how our country is governed, and it is surely their right to do so.

[Jim Shannon (Strangford) (DUP)]

The people of the UK are well renowned for their freedom of speech and liberty. Does the hon. Gentleman agree that a referendum would allow them to express themselves more adequately and correctly? A referendum of all in the UK would provide a marker for the House.

[Mark Reckless]

Indeed. I support giving a referendum to all in the UK. That is how we should decide our future. I could not agree more with the hon. Gentleman. That principle is why I support new clause 11.

There is also a political issue at stake. We have heard some description of the Liberal Democrats’ position and the in/out referendum they demanded. Indeed, I believe that the Under-Secretary of State for Business, Innovation and Skills, the hon. Member for Kingston and Surbiton (Mr Davey), felt so strongly that we should have an opportunity to vote in an in/out referendum that he was suspended from the Chamber for a day. As far as I can tell, that is still the Liberal Democrat position.

The Conservative position is that the Lisbon treaty should have gone to a referendum. When the treaty was pushed through the House and we were not allowed that referendum, we had to consider our position.

[Mr Clappison]

As somebody who took part in the Lisbon treaty debates, I am slightly surprised to hear of the Liberal Democrats’ current position. They have an honourable position on Europe—they are in favour—but they would now like a referendum on a substantial transfer of power to Europe. They wanted an in/out referendum on the Lisbon treaty, but voted in favour of the treaty.

[Mark Reckless]

My hon. Friend is correct, but the key point is that we can still have the referendum that the Liberal Democrats wanted. The Conservatives cannot go back to the pre-Lisbon EU position because the founding treaties have changed. We have the Lisbon treaty, but we could still decide to hold an in/out referendum.

[Martin Horwood]

rose—

[Mark Reckless]

The in/out referendum is still an option, and I would hope the hon. Gentleman still supports it.

[Martin Horwood]

It is no surprise that the Liberal Democrats voted for the Lisbon treaty—we were in favour of it. Is the hon. Gentleman arguing against the logic of the Bill? Under new clause 11 there would be an in/out referendum when a transfer of power happens, but the Bill proposes specific referendums on those transfers of power. There is absolutely no logic to having an in/out referendum after a transfer of power is defeated in a referendum, because no transfer of power will have taken place.

[Mark Reckless]

I am saying that the principle of an in/out referendum is important. The Liberal Democrat position, as I understand it, is that the British people should decide whether we stay in the EU with Lisbon, or whether we leave. Let us have that referendum.

The most important point in respect of the Bill is that Ministers seem not to have noticed that the world has moved on. A Bill that would have been perfectly satisfactory in 1992 at the time of Maastricht is now, after 19 years of further transfers of powers to the EU, utterly inadequate for its task. My constituents are not especially concerned about referendums on technical transfers of power five or six years—at the earliest—down the road; they want to vote on our membership of the EU, and they want to do so now.

Ministers have made a serious mistake in thinking that the Bill will somehow buy off dissent, or that my constituents will believe it really changes the EU situation. My constituents believe that the transfer of powers to the EU has already gone much too far. The only thing that can deal with that situation is an in/out vote, so that we can re-establish our independence as a nation.

I am more surprised about the political error that Ministers are making in thinking that the Bill is sufficient. They do not consider what they leave themselves open to if the right hon. Member for Doncaster North (Edward Miliband) flips position, as I believe he might. We have debated the Liberal Democrats’ position, but Conservatives cannot assume that we will always be on the popular side of the argument relative to the pro-European Labour party. There are very few Labour Members in the Chamber, but what defines the Labour party in respect of Europe is not that it is pro-European but that it does not feel that strongly about Europe relative to other issues.

My friend over the water whom I mentioned says that there is a first rule of politics. He says that, essentially, all parties in government are pro-European, and only Opposition parties become genuinely Eurosceptic. What will happen if in two or three years, the right hon. Member for Doncaster North flips position and says, “The Labour party is pro-European and we want to put that case, but it is for the British people to decide.” Where will that leave the Conservatives? Will the Minister accept that the principle of the in/out referendum is now overpowering? Will he allow the British people their choice?

[Jacob Rees-Mogg]

New clause 11 is extremely interesting and worth looking at with care, because it comes out of a mix of genius and anger. The genius of it is that it has succeeded in initiating a debate on the question of an in/out referendum, which is clearly not the purpose of the Bill. I know that deft parliamentary draftsmanship was required to have such a proposal selected for debate, and I am full of admiration for that and for the genius that is generally the attribute of my hon. Friend the Member for Wellingborough (Mr Bone), who is a great parliamentarian. Every time one listens to him, one is inspired by the thought that people care about the powers of this House and of the people who send us here.

The proposal is also, however, the product of anger—a righteous anger that the British people have seen their powers given away, but been denied the opportunity to decide whether that ought to have happened. Whether that was done by the Single European Act, or by the Maastricht, Lisbon, Nice or Amsterdam treaties, does not really matter. The British people were not properly consulted, and many of them are upset about that.

Unfortunately, that combination of genius and anger leads to a proposal that makes no sense, which is why—reluctantly—I oppose it. The difficulties are manifold, but the main problem is that it proposes that one thing leads to another automatically, without any consideration of the first thing. My hon. Friend the Member for Cheltenham (Martin Horwood) made the very obvious point that we cannot have it both ways. Under the new clause, we could decide by referendum not to transfer powers, and then follow that up with a vote to stay in altogether. If we vote to stay in altogether, surely we would be signing up to everything with gusto, but that is the last thing we would want to do if we had recently objected to a treaty that gave more powers to the EU. Therefore, if we vote to stay in, we could contradict a no vote that we had just achieved.

[Mrs Main]

I am following my hon. Friend’s logic, but it is possible to say, “I want to stay in the European Union, but I am not happy with that transference of powers.” I do not see that a no vote on a transference of powers and wanting to stay in the EU are mutually exclusive.

[Jacob Rees-Mogg]

I thank my hon. Friend for that intervention, but I think there is a slight confusion. If we have an in/out vote, and it is won by the pro-Europeans, it is a vote for the EU as it exists and with all the powers that it has. Those of us who support this referendum lock Bill do not want further powers going to the EU or to get accidentally into a situation in which we sign up to things we probably opted out of. That is the complication of having an in/out vote that is won by the “in” side but not on the issue discussed and subject to the referendum lock. That is the danger; that is the unintended consequence.

The unintended consequences go further than that. Should there ever be a Labour Government again—I am sorry to say that there probably will be, although possibly not in my lifetime—those of us who support the Bill would want them to accept it and ensure that the referendum lock held as an important constitutional change. We would also want any change to the powers of the Europe Union to be subject to a referendum of the British people. However, if the Government concerned were unpopular, as happens to Conservative Governments too—and even, possibly, to coalition Governments—and felt they had to sign up to some marginal European treaty requiring a referendum, but knew that it could result in an in/out vote, they would be more likely to repeal the Bill lock, stock and barrel and say, “Look, we cannot do that because we would then have a vote against us at the second stage.” The second unintended consequence, therefore, is that we would weaken the whole effect of the Bill by making it less likely to become the accepted constitutional practice, which is what I would very much like to see.

[Mr William Cash (Stone) (Con)]

Does my hon. Friend accept that this is in fact a debate about an ingenious device—I hope I am right in thinking he mentioned the word “genius”—and that it is about the principle of continuing membership? Does a question not then arise that has not yet been answered—namely, membership of what?

[Jacob Rees-Mogg]

My hon. Friend always puts his finger on the nub of any European matter. I agree that the new clause is a device concerning a strong principle—that is the genius and anger I was talking about. The problem is that in its anger, it could achieve the wrong result. We do not want to set our firm principles on a weak base and a new clause that would actually undermine what those of us who are supporting the Bill wish to see achieved.

I agree with many hon. Members that there may well come a time when we would want an in/out referendum, but it needs to come when it has been the subject of important and urgent debate up and down the country; it needs to come when the British electorate are marching to say, “Now is the time to decide whether we should stay in this rotten institution, corrupt as it is, or whether we will put up with it in spite of its corruption, its inconvenience and all the problems associated with it, because there are some marginal trading advantages and we have got a few sanctions against Iran”—or whatever the other arguments are in favour of it. We need to have the referendum at the right time, as a matter of a discussion of and about itself, not as a result of the random collision of atoms and following a debate on something completely separate—for example, a minor extension of some European power or competence.

Neither should an in/out referendum suddenly follow a referendum in which 20 people or 20% of people—let us be generous—have voted. Suddenly, we would have thrown all the balls in the air without any proper consideration or deliberation, and without having set out the framework for the debate we want. Those of us who are broadly Eurosceptic should oppose the new clause, because it undermines exactly what we want to achieve, and should support the general thrust of the Bill, which is designed to protect this country from further sacrifices of our authority and the people’s power. We should rightly remember—it being a referendum lock—that it is not the power and mystique of these green Benches that are being given away, but the power and mystique of the British people themselves. They are the people we should trust. We should trust them with a referendum lock, and not rush headlong out of anger into a confusing and mistaken new clause that would undermine this lock that we are giving to the Great British people.

19:09

[Andrew Percy (Brigg and Goole) (Con)]

I do not intend to speak for long; I just want to make a few observations about the new clause.

I listened intently to my hon. Friend the Member for Wellingborough (Mr Bone), who will know from our communications that I have some concerns about how the new clause would work. I have some sympathy with what my hon. Friend the Member for North East Somerset (Jacob Rees-Mogg) said about the new clause’s unintended consequences, but I take a slightly different view from him as I think that it is worth supporting, if for no other reason than to send a message to Ministers about what many people in my constituency and of my generation feel about the European Union. I was not born when we last had a referendum on the EU—I am a few years younger than the proposer of the new clause. My generation has never had the opportunity to express its view at the ballot box on the EU as an institution.

[Mr Hollobone]

Actually, nobody has had the chance to express their view on the European Union, because it was not the European Union in 1975—it was the common market.

[Andrew Percy]

I stand corrected. Many of my constituents who took part in that referendum, including my own parents—at least one of them was sound enough to vote no—tell me that it was not what they voted for. My hon. Friend is entirely right to correct me.

My generation has had no opportunity through the ballot box to express a view on whether we should remain a member of the European Union, because broadly speaking both parties have always supported membership. My view is firm—I do not think that we should remain a member—but I am not arrogant enough to suggest that it is for me to dictate to the British public. I simply want the British public at some point to have a say on whether we should remain a member of what has become a very interesting institution—as one hon. Member called it.

[Ben Gummer (Ipswich) (Con)]

Over the past few days, I have had nearly 100 e-mails and letters about forests, but since 7 May I have not had a single letter or e-mail about withdrawal from the European Union. This debate shows the difference of opinion across the country, and the genius and magic of this place that it matches Members so closely to their constituents in their passions and needs.

[Andrew Percy]

I thank my hon. Friend for that intervention. I would be happy to take him to Goole, where he could talk to people in my community who are concerned about the large amount of immigration resulting from our membership.

[Dr McCrea]

On the point about the letters and postbag, how many letters has the hon. Gentleman received in support of the European Union?

[Andrew Percy]

The answer is fairly simple: a big, fat zero.

[Mrs Main]

If we are going to judge from our postbags, we would not be having a referendum on the alternative vote system, which has been mentioned to me by only one person—a local Liberal Democrat, who said, “You’ll never again be able to say, ‘Nobody has ever mentioned AV to me’”. We cannot use the postbag of my hon. Friend the Member for Ipswich (Ben Gummer) as some sort of barometer of opinion.

[Andrew Percy]

All we would end up debating from my postbag is the state of our roads following the recent cold weather—but that is not how politics works.

I have been led away from my line of argument, which is that it is time that the people had a say on the EU. As I said in response to my hon. Friend the Member for Ipswich (Ben Gummer), many people in communities such as Goole, which has seen large amounts of immigration as a result of EU expansion, would say, “Lots of people come here to fill jobs people here won’t do. They come here to work incredibly hard, but we have had such a mass influx, and nobody asked us for our permission through the ballot box for the extension of immediate rights to come to this country and work without any requirements or immigration controls.” Nobody asked the British public, who are rightly angry about that, and that is why they wish to have a referendum.

[John Mann (Bassetlaw) (Lab)]

I thank the hon. Gentleman, with whom I share a boundary, for giving way. Is he aware that his Government, whom he so vigorously supports, are maintaining the current level of European immigration over five years, with an extra 700,000 projected by the Office for Budget Responsibility? Government Members seem unwilling to discuss that in the House.

[Andrew Percy]

The hon. Gentleman—my neighbour on my southern border—makes an interesting point. Thanks to what was given away by the previous Government, it is pretty much impossible to do a great deal on this issue, which is one reason why we now either accept a mass influx of uncontrolled immigration or we get out of the European Union. That is really the only choice that the public have.

There are some technical problems with the new clause. If we had an in/out referendum following the rejection of an initial referendum, that would lead to problems with the debate on the first referendum. It would probably become a debate about whether we should have an in/out referendum, which would be undesirable. I mean no disrespect to the genius of my hon. Friend the Member for Wellingborough when I say that new clause 11 is not perfect. However, from my point of view, I could not vote against anything that introduced an in/out referendum, which is why I shall be supporting this imperfect but well-meant new clause.

[Keith Vaz (Leicester East) (Lab)]

I hope to be as brief as the hon. Member for Brigg and Goole (Andrew Percy). I came into the Chamber this evening to support new clause 11. That support was underlined by the thoughtful contribution of the hon. Member for Rochester and Strood (Mark Reckless). I was then a little confused by the speech of the hon. Member for North East Somerset (Jacob Rees-Mogg), because he is very clever and I wondered whether I had the right new clause. However, I then listened to the hon. Member for Brigg and Goole, who spoke about the one factor that will weigh most in my mind, which is the fact that he has not had a chance to vote. We therefore need to have an in/out referendum, to give him the opportunity to do so.

I am teasing the hon. Gentleman. In fact, I believe that it is important that at some stage in the near future—I am not saying that it should be 5 May, when we decide on AV—the British people ought to have an opportunity to deal with this subject. I am confident that, given that opportunity, they will vote overwhelmingly in support of remaining in the European Union. I know that there are those on both sides of the Committee who believe that the British people would do the opposite and that, given the opportunity, they would vote to come out of the European Union. However, I have attended many debates in this House when Members on both sides have been passionate about remaining in the European Union. However, at the end of the day, it should be up to the British people to make such an important decision.

