EU Membership (Audit of Costs and Benefits) Bill
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The Parliamentary Under-Secretary of State for Foreign and Commonwealth Affairs (Mr Tobias Ellwood)
If debating European affairs is your thing, Mr Deputy Speaker, you will have had a great week.
The starting gun to the core of what we are debating today began with the Prime Minister’s Bloomberg speech in January 2013. That was the first indication, by any Prime Minister, to say that he intended to take the opportunity to have a serious conversation with Europe; to say we are not content with our relationship with Europe, that we believe too many powers have been ceded to Brussels and that the EU is not transparent or competitive enough. That culminated in the Prime Minister last weekend debating with other Heads of State and Prime Ministers to establish the changes that he feels need to take place if Britain is to be justified in staying in the European Union.
The Prime Minister returned from those discussions on Saturday. On Monday, he made a statement, saying that his principal recommendation is to remain in the EU. He said, however, that it would not be for politicians but the people to decide on our long-term relationship with the EU. This generation gets to choose. As we now know, the referendum will take place on 23 June. If that was not enough, the issue was raised at Prime Minister’s questions, and there were the launches for the various in and out campaigns, with all their gusto and vim. Then, yesterday, we had a full day’s debate, in Government time, opened by the Foreign Secretary and closed by the Europe Minister. I agree about the repetition in some of our Europe debates—I remember many times just printing off my speech from my hard drive, with the bullet points ready to go, and coming here to give a similar exposé of my views on Europe—but, despite seeing the usual suspects committed to debating Europe, I think that today’s subject matter is different.
I disagree with the hon. Member for North West Durham (Pat Glass). Although it is clear that, should the Bill get anywhere, the date of the referendum would have to shift, I believe the debate is useful. Every time we have a debate, in the House or elsewhere, on Europe, more details emerge and more questions arise, and that is healthy. We saw it in the debates leading up to the Scottish and alternative vote referendums. That is important because these are difficult matters for us to get our heads around—there are questions to be raised and challenges to be made. In fact, new questions have been posed today, on both sides of the argument, and, if it helps, I will try to answer some of them.
I agree that this place has not always been brilliant at understanding the EU at its heart. I recall writing a pamphlet in opposition entitled, “Upgrading UK Influence in the European Union”. I think there are only two copies left: the one I have in my hand, and the one proudly owned by my mother, who is the only other person I know who has definitely read it. I flicked through it to remind myself of my frustration that the country did not scrutinise enough of what was going on in Brussels—this was before 2010, when we were in opposition.
The pamphlet asked what Parliament could do to better understand what was happening in Brussels. We spend a lot of time in this place arguing and complaining about the results of legislation coming from Brussels, but how much time do we invest in understanding the mechanisms and processes in order that we might challenge or stop it coming through in the first place?
Oliver Colvile
Does my hon. Friend recognise that we also need to send good-quality civil servants to Europe to argue our case properly?
Mr Ellwood
My hon. Friend is absolutely right. I would argue that the civil servants we send there are among the best in the world. It is a huge privilege and honour to work in the Foreign and Commonwealth Office, although many of the civil servants in Brussels come from other Departments.
I must say, however, that we are granted 12% of the jobs in the EU, in the various Commission roles and so forth, but, of late, we have not taken them, because there are language exams to be taken, and the language school in the Foreign Office was closed down. There were important top jobs to be had, but because our civil servants could not pass the two language courses required—one at a higher level, one at a more subsidiary level—we could not fill the very roles that would have allowed us the necessary influence in the EU, in the bowels of Brussels, to change, affect and advance legislation.
I am pleased to say that we are changing that—the language school is back in place and able to train civil servants to the correct levels—but when I wrote the pamphlet, before the 2010 election, we were filling only 3% to 4% of those jobs, meaning that 8% of the jobs to which Britain was entitled were going to other countries. One is supposed to relinquish one’s passport—metaphorically—when one becomes a civil servant in the EU, but of course one remains British at heart, or Italian or French, or whatever it is. It was a waste of an opportunity to scrutinise, understand and affect what was going on in the EU. I am pleased to say that the civil service situation has changed, and that we are now far more immersed in Brussels.
Let us look at some of the big ticket items that have been agreed—I shall come on to them in more detail later, if I may—such as the trade deal with Korea or the patent agreement that protects any invention. You might have a small invention that you have pocketed away, Mr Deputy Speaker, and not yet told us about, but you can be assured that you will be able to present it and it will be protected right across the European Union. It was British civil servants who were able to pilot this measure through, and it provides an example of the sort of work they are doing.
To answer my hon. Friend the Member for Christchurch (Mr Chope), our understanding of these matters is important. When I was the Parliamentary Private Secretary to the Minister for Europe, I remember organising cross-party visits for Members of Parliament to make the trip to Brussels so that they could learn about the EU, meet civil servants and understand how the European Parliament and various parts of the Commission work. Most of them were so delighted to get back on the Eurostar at the end of the day that they never wanted to see Brussels again, such was the scale of the bureaucracy. That highlights a challenge, but it perhaps also reflects the absence of a determination to say that we should be turning the situation around. We should not simply turn our backs on it and accept everything that happens; we should try to enhance British influence over what happens in Europe.
