UK-EU Renegotiation

Wednesday 3rd February 2016 Commons Chamber

12:37

[The Prime Minister (Mr David Cameron)]

With permission, Mr Speaker, I would like to make a statement on progress with our renegotiation. The House has now had the chance to study the documents published by the European Council yesterday. I believe that this is an important milestone in the process of reform, renegotiation and referendum that we set out in our manifesto, and which this Government are delivering. We have now legislated for that referendum and we are holding that renegotiation.

Let me set out the problems that we are trying to fix and the progress we have made. First, we do not want to have our country bound up in an ever closer political union in Europe. We are a proud and independent nation, with proud, independent, democratic institutions that have served us well over the centuries. For us, Europe is about working together to advance our shared prosperity and security; it is not about being sucked into some kind of European superstate—not now, not ever.

The draft texts set out in full the special status accorded to the UK and clearly carves us out of further political integration. They actually go further to make it clear that EU countries do not even have to aim for a common destination. This is a formal recognition of the flexible Europe that Britain has long been arguing for.

In keeping Britain out of ever closer union, I also wanted to strengthen the role of this House and all national Parliaments, so we now have a proposal in the texts that if Brussels comes up with legislation that we do not want, we can get together with other Parliaments and block it with a red card.

We have also proposed a new mechanism to finally enforce the principle of subsidiarity—a principle dear to this House—which states that, as far as possible, powers should sit here in this Parliament, not in Brussels. So every year the European Union has got to go through the powers they exercise and work out which are no longer needed and should be returned to nation states.

Secondly, I said that we wanted to make Europe more competitive and deal with the rule-making and the bureaucracy that can cost jobs here in Britain and, indeed, across the European Union. We asked for commitments on all the areas central to European competitiveness. We want international trade deals signed, the single market completed and regulation stripped back. All of these things are covered in the draft texts. There is a new proposal for specific targets to reduce the burdens on business in key sectors. This will particularly help small and medium-sized businesses. There is a new mechanism to drive these targets through and cut the level of red tape year on year.

Thirdly, we are absolutely clear that Britain is going to keep the pound—in my view, forever. But we need to be just as clear that we can keep the pound in a European Union that will be fair to our currency. Put simply, the EU must not become a euro-only club; if it does, it would not be a club for us. So we called for a series of principles to protect the single market for Britain. We said there must be no discrimination against the pound, no disadvantage for businesses that use our currency, wherever they are located in the EU, and no option for Britain ever again to be forced to bail out eurozone countries. All of these principles are reflected in the draft text, which is legally binding. And again there is a mechanism. Britain has the ability to act to uphold these principles and protect our interests.

We should be clear: British jobs depend on being able to trade on a level playing field within the European single market, whether in financial services or cars or anything else. So this plan, if agreed, will provide the strongest possible protection for Britain from discrimination and unfair rules and practices. For instance, never again could the EU try its so-called location policy—that the settling of complex trades in euros must only take place in eurozone countries. These principles would outlaw that sort of proposal. Now, these are protections we could not have if Britain were outside the European Union.

Fourthly, we want to deal with the pressures of immigration, which have become too great. Of course, we need to do more to control migration from outside the European Union. We are doing that, and we will be announcing more measures on that front, but we need to control migration from within the EU too. The draft texts represent the strongest package we have ever had on tackling the abuse of free movement and closing down the back-door routes to Britain. It includes greater freedoms for Britain to act against fraud and prevent those who pose a genuine and serious threat from coming to this country. It includes a new law to overturn a decision by the European Court which has allowed thousands of illegal migrants to marry other EU nationals and acquire the right to stay in our country. It has been a source of perpetual frustration that we cannot impose our own immigration rules on third-country nationals coming from the European Union, but now, after the hard work of the Home Secretary, we have a proposal to put that right.

There are also new proposals to reduce the pull factor that our benefits system exerts across Europe by allowing instant access to welfare from the day someone arrives. People said that Europe would not even recognise that we had this problem, but the text explicitly recognises that welfare systems can act as an unnatural draw to come to this country.

Our manifesto set out four objectives to solve this problem; I mentioned these at Prime Minister’s questions. We had already delivered on two of them within months of the general election. Already, EU migrants will no longer be able to claim universal credit—the new unemployment benefit—while looking for work. And if those coming from the EU have not found work within six months, they can now be required to leave.

In these texts, we have secured proposals for the other two areas. If someone comes from another country in Europe, leaving their family at home, they will have their child benefit paid at the local rate, not at the generous British rate. And crucially, we have made progress on reducing the draw of our generous in-work benefits. People said that it would be impossible to end the idea of something for nothing and that a four-year restriction on benefits was completely out of the question, but that is now what is in the text—an emergency brake that will mean people coming to Britain from within the EU will have to wait four years until they have full access to our benefits. The European Commission has said very clearly that Britain qualifies already to use this mechanism, so, with the necessary legislation, we would be able to implement it shortly after the referendum.

Finally, let me be absolutely clear about the legal status of these changes that are now on offer. People said we would never get something that was legally binding—but this plan, if agreed, will be exactly that. These changes will be binding in international law, and will be deposited at the UN. They cannot be changed without the unanimous agreement of every EU country—and that includes Britain. So when I said I wanted change that is legally binding and irreversible, that is what I have got. And, in key areas, treaty change is envisaged in these documents.

I believe we are making real progress in all four areas—but the process is far from over. There are details that are still to be pinned down and intense negotiations to try and agree the deal with 27 other countries. It will require hard work, determination and patience to see it through. But I do believe that with these draft texts, and with all the work that we have done with our European partners, Britain is getting closer to the decision point. It is, of course, right that this House should debate these issues in detail. So in addition to this statement, and of course a statement following the Council later this month, the Government will also make time for a full day’s debate on the Floor of the House.

As we approach this choice, let me be clear about two things. First, I am not arguing, and I will never argue, that Britain could not survive outside the European Union. We are the fifth largest economy in the world and the biggest defence player in Europe, with one of the most of extensive and influential diplomatic networks on the planet. The question is not could Britain succeed outside the European Union; it is how will we be most successful? How will Britain be most prosperous? How will we create the most jobs? How will we have the most influence on the rules that shape the global economy and affect us? How we will be most secure? I have always said that the best answers to those questions can be found within a reformed European Union. But let me say again that if we cannot secure these changes, I rule nothing out.

Secondly, even if we secured these changes, you will never hear me say that this organisation is now fixed—far from it. There will be many things that remain to be reformed, and Britain would continue to lead the way. We would continue to make sure that Europe works for the countries of Europe, for the businesses of Europe, for the peoples of Europe and, crucially, for the British people who want to work, have security, get on, and make the most of their lives.

So if we stay, Britain will be in there keeping a lid on the budget, protecting our rebate, stripping away unnecessary regulation and seeing through the commitments we have secured in this renegotiation, ensuring that Britain truly can have the best of both worlds: in the parts of Europe that work for us, and out of those that do not; in the single market; free to travel around Europe; and part of an organisation where co-operation on security and trade can make Britain and its partners safer and more prosperous, but with guarantees that we will never be part of the euro, never be part of Schengen, never be part of a European army, never be forced to bail out the eurozone with our taxpayers’ money, and never be part of a European superstate.

That is the prize on offer—a clear path that can lead to a fresh settlement for Britain in a reformed European Union: a settlement that will offer the best future for jobs, security and strength for our country; a settlement which, as our manifesto promised nearly a year ago, will offer families in our country security at every stage of their lives. That is what we are fighting for, and I commend this statement to the House.

12:48

[Jeremy Corbyn (Islington North) (Lab)]

I am grateful to the Prime Minister for sending me a copy of the statement 45 minutes ago—an hour ago; I am sorry—and I am pleased that he has now decided to finally update the House. However, it is a bit unfortunate that despite his trumpeting of the sovereignty of national Parliaments in his EU negotiations, the Prime Minister did not think to come and update our own Parliament first. I hope he had a good day in Chippenham yesterday, but I note that he spent a lot of time answering questions from journalists when it would surely have been more respectful to this House to come here first and answer questions from Members.

But in truth—in reality—this negotiation is a Tory party drama that is being played out in front of us, as we see at the moment. The Labour party is committed to keeping Britain in the European Union because we believe it is the best—[Interruption] Don’t get too excited; let me tell you the rest of it: because we believe it is the best framework for European trade and co-operation in the 21st century, and in the best interests of people in this country. We believe that the Prime Minister has been negotiating the wrong goals in the wrong way for the wrong reasons.

For all the sound and fury, the Prime Minister has ended up exactly where he knew he would be: making the case to remain in Europe, which was what he always intended, despite a renegotiation spectacle choreographed for television cameras over the whole continent. As his own Back Benchers keep telling us, the proposals from the European Council are simply tinkering around the edges. They have little impact on what the EU delivers for workers in Britain or British businesses.

We welcome the proposals for a majority of national Parliaments to have a veto over Commission legislation, even if it is heavily qualified. It seems the Prime Minister has finally moved towards the Labour party’s view on this issue, and we welcome that.

Protecting non-eurozone states is necessary, but we cannot let the proposals hamper efforts to regulate the financial sector, including bankers’ bonuses. The crucial detail of the emergency brake on workers’ benefits for EU migrants is entirely absent. When is that information going to be made available? In any case, what the Prime Minister calls the strongest package ever on the abuse of free movement does not actually begin to tackle the real problems around the impact of migration on jobs, wages and communities. Those demand action to support public services in areas of high population growth, and regulation to prevent the subsidising of low pay and the grotesque exploitation of migrant workers by some unscrupulous employers. It is the same with competitiveness. Is the Prime Minister really out to strengthen genuinely competitive markets, or is this proposal really a fig leaf for increasing pressure to privatise our public services and the reduction of consumer standards, environmental protections or workers’ rights?

That is why Labour will continue to oppose the threats to services and rights from the Transatlantic Trade and Investment Partnership negotiations. We need reform to ensure all European Governments have the right to intervene to protect publicly owned industries and services. This side of the House is delighted that the Prime Minister has been forced to back down on his hopes to water down workers’ rights. However, we want to see workers’ rights further protected and extended within the European Union. We need a strengthening of workers’ rights in a really social Europe, and we want to see democratic reform to make the European Union’s decision making more accountable to its people. We must drive economic reform to put jobs and sustainable growth at the centre of European policy and work with partners in Europe to bring tax avoidance under control, so that we can get a far better deal than the Chancellor managed with Google last week.

However, to keep and extend these employment protections, we need to remain within the European Union, or leave the field for the Conservative party to make a bonfire of workers’ rights. The Prime Minister says that he has secured Britain’s exclusion from Schengen, a European army and a European superstate. The Prime Minister is living in never-never land. We have never argued for those things, and we do not intend to. We need to work with our allies in Europe to achieve the more progressive reforms that its people need—to build a more democratic Europe that delivers jobs, prosperity and security for all its people. We must do that together. That is why, when the referendum is finally held, we will be campaigning to remain a member.

I end by asking a question to the Prime Minister. Does he now agree that once this smoke-and-mirrors sideshow of a deal is done, we will get on with it and end the uncertainty, and the referendum will indeed be held on 23 June 2016?