[Mr Hollobone]

When the right hon. Gentleman says “overwhelmingly”, what does he mean by that?

[Keith Vaz]

It is 11 years since I was the Minister for Europe. I can well remember the day that I was appointed. I think I got a call from either Alastair Campbell or Tony Blair—I cannot remember which of the two it was, and I have not checked the diaries to see whether either recorded this important footnote in history—to inform me of my appointment. I was completely shocked. I was a junior Justice Minister and was on my way to Blackburn when I got a call to say that I had to go down to Downing street because I was the new Minister for Europe. I remember my first conversation with the Prime Minister. I said, “I know absolutely nothing about the European Union,” and he said, “You are the perfect Minister for Europe,” so I was appointed.

What was interesting about those two years is that my instructions from No. 10 were to make the domestic argument to the British people about the importance of being in the European Union. We therefore had a Foreign Office roadshow, as part of the public diplomacy team. We had a coach that went round various parts of the country. We did not get to Somerset, but we did get to Wigan and other interesting places such as that, to remind the British people of the benefits of being in the EU. At the same time, the then Leader of the Opposition, now the Foreign Secretary, decided to have his own roadshow. He hired a lorry—you may remember this, Mr Evans; I think you were in the House at the time—and went round the country on the back of it, trying to convince people of the need to save the pound. He was convinced that the Labour Government were about to get rid of the pound and make us join the euro.

What was interesting about those visits was that the British people really did not understand enough about what was happening in the European Union. They did not understand what we were doing there, something that has become part of the sub-culture affecting summitry when Ministers have gone to defend this country’s interests, including my successor, the current Minister for Europe. An in/out referendum would give the British people the opportunity to know all the facts about the European Union, so that they did not have to rely on some of the tabloids and some, if not most of the broadsheets; rather, they would rely on Members of this House going into the towns, villages and cities of this country and talking about our membership.

I know that those on my Front Bench will probably be a bit upset with me about this, because they know my record on the European Union. However, I am with the hon. Member for Wellingborough (Mr Bone), for whom I, too, have great respect, for all the work that he does in this House, and those other hon. Members who support an in/out referendum. Indeed, that is what I thought the Liberal Democrats’ position was. When the question was raised at the tail end of the previous Government, I can well remember the then leader of the Liberal Democrats, now the Deputy Prime Minister, supporting that view in this very Chamber. I think I was sitting where the hon. Member for Cheltenham (Martin Horwood) is now—we were in government then—and I remember those very words: “Let us put this to the British people, because in the end it is they who will have to make the decision.”

[Dr Julian Lewis (New Forest East) (Con)]

rose—

[Martin Horwood]

rose—

[Keith Vaz]

I give way to the hon. Member for Cheltenham.

[Martin Horwood]

I rise with some fatigue, having I thought made this point three times already, but the Liberal Democrat position was to support an in/out referendum at the time of a substantial transfer of power from the British to the European level. The Bill provides for far more referendums. That is not necessarily what the Liberal Democrats would have wanted in the first place, but this is the Bill before us and our Conservative colleagues believe that it is very important. Those referendums will be referendums on the specifics of a transfer of power. There is no logic to the new clause—and certainly no consistency with the Liberal Democrat position—because it says that only when a referendum is lost, thereby establishing that there will be no transfer of power, should an in/out referendum be held. It is barmy.

[Keith Vaz]

I am not surprised that the hon. Gentleman has had to explain that three times, because I am afraid that he lost me in the first sentence. I do not think that what he said is logical at all. I understand what the Government are trying to do. The Minister is here, and I know that the hon. Member for Rochester and Strood said that he had met him a few years ago at a dinner party. I first met the Minister for Europe when I was 18 years of age—[Interruption.] The hon. Gentleman was 18 as well? Goodness, that is rapid progress. Perhaps it was the same dinner party. Anyway, what the hon. Member for Cheltenham has set out is an illogical position. There is absolutely nothing wrong with having such a referendum.

[Emma Reynolds]

I would just like to point out that, as I think the hon. Member for Cheltenham (Martin Horwood) was trying to set out and as the hon. Member for North East Somerset (Jacob Rees-Mogg) so eloquently and clearly set out, new clause 11 would trigger an in/out referendum only if it were preceded by a referendum on a transfer of power that was then lost. The new clause would not introduce an in/out referendum before a referendum on a transfer of power.

[Keith Vaz]

I am grateful for that, but I feel very insecure every time my hon. Friend mentions the hon. Member for North East Somerset, because he is an intellectual powerhouse on these and other issues. I shall therefore stick to whether such a referendum would take place before or after. My hon. Friend will have to excuse me, because she is obviously also an expert on—[Interruption.] Yes, she is an expert: she is pointing at the provisions. I take this new clause to mean that the British people ought to have the chance to vote on this crucial issue. I am not afraid to put this vote to the British people.

[Dr Lewis]

I am grateful for the slightly delayed acceptance of my intervention. I simply wanted to say that I thought the right hon. Gentleman’s speech, apart from being massively entertaining, was absolutely right about the Liberal Democrat position. One thing was missing from the gobbledegook that we heard by way of justification. There was only one reason why the Liberal Democrats were going for an in/out referendum: it was to try to disguise and camouflage the fact that they were reneging on their promise for a referendum on the Lisbon treaty.

19:30

[Keith Vaz]

That may well be so.

One problem is that, in the end, we have to accept the judgment of Ministers about the transfer of powers. We all have our own views, but Ministers will go to a summit, come back and announce to the House that they do not believe that a massive transfer of powers is at stake. They view it perhaps as a semi-massive transfer of powers, so a referendum will not be required. The problem is that this issue will go on and on and on. It is a fundamental issue that should be resolved. The country needs to know where it is going on Europe, and there is nothing wrong with putting that question to the British people.

We have had an excellent debate. I know that my Front-Bench team will not be pleased when I announce that I am going to join those who support new clause 11. When we get this referendum—I think we will need one of this kind at some time in the future—we will see the leader of the Conservative party, the leader of the Labour party and the leader of the Liberal Democrat party all on the same platform together, supporting Britain remaining in the European Union. I am pretty confident of that, which is why I have no problem with the new clause, which I look forward to supporting in the Division Lobby.

[Mr Hollobone]

I was honoured to be asked to add my name to the new clause tabled by my hon. Friend the Member for Wellingborough (Mr Bone). I, too, would like to celebrate his genius not only in drafting the clause, but in taking advice from the Clerks and outdoing the Government Front-Bench team in having such a long debate on the provision this evening. He has worked tirelessly to get this issue debated on the Floor of the House, and I would like to congratulate him.

I am proud to say on behalf of my Kettering constituents that I am in favour of an in/out referendum and that if there were one, I would vote to leave the European Union. I have absolutely no doubt that if that issue were put to my constituents, a majority would vote to leave the EU. That would not necessarily always have been the case. Had there been a referendum 10 or 15 years ago, there might well have been a majority for staying in. I have no doubt that a majority of voters in the Kettering constituency would have voted to stay in the Common Market in the referendum of 1975. Now, however, people are so fed up with European issues and with the effect Europe is having on their country and their way of life that we have crossed over so that there would no longer be an overwhelming majority in favour of staying in. The majority would want to leave so that Britain can be a proud, self-confident nation once again, without having to pay a massive annual membership fee—soon rising to £10 billion a year—and without having to open our borders to all and sundry from across the European Union, allowing them to flood to these shores.

Immigration is a European issue. It did not used to be, but it is now. People in my constituency and across the country are fed up with the numbers of people coming into our country from abroad and fed up with uncontrolled immigration from the European Union. Frankly, my Kettering voters feel let down by the political establishment that our being in the European Union should have been allowed to take over so many aspects of our lives.

[Andrew Percy]

Does my hon. Friend share my embarrassment at the very idea that people from Australia, Canada and New Zealand—our Commonwealth brethren —are made to wait at our borders while we have absolutely no control over people coming here from 20-odd countries in Europe?

[Mr Hollobone]

I am grateful to my hon. Friend for that intervention because he has hit the nail on the head. In the few times I have had the misfortune to go abroad, whenever I come back into this country, I always try to do so without coming through the European Union section. I have been told several times that a British passport holder has no choice and has to go underneath the blue flag with the yellow stars. I just think it is a huge shame that our country has come to that.

The Minister gave the game away early on when he had difficulty responding to my perfectly reasonable request that Her Majesty’s Government undertake a comprehensive audit of the costs and benefits of our membership of this European club. I would have thought that everyone would be in favour of such an audit. After all, if the argument for being in the European Union is so strong, why not get the evidence together and put it to the British people? Those who feel strongly that the time has come to leave the Union would also like to see the facts and figures presented. I perfectly understand that it is going to be apples and pears, and that some things are not perfectly calculable, but Her Majesty’s Government should at least make some kind of effort to tell the British people why it is so important for us to remain in the EU. As far as my constituents and I can see, the membership subscription is now too high, we have no effective control over our borders with the EU, and business and other institutions in our country are being strangled more and more, month by month, by the red tape emanating from Brussels. It is time that it stopped.

[Mr Cash]

Can my hon. Friend think of a single reason why we should not have a clear and positive policy to repatriate those laws that are now within the European Union, which are deliberately and wilfully destroying the British economy?

[Mr Hollobone]

I cannot think of a single reason—a straight answer to a straight question—and my Kettering constituents would greatly welcome the repatriation of powers that we have given away all too freely. Another example is the disgraceful common fisheries policy. I notice that a Department for Environment, Food and Rural Affairs Minister is now on the Treasury Bench; he is doing his best in Brussels to try to end the scandal of fish discards, but it is like pushing water uphill. We are not going to get anywhere with Brussels because it will not see sense on these issues. If I were to ask my Kettering constituents whether we should repatriate our powers over Britain’s fishing waters, there would be an overwhelming vote to do just that. We have given all these things away.

[Ms Louise Bagshawe (Corby) (Con)]

I am grateful to my hon. Friend and parliamentary neighbour for giving way. On that very point of the repatriation of powers, is he not concerned that new clause 11 presents a fourth choice to the British public? It offers a straight in/out choice. It does not lay in front of the British public what many of us would like to see, which is perhaps the most significant element that the Conservative party lost in the coalition agreement—a vote on the repatriation of powers. Many of us do not want to throw the baby out with the bathwater, but would like to see some of those powers repatriated to our country.

[Mr Hollobone]

That would be very nice, but I do not see the coalition Government repatriating any powers. For many people, it has now come to the issue of whether we are in or out. I do not believe that we can be “In Europe, but not run by Europe”. That slogan is, I am afraid, no longer valid.

I know that many Conservative Members believe that we can reform Europe to make it better, but some of us have reached the point where we simply do not believe that that is achievable. I do not want to spend the rest of my life arguing that we can improve Europe for the better. I believe that Britain’s best chance is to be an independent, sovereign, self-governing nation, with an enterprise economy looking out into the world, free from the restrictions that the European Union imposes upon us.

If Britain left the European Union, that would not mean the end of the European Union. It would still exist, but we would be freed from its shackles. We would be able to look out on the wider world, regain our economic self-confidence, and start to trade properly with superpowers such as China, India, and all the other countries with which we used to have such a wonderful relationship. Membership of the European Union is increasingly holding us back from both our past and our future as an entrepreneurial nation.

Our best hope of securing a decision in this Parliament lies in new clause 11. The new clause tabled by my hon. Friend the Member for Wellingborough may well present us with the only opportunity that we will have in the five years of this coalition Government to decide whether we are to have an in/out referendum. I know that the new clause does not provide a perfect solution, but part of the genius of my hon. Friend is that he has got this far.

[Mark Reckless]

Does my hon. Friend agree that members of the Labour party are generally in favour of winning elections, and that if there is a strong enough demand from the British people for such a referendum, it is very possible that the right hon. Member for Doncaster North (Edward Miliband) will flip his position on the issue?

[Mr Hollobone]

My hon. Friend may well be right.

[Stephen Pound]

We would rather lose with principle.

[Mr Hollobone]

From a sedentary position, the hon. Member for Ealing North (Stephen Pound) says that Labour would rather lose with principle. Well, they lost without principle at the last general election, and they will do so again many times in the future.

[Emma Reynolds]

I remind the hon. Gentleman that the Conservative party did not win the last general election with a sufficient number to form a majority. As for his other point, I know that many Government Members are very interested in this subject, but they may have noticed that not many Opposition Members are present. The simple fact is—[Interruption.] If hon. Members will hear me out, I will give them the reason. Since I was elected in May, not one of my constituents has raised this issue with me. I believe that the next general election will be won on the basis of the economy, jobs and the NHS, and I believe that this Government are putting those things at risk. They are what will be at stake in the next election, not the European Union.

[Mr Hollobone]

The fact that we are having to pay more than £10 billion to the European Union every year is not helping the economy. The increasing burden of red tape from Brussels is not helping job creation. The hon. Lady speaks of those issues as if they were separate from Europe, but in fact the European Union is increasingly having a say in them.

[Emma Reynolds]

The vast majority of our exports go to other European Union countries.

[Mr Hollobone]

There is some dispute over our export figures. However, even if we accept that a small majority of our exports go to the European Union—

[Emma Reynolds]

The hon. Gentleman uses the words “even if we accept”, but that is a fact. As Foreign Office Ministers now tire of telling us, many more of our exports go to the European Union than currently go to China. Our jobs and our economy rely on the European Union for our exports, which is why the single market is such a good thing.

[Mr Hollobone]

Even if we accept the hon. Lady’s opinion—which is not a fact—that a small majority of our exports go to the European Union, the question for her is this: is our future with Belgium or with China? There is another fact that she needs to address. We now have a permanent and ever-growing trade deficit with the European Union, which our membership of that organisation is doing nothing to solve.

[Emma Reynolds]

I returned from a parliamentary visit to China in September. Although they were very polite about it, I know that the Chinese are actually interested in trading with the EU as a bloc, and would like to see agreements between China and the European Union. We should understand that fact.

19:45

[Mr Hollobone]

Of course the Chinese are interested in trading with the EU bloc, because it is a big economic entity. Were we outside the EU, however, China would also be interested in trading with us. As for the idea that if we left the EU we would lose 3 million jobs, that has never been proved by the Labour party, and it is misleading to tell the British people that so many jobs are tied to our membership of the European Union.

