21:47 - The House divided: - Ayes: 278 / Noes: 200 - Question accordingly agreed to.
The Minister for Europe (Mr David Lidington)
I congratulate the right hon. Member for Belfast North (Mr Dodds) both on his choice of subject for today’s debate and on how he presented his case to the House. I should say that I was intending in any case—given the number of Democratic Unionist Members whom I am sure wish to participate—to keep my remarks briefer than normal and to give way less frequently than I normally try to do in debates on European policy. Your warning, Madam Deputy Speaker, on time limits reinforces the need for me to behave in that fashion.
I thank the right hon. Gentleman for his robust support for the decision that our Prime Minister took at the summit meeting last week and agree with him that the priority for the EU ought to be—for the eurozone countries in particular—fixing the immediate and urgent crisis in the eurozone, which is having a chilling effect not only on the UK economy, but on prospects for growth and job creation more generally in the global economy, and particularly the western economy. I also agree with the emphasis that he placed on the need for the EU to focus on growth, jobs and competitiveness in framing its priorities for the future.
Mr Redwood
Will the Minister assure me that the Government have no intention of agreeing to this fiscal pact or of letting EU institutions be used to enforce it?
Mr Lidington
The position on the use of the institutions was set out in some detail by my right hon. Friend the Prime Minister yesterday. The truthful response to my right hon. Friend the Member for Wokingham (Mr Redwood) is that we are at an early stage. The 26 countries agreed to a pact, but not to a legal instrument, and we do not yet know what action they plan to take. We want the new treaty—if it turns out to be a treaty—to work in stabilising the euro and putting it on a firm foundation, and we understand why those countries want to use the institutions, but it is new territory and raises important issues that we will need to explore with our colleagues in those other European countries.
In the months to come, our intention is to be engaged in the debate about how institutions that have been created and built to serve the interests of all 27 member states and not some subset should continue to operate fairly for all member states and, in particular, for the United Kingdom. We have been very supportive of the role that the institutions—in particular, the Commission—have played in safeguarding the single market, and we will look constructively at any proposals with an open mind, but we need to be clear that if this country had agreed treaty change without safeguards, there would be no discussions going on at all and no protection for important United Kingdom interests.
It is not the case that there was something extraordinary or wrong about the Prime Minister’s decision to veto agreement to a treaty at the level of 27 member states last weekend. The safeguards that he was seeking were safeguards not just for the United Kingdom, but for the whole of the European Union. They were modest, reasonable and relevant and, when they were not forthcoming, the Prime Minister made the right decision, which was to use our veto to protect our national interest.
As the right hon. Member for Belfast North said, we have heard before many of the dire warnings about isolation and retaliatory measures. We heard them when the euro was first created, and it turned out that far from joining the euro being a great opportunity for the UK and for UK business, we were well served by the decision to stay out of the single currency, and I have seen little evidence in the last couple of years to persuade me that—
Madam Deputy Speaker (Dawn Primarolo)
Order. I am sorry to interrupt the Minister. He has indicated several times that he is not prepared to give way at this point. I hope that we can hear what he has to say now, and he may feel like giving way a little later.
Mr Lidington
I have already explained why I do not intend to give way as frequently as I usually do in these debates. Several of my hon. Friends have had, and will continue to have, many opportunities to put their arguments to me. I am sure that they will seize those opportunities, but tonight I am conscious that this is one of the rare occasions on which the debate belongs to the Democratic Unionist party, and I do not want their members to be crowded out because Front Benchers go on too long.
The truth is that we have always had a Europe in which there have been multiple forms of co-operation. We are not in the euro and nor do we plan to be. It is good that we have our own economic policy, interest rates and ability to deal ourselves with the problems we face in our economy. The United Kingdom remains a key—indeed, a central—member of all initiatives on European foreign and defence policy co-operation, but we are not in the Schengen borders organisation. We are a key member of the single market, and in fact it is the UK that often drives change and improvement in the single market.