[The Prime Minister]

I thank the right hon. Gentleman for his questions. First of all, on the issue of making a statement today rather than yesterday, I felt that yesterday I was in possession of all the documents, but I did not think that every Member of the House would be, so I thought it better to give hon. Members a day to read the documents and have the debate today. It gave me the added advantage of being able to visit Chippenham, which, of course, is the town of the right hon. Gentleman’s birth. I was able to thank the people of Chippenham for putting him on earth and delivering him safely to this place.

The right hon. Gentleman criticises the issues that we put on the table: getting out of ever closer union, waiting times for welfare and guarantees for fairness between ins and outs. I know that he did not read the Labour manifesto, but I did, and actually all those things were in the Labour manifesto. Labour wanted a two-year welfare wait rather than a four-year welfare wait, but many of the other elements of our negotiation were supported by Labour, so Labour Members can feel they have a mandate for backing these measures.

The right hon. Gentleman asked about the detail on the emergency migration brake, because there are gaps in the text. He is absolutely right about that; we need to secure the best possible outcome at the February Council. He asked about the danger of the exploitation of migrant workers, and that is an area where I think he and I agree. That is why we have boosted the Gangmasters Licensing Authority, and we have put in place better co-ordination between it and the National Crime Agency. We are making sure that there are more investigations and more prosecutions.

TTIP is an area where we profoundly disagree. Other socialist Governments in Europe take my view, which is that TTIP will be good for jobs, good for growth and good for businesses. I am not sure that I ought to advise the right hon. Gentleman to spend more time with trade unions, but if he spends time with trade unions in Sweden and some other countries in northern Europe, he may find that they, too, support TTIP, because they want jobs for their members.

In the end, I would say to the right hon. Gentleman and to all Members across the House that this is an important moment for our country. Yes, there will be areas of disagreement between the Conservatives and Labour, but we are involved in trying to get the very best negotiation for Britain. The European Parliament plays a part in that, and the Party of European Socialists plays a part in that. I urge all hon. Members, if you want to have no more something for nothing, if you want to get Britain out of ever closer union, if you want fairness between those in the euro and those out of the euro, and if you want a more competitive and successful Europe, let us fight this together. [Interruption.]

[Mr Kenneth Clarke (Rushcliffe) (Con)]

Feelings are obviously getting roused on this subject.

The Prime Minister has achieved more on the big issues in this negotiation than I ever expected—and, I suspect, more than the hard-line Eurosceptics ever expected, which is why they are denouncing it so fiercely—but, as he says, he still has to deliver it. Does he accept that he will have great difficulty in persuading Governments in central and eastern Europe, in particular, to accept that their citizens lawfully working here alongside English people in key sectors such as the health service and the construction industry should have lower take-home pay in the first few years than their English workmates?

If the Prime Minister has to offer something in exchange for that, could he perhaps consider underlining our NATO commitment to those countries, as their biggest concern is future military adventures by Putin’s Russia? To underline our role as one of the leading military contributors, if not the leading military contributor, through NATO to the European alliance would be a very good offer to make—by deploying more troops, perhaps—in order to get what is a difficult concession for our partners in those countries to make.

[The Prime Minister]

I am grateful to my right hon. and learned Friend, who has huge experience of European negotiations—both treaty negotiations and ongoing negotiations in the Council of Ministers—for what he says. He is absolutely right that these are difficult issues. My argument is that while we have the free movement of people that many British people take advantage of, we do not have harmonised welfare and benefit systems, and nor should we.

The second point I make to my colleagues in Europe is that when countries in Europe have problems that they believe affect their key national interests, we have got to be flexible enough to deal with them. I think that that is what this agreement is showing. The advantage of the proposals put forward is that they will have the support of the European Commission. I think that that will reassure some of the states in Europe that have misgivings.

My right hon. and learned Friend is absolutely right that we can also reassure those states about our investment in their security, because I think that is a very important issue. With, as it were, Putin to our east and ISIL to our south, this is a moment where we need to make sure we are working together.

[Angus Robertson (Moray) (SNP)]

We in the Scottish National party warmly welcome the opportunity to make the positive case for the European Union. It really matters that we are part of the world’s largest single market; it really matters that we can help to determine the rules and laws that apply to us; and it really matters that we have a social Europe with rights and protections for citizens and for workers. First off, will the Prime Minister therefore commit to a positive campaign to remain in the European Union, and not resort to the negative tactics of “Project Fear”?

On the Prime Minister’s negotiations, may I suggest that he stops pretending to have won some major victory? He has not even secured the treaty change he promised and much else besides. What is at stake is much bigger than his recent discussions; it is about whether or not we remain in the EU. That is what the debate across the UK will be about in the run-up to the referendum.

The timing of the referendum really matters to the electorates and the Governments of Scotland, Wales and Northern Ireland, as well as of London, where there are elections in May. This morning, the First Minister of Scotland, Nicola Sturgeon, the Labour First Minister of Wales, Carwyn Jones, the First Minister of Northern Ireland, Arlene Foster—[Interruption.] I think the First Ministers of Northern Ireland, Wales and Scotland deserve a little bit more respect than the baying from the Tory side of the House. They and the Deputy First Minister of Northern Ireland, Martin McGuinness, have written to the Prime Minister today. I think that right hon. and hon. Members should listen to what they say:

“We believe that holding a referendum as early as June will mean that a significant part of the referendum campaign will necessarily run in parallel with those elections and risks confusing issues at a moment when clarity is required… We believe that the European Referendum is of vital importance to the future of the whole United Kingdom and the debate leading up to it should, therefore, be free of other campaigning distraction. We believe it would be better for you”—

the Prime Minister—

“to commit to deferring the EU referendum at least until later in the year.”

Will the Prime Minister take this opportunity to confirm that he will be respectful of the views of the Governments of Scotland, Wales and Northern Ireland and defer the referendum beyond June?

Finally, may I take the opportunity yet again to ask the Prime Minister to answer this question, which he has singularly failed to do thus far? Will he confirm that there are still no safeguards in place that would stop Scotland being taken out of the EU against the will of the Scottish electorate?

[The Prime Minister]

First, let me say that, yes, when this campaign comes—of course, we will first need an agreement, a recommended position from the British Government and all the rest of it—it should of course be a positive campaign. In terms of what the right hon. Gentleman says about treaty change and whether this is legally binding, as I explained, it is legally binding and it does envisage treaty change.

In terms of timing, as I explained at Prime Minister’s questions, it is a matter for the House. The House debated it and the House ruled out coinciding with the Scottish, Welsh and London elections, but the House did not rule out holding a referendum at another time. Specifically, the former First Minister, the right hon. Member for Gordon (Alex Salmond), said that six weeks was the appropriate gap. Obviously, we have to wait to see whether an agreement is reached, but where I disagree with the right hon. Member for Moray (Angus Robertson) is that I do not believe that somehow this is confusing the issues: I think people are perfectly capable, six or more weeks after one set of elections, to consider another election. I note that the Leader of the Opposition, whose party is in control of Wales, was actually pressing me to hold the referendum on 23 June. There is obviously a range of opinions out there. I think the best thing to do is to get the deal done and then hold a referendum.

[Sir William Cash (Stone) (Con)]

This is all about voters’ trust. Why has my right hon. Friend, in order to stay in, bypassed so many promises and principles? Our national Parliament is the root of our democracy, as he said at Bloomberg, not a majority of red cards in other Parliaments. He said that we would have full-on treaty change, not the arrangements that have been announced to us today. We were promised a fundamental change in our relationship with the EU. We were promised that we would deal with the excessive immigrant numbers, but that has been whittled down to an issue about in-work benefits controlled by the European Court of Justice. Above all, we were told and promised that this entire package would be both legally binding and irreversible, but now it will be stitched up by a political decision by the European Council, not by a guaranteed treaty change at the right time. I have to say to the Prime Minister that this is a wholly inappropriate way of dealing with this matter.

[The Prime Minister]

I have great respect for my hon. Friend, but I have to say that, on the issue of whether it is legally binding, I really do believe he is wrong. If this document is agreed, it would be an international law decision and, as an international law decision, the European Court of Justice has to take it into account. I would make the point to him, because he follows these things very closely, that Denmark negotiated the same sort of legal opt-outs and, 23 years on, they clearly stand and are legally binding. Those are the facts.

My hon. Friend asks whether we are meeting what we set out in the promises we made. We made very clear promises in our manifesto: get Britain out of ever closer union—that is a promise that we kept; make sure we restrict immigrants’ welfare benefits—that is a promise that we are keeping; real fairness between euro-ins and euro-outs—that is a promise that we are keeping. In every area—more competitiveness, making sure subsidiarity means something—we have met the promises that we have set out.

I understand that there will be those who say, “We didn’t ask for enough”, or, “We need more reform.” I believe these are the reforms that go to the heart of the concerns of the British people. People feel that this organisation is too much of a political union; it is too bureaucratic; it is not fair for non-euro countries; and we want more control of immigration. Those four things are largely delivered through this negotiation.

I would just say this to colleagues from all parts of the House. I have sat on the Benches on this side and that side and I have heard about the Maastricht treaty, about the Lisbon treaty, about the Nice treaty and about the Amsterdam treaty, but I have never seen a Prime Minister standing at this Dispatch Box with a unilaterally achieved declaration of bringing powers back to our country. That is what we have got. That is what is within our grasp.

[Alan Johnson (Kingston upon Hull West and Hessle) (Lab)]

Will the Prime Minister join me in welcoming the launch today of Environmentalists for Europe, which is co-chaired by Stanley Johnson, the father of the hon. Member for Uxbridge and South Ruislip (Boris Johnson)? Will he also welcome the splendid article last week setting out the importance for science and technology of remaining in the European Union, which was penned by his Minister for Universities and Science, who is the brother of the hon. Member for Uxbridge and South Ruislip? Will he have a word with his hon. Friend to tell him about the importance of family solidarity and of joining the swelling ranks of Johnsons for Europe?

[The Prime Minister]

Very good. The right hon. Gentleman is absolutely right that we cannot have too many Johnsons agreeing with each other. There is also Rachel Johnson, the columnist: we will have to go after her and make sure of that. He makes a very important point about grants for universities and schools. We all complain, rightly, about the European budget. That is why it is so important that we have got it under control: it has to fall every year. In the budget negotiations, we did safeguard the money that British universities actually benefit from on a disproportionate basis. As for completing the happy family pack of the Johnsons, we may have to wait a bit longer.

[Several hon. Members rose—]

[Mr Speaker]

Order. I would call the hon. Member for Uxbridge and South Ruislip (Boris Johnson) to ask a question if he were standing, but he isn’t, so I won’t. You cannot have it all. I call John Redwood.

[John Redwood (Wokingham) (Con)]

As we are driven in the EU vehicle towards ever closer union and political union, how does it help to try to fit a couple of emergency brakes that lie within the control of the EU, not us? Is not the only way to get control of our borders, our tax revenues and our welfare system to leave, be a good European and let them get on with their political union?

[The Prime Minister]

I do not agree with that, because what we are actually doing is making sure that it is very clear that Britain is carved out of ever closer union. I think that is a real advance. Indeed, it is something that my right hon. Friend and other colleagues have been asking for, quite rightly, and which I have always believed is right. Our view about Europe is that we are not there for political union; we are there for co-operation, we are there for trade and we are there for working together on the things that matter.