[Andrew Percy]

I cannot get away from my old job as a teacher. I want to help to disabuse the hon. Member for Wolverhampton North East (Emma Reynolds) of a couple of assumptions. Does my hon. Friend agree that businesses are not buying British goods just because we are in the European Union? The French are not buying goods from this country out of the goodness of their hearts; they are doing it because they make hard-headed business decisions, and they will continue to buy things from this country whether we are in the European Union or outside it. It is extremely likely that if we were outside it, we would continue to have a free trade agreement with them.

[Mr Hollobone]

The point is that if we left the European Union, we would continue to trade with the European Union. The idea that, if we tore up our membership slip, suddenly no one would talk to us or trade with us any more is nonsense.

[Emma Reynolds]

I think that the hon. Gentleman has reduced my argument to absurdity. [Interruption.] But my argument is not absurd. My argument is that countries throughout the world, from Latin America to the far east, are queuing up to sign free trade agreements with the European Union. If we were not part of the European Union, we would not be part of those free trade agreements, and would not benefit from them or from the additional exports resulting from them.

[Mr Hollobone]

Those countries would still be able to trade with us. The big difference between 2011 and 1972 is the fact that trade barriers have fallen all over the world and continue to do so. As a free independent trading nation, Britain would still be trading with China, India, South America and the European Union, with lower trade barriers than we had 40 or 50 years ago.

[Martin Horwood]

If the hon. Gentleman is not persuaded by the argument about the jobs that would be lost if we left the European Union, what about the democratic deficit that would result from our trying to trade and have full market access to the EU, while having absolutely no say in the regulations and legislation that would deliver that access?

[Mr Hollobone]

The democratic deficit in this country lies in the fact that most people want to leave the European Union, but are not being given a say in that.

[Mr Carswell]

If Labour Members are so confident about their position, why did they not support the proposal for an in/out referendum so that they could put their views to the British people and let them settle the issue in that way?

[Mr Hollobone]

Exactly. It is not necessary to believe that we would be better off out of the European Union to support new clause 11. If Members here are so confident that Britain has a bright, rosy economic future in the European Union, they too should welcome the opportunity to take their case to the British people and settle this wretched argument once and for all.

[Dr McCrea]

Is not the truth that Members are not confident enough to take the argument to the British people, because they are not confident about the outcome? At a time when major cuts are being made in every Department in the United Kingdom, are not the hon. Gentleman’s constituents, like mine, concerned about the fact that we are paying endless billions to this European club?

[Mr Hollobone]

The hon. Gentleman is spot on, but I would go rather further. I do not believe that Her Majesty’s Government, and other Members, are not confident; I think they now know that they would lose. They may not be drenched in e-mails and letters, but many members of our electorate have simply given up. That is why turnouts at general elections are now far lower than they used to be. Powers have drained from the House of Commons and Her Majesty’s Government to Brussels, and people are increasingly asking, “Why bother to elect Members of Parliament at all, given that all the decisions are made over in the EU?”

I believe that if we had a referendum, all those issues would emerge. I believe that most people in the country would be happy if we re-entered some kind of European Free Trade Association. I believe that most of them want a common market—a trading arrangement with European countries. What they do not want is membership of this political club.

[Mark Reckless]

Would my hon. Friend support a relationship with the EU rather like that of Norway and Switzerland? They sell rather more to the EU than we do, and are also rather richer.

[Mr Hollobone]

Certainly, something along those lines would be most welcome. They also have substantially more control over their borders than we do. That is a big issue on the doorstep.

I come back to earlier remarks about the “Save the Pound” campaign in 2001. Opposition Members had the audacity to say that the British people did not understand it, but they did and if it had not been for the efforts of my right hon. Friend the Foreign Secretary when he was the leader of the Conservative party, there would have been a grave danger of the first-term Labour Government ditching the pound. If they had, they would not be laughing now because the economic mess in this country in 2011 would be much like that in Spain, with 22% unemployment.

[Keith Vaz]

The Foreign Secretary’s lorry and my bus met in Wellingborough, so I am happy that this issue has been raised by the hon. Member for Wellingborough (Mr Bone) today. It was not because of the Foreign Secretary’s campaign that the Labour Government did not abandon the pound: it was because they had no intention whatever of joining the euro.

[Mr Hollobone]

That was an interesting intervention. I am certainly of the view, as are many of my constituents, that we owe a huge debt of gratitude to my right hon. Friend for his efforts at that time and to all those in the Eurosceptic movement who made sure that Tony Blair did not go as far as he might have.

[Mrs Main]

Is my hon. Friend as surprised as I am to hear the hon. Member for Wolverhampton North East (Emma Reynolds) say that the Opposition Benches are virtually empty because there is no interest in this matter, even though it crosses so many issues in our everyday lives?

[Mr Hollobone]

I am most grateful for my hon. Friend’s intervention. This shows the tragedy of what has been happening since 1997. There has been huge disinterest in matters European from Labour Members both when they were in government and now they are in opposition. That is why there was a massive loss of sovereignty to Brussels over the Blair and Brown years.

I am going to support the Bill. I supported it on Second Reading and I will happily vote for it on Third Reading, because it provides the referendum lock that the British people want. The purpose of new clause 11 is to strengthen that referendum lock so that no future Government would dare to propose a transfer of power that they thought they might have the slightest chance of losing. That entrenches the little bit of sovereignty that we have left. If Her Majesty’s Government stood back and thought about this, they would welcome my hon. Friend the Member for Wellingborough’s proposal and agree to the new clause without the need for a Division.

[Mrs Main]

I shall speak for just a few minutes on this particularly interesting clause, which I support. I should like to make a big apology to the Whips; I am sure that the eye-rolling and head-banging has gone on already, because they see the usual suspects rising to speak on this matter, but I think that it is important. I know that rather a tortuous device was used to get it debated today and I am grateful to my hon. Friend the Member for Wellingborough (Mr Bone) for his ingenuity.

I do not agree with my hon. Friend the Member for North East Somerset (Jacob Rees-Mogg) that the measure would somehow negate the referendum lock. Let me put that on its head: if we were to have a referendum about a significant transfer of powers and the public said no, where would that leave us? We would be standing alone saying no. It would be quite logical to go on and say, “We have been hearing grumbles over the years about your unhappiness”—for 19 years, as my hon. Friend the Member for Rochester and Strood (Mark Reckless) has pointed out—“over bits and pieces of legislation that you believe have come from Europe and may have impacted negatively, let’s have an open debate about it and have a referendum on whether we should be in or out.”

I completely agree with the right hon. Member for Leicester East (Keith Vaz), who spoke very eloquently. As I said in an intervention earlier, an in/out vote would not be a foregone conclusion. Indeed, I would look forward to a robust debate airing the positive aspects. Perhaps we could look forward to people being persuaded, despite some misgivings about whether or not we should give prisoners the vote, which we will debate next week, or whether they agree with human rights legislation being imposed on us from Europe—I believe that we were somewhat opposed to that in our manifesto—

[Emma Reynolds]

Does the hon. Lady recognise that that legislation comes from the Council of Europe and not the European Union?

[Mrs Main]

The EU is about to be a signatory of it. The hon. Lady said that Labour has no interest in this matter and that that is why the Opposition Benches are empty, so I am surprised that she still feels the need to take part in the debate.

[Emma Reynolds]

rose—

[Mrs Main]

I look forward to hearing what she has to say.

[Emma Reynolds]

I thank the hon. Lady for giving me the opportunity to clarify my position, although if she had listened the first time perhaps she would have been clearer on it. I said that my hon. Friends have very pressing concerns that reflect those of their constituents about the massive programme of Government cuts taking place in this country and the risk to our economy and economic growth, as we saw last week with the shrinkage of our economy. That is what we are worried about, and we would rather have more time in the House to debate the NHS and the trebling of tuition fees. That is what I was saying and I do not think she should misrepresent my position.

[Mrs Main]

From the hon. Lady’s rather tetchy remarks, I gather that most of her right hon. and hon. colleagues are off somewhere else debating more pressing matters, but this is being debated now and unlike her I think it is crucial that we debate it clearly. If we are game enough tonight to let people have a little sniff of the freedom of choosing, it could be the first time that many of them have a chance to hear the arguments for and against staying in the European Union.

[Andrew Percy]

On the comments of the hon. Member for Wolverhampton North East (Emma Reynolds) about Labour Members wanting to discuss more important issues, perhaps she would like to comment on why the Opposition have chosen the subject of forests, rather than the NHS, for tomorrow’s Opposition day debate.

[Mrs Main]

That was not quite on the subject of the debate, but I take my hon. Friend’s point.

Opposition Members could have had a referendum on the Lisbon treaty and I believe that my party and other hon. Members here felt that the people should have had a say, but they did not. The hon. Member for Cheltenham (Martin Horwood) advocated quite strongly having a debate on the in or out issue; I do not feel that the treaty’s ratification negates that aspiration. I am sure that he would make a very robust defence for having an “in” vote, whereas other Members on the Government side who have concerns about it would make a robust argument for an “out” vote. That said, I am fed up with hearing constantly the mantra that now is not the time. It is never the time; it has not been the time for the past 19 years. When will be the time? The Bill offers us the opportunity to have a little hook on which to hang the possibility—that is all—that at some time in the future, if the people were unhappy about the relationship with Europe, they could say so.

I do not know how the people of St Albans or Cheltenham would vote or how the country would vote on this issue. I could be surprised and find that they wholly endorse our position within Europe, in which case any future Government could go forward with a robust mandate for referendum locks on transfers of power within treaties, because that would not necessarily mean that people want to give away more powers. People might say that they are happy with exactly the level of power that has been given away but that they do not want to give away any more. They might say yes to staying in but no to further transfers of power. That is why I disagree with my hon. Friend the Member for North East Somerset: I think that one can be in that position. Indeed, that is the position we are in now, because we are not taking a vote on this—we are staying put but saying that no more powers should be transferred.

I would like the good people of this country to have a say, because they do air their concerns when one talks to them in supermarkets, pubs and cafés. They air their concerns when they hear about some of the nonsense legislation we have to put up with and when they hear that we cannot do anything about some issue because it is a result of EU legislation. I think they would like a say, but that does not mean that they cannot be persuaded. I say to hon. Members, “Give us the chance to put the argument to the people and let them decide. Don’t be frightened of giving them the chance to make a decision because you think they’ll make the wrong decision. It’s their country and we’re here to represent their views.” I do not believe in not asking them their views. If we can have a referendum on the alternative vote, which was never raised on the doorstep prior to its being raised in the House and which was not being advocated by a single party in the House, we should be able to have a referendum on something that was raised on the doorstep and on which some parties stood as a sole issue—Europe. I do not agree with the hon. Member for Wolverhampton North East (Emma Reynolds) that the Opposition Benches are empty because Opposition Members are not interested; I believe they are empty because they have been told to go off and play away at something different. It is the complacency demonstrated by those empty Benches that has led us to where we are.

In conclusion, I thank my hon. Friend the Member for Wellingborough for his ingenuity in getting the new clause debated on the Floor of the House tonight. I am sorry that the Whips and other hon. Members feel they have been kept here tonight because the usual suspects are making a noise and a row about Europe. But if we did not, I believe our constituents would say to us, “Don’t ever say to me that you’re unhappy about Europe, because when there was a chance for you to give us a say—at some point in the future not yet decided—you shut down that avenue, because you could.” Tonight, I do not believe that avenue should be shut down. I believe it is the fear of knowing the answer that is shutting it down, not any logical reason.

20:00

[John Mann (Bassetlaw) (Lab)]

I can assure hon. Members from all parties that the Opposition Benches are not empty. Indeed, some of us feel roused to contribute to the debate, having heard the exhortations of the hon. Member for Kettering (Mr Hollobone), for example. It is an extraordinary saga. Every time one looks outside and sees the dark clouds and the moon hovering, Europe must be being debated again.

This is the party that, under Edward Heath, took us into the Common Market; the party that, under Margaret Thatcher, took us into the Single European Act and everything that flowed from it, including unlimited immigration from across the European Union; the party that, under John Major, signed the Maastricht treaty—on every occasion it is the Conservative and Unionist party of Britain that has deepened and strengthened our European ties, and yet when they are in power Conservative Members love nothing better than to debate these things. How many days was it last week? How many hours has it been this week, as they queue up demanding a referendum? Voters have had the option to vote for the UK Independence Party. UKIP stands proudly, clearly, as a voting option in my constituency and others, as it did at the last general election, and when it stands, the voters have the opportunity in their tens of thousands to flood to the polling stations to the rallying cry of UKIP. But such is democracy, they fail to do so.

With this Euro-fanatical Conservative party in power, we see yet again the rebellion from the discontented masses. They understand fully what is going on among their Front Benchers, because the Conservative party appeals to two different values. One is that of the little Englander, amply represented by my neighbour the hon. Member for Brigg and Goole (Andrew Percy), as one of the few Members who have attended this debate and joined the traditional long-standing contributors to Conservative thinking on these matters. The other is the vested interest of big business: when it comes to the crunch, the Conservative party in its very blood, and its Front Benchers at every opportunity, wish always to strengthen and deepen the ties with Europe. By giving space to its discontented Back Benchers, as it has done repeatedly in this Parliament, the Conservative party shows that it likes to announce to the British people that it has a great tradition of Englishness and Britishness—of separation from Europe—but when it comes to the decisions, every single time it is the Conservative party that throws us further and further, deeper and deeper into the European Union. This new Government, albeit a coalition with the Euro-fanatical Liberals, are doing the same.

The independent Office for Budget Responsibility outlined in great detail how, under this coalition Government, immigration from within the European Union to the United Kingdom in this Parliament will be not the same as under the previous, so-called federalist, Labour Government. It will be not less, but more—significantly more. Why is that? It is because the Conservatives’ paymasters—big business, as documented in the Register of Members’ Financial Interests for all to see—demand that the Conservative party in power strengthens those ties with Europe while talking a different game and filling the parliamentary agenda with opportunities such as tonight’s. So, yet again, we will see vast amounts of new labour joining this country—

[Mr Carswell]

The hon. Gentleman is rather verbosely explaining why we cannot trust politicians with these matters. Is that not a further argument for an in/out referendum, in which the people have the final say?