On the other side of the equation, at the same time as the European Council was in progress, the British Government were working closely with EU partners to shape a successful negotiation on climate change this weekend in Durban. Our intention is to continue to work hard with our many allies in Europe to advance our interests. That is not isolation: it is defending Britain’s national interest, and that is what the Government are going to continue to do. That does not mean, as some have said, pulling back from our relationship with the European Union. We remain a full member of the European Union, and that membership is vital to our national interest. Our national interest and the EU interest are not mutually exclusive; we have genuine common interests.
Mr Cash
I am profoundly and deeply grateful to my right hon. Friend for giving way at last. Would he care to comment on the report in the newspapers today that the Government have already received legal advice that they can use the institutions in relation to the agreement of the 26? The European Scrutiny Committee will be looking into this matter extremely carefully and will no doubt ask him to come to give advice on that matter.
Mr Lidington
I look forward with my usual sense of delight to the opportunity to give evidence to my hon. Friend’s Committee. Seriously, I would be happy, as would my officials and those from other Departments, to give evidence to his Committee, but my hon. Friend has been in the House long enough to know that no Minister of any Government comments on legal advice that Ministers may or may not have received.
Tristram Hunt (Stoke-on-Trent Central) (Lab)
Can the Minister give us some sense of how much British taxpayers’ money has been wasted by the allocation of Foreign Office officials to talk with members of his party—the group of 81 Conservative MPs who voted for a referendum—about the repatriation of powers? Is that a good use of taxpayers’ money?
Mr Lidington
I actually think that it is a very good idea for officials, not only from the Foreign Office but from other Departments, to hear creative and constructive ideas, especially from Members of Parliament of all parties—and the all-party group on European reform includes members of the hon. Gentleman’s party, as well as members of mine—and from people outside Whitehall and government. The Foreign Office has a range of contacts with think-tanks and academics as well as with Members of Parliament, so that our policy making can be informed by creative ideas from outside. That seems to be a very sensible way of governing, and I am slightly shocked that the hon. Gentleman should appear to think that a closed cadre in Whitehall, insulated from of outside advice and influence, is the best way to proceed. If that is the thinking of the Labour party, it might explain the disastrous legacy that he and his colleagues bequeathed to this Government.
The German Chancellor’s spokesman said yesterday that Britain is one of Germany’s closest partners and one of her most important allies and friends; that we work very closely together on a number of different policy challenges, including within the context of the European Union; that what Britain and Germany share are key convictions on competitiveness and on what creates jobs, innovation and creativity in the economy; and that we will both continue to work to make the single market a joint success. President Sarkozy, with whom we have had one or two disagreements, said in an interview with Le Monde yesterday that he recalled our partnership in defence co-operation signed in November 2010 and our joint intervention in Libya, as well as our shared commitment to nuclear energy as part of a balanced overall energy policy. Our partnerships with France, Germany and all our European allies remain strong and dynamic.
We need not listen only to European leaders. The US Secretary of State was asked the other day whether the position that the Prime Minister took at the summit had caused her concern, given what the questioner termed “the historic bridge” that Britain had offered between Europe and the United States. Secretary Clinton replied in very clear terms:
“I have to say it does not. I think that the role that the UK has played in Europe will continue.”
I do not think that these fears of isolation, which for obvious reasons of vested interest the Opposition want to whip up, will turn out to have substance.
If the Opposition want a little more reassurance from someone whom they might trust a bit more than the German Chancellor’s official spokesman or the United States Secretary of State, I refer them to the comments of Lord Digby Jones. It is no good the shadow Foreign Secretary shaking his head. He was happy to serve in government alongside Lord Jones. In fact, the Labour members of that Government were happy to hail his recruitment as evidence that they were attracting a Government of all the talents and bringing in people from British business to strengthen their ranks—they certainly needed strengthening. Anyway, when asked whether Britain’s business interests would survive and flourish, Lord Jones said, “Definitely.” There is a clear view that our partnerships in Europe will continue and that the opportunities available for British business in Europe will continue to thrive.