Of course, these documents can change—this is all in draft—but one of the issues about ever closer union is that the European Union has actually gone further than I thought it would. I think colleagues will find it interesting that it has said

“the references to an ever closer union…do not offer a basis for extending the scope of any provision of the Treaties or of EU secondary legislation. They should not be used either to support an extensive interpretation of the competences of the Union or of the powers of its institutions as set out in the Treaties.”

That has never been said before in those ways. For those of us who care about ever closer union and about getting out of ever closer union, this actually goes a long way to achieving, in many ways, more than what we asked for.

[Ms Gisela Stuart (Birmingham, Edgbaston) (Lab)]

The European continent is seeing the largest flows of people and refugees since the end of world war two. The Balkans are becoming ever more volatile and our NATO partner Turkey is not behaving as helpfully as it could. Have any of the negotiations that the Prime Minister has been involved in increased the security of the European continent or the security of the United Kingdom?

[The Prime Minister]

I would argue that they have done both. When it comes to the security of the continent, we recognise that Europe’s external border, although it is not our external border because we are not in Schengen, matters. That is why we have sent more representatives to help the European Asylum Support Office than any other country and why we are happy to do even more, working with the Greeks and the Turks.

There is an important change in this deal that will increase the security of Britain. First, because we are not in Schengen, we do not have to let foreign nationals who come to other European countries into Britain, and long may that be the case. The key changes that the Home Secretary and I have managed to secure about protecting our immigration system from fraudsters, sham marriages, criminals and people who get married to European nationals to try to get into our country have become even more important. We are going to secure those, if this goes ahead, from within the EU.

[Boris Johnson (Uxbridge and South Ruislip) (Con)]

Since you have been so kind as to call me, Mr Speaker, perhaps I may ask the Prime Minister how the changes resulting from the negotiation will restrict the volume of legislation coming from Brussels and change the treaties so as to assert the sovereignty of this House of Commons and these Houses of Parliament.

[The Prime Minister]

Let me take those issues in turn, because my hon. Friend is absolutely right to raise them. First, asserting the sovereignty of this House is something that we did by introducing the European Union Act 2011. I am keen to do even more to put it beyond doubt that this House of Commons is sovereign. We will look to do that at the same time as concluding the negotiations.

On what we are doing to restrict the flow of legislation from Brussels, for the first time ever in this deal, there is a commitment that Europe has to examine all its competences every year and work out what should be returned to nation states—subsidiarity in action, rather than in words. There is also the proposal to cut Brussels regulation through the bureaucracy cutting targets. That has never been there before.

I would argue that, looking across this deal, one can see that we have welfare powers coming back, we have immigration powers coming back, which I have just spoken about, and we have bail-out powers coming back. Of course, on the massive return of power that we achieved in the last Parliament with the justice and home affairs opt-out—the biggest return of power from Brussels to Britain since we joined the EU—we have absolutely nailed that down in these discussions to make sure that they cannot get around it. Those were all key objectives. I am not saying that this deal is perfect. I am not saying that the European Union will be perfect after this deal—it certainly won’t be—but will the British position be better and stronger? Yes, it will.

[Mr Nigel Dodds (Belfast North) (DUP)]

Since assuming office in 2010, the Prime Minister has, to his credit, tried on occasion to limit the increases in the contributions made by the United Kingdom to the European Union budget, with varying degrees of success. Given that the UK pays £9 billion or more net into the EU every single year, will he tell us how much our contribution will go down in net terms each year as a result of this agreement?

[The Prime Minister]

We have already done the European budget agreement. For the first time, the seven-year financial perspective shows that the budget over the next seven years will be lower than over the last seven years, so there is a real-terms cut—something no one thought it would be possible to achieve. The exact amount of money we give depends on the growth and success of our economy. One consequence of our strong growth and the difficult times in the eurozone is that a little more has been contributed, but the overall financial perspective is coming down, which is good news for Britain.

[Mr Dominic Grieve (Beaconsfield) (Con)]

My right hon. Friend has, I believe, achieved a quite remarkable result because of the legally binding nature of the document that he will bring back if it is accepted by the European Council. In that context, he will know that one of the principal problems that has bedevilled the United Kingdom’s relationship with the European Union has been the capricious interpretation of the treaties, sometimes to circumvent what the United Kingdom has believed to be its true treaty obligations. In view of the remarkable specificity of this document, does he agree that it will be a very powerful tool in preventing that from happening in future?

[The Prime Minister]

My right hon. and learned Friend makes a very important point. If we stand back for a moment and ask ourselves how it is that powers have been taken from this House to Brussels, we see that it has really happened in two ways. First, successive treaties have passed competences from Britain to Brussels. That cannot happen anymore because we legislated in the last Parliament for the referendum lock, so if any Prime Minister—me or any subsequent Prime Minister—tried to sign up to another treaty to pass powers to Brussels, they could not do so because there would be a referendum. The second way in which powers get passed is through the judgments of the European Court of Justice. That is why what has been secured on ever closer union is important. It says in terms, if we get the deal agreed, that that clause cannot be used to drive a ratchet of competences going from Britain to Brussels. The two routes to further integration, where Britain is concerned, have been effectively blocked off.

[Liz Kendall (Leicester West) (Lab)]

Will the Prime Minister confirm that nothing in the renegotiation waters down the important security co-operation at the EU level, such as intelligence sharing, joint investigations and the European arrest warrant? When a deal is done finally, will he join Opposition Members in making the strong case that our membership of the EU helps to bring criminals to justice and keep Britain safe?

[The Prime Minister]

I want the deal to be done and the security argument is an important one. When my right hon. Friend the Minister for Europe was answering questions yesterday, he was asked whether it is consistent to say, as we do in the document, that national security is a national competence and to argue that Europe is important for security. I believe that it is. It is very important that we are clear that the core competences such as policing and our intelligence services are for this House and our Government to decide on, but of course there are ways in which we can co-operate in Europe to make ourselves safer, such as making sure that we know when criminals are crossing borders and making sure that we exchange passenger name records and the rest to keep us safe. That is why, when we opted out of the justice and home affairs powers, repatriating about 100 powers to Britain, we stayed in the ones that really matter in respect of keeping us safe. It is important to demonstrate that we are both maintaining national security as a national competence and working with our partners to keep our people safe.

[Dr Liam Fox (North Somerset) (Con)]

First, may I say through you, Mr Speaker, to the Leader of the Opposition that I would prefer what he describes as the “drama” of the Conservative party to the tragedy of his Labour party any day?

Whether or not an emergency brake kicks in is ultimately the decision of the European Union, not the UK. The level of immigration at which it kicks in is ultimately a decision for the EU, not the UK. Even the level of benefits sent abroad is ultimately a decision for the EU, not the UK. Is it not clear that we are not sovereign in those areas of policy and do not have independent control over them? Ultimately, is not the decision in the referendum whether we want our own laws and our own borders to be determined here by ourselves or overseas by someone else?

[The Prime Minister]

I have great respect for my right hon. Friend. He explained very clearly on the radio this morning that he would be for leaving the EU, even without the renegotiation. He was very honest and frank about that. In terms of dramas and tragedies, I am sure that he will join me in echoing the old insurance advert by saying that we should not turn a drama into a crisis.

On the emergency brake, the European Commission has been absolutely clear in the documents that it

“considers that the kind of information provided to it by the United Kingdom shows the type of exceptional situation that the proposed safeguard mechanism is intended to cover exists in the United Kingdom today.”

Of course, I am all for maximising the sovereignty of this House and our Government, and our ability to do things, but we have said that we want there to be no more something for nothing, that we want a welfare brake and that we want to be able to deny benefits to people in full before they have been here for four years. This paper says that that can happen as soon as the legislation allows.

[Dr Alasdair McDonnell (Belfast South) (SDLP)]

May I reassure the Prime Minister that, in my estimation, most of us in Northern Ireland agree with him that we would be much more successful in the European Union than out of it? I urge him to hold the referendum later than June, so that all the aspects can be fully discussed and debated. When all the negotiations are completed, if there is a positive “stay in” result in the referendum, can he see the UK taking a much more positive and engaged role in the structures and organs of the European Union?

[The Prime Minister]

Were there to be an agreement in February, I do not think that a four-month period before a referendum would be too short. I think four months is a good amount of time to get across the key arguments, facts and figures, and for both sides to make their points. That will be equally important in Northern Ireland, and I give the hon. Gentleman a guarantee that if there is an agreement, I will personally spend time in Northern Ireland, making the points that I think are most important. As for the role of the EU in helping to bring about the successful transformation of Northern Ireland, there have been positive moves in terms of grants, and structural and other funds, to help build the strong economy in Northern Ireland that we need.

[Mr Peter Lilley (Hitchin and Harpenden) (Con)]

As a former Secretary of State for Social Security, may I ask my right hon. Friend to clarify the status of the agreement on migrants’ benefits? The EU has no competence over benefits rules in member states, unless they conflict with the freedom of movement clause in the treaty. If the proposed changes do not conflict with the treaty, we could have introduced them immediately without using up our negotiating clout on this issue. If the changes do conflict with the treaty, they will be struck down by the EU Court, unless the treaty is changed first.

[The Prime Minister]

The view is that this emergency brake can be brought in under the existing treaties, but only with legislation through the European Parliament. On an accelerated timetable, the leader of one of the major parties said that that could take one, two or three months. That is what makes it clear that we can act in this way not just legally, but—crucially in my view and, I think, in that of the British public— quickly.

[Kate Hoey (Vauxhall) (Lab)]

When the Prime Minister meets various EU leaders over the next few months, will he make it clear to them that the result of the referendum is to be decided by the British people, and that they should not try to interfere in any way with the British people’s views? Will he particularly say to the Irish Taoiseach that it was not at all helpful, and indeed it was very uncomplimentary to the people of Northern Ireland, for him to imply that if the people of the United Kingdom decide to leave the European Union, that would threaten the peace process?

[The Prime Minister]

I absolutely agree that this decision is for the British people, and the British people alone, and they certainly do not want to hear lectures from other people about that. It is because this affects Britain’s relations with the rest of the world, and other issues, that there may well be people who want to make a positive contribution, and that is a matter for them. I think that the peace process is secure and we must keep going with it, and I believe that the Taoiseach is a friend of the United Kingdom. He spoke up very strongly for Britain at the European Council, and I think he was quite influential in trying to build good will, and saying that we in the European Union should recognise that if a country has a national interest at stake and needs things fixed, we must be a flexible enough organisation, because otherwise we will not be able to sort those things out.

[Philip Davies (Shipley) (Con)]

The Prime Minister has said that if we vote to leave the EU, he would want to continue as Prime Minister—a combination that I would fully support. He certainly fancies himself as a negotiator. Given that we have a net contribution each year to the European Union of £19 billion and a trade deficit with the EU of £62 billion, and that if we were to leave we would be the single biggest export market of the European Union, does he think he has the ability to negotiate a free trade agreement from outside the EU, without handing over £19 billion a year?