[John Mann]

There is nothing verbose in these remarks; if the hon. Gentleman wants verbose he can have verbose, but that would be quite improper. These are succinct remarks on the inherent contradictions of the Conservative party, which can never, ever break from the pressures of big business, which demands that once in power, it strengthens those links. That is why 700,000 new EU migrants will enter this country in this Parliament. When the Conservative party talks about growth and trade, what it really means is cheaper labour, and worse conditions for workers in this country. That is the free market that the Conservative party represents: allowing competition at the lowest common denominator. No doubt, I will again be going on rallies at power stations, where British workers are finding their pay and conditions and ability to apply for their jobs undermined by the so-called European single market that the Conservative party took us into.

[Mrs Main]

I have listened to the hon. Gentleman’s remarks with interest, but I have yet to hear his views on new clause 11 and whether he will be even remotely considering voting in favour or against. Would he elaborate on that?

[John Mann]

I am approaching my conclusion, when I will do that, but first there is another factor that ought to be re-stressed. There has been a lot of talk about what the people think. I will tell the Committee what the people think: the people think it is an absolute disgrace that, when the health service is being cut to ribbons and maternity units across the country are being destroyed, time is being taken up constantly discussing the Conservative party’s obsession with the European Union rather than major issues.

New clause 11 should address whether what the Conservative party signed up to under Margaret Thatcher and John Major, in the spirit of Edward Heath, which allows unfettered labour migration into this country, is the way forward, or whether there should be restrictions that protect the jobs and livelihoods and standards of living of workers in this country. That is the debate that this Government are scared of, and that is why they like to pander to the pretence that there could be some debate about whether the country is in or out of Europe. This Government should be held to account for their failure to negotiate properly in Europe on that and on bankers’ pay. They are wholly miserable in their efforts in doing so. That is what Parliament—

[Jacob Rees-Mogg]

I thank the hon. Gentleman for giving way in his brilliantly enthusiastic speech, but he is not being his usual even-handed self, because he accuses the Conservatives of allowing people to come from eastern Europe, but it really was the last Labour Government who let in most of them.

[John Mann]

Fair point. That is precisely why, on those demonstrations at Staythorpe with Unite and other unions, I was the only parliamentarian who spoke on behalf of the workers in my constituency and others. However, I know that I am not the only one; perhaps the hon. Gentleman would wish to join me on such picket lines in future, in protecting the interests of British trade unionism and British workers. That is the debate—on what is really needed in the future, in this Parliament and in Europe—that this unholy coalition alliance Government are refusing to allow to take place.

Those Back Benchers who wish to strengthen against the ever-onwards and upwards movement of big business in Europe should also create the opportunity for votes on these things, rather than simply going back to basics. Therefore, I call on them to join in the battle for a real debate on Europe, but not to the exclusion of the cuts in public services that this coalition, with these Liberal traitors, is bringing to this country, because that is the debate that the country wants.

[Mr Shepherd]

At the end of that roaring speech, I am not sure whether the hon. Member for Bassetlaw (John Mann) is for or against the new clause. I shall just reflect because, for some of us, this is an important debate. Even the recent history of the Labour party seems to have passed the hon. Gentleman by: Kinnock’s opposition; Kinnock being in favour—all the pastures of the past 30-odd years—but where are we?

I take the debate quite seriously. I have supported referendums on the European Union and its treaties for many years now. What started as a Common Market and is now a European Union touches and reaches into every level of our Government and our life, from employment laws to what hours doctors may work. These things are now determined elsewhere. I suggest that undoubtedly the most major constitutional change of the past 100 years has been the development of the European Union as an almost sovereign body, with a legal system that sits above our own regard for our constitutional verities.

The central proposition of the Labour party, which we heard much about just now and which most hon. Members respect the history of, was the vote, organising and the creation of the unions, so that the party might one day hold seats in the House and come to determine the shape of national policy. That was the great goal, and it succeeded. Yet, within a generation, Labour, which was cautious about the development of the European Union, has changed. Peter Shore wrote that great, very cautious speech, “A thousand years of British history”. “We do not know how this will develop,” said Hugh Gaitskell, “We have to wait and see.” It was a cautionary speech. Of course it is true that it was characterised as demonic by the Conservative Administrations who were still negotiating to enter into the European Community, or Common Market as we called it. That is the background to why the Labour party wanted power, universal suffrage, the right to determine the conditions of the working people of this country and to distribute wealth.

20:15

Now, this new generation—the Kinnock age—has so integrated into the European Union that it has Front Benchers who believe almost with the passion of a religion that it cannot be challenged or contradicted. Let us consider the very words that are used—this clerisy of the Community, where these high priests of Brussels try to determine, and largely do determine, the laws under which we live. So I see this as a matter of principle.

I have watched the development of this new constitution over the past 30 years, from when we did not do referendums to when we now do them at the drop of a hat. At one time, they were meant to be consultative. We have already had a referendum thrust on us on the voting arrangements that we have had traditionally, because of course it is part of a coalition agreement, as the hon. Member for Bassetlaw mentioned just a moment ago. So there is no absolute bar to holding a referendum on a great constitutional issue. That is the proposition that I am putting to the Committee.

I make an observation from my own experience over the years that I have served here. The sovereignty of Parliament that we talk of is, in fact, shorthand for the sovereignty of the people. That is what the Labour party once believed in, and that is what animated and generated the clash of ideas about how a society should self-govern. When Peter Shore, who wrote that original great speech for Gaitskell, stood on the Opposition Benches to debate a referendum measure—a Bill, as it happened—before Maastricht in the dying days of the Mr Major’s first Administration, he made the argument about that most prized thing: the self-government of the people of these islands, to determine their policies and their laws in the best interest of the people of this country. That runs beyond and before the Labour party was ever created, and it was the great driving dynamic of our constitutional development. It was unthinkable that we should pass to others the determination of employment, our banking regulations and every level of government that we can think of. That is why there is an urgency in this. It has done something very profound to our view of ourselves and this country’s view of its constitution and its own people. It has degraded it.

I mentioned during the early stages of the Bill the question that people ask all around the place, irrespective of party—they are intelligent people, although not of course as formidable as my hon. Friend the Member for North East Somerset (Jacob Rees-Mogg). They know not who governs them, who was responsible for this particular law and who was insistent on this change in long-tried and settled practice. How did we ever end up with an election system called a d’Hondt system, no less? Perhaps the hon. Member for Bassetlaw will explain to us the reasoning behind the former Home Secretary’s insistence that that was a very necessary new development that made incomprehensible to us those who now represent us as MEPs.

We had one item in the Bill that truly we could have had a referendum on: one new Member of the European Parliament. The place goes to the west midlands, unless, as my right hon. Friend the Minister for Europe said, further and better particulars come to note and it may go to another region. That is what we are fiddling about with.

The Bill is paper-thin, and I think most of us know that. It is here to salve a conscience. We gave a clear undertaking on these matters. It was the most joyous part of my election address to talk about the recovery of the powers over certain essential laws. We were then advised by the Prime Minister, when he was still the Leader of the Opposition, that this treaty had been passed. There was no remembrance that Mr Wilson had a referendum after the passing of a treaty on a renegotiation.

When we play across the Commons like this, we are actually talking about something that is precious to this civil and political society, to these islands. It is about our governance and our Government. If people no longer have confidence that we are able, when there is a settled will, to execute the great measures necessary for the recovery and reconstruction of this country, what is the purpose of this place? That is the challenge that every Member of Parliament faces. It is also the challenge for the Labour party, which is almost married to the European Union after the conversion of Kinnock. Except for that dour soul from Dunfermline, it accepts everything.

[Emma Reynolds]

Will the hon. Gentleman give way?

[Mr Shepherd]

If the hon. Lady will forgive me, I will not. I did not intend to speak for long on this.

I listened to the hon. Lady, and to my right hon. Friend the Minister for Europe’s exegesis on the marvels of the provisions, and his aspirations for how, with the new thrust and trust, we will somehow make a dynamic entity of the European Union for the benefit of the British people. That might be so; I do not know, but I have heard that story from Governments of both parties over more than 30 years. They are often good people who stand before us and bring forward these measures. They believe in them at the time. The unfortunate coincidence of the elapsing of time demonstrates how often they were wrong in their interpretations and understanding of the commitments that they entered into by prerogative power and supported by legislative process. As my hon. Friend the Member for Stone (Mr Cash) consistently points out without hesitation or deviation, that is the fault of the Whips. I do not believe that we are simply biddable, but that is what it looks like to the outside world.

There is therefore a purpose behind this proposal. It is an expression of something that is alive not only on this side of the House. I do not want to disillusion the hon. Member for Bassetlaw, but this sentiment is shared across the Chamber. I see the same souls: they might say that they have converted, but, like the slaves in Babylonia, they got back to Israel. We have to return to this question: what is the purpose of this House? Who do we represent and why do we represent them?

There is merit in the fact that we have at least had the opportunity to discuss this proposal. It is not the perfect vehicle to achieve this aim, however. We are in the midst of a crisis. I have always supported the idea of holding a referendum, but that was slightly challenged when the former Minister for Europe, no less, the right hon. Member for Leicester East (Keith Vaz), proceeded round the country in a caravan. Members will remember that he was the only man in Britain who met two Eurosceptics. I think he gave us their names—Ken and Dave, or whatever. It was almost impossible, during the conflicts over the treaties, to go round the whole of the United Kingdom in his van. We asked for reports. My right hon. Friend the Foreign Secretary made great humour of the situation, but humour is not the same as intent. That is what this is about.

Behind all this, I sense a growing intent on the part of the British people to have a greater resolution than the flim-flam that we are dealing with in this Bill. I respect my hon. Friends for saying that it is at least something, but that is what we have heard about all the brakes. This party was united against the social chapter in the Maastricht treaty. In fact, the opposition to it nearly brought the then Government down. There was the threat of a Dissolution if we lost that argument. I remember the Chief Whip telling me that we would be decimated, and we faced that in that arcane and silly way that people do when they are under pressure: “Only one in 10; that’s not a bad result.” The truth, however, was that this party knelt, in government. That is the progress that has been made.

Trade statistics have been mentioned. I grew up in an age when the port of London was perhaps the greatest entrepreneurial port, with the greatest volume of trade. Times changed; labour relations changed. Entrepôts grew on the continent of Europe, and they are the means by which we now export. It was pointed out earlier that we had a trade surplus, but today we have a trade deficit with Europe. This might merely be a reflection of the changing patterns of the way in which we export. No one brings forward the figures.

These are the little stones that begin to build a wall, and the wall is growing. I believe profoundly that the people of England, Wales, Scotland and Northern Ireland ought to have a say on this. I shall approach the matter from the point of view of realpolitik, however. The very threat, and the very undertaking, of a referendum put fear and aghastness into the heart of Brussels and the other members of the European Community.

If we are to be able to manage our own economy, to recover our place and standing in the world and to become economically secure, we have to recover some of these powers. There is no doubt in my mind about that. Many of us on these Back Benches are now committed to seeing that that comes about. Let no one doubt it: there will also be people on the Labour Benches who will give a cheer for this proposal. There might well be people in Ulster who will also give it a cheer. I caution the hon. Member for Wolverhampton North East (Emma Reynolds), and I also say to my right hon. Friend the Minister that it was his expression of hope and belief that really undermined my confidence in his judgment after all the years that he has been in the House, given that he has seen this ratcheted, one-way transference of authority.

We are now challenged over our home affairs and justice system. The common law of England, Wales and Ireland is under threat. We are transferring much of our criminal justice system to another system that does not understand the common law because its civil tradition is different. I do not knock other people’s systems of law. If it works for them, they must have it. But we know what has worked and given confidence to us across generations. I heard the flimsiest defence of how we were going to preserve that in the face of Strasbourg and Luxembourg. This is a big, big issue. It has haunted part of our debate. It is not seriously addressed. Opt-ins can take place and profoundly change who we are, even now.

I urge my hon. Friends to reflect. The rights that we are talking about are not our own rights. We are just citizens in this matter, as are those whom we represent. It is their rights that we should be mindful of. They are entitled to determine the course that we take in respect of these European matters.

20:30

[Kate Hoey]

It is a great pleasure to follow the hon. Member for Aldridge-Brownhills (Mr Shepherd), who for many years has been a voice in Parliament for democracy and civil liberties. I share many of his views on the issue. It is a shame, in some ways, that we are debating such a hugely important matter as whether we should have an in/out referendum in the context of the Bill, because that is not what the Bill is about, as I know the Minister would agree.

I congratulate the hon. Member for Wellingborough (Mr Bone) on persisting and pushing new clause 11. I am one of the signatories to it, and I am glad that we finally got a debate. As someone said about two hours ago, the debate is giving us a great deal more time to discuss these issues than we would normally get.

I said earlier that I hoped hon. Members would keep talking until I got back from an engagement. I am grateful that they not only managed to keep talking, but are still talking. I was opening a new climbing wall at the Westway centre in London, and I was reminded there of a practical aspect of the European Union that people find so irritating. Some time ago the European Union working at heights directive was issued, which seemed sensible. Everyone assumed that it would apply to people working in industry, building sites and so on, but our officials—our zealots—always want to gold-plate. They thought that those who taught mountaineering should be subject to the working at heights directive.

It took nearly three years to bring that to an end and to ensure that the way we taught mountaineering and climbing in this country would not be ruined by a directive that insisted, for example, that certain ropes should not be used. Hon. Members who are mountaineers will well remember that. While the Committee was debating the new clause, I was reminded of a practical example of where the European Union starts off with a good idea, a few people agree with it, no one is ever asked about the detail, and when it finally comes to be implemented, the officials, the bureaucrats and those who love to be able to impose things on other people strengthen the directive so that it sometimes goes way beyond the common-sense reason behind it.

[John Mann]

It was in the previous Parliament, as chair of the all-party mountaineering group, that I negotiated the end of the working at heights directive, or rather its subjugation in relation to mountaineering. Does that not emphasise the point that the regulations were easy to deal with—the meeting took five minutes—but the problem was how officials in Whitehall had chosen to interpret a straightforward directive that, in relation to certain professions, was extremely important?

[Kate Hoey]

My hon. Friend is right. I recall vividly that he was instrumental in that.

The same happens with practically every directive. It is all very well saying that the problem is just the officials. They are not elected. Ministers and Members of Parliament are elected. Directives are always gold-plated by civil servants. My hon. Friend remembers how long it took to get the argument across and to get Ministers to understand it and realise that the way the directive was being applied was not sensible. In other areas where directives are implemented, people may not realise that until the last minute or until it is too late. The European Scrutiny Committee is a brilliant Committee with its current Chair and with the hon. Member for Luton North (Kelvin Hopkins) on it, but it can never perform the necessary scrutiny.