That is exactly what our Prime Minister has done in working with our allies and trying to effect change for the better. There are many countries, many Prime Ministers and many statesmen who agree with our free market liberal views on how the European Union should be conducted. They agree with us that it has become too politically empowered and not sufficiently transparent, and that although it is the largest single market in the world, it is becoming overburdened with red tape and bureaucracy. From a social perspective, furthermore, it is the most costly area in the world. Some 50% of social services in the world are found on our own doorstep in the European Union. That means that we are uncompetitive in comparison with other places in the longer term, which is exactly what the Prime Minister was trying to determine in his negotiations at the weekend. He explained what he returned with in his statement on Monday.
I am pleased that we have had yet another opportunity this week to debate these matters, and I am sure it will not be the last time. I am most grateful to my hon. Friend the Member for Christchurch for stepping in for our hon. Friend the Member for Wellingborough (Mr Bone), who was originally going to articulate his views on the Bill. My hon. Friend the Member for Christchurch has done so with the same gusto that he has always shown in previous debates on the European Union. It is a matter of record and knowledge that he is my parliamentary Dorset neighbour, and I look forward to him donning one of the amazing ties that the leave campaign is promoting and going on the campaign trail in Dorset in the run-up to 23 June.
We heard contributions from other Members, including from my hon. Friend the Member for Shipley (Philip Davies), who articulated important questions about the merits of the European Union which need to be answered by those who want to remain in the EU. That is important for the public, many of whom are yet to make up their minds on the merits or otherwise of continuing our membership of the European Union.
The speech of the day was, I thought, given by my hon. Friend the Member for Gainsborough (Sir Edward Leigh)—not simply because of its length, but its quality as well. He made some erudite points, and I thought he was extremely honest about what the British nation might expect from the leave campaign when it comes to articulating what it would mean if we did leave. He was honest in raising some question marks over what might happen to the common fisheries policy and the common agricultural policy. Many people support these policies now, so it is important for them to understand the consequences of leaving. It was very honest of him to pose those questions, and the nation must hear the answers in a proper debate.
The “Project Fear” label has crept into the discussion many times. We want to win the arguments because people have decided on the merits—the whys and wherefores—of both sides, rather than because they were unclear about the position, or because one side had decided to scaremonger. What worries me is that this might descend into something like an American presidential election campaign, in which the negative overshadows the positives and the educated points of view.
My hon. Friend also raised a number of specific questions, and I shall come to those later.
I am pleased to say that that my hon. Friend the Member for Plymouth, Sutton and Devonport (Oliver Colvile) managed to get hedgehogs into yet another debate, although he was not intending to talk about a subject for which he has become famous. He also made the point that this is one of the biggest debates that we will ever have, and that it is therefore right for us to devote time and energy to looking at all the details.
I am saddened that more Members have not taken the time to join us on a Friday. I do not know where the Scottish nationalists are, but at least the Labour Front Benchers have made it, and I am pleased about that. In any event, I am sure that Members will have further opportunities to debate these matters in due course.
As I said earlier, we had a full and wide-ranging debate on Europe yesterday, opened by the Foreign Secretary. One speech that was pivotal, and stood out, was the speech made by my right hon. Friend the Member for Mid Sussex (Sir Nicholas Soames). It was a powerful oration, not least because my right hon. Friend mentioned his grandfather. As Members will know, his grandfather, looking at the mess of Europe, was concerned about how countries could integrate to the point at which they were no longer independent but interdependent, and would therefore never go down the road towards war again.
Sir Edward Leigh
May I take up that point about history, for the sake of the record? In his own very good speech, my right hon. Friend did indeed refer to his grandfather’s speech. Winston Churchill was always a robust defender of European unity, but he made it absolutely clear that what he foresaw was continental European unity. No one has ever been able to find any quotation from Winston Churchill suggesting that Britain should join a European union.
Mr Ellwood
My hon. Friend has made my point for me. What I think our right hon. Friend was trying to articulate was, “Please do not try to second-guess what would be the view of someone who is not alive today and able to understand the issues of today.” He made the point, very powerfully, that it was disingenuous to try to judge in that way. He was frustrated that people had taken the famous Zurich speech—of which we are now in the 70th anniversary year, and in which Churchill talked of a continental Europe—out of context, and had reinterpreted it in order to make their own points. In fact, it has already been used by both sides in the debate leading up to 23 June. Similarly, people have said of Margaret Thatcher, “I am sure that, if she were alive today, she would say this, that and the other.” I think it unhelpful to lean on great statesmen who are not here today, because today’s circumstances are very different.
It is, however, worth reminding ourselves that from the devastation of war-torn Europe has emerged a union of 28 nations, which are living in peace now, and which have also lived through a ragged period of dealing with the growth and subsequent demise of communism. We have become part of the biggest and most powerful single market in the world, and it is important for us to remember that.