[The Prime Minister]

I have great respect for my hon. Friend, who I think wanted to leave the EU whatever came out of these negotiations, and I am sure he will make his arguments powerfully. Obviously, we must consider all the issues, and once the debate starts, people will want to look at all the alternatives. Would Britain be better off in a customs union arrangement such as that with Turkey? Would we be better off in a free trade agreement, such as that with Canada? Would we be better off in a situation such as the one the EU has with Norway and Iceland? I have started talking about some of those alternatives. I think the Norway example is not a strong one, because Norway contributes more per head to the EU than we do, and it has to take all the legislation passed in Brussels. I am sure that that will be an important part of the debate to come.

[Mr David Winnick (Walsall North) (Lab)]

Does it surprise the Prime Minister that, so far at least, he does not seem to have persuaded any of the critics on the Conservative Benches about the virtues of his negotiations? He may have persuaded the Home Secretary, for reasons that we understand, but apparently he has not persuaded any of the other critics.

[The Prime Minister]

Maybe the hon. Gentleman can help me out—I don’t know. This is a very important issue for our country, but in the end it will not be decided in this Chamber. We will all have to reach our own conclusions, and if hon. Members passionately believe in their hearts that Britain is better off outside the EU, they should vote that way. If they think, even on balance, that Britain is better off in the EU, they should go with what they think. Members should not take a view because of what their constituency association might say or because they are worried about a boundary review, or because they think it might be advantageous this way or that way. People should do what is in their heart—if you think it is right for Britain, then do that.

[Sir Edward Leigh (Gainsborough) (Con)]

Since no one else has done this so far after nearly an hour, and since my mum always said that I should say thank you, may I thank the Prime Minister for giving us a choice in the first place? One question to ask about the referendum is what is the point in having an emergency brake on our car if the backseat driver—namely the European Commission—has the power to tell us when and for how long we should put our foot on the brake pedal?

[The Prime Minister]

This is rather a different situation; we are being told in advance that because of the pressures we face, this is a brake we can use, and that we can do so relatively rapidly after a referendum, and I think it would make a difference. The facts are these: 40% of EU migrants coming to Britain access the in-work benefits system, and the average payment per family is £6,000. Don’t tell me that £6,000 is not quite a major financial inducement. I think that more than 10,000 people are getting over £10,000 a year, and because people get instant access to our benefits system, it is an unnatural pull and draw to our country. One thing that we should do to fix immigration into our country is change that system, and that is what we are going to agree.

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

Will the Prime Minister acknowledge that the referendum will be won or lost on bigger issues than this renegotiation, not least on a judgment that the greatest challenges facing us are better solved when countries work together? In that vein, may I invite him again to join me in welcoming the establishment of Environmentalists for Europe, which recognises that cross-border problems require cross-border solutions, and highlights the crucial role that the EU plays in protecting wildlife and nature in this country?

[The Prime Minister]

Where there are genuine cross-border problems we must work across borders to try to ensure a strong solution. I think that the key issues are prosperity and security, but within security comes environmental security, and at the Paris accord Britain was able to play a strong role. Through our example of getting carbon emissions down, and by having a strong plan for the future, we encouraged other countries in Europe to do the same. That leveraged in—sorry, terrible jargon: that brought about a better deal from the rest of the world.

[Sir Eric Pickles (Brentwood and Ongar) (Con)]

Much has been said about the Conservative party manifesto that the Prime Minister and Conservative Members fought the election on, and I have an electronic copy of it in front of me now. Should the Prime Minister succeed in his negotiations, he will achieve not only the letter of what we promised, but also the spirit. Perhaps most importantly, he will give the British people a chance to vote for a reformed Europe, or to vote for the uncertainty of leaving.

[The Prime Minister]

I am very grateful to my right hon. Friend. We are delivering the manifesto in fact and in spirit, not least by doing something that many people thought we would never deliver on, which is to hold that referendum. I remember sitting on the Opposition Benches when Tony Blair stood here and said, “Let battle commence; let the referendum on the constitutional treaty begin”. The fact that that referendum was never held in many ways poisoned a lot of the debate in Britain. That is why the manifesto is so clear about the referendum and about the renegotiation aims.

Some people will say that a better approach is to go in, kick over the table, walk out the door and say, “I’m not gonna come back in unless you give me a list of impossible demands”, but that was never the plan we set out. The plan we set out was to address specifically the biggest concerns of the British people about competitiveness, an ever closer union, fairness, and migration, and if we can complete this negotiation, that is what I believe it will do.

[Caroline Flint (Don Valley) (Lab)]

I congratulate the Prime Minister on his progress in tackling what I think voters for all parties see as unfairness in the freedom of movement—not to work, but in some cases freedom of movement to claim benefits here in the UK. If we left the European Union, would it put at risk our co-operation with the French authorities in Calais to protect UK borders?

[The Prime Minister]

I am very grateful to the right hon. Lady for what she says. She raises an important point about Calais. There is no doubt in my mind that the agreement we have is incredibly beneficial. I think it works well for both countries. For Britain, being able to have our border controls in France and deal with people there is something we should be very proud of. We should do everything we can to sustain it. It is part of the European co-operation we have.

[Michael Fabricant (Lichfield) (Con)]

Given the difficulty of getting any change to our EU membership approved by the other 27 countries, what we have got is as good as anyone, I think, might have expected and more. I congratulate the Prime Minister on his achievement. Will my right hon. Friend confirm that once the European Council have made its decision, he will respect the views of those Ministers who might publicly express the opinion that the United Kingdom should now leave the EU, and that the careers of those Ministers in this Government will not be jeopardised or threatened as a consequence?

[The Prime Minister]

I can certainly give my hon. Friend that assurance. We are still in the process of negotiation. The manifesto we all stood on said that we wanted to get the best possible deal for Britain and that we would all work on that together. That is exactly what we are doing. If the deal is agreed—whether in February or perhaps later, if it takes more time—there will then be a meeting of the Cabinet to decide whether we can take a recommended position to the British people. If that position is to recommend we stay in a reformed European Union then, yes, at that point Ministers, who, as I have said, have long-standing views and want to campaign in another direction, will be able to do that. The Government will still have a position. This is not a free-for-all. It will be a clear Government position from which Ministers can depart. Yes, as I have said, they should not suffer disadvantage because they want to take that view.

[Ms Tasmina Ahmed-Sheikh (Ochil and South Perthshire) (SNP)]

The Prime Minister has now listened to the views of the EU President and the other 27 Heads of State in the European Union about his proposals. In the spirit of his very own one nation respect agenda, will he also now listen to the views of the Heads of Government in the devolved Parliaments of the United Kingdom, who are unilateral in their belief that his preferred referendum timetable, in scheduling a vote for the end of June, is disrespectful and wrong?

[The Prime Minister]

In terms of the respect agenda, my right hon. Friend the Europe Minister has had a number of conversations with the heads of the devolved Administrations and I think that is absolutely right. On the referendum date, I do not think we should get ahead of ourselves. We need an agreement first, but I really do not believe that a four-month period, and a good six weeks or more between one set of elections and another, is in any way disrespectful. I have great respect for the electorates of our countries. They are able to separate these issues and make a decision.

[Sir Gerald Howarth (Aldershot) (Con)]

I commend my right hon. Friend for sticking to his commitment to offer the British people a choice on this matter. I also support very much what he has just said about maximising the sovereignty of this Parliament. Does he not agree that the proposals to require the United Kingdom to secure the support of many continental Parliaments to block any EU directive that this Parliament opposes do not constitute the fundamental reform he seeks?

[The Prime Minister]

I argue that the red card proposal for national Parliaments is something new—it did not previously exist. Of course, it will take a lot of co-ordination between Parliaments, but where I think it is so much more powerful than the previous proposals, of yellow cards and what have you, is that it would be an absolute block. If we could get the right number of Parliaments together over an issue, the Council and the Commission would not go ahead with it. I think it goes alongside the subsidiarity test that takes place every year, getting Britain out of ever closer union, and reaffirming the sovereignty of Parliament as we have done and will do again. It is one more measure that demonstrates we believe in national Parliaments.

[Mr Pat McFadden (Wolverhampton South East) (Lab)]

There is a much broader case for continued UK membership of the EU beyond the four items in the Prime Minister’s negotiation based on jobs, our economic interest, our collective security and our place in the world. Does the Prime Minister accept that if we voted to leave the European Union but then found ourselves still having to accept all the rules of the single market, that would be to swap our position as a rule maker for that of being a rule taker? That is not control and that is not the right future for a great country such as the United Kingdom.

[The Prime Minister]

As ever, the right hon. Gentleman speaks very clearly and powerfully. Of course he is right. Much bigger arguments are going to take place over the coming months and I am not over-claiming about the four areas where we have made progress. I merely say that they relate to four of the things that most concern the British people about Europe and that we are some way down the road of fixing them. The point he makes about being a rule maker not a rule taker is absolutely vital. Britain is a major industrial economy with a huge car industry, a huge aerospace industry and a very important financial services industry. We need to make sure we are around the table making the rules, otherwise there is a danger that we are not just a rule taker but that the rules are made against us. That is what we need to avoid.

[Sir Nicholas Soames (Mid Sussex) (Con)]

Among the other important measures successfully negotiated by my right hon. Friend the Prime Minister, I welcome in particular the recognition of the Union’s need to become more competitive and explore the untapped potential of the single market, and indeed to press on with vital trade negotiations with the United States and other key partners. Will my right hon. Friend confirm that when the negotiations are, I hope, happily concluded, our national debate must move on to the real questions of this referendum relating to the safety, economic security and prosperity of the United Kingdom, and the role we are to play in the world in the decades to come?

[The Prime Minister]

My right hon. Friend is absolutely right. We will be holding the debate at a time of great uncertainty and insecurity in our world. We have Russia, with its destabilisation of Ukraine to our east. We have the horrors of Daesh to our south. This is a time when we need to be working closely with our neighbours and friends to make sure we can deliver greater security for our people. It is, of course, true to say that a cornerstone of our security is NATO, our “Five Eyes” partnership and our special relationship with the United States. They are vital. In the modern world, however, border information, passenger name records, criminal record information systems, sharing information about terrorism and fighting together against Islamist extremists—not just in Syria and Iraq, but, tragically, in our own countries all across the European Union—are very important issues.

[Mr Ben Bradshaw (Exeter) (Lab)]

I wish the Prime Minister and the British negotiating team well for what remains of this process. Will he acknowledge that all the major threats and challenges Britain faces, from international terrorism to climate change, demand that we work closely and collaboratively with our close neighbours, and that we do not relegate ourselves to a position of isolation and impotence?

[The Prime Minister]

My judgment in all of this is that I want things that increase the power and the ability of Britain to fix problems and to deal with our own security, stability and prosperity. What matters is this: are we more able to deal with these things? One thing Europe needs to get right is to get rid of the pettifogging bureaucracy on the small things that infuriate people but do not actually make a difference, and to focus instead on security, prosperity and jobs—that is the focus.

[Several hon. Members rose—]

[Mr Speaker]

Order. A very large number of right hon. and hon. Members are still seeking to catch my eye. Legendarily, the Prime Minister, on several occasions, has been here for long periods to respond to questions, but there is now a premium on brevity that will be demonstrated, I am sure, by the hon. Member for Harwich and North Essex (Mr Jenkin).

[Mr Bernard Jenkin (Harwich and North Essex) (Con)]

May I point out to my right hon. Friend that the former director general of the legal service of the Council of Ministers, Jean-Claude Piris, has said:

“There is no possibility to make a promise that would be legally binding to change the treaty later”?