I support the new clause, although, as has been said, it is not ideal or what we would really like. It has been a long time since the people of the United Kingdom had the opportunity to say whether they support the direction of the EU and where it is now compared with where it was when I opposed entry into the Common Market. I accepted that the country had decided to support it, but, over the years, what people voted for then has changed, as we all know, and now we need that debate again, not only as to whether the country supports the direction in which the EU has come and where we are now, but where it should go in the future.

I may be wrong, but my guess is that the vast majority of the British people do not like the direction that the EU has taken and the fact that this Parliament and this country have lost control over many areas. As I have said, there is no point blaming one party over the other. Both major political parties have, in their different ways and not always in the way they intended, conspired to stop the real debate. We saw that with the Maastricht treaty and with the Lisbon treaty, on which the Labour party acted disgracefully, having given a commitment to a referendum. Then the Conservatives, who had given a commitment to a referendum managed to get out of it because the decision had been taken. But, as has been pointed out, just because the decision had been taken to sign it, there was no reason why the British people should not have been allowed a referendum immediately afterwards to decide whether they wanted to continue with the agreement that had been ratified.

Even the most avid supporter of the EU, of which there are many on the Labour Benches, would have to accept that when the EU and the Commission do not get what they want in a vote they simply find another way to have another vote, as happened in Ireland. That is why there is no confidence in the EU. I have a lot of respect for the Minister, who, certainly in the past, will have been seen as not necessarily a Eurosceptic but a Eurorealist, or some other term. He may feel that he is doing the right thing, but the reality is that no one in the country trusts any of the politicians in power, of whatever party, on this issue. Something seems to happen to people when they are elected to Government and go to Brussels. They experience some kind of transformation. For some reason, they suddenly become part of it all. In many cases they become more ideological about it than some of the other European countries.

A long time ago, when I was a Minister in the Home Office and went with the then Home Secretary to meetings in Brussels, we would have a clear line about what we were doing on a justice and home affairs position. We would argue passionately. France would argue the other way and other countries would argue differently. Then in the tea breaks or wine breaks, they would ask us why we felt so strongly on a particular matter. They would say that they did not particularly like it, but they would support it, although they did not really intend to implement it. There was a general feeling that it did not really matter to many of those other EU politicians; they were part of it because they wanted to be part of the club and the whole European project. But they knew jolly well that when they went back to their own countries they would do the bit that they wanted. We were the exact opposite. We would fight our corner, but we would then have to give in because the Prime Minister would decide he wanted something else in some other department in Brussels. Not only would we agree, but we would implement the policy zealously.

[Mark Reckless]

Does the hon. Lady agree that we have this evening seen an honourable exception to that? The right hon. Member for Leicester East (Keith Vaz), who was a Minister for Europe and might have adopted such a position having been there and seen that, said that it is for the British people to decide.

[Kate Hoey]

I am sorry that I missed the contribution made by my right hon. Friend the Member for Leicester East when I had to leave the Chamber. We were both in Europe for a short period when my time in the Home Office coincided with his time in the Foreign Office, so I know his views on the matter and I am pleased that he has them.

I genuinely do not understand what we are afraid of, and neither do the public, particularly those who are strongly in favour of a referendum. What is the problem? We can no longer put it down to cost, because we are having this ridiculous referendum on the voting system, which most people are bored silly with—they yawn when it is brought up, even at political party meetings. I accept that it was set out in the coalition agreement, but there is no huge enthusiasm for that referendum, and yet we are spending so much money on it.

A referendum on the European Union would revitalise the political debate within this country. We would enliven things and go back to days of having public meetings. I accept what my hon. Friend the Member for Bassetlaw (John Mann) said about the economic problems the country faces, but I do not think that having a debate on the EU would be a diversion. It would be a way of showing that there are other ways of running this country’s whole economic policy. We would get that debate and get out there among the people, because I know that they feel strongly about it.

I will not speak much longer, other than to say that I have been quite proud—others will laugh—to be associated with the campaign on the in/out referendum run by the Daily Express. As some Members might already have mentioned, yesterday a number of us took 373,000 envelopes, which had been returned from across the country, containing the slips published in the Daily Express asking for an in/out referendum. Those were just the envelopes, so many more were sent via e-mail. I think that we should be proud of the fact that a newspaper has managed to arouse that debate, and I would not care whether it had been done by the Daily Express, the Daily Mail, The Daily Telegraph, The Sun or even the Daily Mirror.

The hon. Member for Aldridge-Brownhills (Mr Shepherd) talked about a growing mood in the country. We can sit here in isolation and ignore that mood, or we can grab it and lift it as an opportunity to get some decency and honesty back into politics. We should get that debate and have a referendum at some stage on whether we are in or out of Europe. I know that the Whips do not want Members to vote for this small new clause, but I say to Government Members that I have opposed my Whips on many occasions and am still alive and still here. To vote for it would send out a little signal that the issue will not go away.

[Mr Cash]

For me, the debate is not about the wording of the new clause, but about a question of principle. It is also about whether we are a democratic nation. As my hon. Friend the Member for Aldridge-Brownhills (Mr Shepherd) pointed out, and as many of us have argued for so many years, the question of why we are here in this House, ultimately, is entirely dependent on our relationship to the electorate. This is about democracy, not government.

We began our proceedings on the question of sovereignty some time ago, when we debated clause 18. In that debate, I made it clear—I believe that we won the argument—that the real question was whether this country would be able to govern itself or would end up being increasingly governed by judicial supremacy, and the European Scrutiny Committee report clearly demonstrated that point. For those of us who watched, for example, the recent BBC 4 programme on the Supreme Court, there is no doubt at all about the attitudes of some of the Justices in the Supreme Court and of many senior academics who are deeply influential in the Foreign Office and elsewhere. I know that the Lord Chancellor and Secretary of State for Justice, my right hon. and learned Friend the Member for Rushcliffe (Mr Clarke), understands that extremely well; I have heard him say so.

20:45

There are serious questions about whether the judiciary seek to undermine—not deliberately, but by their language—the sovereignty of this House. So a referendum is about whether sovereignty—the ultimate authority for the government of this country—belongs to the Government, the Prime Minister, No. 10 Downing street and the like, who are elected and accountable to this House, which in turn is accountable to the electorate. Of all those different components of our constitutional arrangements, untidy as they may be, the most important is the sovereignty of the people.

Indeed, under our constitutional arrangements, we cannot even have a referendum unless it is endorsed by Act of Parliament, but that is the moment when the people of this country speak to their representatives, who by mutual accord reply, “This issue is too big for us. We have dithered for too long. We have not resolved these questions. We have allowed your self-government and your Parliament to be subsumed into and absorbed by the decisions that other countries take, by majority vote, so that the laws passed by this House are no longer passed exclusively by Members of Parliament, but by the process of the Whips, the process of government and by the acquiescence and the Europeanisation of this country, which nobody can deny.”

Anybody who has listened to these debates over the past few days will be in no doubt that, whatever this Bill purports to do—the window-dressing that it represents, the aspiration to hold referendums after this Parliament—there is a continuing process of Europeanisation on criminal law, criminal procedure, civil matters, the whole immigration process and the issues of citizenship. They are increasingly being taken away from this House and transferred to the European Union. It is a policy of transfer.

The talk is of the transfer of competences and powers. What about the political transfer that takes place on a daily basis? Only this afternoon, I was in a European Committee on the stabilisation mechanism. A total of £8 billion of British taxpayers’ money has now been committed to the prospect of bailing out Portugal and Spain, for no other reason than that, during the interregnum between two Governments a few months ago, the outgoing Chancellor entered into an unlawful agreement and the incoming Chancellor effectively endorsed it. For the British people, £8 billion is now at risk in times of austerity.

The question is, who made those decisions? I wager that the people responsible include those in the Treasury. The legal advice that I asked the Minister to provide and the other advice from the Treasury has been denied to me. The answer will be published tomorrow. It was given to me only 20 minutes or so before these proceedings began, and it effectively states, “You can’t have the answer to these questions, because if we give them to you it will be inconvenient for the running of government.”

[Mr MacShane]

The hon. Gentleman says that the previous and current Chancellors entered into an unlawful act. Is he saying that the current Chancellor of the Exchequer is a criminal?

[Mr Cash]

That is an absurd comment. I am speaking in terms of the vires of the treaty. It is a different question; it is nothing to do with what the right hon. Gentleman has said. It was a serious misjudgment. It was an agreement that cannot be justified by the legal base. The European Scrutiny Committee said in its report that the agreement on that particular mechanism was legally unsound. That is what I mean. It has exposed the British taxpayer to a very significant sum of money.

However, that is just one example. The real question, ultimately, is one of democracy and trust. It is a matter of principle, and that principle is demonstrated by what happened in respect of the Lisbon treaty. We stood here in this House, month after month, debating the Lisbon treaty. I tabled perhaps 120 or 130 amendments. We united the Conservative party: for the first time since 1972, we had complete unanimity. Of those with a different view, only one is still in the party now—the others have all fled to other parties—and he is the Lord Chancellor and Secretary of State for Justice. He is entitled to his view and I respect him for the consistency with which he pursues it, however much I may disagree. The Conservative party was united in opposing every aspect of the Lisbon treaty and united for a referendum, and we voted accordingly. For reasons that have been put forward, but which I simply do not accept, that promise of a referendum was torn up.

Other promises with regard to the European issue—promises made in our manifesto—have not been sustained. These are serious matters. It is no surprise that the people of this country lose faith and trust in their politicians if such decisions are taken. This applies just as much to the Labour party or the Liberal Democrats. Broken promises are broken manifesto promises. Manifesto promises are the basis on which people ask to be elected and get into this House to represent the interests of the people who vote for them in the polling booth. If we break our promises, it is hardly surprising if the people of this country begin to feel a sense, first, of unease, and then of contempt for the political system.

This is constitutional reality, but also practical reality: it affects people in their everyday lives. We heard from the hon. Member for Vauxhall (Kate Hoey) about the working at heights directive. We heard from the hon. Member for Bassetlaw (John Mann) about the posted workers directive. We have heard about the working time directive, the nurses agencies directive, and so on. The EU affects every single corner, every single nook and cranny of our lives, and we appear to be powerless to do anything about it.

A few days ago I got the figures from the Library on the balance of trade between ourselves and the European Union. They are alarming. In relation to the 27 member states, between 1999 and 2009—it has got very much worse in the past 18 months—we had an imbalance of £5 billion. With the rest of the world, we have had an improvement of £11 billion. There is a message there: you cannot trade with a bankrupt organisation if you are a successful company. The European Union, with its low growth, its riots and protests, and its failure, demonstrates why a referendum is required, as the new clause says, on the question of

“continuing United Kingdom membership of the European Union”.

For me, this is not just a question of in or out, but of to be or not to be a democratic nation state. This is not a matter to be trifled with.

I have profound views about the manner in which the coalition Government are dealing with this issue. As the Minister for Europe said in the debate last week, the Government have a European Affairs Committee, two thirds of which is Conservative and one third of which is Liberal Democrat. I pointed out to him that that Committee clearly could not have a vote, because we would win every time and we would have the policies that we stood on in our manifesto. So who is wagging the tail? It is clearly the one third of the Committee that are Liberal Democrats, combined with the instincts of those on our side of the equation who want more Europeanisation, although they disclaim it. That is another problem for us.

In Prime Minister’s questions a few weeks ago I asked why it is that at every turn, whenever an issue of integration comes up, we always go in the wrong direction. Why has repatriation been rejected? It is the repatriation of powers, using the well-known formula—notwithstanding the European Communities Act 1972—that would enable us to re-grow our economy and answer the question that is now before the Chancellor of the Exchequer: why is our economy not growing? We can tell him that it is not growing because 50% of our trade is with the European Union, which is itself in deep trouble and has low growth. At the same time, we cannot grow our economy because we are strangled to such an extent by the red tape of Brussels. Those two situations can be retrieved only through a new relationship between us and the European Union.

This is not just a constitutional argument, but an argument of practicality. It is an argument of to be or not to be a democratic nation state, a great sovereign state and a successful country that represents the interests of the people we serve—not ourselves. As I have said so often, it is not our Parliament, it is their Parliament. They are entitled to know that if things have not gone right—things certainly have not gone right with Europeanisation—we have an absolute obligation to ask them for their opinion. That is democracy, that is trust and that is what will restore integrity to this House and the British political system.

[Mr MacShane]

I have considerable sympathy with the speech of the hon. Member for Stone (Mr Cash). A year ago, his party was Cash and Carswell; now it is Clegg and Cable. His party has surrendered the authenticity of its position on Europe for the marriage of convenience with the Liberal Democrats. That is his problem, not mine.

I am not so sure that the European Union is to blame for the fact that we alone of the major European Union economies have zero growth, inflation of 3.6%, a shrinking currency and rising unemployment. This House and this Government could at a stroke tomorrow cut taxes, abolish national labour laws that they do not like and do whatever they think might turn this situation around. I gently suggest that perhaps it is the economic management that needs to be looked at.

I want to address the fundamental point that was made by the hon. Member for Stone and my hon. Friend the Member for Vauxhall (Kate Hoey), who has left her place. Should this democracy be based on plebiscites and referendums, or on the authority of this House? In recent days, the issue that the people of Britain have been in touch with me about is the selling off of Sherwood forest, our woods and our free forest lands to private interests. Perhaps I would like to respond to them by saying, “Let there be a referendum on this issue.” Previously, the issue about which people were in touch with me was the tripling of student fees, on which one of the coalition parties broke, in the most fundamental and flagrant way, a solemn promise that it had made and signed in public. We have no mechanism to have a referendum on that matter. I could also mention the education maintenance allowance.

21:00

I put it to the hon. Member for Stone and my hon. Friend the Member for Vauxhall that if they want a Britain governed by referendums, I can accept the intellectual argument for having one on the EU, but we must then have one on other issues that matter to the people of this country. If Members want referendums on the selling-off of forest lands, the cutting of benefits, the closing of Sure Start and the tripling of student fees, I am tempted to say crudely, “Be my guest.”