Andrew Percy
Should we not try to regain ownership of this word “isolation”? Surely, it is not a bad thing to be isolated from something that is not in the country’s interest, that is bad for the United Kingdom and that the British public do not want to be a part of.
Mr Lidington
There was a time when Labour leaders were prepared to accept that sometimes there was a need to stand out on their own in defence of British interests. Tony Blair said, when he opposed the introduction of an EU-wide tax on savings, that if we are isolated and we are right, that is the correct position to be in, but as we know, the Leader of the Opposition told his party conference:
“I am not Tony Blair”.
We have yet another example of that inheritance now being disavowed by those who were happy to serve when the opportunity arose.
Mrs Main
Will the Minister provide a little more clarity on one point? I believe that the British public do not expect the EU institutions to be used to deliver what they could not deliver under a treaty. Will he give his view on that? If the institutions can be so used, we have been sold a pup—we will have refused something only to be given it in a different manner and in a way that we have to accept.
Mr Lidington
I replied to that point at some length in response to my right hon. Friend the Member for Wokingham, and I have nothing to add to those comments.
Dr Andrew Murrison (South West Wiltshire) (Con)
I thank my right hon. Friend for giving way; he is being very generous. The Labour party talks about isolation and influence, but does he recall the influence exercised by the right hon. Member for Paisley and Renfrewshire South (Mr Alexander) when he surrendered the 1984 £7 billion rebate in return for a whole load of waffle about the common agricultural policy that, of course, has resulted in precisely no action whatsoever?
Mr Lidington
My hon. Friend is spot on. The right hon. Gentleman was the Europe Minister when the deal was made, and it cost this country a great deal of money for no gain or reform of the CAP, despite the pledges that we were given at the time.
I want to emphasise that despite the major disagreement at last week’s summit meeting over the proposed new treaty amendment, all 27 Heads of State and Government agreed on further measures to strengthen the single market and to cut the cost of European regulation and red tape on businesses throughout the EU. As part of a long-term campaign to cut unnecessary regulation, the Prime Minister secured agreement from the European Council to endorse actions proposed in the Commission’s report on minimising the regulatory burden for small and medium-sized enterprises. Consequently, from 2012 micro-businesses employing fewer than 10 people will not be subject to European regulation, which stands to benefit 4.3 million businesses in the United Kingdom, including, I understand, about 95% of enterprises in Northern Ireland.
The European Council’s conclusions also emphasised the need to prioritise growth and the single market, and the Commission’s annual growth survey, published just ahead of the Council meeting, reflected this country’s calls for faster action to be taken to promote growth, including through the creation of a single market in the digital economy and energy.
Ian Paisley
I appreciate the Minister giving way on this point about business. On the pressures that the Republic of Ireland now faces, it looks like it will be forced to remove its beneficial low corporation tax as a result of this new arrangement. At the same time, however, this nation can extend to our part of the United Kingdom the right to reduce our corporation tax. I know what side of the line I would rather be on.
Mr Lidington
The hon. Gentleman is right to point to the risks to any country of giving up control of its tax rates to some supranational body that cannot be guaranteed always to act in the interests of any one of the nations party to the decision. It was no secret at the time of the Irish bail-out last year that the Irish Government came under enormous pressure from other EU member states to raise their corporation tax rates. As he will know, the UK Government were steadfast in supporting the Taoiseach’s resistance to that move.
I recognise what the right hon. Member for Belfast North and the hon. Member for North Antrim (Ian Paisley) said about it not always being easy to be in the EU. There are plenty of frustrations and occasions when we can see so clearly what is wrong. Any Minister from any party who has sat in European Council meetings will be able to recall times when they wanted to scream with frustration at a piece of what seemed to be unnecessary bureaucracy or expense, or at the complexity and time taken to secure reforms when agreement was needed among a collection of different Governments.