In fact, he then used a word which one might describe as male bovine excrement. Can the Prime Minister give a single example of where the European Court of Justice has ruled against the treaties in favour of an international agreement, such as the one he is proposing?

[The Prime Minister]

As I said to my hon. Friend the Member for Stone (Sir William Cash), Denmark negotiated the same sort of legal opt-outs—and, 23 years on, they still stand and are legally binding.

[Mary Creagh (Wakefield) (Lab)]

On 21 July 2005, two weeks after four suicide bombers had murdered 52 people on London’s transport network, Hussain Osman tried but failed to blow himself up on a Hammersmith and City tube line. He fled to Italy and was speedily extradited to face justice in this country—in a matter of weeks rather than the years that a bilateral extradition process would have taken. Can the Prime Minister reassure me and all hon. Members that nothing he does in the renegotiation process will put the functioning of the European arrest warrant at risk?

[The Prime Minister]

I certainly can give the hon. Lady that reassurance. The House debated this issue. We opted out of much of justice and home affairs but we specifically chose to opt back into the European arrest warrant because it has proved very valuable, not least in the case that the hon. Lady mentions and other cases, in ensuring that terrorist suspects and serious criminals can be returned straight away to Britain. If we stay in a reformed European Union, those arrangements will continue. It is more a question for those who want to leave to say how they will put back in place something as powerful as what we have.

[Mr Steve Baker (Wycombe) (Con)]

I very much admire the tenacity, the courage and the skill with which my right hon. Friend is defending—nay, polishing—this deal, but what happened to our 2010 manifesto commitments on the charter of fundamental rights and social and employment law?

[The Prime Minister]

We have put in place, as I and my right hon. Friend the Member for Brentwood and Ongar (Sir Eric Pickles), the former Communities and Local Government Secretary have said, all the things that we put in the manifesto—the manifesto on which my hon. Friend and I stood at the last election. The social chapter no longer exists; it is now merely part of the single market legislation. We have secured, for the first time, an annual reduction in legislation, which can of course include the sort of the legislation that my hon. Friend mentions.

[Tom Brake (Carshalton and Wallington) (LD)]

In the words of John Kenneth Galbraith:

“All of the great leaders have had one characteristic in common: it was the willingness to confront unequivocally the major anxiety of their people in their time. This, and not much else, is the essence of leadership.”

Once the EU negotiations are complete, will the Prime Minister confront people’s anxiety, demonstrate strong leadership and unequivocally come out in favour of our EU membership?

[The Prime Minister]

I have been very clear. If we can achieve this negotiation, I will work very hard to convince people that Britain should stay in a reformed European Union. That would be very much in our national interest. I am not an expert on JK Galbraith, but when people have serious concerns—as people in this country do about the levels of immigration—it is right to try to act to address them, which is part of what this is about.

[Sir Oliver Heald (North East Hertfordshire) (Con)]

I welcome the Prime Minister’s substantial progress towards an agreement that would allow us to stay in the EU, but does he agree that one of the most important aspects of such an agreement is that it is legally binding and provides a lot more clarity about Britain’s role within the EU—in terms of the new dispensation, and of existing treaties? That makes it extremely powerful from a legal point of view as it can be revoked only if we agree. It therefore has embedded force to it.

[The Prime Minister]

We have heard from the former Attorney General and the former Solicitor General, who have great legal expertise. The point that they make is right: this agreement will be legally binding on member states as a matter of international law. First, of course, it has to be agreed, but once it has been agreed, my hon. and learned Friend is absolutely right that it would be irreversible because it could be amended or revoked only if all member states, Britain included, decided to reverse it. Therein lies its irreversibility.

[Stephen Timms (East Ham) (Lab)]

I want us to stay in the European Union, but the Prime Minister indicated that he would use the renegotiation to seek to address the unfairness in the European sugar market, which currently affects cane sugar refiners such as Tate & Lyle in my constituency. Has the right hon. Gentleman made any progress on that specific issue?

[The Prime Minister]

I will have to write to the right hon. Gentleman about that issue.

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

The Commission might agree that we meet the requirements to have a break, but that is its decision. It might not agree in a few years’ time. Every step of these negotiations relies, unfortunately, on somebody else giving us permission to make decisions for this country, as with the thousands of harmonised directives that we struggle with—day in, day out—in respect of which businesses have to ask the permission of other countries. This is not what the British public want, Prime Minister.

[The Prime Minister]

Let me deal first with the harmonised directives. We now have this test for subsidiarity—we had only fine words in previous treaties because there was never a mechanism to go with them—so the European Council and the European Commission are going to have to look at all these competences and return to member states those that are no longer necessary. That seems to represent important progress in the area my hon. Friend mentions. On migration, the European Commission has said that Britain qualifies now. Where my hon. Friend is right is that although we know that what is proposed is the ability to stop someone getting full access to benefits for four years, we need to fill in the detail on how long such a mechanism will last and how many times it can be renewed.

[Hywel Williams (Arfon) (PC)]

In the Welsh general election, how will the Prime Minister’s Conservative colleagues argue for the economic stability that Wales so sorely needs when it might be overthrown by his referendum just six weeks later?

[The Prime Minister]

British people, including people in Wales, voted for a Government who would deliver economic stability while putting this great question about Britain’s future in front of the British people. As I have said before, public opinion in Wales, England, Scotland and Northern Ireland is all, to a greater or lesser extent, in favour of holding a referendum. I think this is the right policy for the whole of the United Kingdom.

[Mr Christopher Chope (Christchurch) (Con)]

My right hon. Friend has talked about what is going to happen with the European Court of Justice. Does he recall that under the Lisbon treaty there is a requirement for the European Union to join the European convention on human rights. That has not been implemented because the European Court of Justice has said that it is incompatible with the EU treaties. Does this not show that, ultimately, although something might need to be taken into account, there is no need for compliance?

[The Prime Minister]

Let me say two things to my hon. Friend. First, I do not believe that the EU should join the European convention on human rights. I do not think that is the right step forward, and that has been the British Government’s position. Secondly, we are committed in our manifesto to change Britain’s position with respect to the European Court of Human Rights by having our own British Bill of Rights. We shall be coming up with proposals for that shortly.

[Rachel Reeves (Leeds West) (Lab)]

British workers benefit from employment rights guaranteed at the EU level. Will the Prime Minister assure us that his renegotiation does not affect important employment rights, including rights to paid leave, equal rights for part-time workers and fair pay for agency workers?

[The Prime Minister]

All these rules are no longer in a social chapter, but are part of single market legislation. We now have the opportunity to make sure that single market legislation is proportionate and that it is on something that needs to be done at the European level rather than the national level. That is an ongoing conversation, as it should be under the rules set out here.

[Damian Green (Ashford) (Con)]

Does my right hon. Friend agree that of all the documents issued yesterday, the most significant words are in Donald Tusk’s letter to members of the Council, particularly where he says that

“in light of the United Kingdom’s special situation under the Treaties, it is not committed to further political integration.”

Is that not precisely what the majority of the British people have always wanted—to be in Europe, but not run by Europe, to revive an old phrase. Is that not precisely what my right hon. Friend has achieved?

[The Prime Minister]

I thought the letter was interesting in that regard. The truth is that Britain’s membership of this organisation is different from that of other countries. As the document sets out, we are not in the euro, we are not participating in Schengen, we keep our own border controls, we choose whether to participate in measures of freedom, security and justice. We opted out of the justice and home affairs area, and now we are opted out, as it were, of ever closer union. Our membership is different, and we need to make that case strongly as we go forward.

[Ms Margaret Ritchie (South Down) (SDLP)]

Given that the south of Ireland is by far Northern Ireland’s biggest export market, will the Prime Minister tell us what assessment he has made of the impact that leaving the European Union would have on the land border in Ireland? Can he tell us whether continued free movement in Ireland can be guaranteed, and has he assessed the damage that a customs border could cause to Northern Ireland’s economic security?

[The Prime Minister]

Those are important questions. I think I am right in saying that the amendments to the European Referendum Bill—now the 2015 Act—that were agreed in the House of Lords and were then, I think, accepted here require the Government to produce a series of documents concerning the reform proposals, the alternatives to membership, and the obligations and rights that attach to membership of the European Union. I think that, through a process involving those documents, we should address a very important question that clearly affects one part of the United Kingdom quite intensely.

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

In 2014-15, 183,000 economic migrants came from the European Union, none of whom would have been deterred by anything we have heard so far. Ever closer union may be taken out of the preamble, but it remains in the essential text of all the treaties. On protecting the “euro-outs”, all that will happen is that there will be a discussion—and there are plenty of discussions in the European Union—and, on competitiveness, that has been part of the European Union’s own ambition since the Lisbon agenda of 1999.

The thin gruel has been further watered down. My right hon. Friend has a fortnight, I think, in which to salvage his reputation as a negotiator.

[The Prime Minister]

My hon. Friend is extremely articulate and always speaks very powerfully, but let me take two of the points that he has made and explain why I think that, actually, he has got this wrong.

First, the principles that will be legally binding in terms of how currencies other than the euro are treated constitute a real advance. They mean, for instance, that never again can the European Union suggest that the clearance of euros is possible only in eurozone countries, which would have been disastrous for our financial services industry. I have secured that. The European Union cannot even promote that again, which is extremely important, because if we were not in the European Union, we would not have that protection at all. The EU could change the rule just like that. I do not think my hon. Friend understands the power of the principles of no discrimination, no disadvantage, and no cost, which mean that we cannot be forced to bail out eurozone countries as we nearly were last summer. Those are powerful principles.

On ever closer union, I encourage my hon. Friend to look at page 9 of section C of one of the documents, which states that

“the references to an ever closer union…do not offer a basis for extending the scope of any provision of the Treaties”.

As I have said, as far as I can remember—I was advising a Minister at the time of the Maastricht debates, and I sat through Lisbon and Nice and Amsterdam and the rest—the principle has never been set out in that way. This means that ever closer union cannot be used to drive a process of integration. If we in the House have the protection that we must have a referendum if any Minister ever suggests that we sign up to another treaty that passes power—protection one—and we have this too, we are well on our way to saying that our different sort of membership of the EU is not only safeguarded but is being extended, because not only are we out of the euro and out of Schengen, but we are out of ever closer union too.

[Jack Dromey (Birmingham, Erdington) (Lab)]

Once the workshop of the world, Birmingham in the west midlands is now the industrial heartland of Britain. Key to that success is inward investment, including investment by Jaguar Land Rover in the 3,000-strong Jaguar factory in my constituency, and key to inward investment is continuing membership of the European Union. Does the Prime Minister agree that it is strongly in the best interests of midlands workers that we remain part of Europe?

[The Prime Minister]

Provided that we secure the agreement that we need, yes, of course I do. We are seeing an industrial renaissance in the west midlands, much of it involving the automotive industry. I have had a number of meetings with car manufacturers in recent days: I saw representatives of Toyota and Ford yesterday, I have had conversations with Jaguar Land Rover and others, and I was with BMW representatives in Germany recently. They have all made the point that Britain is a great centre for the manufacture of cars, and of engines in particular. That is relevant to the issue of the standards set in Europe and our being a rule maker and not a rule taker, which is very important for our auto industry.