In our democracy, which has been shaped, formed and hammered out over centuries, it is the 650 Members elected here—soon to be 600, because for the first time in British history we are reducing representation and claiming it as an advance for democracy, but I will leave that to one side—who have made the decisions, good and bad, that have been rendered to the people. The people have then decided at the next election whether they support the decisions that have been made. If we want a plebiscite and referendum democracy, we must have it for everything. Some people sincerely believe in that, and I respect their position, but let them stand up tomorrow and say, “I will vote to give the people the right to decide on the selling-off of forests, or the tripling of student fees.” That is the fundamental problem.

My hon. Friend the Member for Bassetlaw (John Mann) was right to point out the problem of the gold-plating of EU directives. Directives have arrived in this country and we have voted on them, and many of them have been in the name of business, to promote the single market and to allow British traders of every sort to function fully and freely in the world’s biggest economic market. However, when directives are transposed into British law, they seem to double in size as every little worm and maggot in Whitehall gets into them and seeks to add his or her little bit of gold-plating. The House could resist that, but we have no mechanism for examining such problems when they begin to come down the legislative track. We receive the directives only at the end of the process, by which time it is often too late. I fully accept that complaint, which requires a different way of working and a process of engagement and argument.

I fully respect those who say that the answer is to quit the European Union. That is an honourable position. Their duty, it seems to me, is not to persuade the Daily Express and its pornographer owner that their cause is just—[Interruption.] There is a cry of “Shame” from a sedentary position, but on the whole, my belief is, “By how you make your money shall thee be counted.” In the case of the owner of the Daily Express, he has made a great deal of his money out of the most hideous exploitation of women and young girls. It is for those who want to walk with that gentleman to decide whether that is the company that they want to keep.

The new clause is reasonable, but Members who vote for it tonight will have to accept certain consequences. It would fundamentally change our parliamentary democracy. From this tiny little wooden shed with its nice green leather benches, we would be giving other powers outside our Parliament the right to call for votes, energise democracy and create support for campaigns as they wished. Some might say that that is direct democracy, but I am not sure that giving someone the ability to sign a cheque for £1 million, £2 million or £5 million, is any kind of democracy—direct or indirect—but that is for the Committee to decide.

That is a problem for the governing parties. They must decide whether to support new clause 11. I obviously hope that they will not support it, because I believe that the strength of our country and our democracy is that such decisions are made here in the House of Commons—things are not decided by offshore proprietors, pornographers or others with very large cheque books.

[Mr Lidington]

This has been a passionate debate. Although I am unable to accept new clause 11 on behalf of the Government, I admire the integrity, commitment and, as others have said, the parliamentary ingenuity, of my hon. Friend the Member for Wellingborough (Mr Bone). As befits somebody who is assiduous in his attendance and fierce in his affection for, and loyalty to, the House of Commons as an institution, he has gone through the rule book and explored parliamentary procedure to ensure that an issue about which he cares so strongly has ample time for debate on the Floor of the Committee.

I want to do my hon. Friend justice by responding in detail on his proposal on its merits. The difficulty is not simply that new clause 11 seeks to do something that is not within the scope of the Bill as the Government have framed it, but that it raises a number of important political questions.

[Mr Bone]

On a point of order, Ms Primarolo. Could you correct me if I am wrong? If new clause 11 was not within the scope of the Bill, we would not have been allowed to debate it today.

[The Second Deputy Chairman of Ways and Means (Dawn Primarolo)]

You are correct, Mr Bone, that for a new clause to be selected, it must be in order. The Minister probably did not quite mean what he said.

[Mr Lidington]

I qualified my statement, Ms Primarolo, by saying, “as the Government have framed the Bill”. The intended purpose of the Bill is to provide both additional parliamentary scrutiny and the ultimate sanction of a public referendum on decisions that would transfer powers and competences from this country to the EU. The Government’s purpose was not to provide for the sort of additional referendum that my hon. Friend the Member for Wellingborough seeks. It is indeed a tribute to his parliamentary skill that he has found a way, within order, to seek to address that issue.

[The Second Deputy Chairman]

Good say, Minister. The proposed new clause is in order. Whether the Government actually like it or think that it should be in the Bill is the purpose of this debate. I think we have clarified that now.

[Mr Lidington]

I am perfectly happy to abide by your ruling on that, Ms Primarolo.

[Mr David]

I do not wish to intrude upon private grief among Conservative Members, but I agree with you absolutely, Ms Primarolo, and you are absolutely correct that there is no question of the proposal being out of order.

The Minister gave a very interesting summation of the Bill, but he did not mention one crucial aspect of it. He did not say that referendums will not apply in this Parliament.

[Mr Lidington]

Assuming that the Bill gains parliamentary approval and Royal Assent in the normal way, it will apply during this Parliament from the time when it comes into effect. As I said earlier today, one illustration of that is that the treaty change proposed by Germany and being taken through EU institutions at the moment will have to be ratified by primary legislation rather than simply by a resolution of both Houses, as would be the case under the current legislation, which was introduced by the previous Government in 2008. What distinguishes this Parliament is that the Government have said, as part of their coalition agreement, that we do not intend to agree at European level to any proposal to amend the treaties or invoke passarelle clauses that would require a referendum under the terms of the legislation that we have been debating for a numbers of days now.

The referendums authorised under the Bill are intended to be final decisions. They will give people the opportunity to judge whether a particular proposal to give new powers to the European Union is in the national interest. One of the things that is troubling about the new clause is that it implicitly assumes that those who vote no to a particular proposition also want to challenge the UK’s membership of the EU, but I do not think that that can be taken for granted. As other hon. Members have said, there is a risk that some people could be influenced in how they vote on the substance of a proposal by a calculation of whether it would be likely to produce the end result of an in/out referendum. Such electors might take into account his or her views on the in/out proposal and not just the pros and cons of the measure on which they are being invited to cast a vote.

I think that my hon. Friend the Member for Wellingborough overlooks the problem of a possible succession of referendums on Britain’s membership of the EU. It is possible to imagine that under a future Government—not this one—referendums on moving to qualified majority voting for common foreign and security policy and on joining the euro might be scheduled for two successive years. The new clause would leave open the possibility of an in/out referendum after one—or, indeed, both—of those referendums, because under his new clause a rejection of the first proposition would trigger an in/out referendum, which might result in the public deciding to stay in the EU. A second referendum on a treaty change might come forward 12 months later and also be rejected, and then, in the course of less than a year, we would find ourselves with two successive referendums on the UK’s membership of the EU. That is not a sensible way in which to conduct our relationship with the countries of the EU.

Nor does the new clause address what would happen if there were two questions on a ballot paper in one day, which we debated earlier. Why should a positive vote for one treaty change proposition and a negative vote for a second trigger a referendum? One cannot read into how people cast their votes on treaty change proposals what their view would be of the desirability of a referendum on membership. More fundamentally, however, the new clause does not capture the range of opinions held by the British people. The hon. Member for Vauxhall (Kate Hoey), whom I completely respect on these matters, said that she wanted people to be able to express a view on the direction that the EU was taking. However, that is not what people are being offered through the new clause, of course. They are being offered the opportunity not to express their view on the direction of the EU, but to say whether the UK should remain a member.

[Kate Hoey]

The Minister must know that it is precisely because of the direction of the European Union that people want the opportunity to say that they do not like that direction by withdrawing from the European Union.

[Mr Lidington]

Withdrawing from the European Union is not the only choice for people who are dissatisfied with the current arrangements. There are plenty of people around who want Britain to remain a member of the European Union, but to have certain powers currently exercised in Brussels repatriated to this country. After all, that was the combination of views expressed at the last general election in the Conservative party manifesto, which sought the repatriation of certain powers, but said:

“A Conservative government will play an active and energetic role in the European Union”.

21:15

My hon. Friend the Member for North East Somerset (Jacob Rees-Mogg) made a strong point when he said that one of the disadvantages of the new clause was that it could weaken the chances of making stick under future Governments of a different political colour the new arrangements for a referendum on any transfer of competence and power to Brussels. It is very much part of this Government’s intention that the arrangements embodied in the Bill should become a settled and generally accepted part of our constitutional order. No Parliament or Government can guarantee that any piece of legislation that they bring forward will be immune from amendment or repeal by a future Parliament. However, just as the previous, Labour Government’s devolution legislation, which was vigorously opposed by my party at the time, has now become accepted across the House and is something that my right hon. Friend the Prime Minister endorses and has frequently declared he is intent on making work better, so, I would argue, it will be possible over the course of time to persuade the hon. Member for Caerphilly (Mr David) and his party that the measures in the Bill are in the national interest and that they will make for a system of government and relations between Westminster and the European Union in which the British people have greater confidence.

Finally, I do not believe that the new clause will provide the additional safeguard during European Union negotiations that a number of my hon. Friends suggested it would. What will strengthen the position of United Kingdom Ministers in negotiations is the knowledge around the table among Ministers from every other member state that if any treaty change is to be agreed and ratified, it will have to enjoy the approval not only of the British Government of the day, but of the British people, expressing themselves through a referendum as provided for in the Bill. I do not think that new clause 11 adds to the safeguards that we have provided. While respecting the integrity of the position of my hon. Friend the Member for Wellingborough, I would ask him not to press his new clause to a Division.

[Mr Bone]

I am grateful for the Minister’s kind words at the beginning of his comments, and I am genuinely disappointed that the Government have not accepted my new clause, which would have moved things forward for this country. There is little between us on this issue, so it is a shame that the Minister could not accept the new clause. I will seek to divide the Committee because of what we have heard today. This has been a good debate; indeed, I am surprised that it took off. I was expecting the Division, if we were going to have one, at about 6.30 pm, so at this appropriate juncture I again thank the Whips for arranging for this debate to take place and for allowing so much time. If it had not been for their help last Monday, that would not have happened.

We have heard from a number of hon. and right hon. Members. Let me deal first with the right hon. Member for Rotherham (Mr MacShane) and the hon. Member for Bassetlaw (John Mann), who both made their points powerfully. I disagreed with them, and I entirely hope that they are not in the same Lobby as I am when the Division occurs. Right at the beginning of the debate—it is some time ago now—we heard a powerful and thoughtful speech from my hon. Friend the Member for Rochester and Strood (Mark Reckless), who set the tone for the proceedings. We also heard a good speech from my hon. Friend the Member for Brigg and Goole (Andrew Percy), whose remarks cheered me up enormously.

The right hon. Member for Leicester East (Keith Vaz) is always worth listening to, and again he did not fail the Committee this evening. He took a principled view—he is greatly in favour of the European Union—that we should have an in/out referendum. An equally able parliamentarian, my hon. Friend the Member for Kettering (Mr Hollobone), took exactly the same view that we should have a referendum, but a completely different view on whether we should be in the European Union.

My hon. Friend the Member for St Albans (Mrs Main) took the opposite view to that expressed by my hon. Friend the Member for North East Somerset (Jacob Rees-Mogg). I thank my hon. Friend the Member for St Albans, but I think that my hon. Friend the Member for North East Somerset expressed the most important concern in his thoughtful speech. I disagree with his conclusion that the new clause would be more likely to lead to a transfer of powers, but the issue, as developed in today’s debate, has not mainly been about that technicality, but about whether we support an in/out referendum. If hon. Members support such a referendum, I urge them to vote for new clause 11.

Once again, the hon. Member for Vauxhall (Kate Hoey) made a remarkable speech. The particular point I took from what she said was that an in/out referendum would revitalise politics. As she rightly said, there would be public meetings up and down the country and the people would be involved in the issue again.

My hon. Friend the Member for Aldridge-Brownhills (Mr Shepherd) kept the flag flying yet again, as he has done over the years. His speech went to the heart of the issue, but I will reserve my last comment for my hon. Friend the Member for Stone (Mr Cash), who has fought and fought again on this issue over many years. He summed it up very nicely when he explained that this is not an “in/out” referendum, but a “To be or not to be?” referendum. Are we to be or not to be a democratic nation state?

I urge all Members to make up their minds on the basis of whether they are for or against an in/out referendum. If they are for it, I urge them to vote for new clause 11. I also urge the Whips to allow this to happen, as promised in our manifesto.

Question put, That the clause be added to the Bill.

21:23

Division 186

Ayes: 26

---

Conservative: 18
Democratic Unionist Party: 4
Labour: 4

Noes: 295

---

Conservative: 249
Liberal Democrat: 43
Social Democratic & Labour Party: 1
Alliance: 1

The Deputy Speaker resumed the Chair.

Bill, as amended, reported.

Bill to be considered tomorrow.

21:38

[Sir Menzies Campbell (North East Fife) (LD)]

On a point of order, Madam Deputy Speaker. In the course of the last hour, President Mubarak has announced that he will not seek re-election as the President of Egypt—the culmination, but probably not the end, of the remarkable events of the last few days. Have you received any request from the Secretary of State for Foreign and Commonwealth Affairs, or indeed from any other Foreign Office Minister, to make a statement about the consequences of that decision, which will undoubtedly have an impact on British policy towards Egypt, and almost certainly on Britain’s policy towards the middle east region?

[Madam Deputy Speaker (Dawn Primarolo)]

I am grateful to the right hon. and learned Gentleman for giving me notice of that point of order. I have not received notification this evening of any intention to make a statement but I know that all Members of the House, as others, have been following this very closely and I am sure that those on the Government Benches have heard his comments this evening.

Business without Debate

Tuesday 1st February 2011 Commons Chamber

delegated legislation

Motion made, and Question put forthwith (Standing Order No. 118(6)),

Value Added Tax

That the Value Added Tax (Exceptions Relating to Supplies not Made to Relevant Business Person) Order 2010 (S.I., 2010, No. 3017), dated 20 December 2010, a copy of which was laid before this House on 21 December, be approved.—(Mr Dunne.)

Question agreed to.

Motion made, and Question put forthwith (Standing Order No. 118(6)),

That the Value Added Tax (Payments on Account) (Amendment) Order 2011 (S.I., 2011, No. 21), dated 10 January 2011, a copy of which was laid before this House on 11 January, be approved.— (Mr Dunne.)

Question put and agreed to.

Motion made, and Question put forthwith (Standing Order No. 118(6)),

That the Value Added Tax (Buildings and Land) Order 2011 (S.I., 2011, No. 86), dated 17 January 2011, a copy of which was laid before this House on 18 January, be approved.—(Mr Dunne.)

Question put and agreed to.