There are many areas where we would like change, but I want to make it clear that the Government’s judgment is that membership of the EU remains very much in the UK national interest. I shall briefly sketch three key areas where we believe that the benefits of our membership far outweigh the difficulties: the single market, the single voice in international trade and diplomatic leverage in foreign policy. There is little doubt that our membership of the single market has allowed us to reap the economic benefits, because the EU comprises the largest single market and most important trading zone in the world. It is bigger than the whole of the United States and Japan combined and gives British business access to 500 million consumers without customs or trade barriers.
In Northern Ireland, EU countries remain key trading partners. Export sales to Europe from Northern Ireland alone amounted to £600 million in 2010, and many Northern Ireland companies have been doing significant business in the EU for many years. The success stories include a broad range of Northern Ireland industries, from engineering to information technology, synthetic fibres, pharmaceuticals, and food and drink. Recognising where additional growth could be achieved by targeting opportunities in EU export markets is one of the keys to improving economic growth prospects for Northern Ireland. That is why for Northern Ireland, as for the whole of the UK, a resumption of growth within the EU would be of immense benefit to our own interests.
David Simpson (Upper Bann) (DUP)
The Minister will know that the agri-food sector is one of the biggest industries in Northern Ireland, and it could grow even more if we had a level playing field with Europe.
Mr Lidington
I am aware of the concerns in Northern Ireland about the operation of the common agricultural policy. As the hon. Gentleman knows much better than I do, the CAP is implemented in a way in Northern Ireland that is different from the rest of the UK. When I was in Belfast recently, the First Minister made strong representations to me about that. I ensured that they were passed on to my right hon. Friends the Chancellor and the Secretary of State for Environment, Food and Rural Affairs. The concerns of Northern Ireland are very much in the minds of British Ministers who will be negotiating these matters.
There is well documented evidence that trade integration brings wider benefits in areas such as investment and innovation. EU member states comprise seven of the United Kingdom’s top 10 trading partners and account for roughly half our overall exports of goods and services. However, the benefits go beyond exports. EU member states are the main source of foreign direct investment into the UK, with roughly half our total FDI coming from those countries.
Mr Lidington
The hon. Gentleman has had a chance, and I want to make some progress.
The stock of inward foreign direct investment in the UK from the EU has risen by 800% in less than 10 years, and our membership of the EU single market helps to attract the other half of our FDI, from non-EU investors, who see the UK as a platform from which to break into European trade and access the wider single market.
Mr Robert Walter (North Dorset) (Con)
Will the Minister confirm to the House that Norway also has access to the single market, as a member of the European economic area, and in return has a better record in implementing EU directives, in which it has no say, than we do?
Mr Lidington
My hon. Friend makes the point well. Countries in the European economic area have to comply with EU regulations and implement them fully if they are to have the single market access that we enjoy by virtue of our membership. If we were in a comparable position, British business would have to meet the costs of compliance with whatever regulatory standards the UK decided to impose, in addition to the costs of meeting the differing standards of the remaining EU bloc or any of the other European countries with which they wished to trade.
Jim Shannon (Strangford) (DUP)
The right hon. Gentleman mentioned all the sectors that are trying to break into Europe, but there is one that cannot break in, and that is the fishing sector. Does he feel that, because of the quotas, the restrictions on days at sea and net sizes, and all the bureaucracy, the fishing industry can never really break through with Europe as it is now?
Mr Lidington
There is no doubt that the common fisheries policy has failed both the cause of conserving fish stocks and the cause of sustaining the livelihoods of fishing communities. It is several years ago now, but I can remember going to Portavogie, Ardglass and Kilkeel and listening first hand to fishermen and their families in Northern Ireland expressing the frustrations that the hon. Gentleman has expressed on their behalf. That is why the UK Government believe that the proposals now coming out of the Commission on reform of the common fisheries policy are, potentially, to be seriously welcomed. If they lead to a common fisheries policy based much more on regional and local management, and on rules that mean we can abolish the obscene practice of discarding, that would be of benefit to both conservationists and fishing communities alike.