[Mr John Baron (Basildon and Billericay) (Con)]

Following the Prime Minister’s response to my recent parliamentary question, I have taken his advice and cleared the diary for a debate in the Chamber tomorrow on parliamentary sovereignty. Given the importance of sovereignty to the EU negotiations, will he join us for that debate, and, perhaps, respond to it on behalf of the Government?

[The Prime Minister]

I am very sorry, but I have not been able to clear my own diary. Tomorrow is the Syria conference. In fact, many people will arrive tonight—more than 30 Presidents and Prime Ministers, I believe. The aim is to raise twice as much for the Syria refugee appeal this year as we did last year. However, I know that my hon. Friend is keen to have a word, and I will make sure that we fix that up.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

As 14,000 jobs in Oldham are dependent on Europe, I am very much in favour of staying in. However, although the Prime Minister said in his statement that the emergency brake would apply immediately after the EU referendum, it was reported yesterday that the process would take at least 18 months. Will the Prime Minister make clear which is the case, and tell us whether he will report on any other transitional arrangements relating to other measures?

[The Prime Minister]

What I said was that because this measure does not rely on changes in the treaty but will be in European legislation, it can enter into force relatively shortly after the referendum. It will require some legislation, but, as I said earlier, the leader of one of the biggest parties in the European Parliament said that it could be a matter of months, because the process can be accelerated. It just goes to show how much we need to bind everyone into the agreement that we hope to achieve in the coming weeks, so that the Parliament can pass the legislation as swiftly as possible.

[Nick Herbert (Arundel and South Downs) (Con)]

Does my right hon. Friend agree that one of the biggest concerns about the direction of travel in the European Union is that countries within it, the eurozone members, wish to integrate more deeply in order to protect their currency? We have our own currency, but an incredibly important part of my right hon. Friend’s negotiation ambition was that we should be protected from any discriminatory measure that might result from those countries’ ability to integrate more closely. Is that not why this proposed package is indeed significant? Is it not the case that it does protect us, and that not only are there now two different speeds, but we have a different destination from our European partners, which puts us in a relatively advantageous position?

[The Prime Minister]

Let me make two points. First, I think that the reference to a different destination is significant. People have often talked about Europe moving at different speeds, but for the first time it is being said that we may not all be trying to achieve the same ends, and I think that that is very important.

The “euro ins-outs” section is probably the most technical and, in some ways the most impenetrable, but it contains some simple principles, such as the non-discrimination and no-cost principles that I mentioned to my hon. Friend the Member for North East Somerset (Mr Rees-Mogg). There is also the very important concept that, should we need to take action in the form of financial supervision to secure our own financial stability, nothing should get in the way of such action. That, I think, is a very important clarification for the good of our country.

[Phil Wilson (Sedgefield) (Lab)]

More than 80% of businesses in my constituency want to stay in the EU. More than 50% of the jobs are linked to trade with the EU. Our membership is vital to jobs, prosperity and security, and that is why Labour Members are united in campaigning to stay in Europe. Do we not need to end the uncertainty, have the referendum as soon as possible, and campaign to stay in the EU?

[The Prime Minister]

Obviously I am keen to end the uncertainty, but I am not in any hurry if we cannot get the right deal. I think we have set out very clearly what needs to be done, and I think it is possible for that to be agreed in February, but if it takes longer we shall have to be patient, because getting this right really matters.

[Mr Peter Bone (Wellingborough) (Con)]

A week or so ago, 2,500 people turned up in Kettering for the first GO conference. GO—Grassroots Out—is an organisation whose aim is to get us out of the EU. We had cross-party speakers at the Kettering conference, and we shall be holding another in Manchester.

What has not been mentioned by commentators—I received an e-mail from the Prime Minister about this yesterday—is the fact that he rules nothing out. This is a process, and he may not get what he wants. I understand that he will not be able to come to Manchester because he is still involved in the negotiations, but if he does not get what he wants, could he come to our GO conference on 19 February, and would it be possible for me to drop off a tie for him at Downing Street?

[The Prime Minister]

My hon. Friend is always very generous with his time, with his advice, and now with his clothing as well. The tie has arrived, and I feel that the blazer is soon to follow.

I do not think that I shall be able to come on 19 February—I hope that I shall still be in the thick of negotiations—but I will of course report the results to the House.

[Mr Speaker]

It is a very garish item, I am bound to say, but who am I to object to that? [Hon. Members: “Would you like one?”] I have suddenly been afflicted by a loss of hearing.

[Sammy Wilson (East Antrim) (DUP)]

I hope my tie is not too garish for you, Mr Speaker.

When the Prime Minister visits Northern Ireland, which I would welcome, will he visit the devastated fishing villages, the families angered by EU Court rulings on terrorists, the manufacturers smothered in red tape and the haulage companies whose employees run the gauntlet at Calais every week because of the EU’s chaotic immigration policy? Will he explain to them how his red card will prevent further destructive EU legislation, given that it requires him in 12 weeks to get 50% of Parliaments across the EU to oppose proposals backed by their own Governments?

[The Prime Minister]

I will want to address all those issues when I go to Northern Ireland. Already the reform of the common fisheries policy has led to some improvement, but there is more to be done. On the rules that manufacturers face, I have set out how we will cut bureaucracy. The documents also address directly the problem between the Republic of Ireland and Northern Ireland of sham marriages and people trying to get round our immigration controls, but we now need to carry them into force.

[Tom Pursglove (Corby) (Con)]

The Prime Minister is trying his best to renegotiate our position, but would he not agree that the reforms, as they stand, do nothing to make the immigration system in this country fairer to people, regardless of where in the world they come from?

[The Prime Minister]

I think they do make it fairer. As I explained in the statement, it has for years been frustrating that we cannot apply some of the rules for British citizens marrying foreign nationals to EU citizens marrying foreign nationals. The agreement opens the way to ensuring that we can. All sorts of sham marriages, fraudsters, criminals and others who have been getting round our immigration controls will no longer be able to do so.

[Joanna Cherry (Edinburgh South West) (SNP)]

The Sunday Times has reported that, as part of the negotiations and his plan to restore the sovereignty of Parliament, the Prime Minister is seeking to deny UK citizens access to the fundamental rights guaranteed by the EU charter. Does he appreciate that, as stated in the well-known case of MacCormick v. Lord Advocate, the doctrine of the sovereignty of Parliament is a distinctively English principle? In Scotland, the people are sovereign, and they do not want their human rights protections reduced.

[The Prime Minister]

People in our country had fundamental rights long before the EU charter of fundamental rights was even thought of, so we do not need these documents in force in Britain. We have our own Parliament and our own rights, and soon we will have our own British Bill of Rights.

[Nadhim Zahawi (Stratford-on-Avon) (Con)]

Constituents and families will be thinking about what the future holds. All four tranches of the agreement are important to all our constituents, but the most significant is the protection for non-euro countries. Will the Prime Minister assure the House that he will look at the detail—the devil is in the detail—to make sure that there are no loopholes and that, as the eurozone countries integrate, we are protected and not discriminated against?

[The Prime Minister]

I will certainly do that. It will be a complex negotiation. The eurozone counties want the ability to integrate further and to know that we are not trying to block the action they need to take, but clearly we want to make sure that we, as members of the single market, are not disadvantaged.

[Diana Johnson (Kingston upon Hull North) (Lab)]

I am sure the Prime Minister will welcome today’s news that the largest offshore wind farm in the world is to be built off the east Yorkshire coast by DONG Energy and Siemens. This will create up to 2,000 jobs in the Humber estuary and result in £6 billion of investment. Does this not show that, whatever the debate and frustrations around the right terms, it is in our country’s economic interest to be part of, and engaged in, the EU as a leading player?

[The Prime Minister]

I am delighted with that news, because the Government have given great support to Siemens and DONG Energy. We have—I think—the biggest offshore wind market in the world, because we have provided the regulatory certainty the industry needed. In the east of England, that has achieved not just one big factory, but the industrial regeneration of all the related industries. Irrespective of the outcome of the referendum, we have to make Britain the best place in the world to invest and grow a business. When the arguments come, I am sure many of those who want us to stay in a reformed EU will argue it will make us even more attractive, but we should wait until the starting gun is fired.

[Neil Carmichael (Stroud) (Con)]

The scope and scale of the reform package reflect the key interests of a wide range of people in the Chamber. Does the Prime Minister agree that the important thing now is to make sure the details are legally binding and absolutely right and, above all, to sketch out the economic case for staying in the EU—not least the fact that more than half of our foreign direct investment comes from the EU?

[The Prime Minister]

My hon. Friend is right. The next few weeks will be about trying to secure this deal and nail down the details. If that is successful, there will then be the bigger arguments he refers to.

[Andrew Gwynne (Denton and Reddish) (Lab)]

I suspect there will always be issues that divide the Prime Minister and me, but, on this, is not what matters the national interest and what he described as the greater prize? Is not one of the benefits of a document that is legally binding and ratified by the British people in a referendum that it will be the British people who decide? Had he gone for treaty change, could it not have been scuppered by referendums in France, Netherlands, Ireland and other EU member states whose publics might come to a different view from that of the British public?

[The Prime Minister]

I am grateful to the hon. Gentleman for his comments. Clearly, if agreed, this will be a legally binding arrangement, for the reasons I have given, but we are aiming in it for treaty change—on those things that need to change—the next time the treaties are altered. He makes a good point though: the more we can bring this together in one place and explain what it is about, the better the British people will see the force of the arguments.

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

Does the Prime Minister accept that if the UK left the EU, we could regain our seat at the World Trade Organisation, thereby regaining our voice and influence on this crucial body for global trade, which we lost when we became a member of the EU?

[The Prime Minister]

My hon. Friend is absolutely right that, outside the EU, one option would be to take our seat at the WTO. The only problem is that the WTO has not signed many trade agreements in recent years. Those have tended to be bilateral agreements, such as the EU agreement with Canada, which we hope is about to come in, and that with Korea. Of course, Britain could, independently, sign trade agreements, but we have to weigh up how much influence Britain has as a member of the EU—a market of 500 million people—when negotiating the biggest and best trade deals with the fastest-growing countries in the world.

[Mr Speaker]

I call Brendan O’Hara. No. He was here.

[Stewart Malcolm McDonald (Glasgow South) (SNP)]

The German Government and the European car lobby see the renegotiation as an opportunity to water down new proposals on emissions standards and type approval. Does the Prime Minister accept that that would be unacceptable to British drivers, and will he ensure that it will not be a bargaining chip in the renegotiation?

[The Prime Minister]

There is no connection between this renegotiation and those directives. The only one I can see is the one I made earlier: for the good of our car industry and our consumers, Britain needs to be in the room when these decisions are made.

[Dr Sarah Wollaston (Totnes) (Con)]

The Prime Minister has set out the many things that remain to be reformed, but if this grudging and threadbare deal is the best the EU is prepared to concede, what serious hope is there of meaningful renegotiation if or when we are tied in long term under a referendum?