European union document

Tuesday 1st February 2011 Commons Chamber

Motion made, and Question put forthwith (Standing Order No. 119(11)),

Animal Cloning for Food Production

That this House takes note of European Union Document No. 15277/10, a report from the Commission to the European Parliament and the Council on animal cloning for food production; and supports the Government’s view that a ban or temporary suspension on cloning, the use of clones and the marketing of food from clones is disproportionate in terms of food safety and animal welfare.—(Mr Dunne.)

business of the house

Ordered,

That, at the sitting on Monday 7 February, paragraph (2) of Standing Order No. 31 (Questions on amendments) shall apply to the Motion in the names of Angus Robertson and Mr Elfyn Llwyd as if the day were an Opposition Day; proceedings on the Motion may continue, though opposed, for three hours and shall then lapse if not previously disposed of; and Standing Order No. 41A (Deferred divisions) shall not apply.—(Mr Heath.)

Welsh grand committee

Ordered,

That—

(1) the matter of the UK Government’s energy policy as it relates to Wales be referred to the Welsh Grand Committee for its consideration;

(2) the Committee shall meet at Westminster on Thursday 10 March at 9.00 am and 2.30 pm to consider—

(a) questions tabled in accordance with Standing Order No. 103 (Welsh Grand Committee (questions for oral answer)), except that questions shall be addressed to, and answered by, Ministers in the Department for Energy and Climate Change;

(b) the matter referred to it under paragraph (1) above; and

(3) the Chair shall interrupt proceedings at the afternoon sitting not later than two hours after their commencement at that sitting.—(Mr Heath.)

petition

Tuesday 1st February 2011 Commons Chamber

[Madam Deputy Speaker (Dawn Primarolo)]

Order. Will hon. Members who are leaving the Chamber please do so quietly and as quickly as possible?

21:41

[Sir Alan Beith (Berwick-upon-Tweed) (LD)]

I have pleasure in presenting the petition of my constituent, Mr Paul Francis Dodd.

The petition states:

To the Honourable the Commons of the United Kingdom of Great Britain and Northern Ireland in Parliament assembled.

The Humble Petition of Mr. Paul Francis Dodd,

Sheweth, that the Petitioner believes that the Government’s recent announcement regarding Child Benefit is unfair; that the Petitioner is a married man with a daughter aged 2 years; whose salary is £44,500 p.a., which is just inside the threshold for a higher rate tax payer; that the Petitioner’s wife gave up work to look after their daughter and has no income; and that from 2013 the Petitioner and his wife will not be entitled to receive Child Benefit.

Sheweth, that the petitioner believes that the Government’s proposals have two flaws; that a family with both parents earning a salary less than the higher-rate tax threshold, which could total around £88,000, will continue to receive the benefit; and that, if both parents earn a salary that is half that earned by the petitioner, £22,250, not only will they continue to receive the benefit, but they also receive two tax-free allowances for their salaries.

Sheweth, that the petitioner believes that revisions are necessary to the Child Benefit system; that the family income should be taken into account, not just the income of one of the individuals in a family; that the petitioner recognises that this is expensive, but he believes that it is the fairest way to judge a family’s income and hence its needs for benefit; that, if this is not possible, then a gradual phasing out of the benefit for earners over the higher rate tax threshold would be very easy to implement; that it would be easy to reduce Child Benefit by one percentage point for every £1,000 earned over the higher rate tax threshold; that this would still leave a majority of the benefit for those earners, such as the petitioner, who only just enter this limit; and that it would also remove Child Benefit for those who earn over £144,000.

Wherefore your petitioner prays that your honourable House urges the Government to review its policy on Child Benefit.

And your petitioner, as in duty bound, will ever pray, etc.

[P000882]

Post-16 Students

Tuesday 1st February 2011 Commons Chamber

Motion made, and Question proposed, That this House do now adjourn.—(Mr Dunne.)

21:42

[Nic Dakin (Scunthorpe) (Lab)]

When the Secretary of State for Education gave evidence to the Select Committee before Christmas, he confessed that the funding of post-16 education is even more mystifying and complicated than that of the rest of the education service. As a sixth-form college principal until I became an MP at the last election, I am, however, a bit of an anorak about the funding of 16 to 19-year-olds’ education, so I am afraid that some of what I have to say is a bit technical. Former colleagues have contacted me concerned about the proposals coming out of the Young People’s Learning Agency that landed in colleges just before Christmas—an interesting Christmas card, some might say, but it suggested a not so happy new year for post-16 students.

I understand that the Department for Education has agreed provisional budget figures with the Treasury for the next four years but has not yet published them. It looks as though the total budget for education and apprenticeships will rise by 1% over the next four years, partly to provide funding for an extra 68,000 places, or 4% growth in the number of post-16 students. The YPLA is proposing a cut in entitlement funding from 114 guided learning hours to 30 guided learning hours. Guided learning hours are what YPLA funding buys. This represents a 75% cut in entitlement, which will translate into a 12% cut in overall funding for sixth-form colleges, and a significant cut for general further education colleges and school sixth forms. Sixth-form colleges are particularly affected because they concentrate almost solely on 16 to 19-year-old learners.

[Lilian Greenwood (Nottingham South) (Lab)]

Does my hon. Friend agree that places such as Nottingham, where a high proportion of learners study in colleges rather than in school sixth forms, will be particularly hard hit by these changes?

[Nic Dakin]

That could turn out to be the case, as the changes happen. One of the problems is that the YPLA has not yet made clear what all the impacts of the changes in funding will be. There is therefore a little bit of hope that this might not happen, and I am sure that the Minister will address that point in his response.

[Caroline Lucas (Brighton, Pavilion) (Green)]

In Brighton, we have three sixth-form colleges, each of which faces a cut of at least 12% over the next four years as a result of the cuts to entitlement funding. Does the hon. Gentleman agree that, once inflation and VAT have been factored in, we could be looking at funding cuts of up to 20% by 2014-15, which really is a burden too hard to bear?

[Nic Dakin]

That is the worry. Such figures are floating around in the sector, and they are very disturbing, as the hon. Lady rightly says.

Entitlement funding currently provides the money for, among other things, tutorial and guidance systems in colleges, careers support, some targeted support for weaker learners, and health advice. It also pays for those non-examined activities such as sport, drama, music, volunteering and vocational experiences, which broaden the educational experience of young people.

[Damian Hinds (East Hampshire) (Con)]

I would like to raise the case of a student called Georgia, who is studying at Alton college in my constituency. As a result of the guided learning hours, she has had the opportunity to study creative writing and poetry, as well as something called “applying to competitive courses”. She has also received one-to-one coaching for her Oxbridge entrance. As a result, she now has an offer from Girton college, Cambridge. I am sure that the hon. Gentleman would acknowledge that part of the whole picture involves trying to find the money to fund the young person’s premium, which is analogous to the pupil premium. I am sure that that is something that we would all applaud, but is it not also important always to find space in the curriculum, and in the funding, for these enrichment activities that can put state-educated children on an equal footing with privately educated children, and that those activities receive the priority that they deserve?

[Nic Dakin]

The hon. Gentleman makes a very good point, drawing on a clear case study from Alton college, an excellent college in his constituency. He makes the point that it is crucial to strike the right balance and ensure that colleges can continue their excellent work in developing the whole person and allowing young people from a state education background to access the best universities. Alton, and other colleges up and down the land, have done this very well over the years. He also draws attention to what is happening to the money for disadvantaged students, which it appears is being creamed off. It is not yet clear how it will be distributed, and that is at the heart of this issue.

[Bill Esterson (Sefton Central) (Lab)]

A friend of mine who used to teach at a college in my hon. Friend’s constituency told me of my hon. Friend’s fine reputation in his previous role. My hon. Friend was talking about the funding cuts for 16 to 18-year-olds. I have here a note from the principal of Hugh Baird college in Sefton, who tells me:

“The very significant cut in entitlement funding for 16-18 year olds will make it a real challenge for many colleges…to give learners the excellent pastoral support, the personal and social responsibility and employability skills which they deserve and need to positively contribute to the economic recovery and society in general.”

Would my hon. Friend care to comment on that information?

[Nic Dakin]

My hon. Friend makes a clear and cogent point and draws on another case study from another very good college, this time in his constituency. In many ways he makes the same point as the hon. Member for East Hampshire (Damian Hinds) about how entitlement funding helps to develop the whole person and is crucial to the thrust of our education service and to what colleges have done so well for so many years.

[Mrs Jenny Chapman (Darlington) (Lab)]

May I reinforce the point made in the two previous interventions and speak about social mobility? When I discuss the issue with the principals of Darlington college and Queen Elizabeth sixth-form college in Darlington, they say that although they are getting better and better at producing the right grades to get their students into good jobs and good universities, their students are still unable to access the same opportunities as other young people because they do not have some of the softer skills and wider experiences in life that young people from different backgrounds have been able to access as a result of their family’s income. It is so important that our colleges are able to give young people those opportunities and experiences while they are at college.

[Nic Dakin]

I thank my hon. Friend for her intervention. She mentions two more very good colleges, both in her constituency. The point that she makes about social mobility builds on the points made earlier by the hon. Member for East Hampshire and my hon. Friend the Member for Sefton Central (Bill Esterson). What entitlement funding has done so well is provide experiences that enrich and expand young people’s experiences so that they gain greater confidence and are able to aspire to go on to greater things. The education system post-16, building on the building blocks of the pre-16 experience, has done that so well over recent years. The proposed cuts to entitlement funding call into question colleges’ ability to maintain that momentum.

At the same time as entitlement funding has been cut by 12%, the maximum funding for each student has been reduced from 787 hours, or 1.75 standard learner numbers, in the jargon of post-16 funding, to 702 hours, or 1.56 standard learner numbers. That is a 10% reduction in that part of the funding formula. I warned hon. Members that the debate would get rather technical at certain points.

Some of the money saved by these measures will be returned to colleges and schools with higher numbers of students from disadvantaged backgrounds or with low entry qualifications, but details are not yet available of how the £150 million of disadvantaged funding will work. As the hon. Member for East Hampshire said, the lack of clarity and lack of understanding are causing concern in the sector. Those in the sector understand what is going, but they cannot see what might be coming back into the picture.

Transitional funding, which is being put in place to dampen the effect of the cut in entitlement funding, means that the maximum cut in funding per student next year will be 3%, but there is a lack of clarity about how this funding cut will be profiled in future. Many college principals are working on the assumption of a 3% cut each year for the next four years. Many are drawing up radical proposals to address the shortfall, which might be disastrous for the student experience and result in job losses in the sector.

Many colleges are telling me that if the cuts go ahead, they are likely to lead to a severe reduction in the amount of tutorial, guidance and enrichment available. That will probably be reduced to less than an hour’s tutorial session a week for students, and nothing else will be able to be resourced. Colleges will be in danger of becoming nothing more than exam factories, unable to spend time on developing the whole student, a job that they are recognised as doing extremely well at present. Interventions from Members on both sides of the House tonight have evidenced the effectiveness of the job that our colleagues in the post-16 education system are doing on behalf of those students who, after all, are our future and the country’s future.

It is likely that providers will now struggle to offer a broad range of extra-curricular activities that have for so long been a key characteristic of sixth-form education. Team sport, orchestras, drama productions, sign language, community volunteering, rocket science and magazine editing will all be put at risk.

[Julie Hilling (Bolton West) (Lab)]

Does my hon. Friend agree that these cuts will be compounded by cuts to youth services, so opportunities for positive activities for young people without means will be cut off completely?

[Nic Dakin]

My hon. Friend makes a good point. What is happening in education should be put in the context of what is happening in services available for young people outside the classroom. I fear that without the provision of culture and sport in post-16 education, students will access these pursuits only if they or their parents can pay for them. That is the danger, and my hon. Friend emphasises that by drawing attention to the pressures on youth services at this time as well.

[Yvonne Fovargue (Makerfield) (Lab)]

Does my hon. Friend agree that colleges such as those in my constituency, Winstanley and Wigan and Leigh, might find the excellent links they have developed with employers jeopardised by the lack of funding and the lack of ability to send students out on visits, work experience and day trips to try some employment? In an area of high unemployment such as Wigan, those are particularly vital.

[Nic Dakin]

I thank my hon. Friend for that contribution. Colleges are resilient and imaginative places, and I am sure that they will work hard to ensure that those student experiences are maintained. However, she is right that some of the funding for those activities comes from entitlement funding and that, if it is being cut by 75%, there is a need to square the circle, so colleges will need to look at ways of doing that. That might mean that class sizes rise or that there are other impacts on the system. However, she is right to emphasise the importance of vocational experience, sometimes quite short bursts of vocational experience within a package of learning as well as fuller training directly in the workplace, which will continue to be fully and properly resourced.

The size of the cut is unfair in comparison with the cut in funding per learner in primary and secondary education. It is also quite amazing that sixth-form colleges, rightly applauded by the Secretary of State and widely recognised as one of the most efficient parts of the education system, should be hit so badly. Surely that is an unintended consequence of a change in policy.

Will the Minister look again at the potentially very disruptive impact of the change to entitlement funding on different types of post-16 providers and consider ways of mitigating any unintended consequences? Will he provide information very soon on how much disadvantage funding will be allocated to each post-16 provider? Will he meet me and a group of college principals so that he can better understand the impact of the changes on those at the sharp end of understanding what is going on?

Finally, and slightly tongue in cheek, although I would welcome a positive answer, if he wishes to witness at first hand the excellence that the current arrangements resource, he might join me for John Leggott’s spring concert on 5 April to experience one example of what we have at the moment and what these changes might put in jeopardy.

21:59

[The Parliamentary Under-Secretary of State for Education (Tim Loughton)]

I congratulate the hon. Member for Scunthorpe (Nic Dakin) on securing not only the debate but an audience, which is unusual at this time in the House’s proceedings. I apologise that the Minister of State, Department for Education, my hon. Friend the Member for Bognor Regis and Littlehampton (Mr Gibb), who has responsibility for schools, is not responding to the debate, as would normally be the case. He is rather involved with the Education Bill at present, but I hope that I will be something of a second-best.

22:00

Motion lapsed (Standing Order No. 9(3)).

Motion made, and Question proposed, That this House do now adjourn.—(Mr Dunne.)

[Tim Loughton]

The hon. Member for Scunthorpe started his speech by openly and freely admitting that he was something of an anorak on the subject of 16 to 19-year-old education funding in this country, but I cannot admit to being even a cagoule in that respect. I will therefore take away his more technical questions and ensure that he receives a more detailed and considered answer from colleagues elsewhere in the Department—part of this is rocket science, as he said.