The second great advantage of European Union membership is that it helps boost our international trade, because the EU’s position as a major trading power gives it weight in global negotiations and opens up new trading opportunities outside the EU for British business. The United Kingdom has already benefited from EU trade agreements with countries such as Mexico, Chile and South Korea, and is now engaged in multiple negotiations with other key trade partners, such as Canada, Singapore, India and the Mercosur nations. Let us be honest: without the size of the EU behind us, the United Kingdom on its own is unlikely to be able to secure the same deep and ambitious free trade deals with other regions or trading countries around the world. The South Korea free trade agreement alone is expected to provide £500 million of annual benefit to the United Kingdom economy. As the Northern Ireland chamber of commerce said when the deal was concluded:
“its opportunities are many and varied, and with”
Korea’s
“wealthy population, it is simply too valuable a market to be overlooked.”
The Northern Ireland chamber of commerce was right. I hope that there will be many opportunities for Northern Ireland companies in South Korea, as the EU free trade agreement is fully implemented.
Mr Bernard Jenkin (Harwich and North Essex) (Con)
I will leave the matter of the institutions—it is obviously too sensitive a point—but why would South Korea not have agreed a bilateral arrangement with a country such as Britain in any case, given that we are one of its allies and so on? Why would the South Koreans want to take protectionist measures against us if they are prepared to make a free trade agreement with the rest of the European Union?
Mr Lidington
The terms that one is able to extract in the context of such a negotiation will be more favourable if one can negotiate as part of a bloc of 500 million consumers. What the EU was able to offer South Korea collectively was access to a market of 500 million. The UK on its own would have been able to offer access to a market of 50 million to 60 million consumers. That is not an insignificant number, but it is a tenth of the size of the European Union as a whole. That difference in scale means that European countries have greater weight and leverage when they are able to get their act together and negotiate en bloc.
The third reason I believe it remains in our national interest to stay an active member of the European Union is that membership enhances our ability to influence events abroad. On issues where there is a genuine common European interest, where the national interests of the 27 member states converge, it makes sense for those member states to act together, pool our influence and speak with a united voice. One voice representing 500 million consumers is heard more loudly in Beijing, Delhi and Brasilia than 27 separate voices. However, it is equally the case that where EU member states do not agree, it is right and proper that, as sovereign nations with our own national interests, we speak and act independently. It is also right that foreign policy and security and defence policy should remain matters where unanimous agreement is required for a European position to exist.
Mr Lidington
My hon. Friend must forgive me, but I want to press on.
Collaboration over Libya has brought in many—although not all—European states, including Italy and Belgium. In recent months, the EU has exerted collective pressure on Libya and Syria, as well as on Côte d’Ivoire and Belarus. Different European countries have different contributions to make. Poland and other eastern partners can give us a unique perspective as we seek to support the democratic movements in the middle east and north Africa, and can also improve our insight with regard to our relations with countries such as Russia and Ukraine. Spain’s influence in Latin America will continue to shape Europe’s engagement there, and Portugal is now helping European interests on the UN Security Council. If we look at the EULEX mission alongside NATO in Kosovo, the EU civilian and military missions supporting NATO elsewhere in the Balkans or the Atalanta mission to tackle piracy off the coast of Somalia, we see operations of European civilian or military experts focusing on particular areas of expertise, often in tandem with NATO, the United Nations or national forces. Those are good examples of where European countries have been able to give themselves greater clout by being willing to act collectively.
The motion in the name of the right hon. Member for Belfast North says that the British people desire “a rebalancing of the relationship with our European neighbours”, and I agree with the hon. Member for North Antrim that there is too much centralised direction of many European policies.
The Government are committed under the coalition agreement to examining the balance of competences between Britain and the European Union, and as both the Prime Minister and the Deputy Prime Minister have said, there is a good case for rebalancing competences between the EU and its member states. Clearly, this would require the agreement of all 27 member states on the basis of negotiation and agreement, and could not be achieved through a unilateral decision. We have made no commitment to a particular outcome from this review. Work has begun and it is in its early stages.