[The Prime Minister]

I would make two points to my hon. Friend. First, this is not coming at the time of a more general treaty change; it is a one-off. We are the first Government, and I am the first Prime Minister, I can think of who from a standing start have achieved a unilateral agreement for the good of their country inside the EU. I do not think it is threadbare; as others have said, it is very solid. I am sure that treaty changes will be coming down the track—the process of reform is never fully completed—but there is no danger, once the agreement is signed and, I hope, confirmed in a referendum, of Europe running away with a whole lot of other plans for Britain, because we have the referendum lock. Nothing can happen to Britain without a referendum in this country. That was such an important piece of legislation back in 2010, but I think sometimes we forget about it.

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

The Liberal Democrats believe in the UK being in Europe, but we also believe in the EU being reformed, so I congratulate the Prime Minister and his team and wish them well in the remaining negotiations. When he is leading the campaign to stay in, will he remind the British public of the mutual defence clause and that, frankly, in this unstable world now would be an absurd time to turn our backs on our nearest neighbours and allies?

[The Prime Minister]

I thank the hon. Gentleman for his good wishes for the final stages of this renegotiation. This will be a big argument in the campaign. Like many on this side of the House, I have always seen NATO as the cornerstone of our defence, but as I said earlier, in the modern networked world the work we do, for instance in the Mediterranean to try and stop people leaving Libya and making the perilous journey to Italy, could be a NATO operation but right now it is a European operation in which Britain is playing a leading part. Being a member of networks where we can work together for our security is important.

[Caroline Nokes (Romsey and Southampton North) (Con)]

Small and medium-sized enterprises are the absolute lifeblood of our economy and small business owners in Romsey and Southampton North are looking at the targets for regulation reduction with optimism, but what they are really seeking is a reassurance from my right hon. Friend that these are stretch targets and our real goal has to be to go beyond them and make sure there is a real-terms reduction in the amount of bureaucracy small businesses face.

[The Prime Minister]

My hon. Friend is absolutely right. What has been achieved so far is something like an 80% reduction in the number of proposals coming forward, but of course what we want to achieve is a reduction in the existing base of regulation and legislation where it is unnecessary, and that, again for the first time, is what we have secured targets towards.

[Cat Smith (Lancaster and Fleetwood) (Lab)]

Can the Prime Minister confirm that British women’s rights at work specifically around paid maternity leave, equal pay and anti-discrimination laws will remain firmly in place and will not be affected by any deal? For the same British women, may I ask for an update on how far his negotiations have got on the tampon tax?

[The Prime Minister]

First, I can give the hon. Lady that reassurance in terms of those guarantees and also the action we have taken domestically on things like shared parental leave, which I am very proud of and makes Britain a more family-friendly country. The tampon tax issue is difficult because of the VAT rules in Europe so I have nothing to add to what I have said before about that, but I totally agree about the desirability of trying to get it fixed.

[Ben Howlett (Bath) (Con)]

May I join other colleagues in thanking the Prime Minister for all his work in negotiating a better deal for Britain in the EU? I agree with him that these reforms are a substantial and fundamental change to our relationship with the EU, but what assessment has he made of the impact of these reforms on the car manufacturing worker or the student who is looking at their Erasmus placement next year, as well as those who share similar concerns to those of a pensioner constituent of mine who contacted me yesterday and said, “What is the impact on my grandchild if we leave the EU?”

[The Prime Minister]

My hon. Friend is absolutely right. Inevitably these negotiations focus on important ideas and concepts of sovereignty and non-discrimination and deregulation and the rest, but we have to make sure this is a debate that is about consumers and how we are affected in terms of freedom to travel, freedom to study, the price of flights, the availability of roaming charges, and how we are affected, as my hon. Friend said, as pensioners and car workers and young people looking for university places. Hopefully, all the debate will engage with, and bring out, those issues.

[Jim Shannon (Strangford) (DUP)]

The Prime Minister has outlined the action he has taken in UK-EU negotiations, but what is missing from his statement is any reference whatever to the fishing sectors, which are choked with bureaucracy and unable to fish fully the seas around the United Kingdom of Great Britain and Northern Ireland. Farmers have to wade through red tape just to farm. The fishing sectors and the farmers have a simple solution: have the referendum as soon as possible and let us rid ourselves of the outrageous and top-heavy EU and just say no to Europe. Can the Prime Minister tell us, and the fishermen and the farmers, today when the referendum will take place?

[The Prime Minister]

I cannot give a date for the referendum because we do not yet have an agreement in place. I would say that in recent years there have been quite significant improvements in the common fisheries policy, not least in dealing with the appalling situation of discards. As for farmers, let the debate begin; let’s hear from farmers and farmers’ representatives about what they think about the support they get, the actions we have taken to try to simplify the bureaucracy with fewer inspections and the rest. I look forward to hearing from all farmers and their representatives.

[Mrs Flick Drummond (Portsmouth South) (Con)]

I thank the Prime Minister for a very good negotiation. This report is fantastic, but may I draw my right hon. Friend’s attention to section B? Does my right hon. Friend welcome Mr Tusk’s comments on competitiveness, which commit to

“lowering administrative burdens and compliance costs on economic operators, especially small and medium enterprises, and repealing unnecessary legislation”?

That is what so many companies complain about. This is very welcome to all businesses, particularly those in Portsmouth who want to invest in Europe, and it is exactly the reason why we should be staying in this market which has over 500 million people.

[The Prime Minister]

I thank my hon. Friend for her remarks. Of course section B is important, but it is also worth looking at the draft European Council declaration on competitiveness which adds to section B and brings out some more details.

[Mark Durkan (Foyle) (SDLP)]

Obviously any referendum debate will centre on the bigger picture, the longer-term challenge and deeper interests, but as well as the issues raised by my hon. Friend the Member for South Down (Ms Ritchie), will the right hon. Gentleman address whether the package he has come up with to do with the changes in relation to child benefit will automatically extend to cross-border workers in a constituency like mine, where EU precepts apply?

[The Prime Minister]

I will look very carefully at that issue, but I seem to recall from conversations I had with the Taoiseach that there are particular arrangements for the common travel area. But I will come back to the hon. Gentleman on this.

[Robert Neill (Bromley and Chislehurst) (Con)]

The legal certainty that the Prime Minister referred to and the protections in the economic governance section of the document are very important to maintain the status of London as an international business and financial centre, but does my right hon. Friend agree that one of the risks to that position that would remain if this agreement were not successful would be the uncertainty of leaving a market which we can grow, improve and strengthen, and having then to try to get back into the market from the outside with uncertain cost, time and terms?

[The Prime Minister]

My hon. Friend, with his constituency, is right to talk about the importance of financial services and the City of London. We have 40% of Europe’s financial services here in the UK. The current arrangements work quite well because people can passport their way through to establish themselves in any European country, so those arguing for alternatives will have to answer some quite difficult questions about how exactly we put those sorts of protections in place.

[Peter Grant (Glenrothes) (SNP)]

Can the Prime Minister confirm he is now in receipt of a letter from my right hon. Friend the Member for Gordon (Alex Salmond) that makes it clear he does not believe six weeks is a long enough gap between national elections and the EU referendum? Clearly the misrepresentation that has happened is not intentional—we all accept that—but in order to set the matter straight, may I suggest that the Prime Minister and his colleagues are equally enthusiastic about circulating the actual views of the former First Minister, in particular his suggestion that the real reason the Prime Minister wants a June referendum is that a short campaign is designed to minimise the extent of the obvious divisions within the Conservative party?

[The Prime Minister]

First, I do not think four months is a short period of time. I think by the end of four months people might be heartily sick of the whole subject. But I notice that the thumbscrews and the other instruments of torture available to the current First Minister have clearly been applied to the former First Minister as we have seen a miraculous conversion—once six weeks was enough; now six weeks is not enough. I wonder what she did to him.

[Richard Drax (South Dorset) (Con)]

May I, too, thank the Prime Minister for giving the country the chance of a referendum? Does he agree that he, I and this Government are nothing more than tenants whose duty while we serve is to protect our island inheritance—our democracy, sovereignty and freedom—and that we have no right whatsoever to sell it all, let alone cheaply, to a bureaucratic and unaccountable institution like the EU?

[The Prime Minister]

We are tenants; my hon. Friend is absolutely right. That is why I think after 40 years of the British people not having a say when Europe has changed so much, it is right to give the British people a say again, and what I wanted to do was give them the very best possible chance to have a say—not between the status quo today and leaving altogether, but with an improved settlement and plan for Britain by which they can choose to stay in or get out.

[Several hon. Members rose—]

[Mr Speaker]

Order. [Interruption.] I call Mr Tom Elliott—and he should not be diverted by the hon. Member for East Antrim (Sammy Wilson), who is sitting next to him.

[Tom Elliott (Fermanagh and South Tyrone) (UUP)]

Thank you very much, Mr Speaker. I will not be diverted, and I have no ties to offer either. One of the major drawbacks of the European Union for businesses is red tape and bureaucracy. I note that yesterday’s document stated that unnecessary legislation would be repealed. When will the public and our businesses be able to see which legislation is likely to be repealed?

[The Prime Minister]

As the document sets out, this will be an annual process. What is different about this is that, instead of just words about deregulation, two mechanisms are being put in place: one to enforce subsidiarity so that whole competences can be returned to member states, and one for burden-reduction targets. Those two things are new.

[Mims Davies (Eastleigh) (Con)]

We on this side of the House want what is best for Britain when it comes to jobs and security. I have one vote, and I believe that there are aspects of the EU that need serious scrutiny and reform. My constituents share those thoughts. This party has provided this opportunity for a much-needed referendum and the reality of reform, and we can look at this and examine what is before us. Does the Prime Minister agree that voters want an open argument on this matter, rather than open warfare?

[The Prime Minister]

People want an open argument; they also want unbiased statistics and clear independent advice. So as well as there being an in campaign and an out campaign, once the deal is agreed—

[Chris Bryant (Rhondda) (Lab)]

Two outs.

[The Prime Minister]

Well, several out campaigns, as the hon. Gentleman says. Once the deal is agreed, we also need to ensure that independent organisations, businesses, non-governmental organisations and any others who think that they would be affected are encouraged to come forward and give their views.

[Stephen Gethins (North East Fife) (SNP)]

The Prime Minister talks about strengthening all the national Parliaments. Will he tell us, in the spirit of seeing subsidiarity in action, what exactly that will mean for the Scottish Parliament?

[The Prime Minister]

We are currently giving the Scottish Parliament the immense responsibility of being able to raise its own taxes. We are still negotiating that, but it is probably the biggest act of British subsidiarity that we have had for many years, and I would urge the SNP to pick up the baton and run with it.

[Chris Philp (Croydon South) (Con)]

On the topic of in-work benefits, the Prime Minister has already said that the emergency brake is in the hands of the Commission. Does he agree that it would greatly help the “in” case if, over the next two or three weeks, he could get a slightly stronger commitment to apply that handbrake for a period into the future and not just initially? Secondly, on that topic, what would happen if we were to vote to stay in but the European Parliament did not subsequently ratify these measures?

[The Prime Minister]

On my hon. Friend’s latter point, the European Parliament is a party to these negotiations and I have had a number of meetings with it. If he looks at the draft declaration of the European Commission on the safeguard mechanism, it is very clear that we are justified in triggering the mechanism straight away. On his other point, he is absolutely right to say that we need to secure in the negotiations the best possible agreement on all the other aspects of the operation of this mechanism: how long it lasts for, how many times it can be renewed, and all the rest of it.

