Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
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The Parliamentary Under-Secretary of State for Foreign and Commonwealth Affairs (Mark Simmonds)
I am delighted to see you in the Chair this morning, Mr Hollobone. I am sorry that the Minister for Europe, my right hon. Friend the Member for Aylesbury (Mr Lidington), could not be present this morning. He very much wanted to participate in this important debate, but I was enthused to understand that I would be responding within my first 10 days in my new ministerial role.
I congratulate my hon. Friend the Member for South Northamptonshire (Andrea Leadsom) on securing the debate and on the articulate, intelligent and comprehensive way in which she introduced it. I thank all colleagues who have participated, many of whom fall into the category of what I call distinguished and principled colleagues. In the time available, I am afraid that I will not be able to answer all the specific questions.
I also want to put on the record the Government’s thanks to my hon. Friends the Members for South Northamptonshire, for Daventry (Chris Heaton-Harris), for Truro and Falmouth (Sarah Newton) and for Camborne and Redruth (George Eustice), who deserve enormous credit for the valuable, significant and serious work of the Fresh Start group. I hope that my hon. Friends and others will continue to engage with such a vital issue, in particular as we analyse the balance of competences in a process that my right hon. Friend the Foreign Secretary announced just before the summer recess and about which I intend to say more later.
Mr Cash
One fundamental competence that I hope my hon. Friend agrees needs to be reviewed is whether the British people are able to govern themselves by their own consent in general elections. Does he not agree that that is the most fundamental democratic question that needs to be addressed on the European issue?
Mark Simmonds
My hon. Friend will not be surprised to hear that I will not answer that question directly this morning. I urge him and others, however, to engage positively and constructively with the forensic analysis of the balance of competences, which will feed into a national debate about the relationship that we should have with the European Union.
I want to be up front in ensuring that all hon. Members understand that the Government have been absolutely clear that there should be no further transfer of competence or powers from the UK to the EU over the course of the Parliament. That is in stark contrast with the Labour Government’s record. They were clearly wrong to sign the Lisbon treaty without consulting British voters in any way. They were quite wrong to give away £7 billion of our rebate and to get nothing in return, and they were quite wrong to drop out of our opt-out from the social chapter, which means that employment laws are decided in Brussels, not here.
Alec Shelbrooke
Does that not illustrate the folly of the comments by the hon. Member for Wolverhampton North East (Emma Reynolds)? She said that Britain is more isolated by taking a stance. We gave away all that money, and what did we get for it?
Mark Simmonds
I agree with my hon. Friend. The Prime Minister’s veto back in December played a significant role in ensuring that he and the Government are always seen to be protecting the UK’s national interest. That is absolutely right. The comments of the hon. Member for Wolverhampton North East (Emma Reynolds) on this matter are confusing, particularly in view of her unwillingness to rule out British membership of the euro, which the Government have done.
Chris Bryant
If we are talking about things that will happen in the future, I would be delighted to know when the Government expect to have a resolution of the next financial perspective. The advice of the hon. Member for South Northamptonshire is to have a shopping list for the next couple of years, but a shopping list normally involves some spending, and I wonder whether, to secure some of the things she wants, the Government will abandon the rebate in that perspective discussion.
Mark Simmonds
It is clear that the UK’s agenda and priorities—I hope to come to them in a moment—are about driving global competitiveness and economic growth to alleviate some of the problems that are prevalent in the eurozone. That includes further trading with the eurozone and—my hon. Friend the Member for Mid Norfolk (George Freeman), who is no longer in his place, made this key point—not just with the eurozone, but further afield. This debate is extremely timely, and provides an early opportunity to discuss the issues. It is clear that events in the eurozone will have wide-ranging implications, and its ultimate shape is unknown and uncertain. The Prime Minister made it clear on the Floor of the House in June that as Europe changes to meet the current challenges, our relationship with it may also change. It is vital for Britain’s national interest, and for the European Union’s strength and prosperity, that we meet those challenges.