I also pay tribute to the many staff who are in the position he was in before bringing his great practical expertise to the House. There are many people involved in education in this area who do an excellent job up and down the country in difficult circumstances, as we all acknowledge, and play their part in the essential crusade to upskill young people leaving education for the increasingly competitive employment environment that they face.

I appreciate many of the concerns that Members on both sides of the House raised during what has been a good and rather more inclusive debate than is normal in Adjournment debates. The hon. Member for Darlington (Mrs Chapman) made a good point about the softer skills that are also important in educational experience, which we want to ensure are not lost. The hon. Member for Scunthorpe talked about the effect of enrichment skills on expanding the range of knowledge and confidence of young people. He also acknowledged that money will be returned to colleges to target disadvantaged students, a point to which I will return.

The hon. Member for Bolton West (Julie Hilling), slightly predictably, raised the subject of youth services, in which she is something of an expert—she is making sure that the House is in no doubt of the fact. She knows that the subject is within my brief and that we will be having discussions on it soon, so there are various things that I will be able to discuss with her then. The hon. Member for Makerfield (Yvonne Fovargue) rightly mentioned the effect on high unemployment areas.

I will refer first to the spending review, which is the basis of the hon. Gentleman’s concern in bringing the subject to the House’s attention. I entirely appreciate the concerns about the current inevitable uncertainty, and we will seek to address that and produce clarity as soon as possible.

[Bill Esterson]

The Minister mentioned concern, so perhaps I can remind him of the concern that the cut we are discussing will have a combined effect with a number of other cuts. The cuts to college and sixth-form funding, when added to cuts to university funding and education maintenance allowance and the trebling of tuition fees, means that there is huge concern, particularly among students from less well-off families, about the ability to go into higher education at all. Will he respond to that point in his remarks on the spending review?

[Tim Loughton]

I am sure that I will respond when I get beyond the first paragraph of my comments. We are here to talk about a specific aspect of education, and as with the Secretary of State’s approach in all other aspects of education, particularly at this time of scarce resources, we are determined to concentrate as much as possible on the disadvantaged and close the achievement gap, which has widened too far, and for too long. We have to have that particular focus—it is why we have come forward with the pupil premium and other particularly well targeted schemes—to ensure that those who are left behind or need extra support have a chance to be on a level playing field with other students. I shall comment on that in a moment.

In the spending review, we had three priorities: protecting schools funding; early years; and ensuring that by 2015 every young person can continue in high-quality education and training, so that they are better prepared for the world of work or for university. The latter has not necessarily received the attention that it deserves.

We are spending more than £7.6 billion in 2011-12, a 1.5% cash increase over 2010-11, so that—

[Margot James (Stourbridge) (Con)]

Will my hon. Friend give way?

[Tim Loughton]

I will—mid-sentence.

[Margot James]

The Minister refers to a 1.5% increase in funding. Both colleges—the further education college and the sixth-form college—in my constituency place great store by enrichment activities, such as music and other absolutely vital elements of a rounded education. Is it not the case that colleges are to have greater freedom over how they spend their income in future years? Can he see any reason why they will not be able to use some of the increased spending to fund the much-needed enrichment programmes that everyone in the House is so keen to see continue?

[Tim Loughton]

My hon. Friend is right to point that out, and again I shall come on to some comments in that vein.

Coupled with a focus on targeting the most disadvantaged and helping to close that gap is a Government priority to devolve greater powers, autonomy and freedoms to educational institutions at all levels—to ensure that principals, heads, teachers and governors are freed from so much of the prescription, bureaucracy and targets that went before, so that they can make the most appropriate decisions for their local student community. They, surely, are the people best placed to make those decisions. If it means concentrating more on enrichment activities, albeit with a tighter financial settlement, we must leave it to the judgment of those principals and others to make such decisions at the sharp end. My hon. Friend is right to raise the issue.

So, we are spending an extra 1.5% cash over 2010-11, so that a record 1.62 billion young people can have a place—[Interruption.] Sorry, I think that should say “million”. We are not quite China yet. Teenage pregnancy is part of my brief, but we have not quite reached that point.

Anyway, we are spending an extra 1.5% cash over 2010-11, so that a record 1.62 million young people can have a place in education and training. That is 23,000 more places than in the current academic year. Within that total, we are increasing the proportion of funds directed at young people facing disadvantage and deprivation in order to help schools and colleges attract and retain those 16 and 17-year-olds who currently do not participate in education and training at all. We are also increasing the amount spent on foundation learning, so that those young people who were failed by the previous Government’s school policies, which pumped in billions but still left many at 16 without the skills they needed to progress, can access the courses that suit their needs.

To do that, however, we have to take account of the economic situation. There is no getting away from that. Every decision that the coalition Government take is made against the backdrop of the difficult economic position that we inherited. Although Opposition Members would like to put those uncomfortable facts to one side, those of us in government have to deal with them, recognising that decisions on schools and colleges throughout the country need to take account of the dire position of public finances.

The enormous interest charges we are paying on our national debt, now standing at £120 million per day, mean that we spend more on servicing that debt than on all our schools and colleges put together, and that just cannot go on. Unless we bring the deficit under control, future funding for this critical phase of education will be endangered and future generations will suffer the consequences. That means we have to ensure that every penny we spend on 16-to-19 education and training brings real benefits to the learner, helps those who need help most and ensures young people are educated to higher levels than now.

We took the decision to reduce the requirement for enrichment activities for two reasons. The Government’s first priority is to protect the core education programmes offered by schools and colleges—the whole range of courses, including A-levels, vocational qualifications and apprenticeships. It is this core that delivers the real benefits to all young people and enables them to progress successfully into higher education or employment. That is not to say that I regard the enrichment activities that the hon. Member for Scunthorpe has so eloquently praised as unimportant—far from it.

[Nic Dakin]

I hear what the Minister says. In some ways, it is sadly predictable in so far as it suggests that there has not really been a proper understanding of what is happening on the ground, where there is genuine concern about the impact of the cuts, which could be quite difficult. Pastoral support and guidance is part of the entitlement funding, and that is very much part of the core of the education system as it stands.

[Tim Loughton]

I understand the hon. Gentleman’s point, but he must understand that we have had to make these difficult choices. In an ideal world and an ideal economy, we would be able to service and finance a full academic and enrichment programme and the complementary aspects that much of that brings, but we do not have the luxury of that choice at the moment. As I have said, I am not in any way trying to undermine the importance of some of the things that he has suggested. The chess clubs, the debating societies, the Duke of Edinburgh’s award scheme, and many of the things that went on in his own college are indeed important. But at a time when we want to maximise participation by all 16 and 17-year-olds, alongside a need to respond to extremely difficult economic circumstances, providing a funding entitlement to those activities to all full-time learners cannot be a priority.

[Damian Hinds]

In acknowledging, as I think everybody does, that in this very difficult financial situation economies have to be found, does my hon. Friend agree that the conversation could be broadened to address some other elements? We could look at some of the cost drivers and things that go on in sixth forms today that did not take place when any of us were there—for example, the number of exams that students do and the growth trend in the number of one-year-only AS-level courses. I am not saying that I have a recommendation to make, but merely suggesting that some of these things could be part of the discussion about where to find economies.

[Tim Loughton]

I am happy to pass on those comments. Obviously, more detail will come out in the proposals. As a priority, we must equip the students going through this part of the educational process with the skills, qualifications and educational know-how that they need to go out and compete in the big wide world. These will be decisions for heads and principals to make at the sharp end.

I accept that tutorial provision for all is important, and that is why we have protected that, as far as possible, but at a time when we need to ensure that our funding of 16-to-19 learners is as effective as can be, we have to focus funding on those who need additional support. That is why—the hon. Member for Scunthorpe mentioned this—we have recycled the savings into areas of a higher priority where we know that more needs to be done.

Our second priority is to increase support for the most disadvantaged and less able young people; I alluded to this earlier. Only about a quarter of young people on free school meals in year 11 get the equivalent of two A-levels by the age of 19—half the level of those who are not on free school meals. I am aware of the hon. Gentleman’s excellent track record while he was principal of John Leggott sixth form college. Perhaps I could now politely turn down, while very much thanking him for it, his invitation to the spring concert at John Leggott college at Easter. If I can possibly go the following year, I will endeavour to do so, if it is still going by then. I am sure it will be all the better without me.

To be serious, I am aware of the hon. Gentleman’s excellent track record while he was principal of that sixth-form college in raising the aspirations and attainment of disadvantaged learners. I am sure he will agree that that is a key priority for the available funding. If he is looking for takers for concert tickets, I am sure that the hon. Member for Ealing North (Stephen Pound)—one of the old rockers in the House—will endeavour to go along and bring great gaiety of the proceedings, as he always does to proceedings in this House.

We are replacing what we see as the inefficient EMA programme with a new discretionary learner support fund to focus resources on those in real financial hardship and to ensure that no learner is prevented from staying in education as a result of their financial situation. That is also why we are increasing the amount of 16-to-19 funding for those learners from 2011-12. Funds will be increased by more than a third to £770 million. We will not dictate to schools and colleges how they should use that funding. They know best how to attract and provide for disadvantaged 16 to 19-year-old learners. However, I would expect some of the funding to be spent on the activities previously funded under enrichment, but targeted specifically at the learners. That relates to the point made by my hon. Friend the Member for East Hampshire (Damian Hinds).

[Andrew Percy (Brigg and Goole) (Con)]

The Minister is right to comment on the record of my neighbour, the hon. Member for Scunthorpe (Nic Dakin) at John Leggott sixth form college. On the issue of EMA funding, will protections be put in place to ensure that when colleges are near to each other and are in competition, the discretionary learner fund is not used as a way of recruiting students to a particular college, and that it is genuinely used for the students and young people who need it?

[Tim Loughton]

That is a very good point, and it will certainly be taken into consideration. I will pass those comments on to the Minister of State. We have to add such practical considerations to the mix as the proposals are rolled out.

For future years, we have said that we will consult on a review of the funding formula with a view to operating a young person’s premium to support attainment by the most disadvantaged students. The coalition Government’s determination to close the attainment gap between those from the wealthiest and poorest backgrounds lies at the heart of the radical reforms we are introducing to ensure that young people reach adulthood with the knowledge and aptitudes needed to lead rewarding and successful lives.

[Bill Esterson]

I am grateful to the Minister for giving way again. In quoting the principal of Hugh Baird college, I mentioned employability skills. The Minister has touched on the preparation of young people for leaving education. With youth unemployment hitting a million, that is a key challenge for the Government and for colleges. I urge him to ensure that, whatever changes are made, the issue of employability skills, which was covered under the entitlement fund, is taken on board. I accept his point about targeting learners from the most deprived backgrounds, but very often people are missed by such approaches. A wider group of young people is affected, as was the case with the withdrawal of EMA.

[Tim Loughton]

The hon. Gentleman makes a good point. Employability skills are an important complement to qualifications. In this increasingly competitive world, with the concerningly high levels of youth unemployment, we must ensure that every possible tool is available to young people to make themselves employable in the work force, for example in areas where we have requirements in the current highly competitive global trading environment.

Attainment at 16 is the strongest predictor of participation and achievement beyond that age. That is why we set out a clear programme of reform in the schools White Paper that is intended to raise standards so that by age 16, all young people have the basics they need to go on to further education and training. We know that young people from disadvantaged backgrounds are least likely to participate post-16, as Members have said. That is why we are focusing additional support on them, to ensure that they make the progress needed to go on to further learning. The pupil premium will target extra funding to the most deprived pupils, to better ensure that they reach the critical transition at age 16 with the knowledge, aptitude and attitude to go on to even higher success.

The hon. Member for Scunthorpe asked me a couple of specific questions, one of which was on when the allocations will be made. Individual institutions will get the details of their allocations by the end of March. If we can make it sooner, we will, to address the issue of clarity, which he rightly mentioned. He asked whether we would look again at the disruptive impact there can be on different groups of post-16 students, and I shall pass on his comments. He also asked whether I would meet him and a delegation to discuss these matters. I am absolutely delighted, on behalf of the Minister of State, to offer him that very meeting with the person most appropriate to take on board his views and appreciate the comments that he will make. I will ensure that my hon. Friend’s office gets in touch with him very soon.

We are committed to full participation for 16 and 17-year-olds, but because of the financial constraints in which we find ourselves, we have had to make difficult decisions to deliver on the priorities. We might not have made some of those decisions had the financial position been better, and they have not been easy, but they have been made with the principles that I have set out in mind—focusing support on the most disadvantaged, addressing the attainment gap and giving greater autonomy, control and freedom back to people who run institutions at the sharp end.

[Sheila Gilmore (Edinburgh East) (Lab)]

I am in some ways an observer in the debate, and I have been listening with great care. It seems to me that there is a risk that in concentrating on the most deprived, we will take away from the next group up. Many of the additional features in the education system are important if we want to see more young people equipped to go to university, as I think the Government do. People from that next group up will be missing the skills and so on that those from private schools have, so is it really better to help the deprived at the cost of another group of people who also need help if we are to close the gap to university entrance?

[Tim Loughton]

I think the hon. Lady appreciates that one cannot get a quart out of a pint pot, and that is the dilemma in which we find ourselves. For too many years, the biggest scandal in educational achievement at all levels has been that the most disadvantaged, measured as those who have free school meals, have seen the achievement gap widen. They have not had the opportunity to compete on a level playing field and achieve aspirations that many people take for granted. That is not fair, it is not sustainable and it will not be tolerated under this Government.

That is why it is morally right, and the most practical way forward, to ensure that we target as much help as possible on particularly disadvantaged students at all levels. That will mean that everybody else has to share some pain, and ideally that would not have to happen. However, if it is a question of priorities, I want disadvantaged students to get the extra leg-up and extra support that, too often, they cannot provide for themselves. The Government, the Department and the House have a duty of care to ensure that that extra help is available.

The Government have shown that they have the mettle to make the difficult decisions. These are going to be turbulent times, but the Government also have the nous to shift funding from lower-priority areas to where it is genuinely needed. I thank the hon. Member for Scunthorpe for bringing the debate before us this evening and for making his comments in a measured and well-informed, albeit anoraky way. This is a matter of great concern to him and all hon. Members, whether they have further education sixth forms in their constituencies or constituents who use neighbouring ones. We will endeavour to monitor the impact of the changes, particularly on the most disadvantaged, and ensure that we get the best bang for our buck and make the very best impact on those who need it most.

Question put and agreed to.

22:25

House adjourned.