[Patrick Grady (Glasgow North) (SNP)]

There were approximately 500 days between the announcement and the date of the Scottish independence referendum, which is roughly the same length of time between today and 23 June 2017. There are 30,000 British citizens living in European countries and claiming benefits, so how will this draft, permanent, still-to-be-negotiated, legally binding package affect them?

[The Prime Minister]

I can let the House into a little secret. The reason why there were 500 days between the announcement of the Scottish referendum and the referendum itself is that I was so determined that there was going to be one question and one question only that I granted the former First Minister, the right hon. Member for Gordon (Alex Salmond), the right to name the date. He wanted to make sure that the referendum took place after as long as possible, after the anniversary of Bannockburn, after everything—everything he could throw in. I have to say that, from my point of view, the result was still very clear.

[Paul Scully (Sutton and Cheam) (Con)]

Benefits as a pull factor for migration might have been blunted somewhat by these proposals but they have not been eliminated. Arguably the bigger pull factor for migration is our successful economy and job creation in the UK. Will the Prime Minister tell us what the draft proposals will do to enable the UK to control immigration from within the European Union in the long term, beyond the four years of the emergency brake?

[The Prime Minister]

On the long-term approach, we are dealing with the abuses of free movement with a more comprehensive package than ever before to deal with the fraudsters, the criminals and the sham marriages. We have the emergency brake which will deliver a four-year welfare brake, which I think is significant. Frankly, I am sure that the eurozone economies will start to recover over time; that has been one of the issues. In the long term, we need to do better at controlling immigration from outside the EU but we also need a welfare policy and a training policy inside our own country, which we increasingly have, to train up the people in this country to do the jobs that our strong economy is providing.

[Mr Robin Walker (Worcester) (Con)]

As one of the top five economies in the world, Britain has to have a world view, and we need friends and allies not just in one continent but in six. I agree with the Prime Minister that this should be a question not just about whether we could manage outside the European Union but about where we would be better off. With that in mind, what feedback has he had on his negotiations from our allies in the Commonwealth and from Britain’s wider networks around the world?

[The Prime Minister]

The advice has been pretty comprehensive from all of them: they value their individual relationship with Britain, but they think we are better off inside a reformed European Union. The Prime Ministers of New Zealand, Australia and Canada, the American President and others are all pretty clear about this—not simply because they think we are better off, but because they think the influence we bring to bear on the European Union is positive from their point of view.

[Alberto Costa (South Leicestershire) (Con)]

The SNP, in rummaging for an argument, referred to a 1953 case, the case of MacCormick, and to obiter comments—that is, comments made in passing. May I remind the Prime Minister that he among EU leaders has unique up-to-date experience of tough negotiations that led to a referendum agreement, which in turn led to 55% of the Scottish electorate voting to keep the sovereign United Kingdom together? He should take comfort from that success, because those 55% will be voting, just like the English, the Welsh and the Northern Irish, to listen to the British Premier about what is in Britain’s best interests.

[The Prime Minister]

I am grateful to my hon. Friend. What these two referendums have in common is that, as a country, we should be confronting and dealing with these big issues. Does Scotland want to stay within the United Kingdom? Does the United Kingdom want to stay within a reformed Europe?

[Mark Spencer (Sherwood) (Con)]

Just as important as the result will be the legitimacy of that result, and a high turnout will be essential. What can the Prime Minister do to engage with trade, industry and businesses to encourage them to discuss with their employees the implications of the outcome, whichever way the debate goes?

[The Prime Minister]

I will certainly do everything I can, in the event of a successful negotiation, to encourage engagement at all levels. I would also encourage businesses, charities and other organisations to ensure that they feel they can come forward. There are some in the business community who feel that that they will have to go through all sorts of corporate governance concerns, but I would advise them to get on with that process so that if they think they have important arguments to put forward to their workforce, their customers or their shareholders, they are able to do so.

[Richard Graham (Gloucester) (Con)]

A key question for many is whether the UK will be able to say no to European migrants when we need to. This draft Council statement spells out clearly that we will be able to do so on the grounds of public policy, public health and public security, which include legitimate goals such as reducing unemployment or the suspicion of marriages of convenience. Will my right hon. Friend confirm that this is a considerable step forward for our own immigration and security interests?

[The Prime Minister]

My hon. Friend makes an important point. If we read section D of the main document, we see that it is quite refreshing about the number of instances in which the control of migration and the limitation of free movement will be possible. That document bears careful reading.

[Kevin Foster (Torbay) (Con)]

I welcome the Prime Minister’s statements so far. I particularly welcome the fact that, for the first time in my lifetime, a Prime Minister is doing a deal in Europe and coming back to this country to give all the British people a chance to have a say on it, rather than just Members of Parliament. Can he reassure me that, even if people do vote to remain in the European Union on the basis of this deal, we will still have a vision that Europe should be doing less and doing it better?

[The Prime Minister]

I absolutely agree with that; the idea of Europe only where necessary but nation states wherever possible is absolutely right. There will be people who say, “Maybe we have addressed some issues of concern to the British people but there is more to be done.” Let me say again that that is a perfectly acceptable view, but I would argue that the “more to be done” should be done from inside the EU, rather than by us slamming the door and trying to do it from outside.

[Mark Pawsey (Rugby) (Con)]

It is now clear from the renegotiations that Britain can improve its position within Europe by continuing to benefit from influence over a market of 500 million people, while maintaining our borders and preventing abuse of free movement. Is the Prime Minister as encouraged as I am by the very positive support that has come from business across the piece?

[The Prime Minister]

It is important that business raises its voice, particularly as regards jobs and investment. We need to demonstrate that this negotiation and this outcome can actually lead to a strong and more secure economy, for the sake not just of business, but of people who want security.

[James Cartlidge (South Suffolk) (Con)]

I congratulate my right hon. Friend on his statement. Is he aware that 90% of FTSE 100 chairmen would vote to remain in the European Union? Does he think that that is because they are part of some so-called “project fear”? Alternatively, is it because they run our very largest companies in the real world and know that a vote to leave is a vote for huge economic uncertainty and that a vote to remain, with the protections we will have on the single market and our currency, is a vote for our economy to go from strength to strength?

[The Prime Minister]

It is important that we hear the voice of business, both large and small, and I encourage all businesses to speak out because they have an important contribution to make to the debate. The more that people can give concrete examples of how access to this market and to the rules of this market matter, the better.

[Mike Wood (Dudley South) (Con)]

I thank the Prime Minister for his efforts to secure the best deal available. Today’s newspaper reports suggest that the changes needed to introduce an emergency brake would require approval from the European Parliament. Has he had an opportunity to assess levels of support among MEPs for these changes?

[The Prime Minister]

My hon. Friend is right in what he says. Obviously, it is a great advance that the European Commission has said that Britain qualifies for this brake, and if it existed now it would be brought in straightaway. As for the advice I have about the position of the European Parliament, I mentioned earlier that the head of the largest group in the European Parliament thinks this could be sorted out in a matter of months and is supportive of the approach.

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

The German captain of the ship that is the European Union has deliberately steered it into a migration iceberg with all the watertight doors open. Rather than just rearranging the deckchairs, would it not be better to direct the British people to the available lifeboat while the band is still playing and before the inevitable happens?

[The Prime Minister]

The analogy was getting quite complicated, but I do not agree with that. If we were not outside Schengen, my hon. Friend would have a very fair point, but we are in a situation where we are able to have the best of both worlds. Let us keep our borders and let us not let in foreign nationals who do not have a right to be here—that is strengthened by this agreement—but let us keep the free movement, so that British people can live and work in other European countries. That is the best of both worlds.

[Craig Mackinlay (South Thanet) (Con)]

I wish to press my right hon. Friend a little further about the emergency brake, which sounded so hopeful some weeks ago. My hon. Friend the Member for Gainsborough (Sir Edward Leigh) talked about backseat drivers, but the concept of 28 feet reaching for the pedal, all wanting an influence, really means that when a hazard is seen, indecision will mean that an accident will surely happen. Does my right hon. Friend agree that it is far better to have independent control of the brake, the clutch, the accelerator and, indeed, the steering wheel?

[The Prime Minister]

First, the European Commission’s statement is very clear, saying that it

“considers that the kind of information provided to it by the United Kingdom shows the…exceptional situation…exists in the United Kingdom today.”

That would enable us to pull this brake to make sure that people could not get instant access to our welfare benefits. But there is another consideration that those thinking that we would be better off outside the European Union have to think about: when most of those countries outside the EU that want a close relationship with it ask for free access to the single market, the first demand is that there should also be the free movement of people. That is the case with Norway, for example. This is a deal from within and in many ways, even on this issue, it would be better than a deal from without.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

In his statement, the Prime Minister outlines the work we have done to tackle migration from outside the EU. What conversations has he had with other European leaders about what they are doing to tackle the migrant crisis? Many of my constituents are very worried about the future implications of migration, particularly given that we are seeing such unsustainable levels of people coming into the UK at the moment.

[The Prime Minister]

My hon. Friend asks a crucial question that needs to have a full and proper answer. The arrival of these people on to the European continent does concern people. What I say is that, first, we do not have to allow into our country foreign nationals resident in other states. That is why we keep our border controls.

Let us consider, for example, the situation in Germany. Getting German citizenship can take as long as 10 years and it is the product of a lot of work, tests and everything else. We must therefore, first, keep our Schengen no-borders agreement and, secondly, continue to exclude people if they are not European Union citizens and they do not have a visa. Thirdly, I should say that the changes here that mean that we can crack down on the fraudsters, criminals and sham marriages, and on those who are trying to get round our immigration controls, put us in a much better place to deal with the pressures of the future.

[Martin Vickers (Cleethorpes) (Con)]

It has been a long wait, Mr Speaker, but the voice of the Humber will not be silenced, as the Prime Minister said last week. He rightly said in his opening remarks that the British people are proud of their democratic institutions. Let me suggest to him that when they see British Ministers having to go cap in hand to Brussels to determine who receive benefits or who is allowed into the country, that pride is somewhat diminished. May I urge him further, in his final negotiations, to remain robust and achieve even more? Although he will not persuade me, he may persuade a few doubting people in Cleethorpes to vote to stay.

[The Prime Minister]

I am sure the voice of the Humber could help me with that, if he really wanted to. Britain is a member of a number of international organisations, some of which involve our having obligations towards them. We have ceded some of our sovereignty and our obligations to NATO, yet we do not see that as a cap in hand issue; we see it as a cornerstone of our security. What I am trying to secure here with Europe is that we are in the things we want to be in and we are out of the things we do not want to be in. If that is the case, we are not weaker, less powerful or less sovereign as a result; we are more able to get things done for the people who put us here.

[Mr Adam Holloway (Gravesham) (Con)]

rose—

[Mr Speaker]

Order. No, no, I am always very keen to hear from the hon. Member for Gravesham (Mr Holloway), but he only toddled into the Chamber some considerable way into the statement, as his puckish grin testifies. We will hear from him on a subsequent occasion. Perhaps we can just thank the Prime Minister for his patience and his courtesy. [Hon. Members: “Hear, hear!”] I would like to thank all colleagues for taking part. There will be many opportunities further to debate these important matters, but let us give thanks where they are due.