The coalition agreement that was set out at the beginning of this Parliament stated that the UK should be a positive participant in the European Union, working with our partners to ensure that all European nations are equipped to face the challenges of the 21st century, by far the most important of which is global competitiveness. I am the first to acknowledge that there is still much more to do to restore growth, both inside and outside the eurozone. The Government remain vigorously committed to developing the European single market, to smarter and less costly EU regulation, and to more free trade between Europe and the rest of the world. We need a Europe that delivers prosperity, job and wealth creation, and security, and a Europe that is more outward-looking, more dynamic and more competitive on the global stage.
Emma Reynolds
Would the Government not have more authority and influence when talking about growth in other European countries if we had growth here in the UK?
Mark Simmonds
The hon. Lady makes an interesting point. It is vital in a globalising world to remain on the competitive side of the line. The reforms that this Government have put in place since the May 2010 election will make a significant contribution to that. They include making our tax system the most competitive in the G20, making the UK the best place in Europe to start, to finance and to develop a business, encouraging investment and exports as a route to balancing the economy after the shambolic economic mess that the Labour Government left to the coalition Government, and creating a more educated work force. Over time, those changes will deliver economic growth.
Aligned with that, the single market is a significant driving force for prosperity. That is why we will continue with an ambitious programme of deepening the single market while seeking to reduce unnecessary burdens. The single market supports UK jobs, prosperity and growth through increased trade and, vitally, helps the UK to attract inward investment from inside and outside Europe. We want the single market to continue to encourage competition and innovation throughout Europe, to help to increase productivity in the UK, and to bring down prices for consumers so that UK businesses can benefit from a single regulatory regime, simplifying regulation, liberalising services and developing a single digital market that will bring benefits to the UK.
Our national interests, our influence and our values are all advanced internationally through the co-operation of states. However, as many hon. Members have rightly said, there is no doubt that the EU requires reform, and we certainly do not agree with everything the EU does. It is absolutely clear that reform is required now more than ever. In our view, the UK should champion growth and the single market, and take the opportunity to shape Britain’s relationship with Europe in a way that advances our national interest in free trade, open markets and co-operation.
We have led the debate on reducing the burden of EU regulation on business, and securing agreement on a breakthrough step to exempt micro-businesses from new EU proposals, but clearly more needs to be done. We have secured agreement on a unitary patent after 23 years of EU negotiation. Amid all that change, my right hon. Friend the Foreign Secretary announced an analysis of the balance of competences between member states and the EU. That vital review will be an audit of what the EU does and how it affects us in the United Kingdom. It will look at where competences lie, how they are used, whether exclusive, shared or supporting, and what is important for our national interest. The process will begin in the autumn, and I urge all right hon. and hon. Members to participate.
Mr Bone
Can my hon. Friend answer the question that our hon. Friend the Member for Basildon and Billericay (Mr Baron) posed earlier? He and I delivered a letter to No. 10 Downing street with more than 100 signatures from Conservative Members requesting legislation in this Parliament for a referendum in the next Parliament on the balance of competences
Mark Simmonds
I am grateful to my hon. Friend for that intervention. I confirm that the Prime Minister met my hon. Friend the Member for Basildon and Billericay (Mr Baron) on 9 July to discuss the contents of the letter, and I understand that a formal reply will be sent to him shortly.
We have pressed for an open trading agenda that presents real opportunities and allows us to benefit from investment in the UK. Our commitment to free trade is why the UK is still the leading destination for foreign investment into Europe.
Mark Simmonds
Perhaps my hon. Friend will bear with me. I am coming to a conclusion, but I will be happy to discuss with him afterwards the point he wants to make. I am running out of time, and I want to make a couple of key points.
The UK has been leading the way in trying to facilitate free trade negotiations and agreements, and it has done so successfully with South Korea. It is leading the drive for such agreements with Japan, Singapore, the USA and Canada.
My hon. Friend the Member for Stone (Mr Cash) referred to the Barroso speech. I confirm that we are looking closely at its contents. We agree with some of the President’s analysis of the EU’s financial problems, such as the unsustainable levels of debt, the lack of competitiveness and some irresponsible behaviour in financial institutions, but the direction of travel is not always one that the UK wishes to take.
In conclusion, the immediate priority must be to restore market confidence, to drive growth, to negotiate more trade agreements, to open up new markets, and to create wealth and jobs through competitiveness, innovation and liberalisation.