In contrast to the Government’s positive and active commitment to make a success of our EU membership and our robust defence of our national interests, we have heard nothing from Her Majesty’s official Opposition save carping and an evasion of straight answers. Yet Labour was the party that committed us to the EU bail-out mechanism. This was the party that meekly surrendered £7 billion of Britain’s budget rebate. This is the party whose leader refuses to say whether he would have signed the treaty that was before the British Prime Minister last week, but tells the BBC in an interview:
“I don’t think Brussels has got too much power”.
It is a party whose leader still yearns to join the euro, but the only certainty is that if we followed its advice, we would not just be attending EU meetings, as we would be in the queue for a bail-out, along with some of the others.
The Government are committed to a positive and active role within the European Union—on the single market, on global trade and on foreign policy. That is what is in our national interest, but we will not be afraid to stand up and resist, refusing to participate in measures where we believe that they run contrary to the national interests of the United Kingdom.
The Parliamentary Under-Secretary of State for Foreign and Commonwealth Affairs (Mr Henry Bellingham)
I congratulate our friends in the Democratic Unionist party on securing this debate on the Prime Minister’s decision last Friday to protect the national interest. They are true allies in these challenging times. I pay tribute to the right hon. Member for Belfast North (Mr Dodds) and the hon. Member for East Antrim (Sammy Wilson) for their speeches.
As the Prime Minister explained to the House yesterday, we went to the European Council in good faith, seeking to reach an agreement acceptable to all 27 members of the European Union. In doing so, we were clear on the need to have the necessary safeguards in place to protect our national interests on the single market as a whole and on financial services. We did not seek special treatment or carve-out for the UK, but safeguards that would ensure a level playing field. As my right hon. Friend the Minister for Europe said, those safeguards were modest, reasonable and highly relevant. As he also pointed out, it was a question of protecting not just the City of London, but financial services across the whole of Europe. As it was not possible to reach agreement on satisfactory safeguards, we were not able to agree to a treaty at 27. That was clearly the responsible course for us to take in order to protect the United Kingdom’s national interest.
The hon. Member for Wolverhampton North East (Emma Reynolds) asked whether the Government had been properly prepared, and concluded that they had been ill prepared. She said that we had asked for too much, too late. Where has the hon. Lady been for the last month? The Prime Minister and the Deputy Prime Minister talked to most leaders and visited key capitals during that period. The Prime Minister saw Chancellor Merkel three weeks before the Council, and met President Sarkozy a week before it. The Prime Minister was clear about the position on safeguards, and made it crystal clear that the safeguards he wanted were moderate and reasonable. As was pointed out by my hon. Friends the Members for Folkestone and Hythe (Damian Collins) and for Stroud (Neil Carmichael), the position was well understood.
Mr Bellingham
I will not, because I must cover as much ground as possible.
The course taken by the Prime Minister allowed eurozone countries and others to proceed with a separate treaty in which they could pool their sovereignty on an intergovernmental basis with the aim of implementing tighter fiscal discipline in the eurozone as part of the process of restoring market confidence. It is right and important for eurozone countries to take the action that they deem necessary to deal with the crisis in the eurozone. We want and need the eurozone to sort out its problems. That is in Britain’s national interest, as it is clear that a crisis in the eurozone is having a negative effect on the UK economy.
Mr Bellingham
No, I will not.
Let me say something about the UK’s influence in Europe. The decision not to proceed with a treaty at 27 has no impact on our status in the European Union. Our role in the EU is safeguarded by the existing treaties. Britain remains a full member of the EU. Our membership is vital to our national interest. We are a great trading nation, and we need the single market for trade, investment and jobs. Contrary to what was said by the hon. Member for Wolverhampton North East, we will remain active and influential in the EU. The European Council does not in any way diminish our role. As was pointed out by the hon. Member for Cheltenham (Martin Horwood) in a wise and sensible speech, this week there will be meetings of the Councils on Transport, Telecommunications and Energy, and Agriculture and Fisheries, and we will be present as full, active members in each of those Council meetings.
I am trying to respond to speeches made by a large number of Members on both sides of the House. As was pointed out by my hon. Friend the Member for Daventry (Chris Heaton-Harris) and the hon. Members for East Londonderry (Mr Campbell), for South Antrim (Dr McCrea), and for Upper Bann (David Simpson), the decision not to be part of the treaty that will be agreed by the eurozone and others does not in any way reduce our influence. The EU is not a monolithic block, and it already contains flexible arrangements.
As the right hon. Member for Belfast North observed, the United Kingdom is not part of the single currency or the Schengen no-borders agreement, but that has not prevented us from leading the way in the EU on a range of issues, from an activist foreign policy to the completion of the single market. As my right hon. Friend the Minister for Europe pointed out, our position is incredibly important in terms of not just the single market but foreign direct investment, 50% of which comes from the EU. As he also pointed out, much foreign direct investment from other parts of the world, such as the BRIC nations—Brazil, Russia, India and China—is due to our membership of the EU.
My hon. Friends the Members for Stone (Mr Cash) and for Stroud referred to the EU institutions. We want the new treaty to work in stabilising the euro. That is in our national interest, because our economy is closely tied to that of our EU partners. I understand why the eurozone member states would want to use the institutions to help to ensure fiscal discipline. We will look constructively at proposals to use the EU institutions with an open mind, but this is new territory which raises important issues.
The right hon. Member for Belfast North was spot on when he said that nothing must be done through the back door. We must ensure that institutions built for 27 continue to operate fairly for all member states, including the UK, and in particular we must ensure that the role played by the EU institutions in safeguarding the single market is not affected. I assure my hon. Friend the Member for Stroud that we will continue to intensify bilateral relations with many different EU countries. Let me assure the hon. Members for Foyle (Mark Durkan) and for South Down (Ms Ritchie) that we will not take the isolationist route.
On the repatriation of powers and the balance of competences, the Government are committed, under the coalition agreement, to examining “the balance” of competences between Britain and the EU. There is a case for doing that—as the right hon. Member for Lagan Valley (Mr Donaldson) pointed out, it is a very strong one. The work on the review has begun and is in its early stages. In taking it forward, we will look at how to engage with our EU partners on individual competences. A change in the balance of competences would require the agreement of all 27 member states on the basis of negotiation and agreement.
I wish to say a few quick words about the working time directive, because it is important at a time of economic uncertainty that we remain focused on job creation and growth. That will require all of Europe to improve its competitive position, including in respect of labour markets. A key part of that will be limiting the barriers to flexibility in the working time directive. The Government are committed in the coalition agreement to limiting
“the application of the Working Time Directive in the United Kingdom.”
Our priority is that the working time directive keeps a secure economy-wide opt-out; working people should be able to work the hours that they choose. We will also be looking to secure more flexibility in the areas of on-call time and compensatory rest.
I pay tribute, once again, to our friends in the Democratic Unionist party, because this very good debate has come at a crucial time for Europe and, throughout, the contributions of DUP Members have been incredibly consistent, solid and reliable. What can we say about the Opposition? I agree with my hon. Friend the Member for Brigg and Goole (Andrew Percy) that we have heard nothing but carping and criticism. The hon. Member for Wolverhampton North East did not tell us whether Labour would have signed the treaty. She said nothing at all in response to two interventions, including one from my hon. Friend the Member for South West Wiltshire (Dr Murrison), asking why Labour gave up Britain’s £7 billion EU rebate when the now shadow Foreign Secretary was Minister for Europe? She also made no attempt to answer the question about why Labour signed the UK up to a euro bail-out mechanism after the general election—on 8 and 9 May 2010, before the coalition agreement was completed. She also failed completely to answer the questions put to her about her leader, who first—