My hon. Friend the Member for Gainsborough also gives me licence to touch on how this is playing out in other European capitals. Things can be quite parochial in the Chamber, and sometimes the things that we say here do not reach much further, but we are being watched, registered and monitored in other capitals across the world as we have this debate. I have to say from my role as Foreign Minister responsible for the middle east, north Africa and south-east Asia that there is some puzzlement about this debate, as Britain has a legacy of being at the forefront of decision making—being a P5 UN Security Council member, a leading member of the Commonwealth and playing such a pivotal role in NATO, and given that in every international organisation from the World Trade Organisation to the International Monetary Fund to the World Bank, Britain is at the forefront.
Other countries hesitate and look at us to see which direction Britain is looking in, knowing that we have a powerful, strong and important relationship with the US, that we have experience, and that we have an interest in, and understanding of, much of the world around us, yet they also look at us and see that we might want to opt out of one of the largest organisations in the world. The Prime Minister also articulated that point on Monday.
We do not make any reference to the fact that the UK could survive outside the EU. We are a great and powerful nation—the fifth biggest trading nation in the world. The question is the degree of that success. That is what we need to debate up until 23 June. Are we better off out and making decisions separately, or are we more powerful as part of this organisation and collectively exerting more influence from inside? That is pivotal in the debate we will have in the next three months.
Much has also been made about the security concerns and whether Britain’s security status and competence would rise or fall were we to leave the EU. When the starting gun was fired, and the debate opened up and people declared their position, some comments were made about the Paris attacks, saying that they would be more likely to take place in the UK if we were outside the EU. I think those comments were disingenuous; I will not go further than that. We need to have a sensible and measured discussion about security. I certainly do not agree with that sentiment at all, and I urge those on both sides of the argument to be very cautious about making flippant comments and scaremongering. We are of course subject to the pressures of the media and the sensationalism they seem to encourage so that they have soundbites for the evening news or the Twittersphere, but our allies are looking at this and it does not bode well for Britain if we scaremonger in this way.
However, we are living in a very dangerous and complex world, one that is far more complex today than it was a couple of decades ago. The consequences of the Arab spring are still with us, we have an emboldened President Putin—far more unpredictable than ever before—and we have the growing concern of extremism. When the Bali bomb went off in 2002 there were just over 20 listed extremist groups—listed groups of terror. Today there are over 50. These are registered, listed groups recognised by us as organisations of terror. That means that at the moment we are not winning the battle to contain them. Daesh is obviously the biggest, and it is a franchise; other organisations, such as Boko Haram, Ansar Bayt al-Maqdis and Ansar al-Sharia in Libya, are joining forces and gaining a franchise from Daesh. We need to think about how we collectively defeat that, and there is a question about the role of the EU in dealing with that.
Much has been said about the role of NATO—it was mentioned today. It is, of course, the cornerstone of our security endeavours, and we also have our strong relationship with the United States, but along with the growth of the European Union comes soft power. These things complement each other, and one does not replace the other. In certain areas where other countries are wanting to pursue a European-style army, we have made it clear that we would not support that, and neither would many other countries. Everybody has recognised that from a kinetic perspective NATO is the cornerstone of our security, but soft power comes with the ability to provide political leverage in introducing sanctions, and it is the work of the European Union that started the ball rolling in getting sanctions built up against Iran. Those sanctions eventually forced Iran to curtail its nuclear programme, come to the table and agree a long-term solution which denies the Iranians the ability to build a nuclear bomb. EU sanctions and EU discussions led to the P5+1 talks, which involved other countries such as China, Russia and the United States. That gives us an indication of the role the EU can play, and the counter-piracy operations off Somalia are another great example of this work, which can complement what NATO is doing.
We also need to consider the bilateral operations that work underneath the umbrella of the European Union, for example, the Border Force capabilities in Calais. One could argue that if we step out of the European Union, we could negotiate these things one by one, but carrying out bilateral talks with a number of countries is a lot more complex. The question is: would such an approach be as efficient as going to a single organisation—Interpol, Frontex or the European border forces—and at these meetings having a say not just in bilateral arrangements, such as those we have with France, but collectively? Internationally, what is the European Union’s view on the situation in Libya, with the movement of refugees and with the criminal gangs exhorting funds from refugees who wish to make the perilous journey across the Mediterranean? My hon. Friend the Member for Shipley posed the question as to the impact of extremist parties in Europe, as it could be argued that that has been a consequence of the movement of refugees. But the only way we are going to sort that is by dealing with the problem at source—by addressing what is happening in Syria. Again, I would argue that the EU can put far greater emphasis and might into providing a challenge and looking for solutions by working collectively, not only on managing the refugee crisis, but on addressing the challenges at source in order to mitigate what is going on.
Philip Davies
Everyone would agree that the Minister is making a balanced and good speech, but I am surprised that he seems to be talking down the ability of the mighty Foreign Office, of which he is a part. Is he really saying that if, after we had left the EU, the UK and the EU thought that sanctions should be imposed on Iran, the Foreign Office would have no mechanism for discussing that with the European Union, and coming to that decision and agreement? Is he saying that those discussions can take place only from within the EU? Since when has the Foreign Office been so pathetically powerless around the world?
Mr Ellwood
My hon. Friend will not be surprised to know that his description of the Foreign Office is not one I agree with—
Mr Ellwood
It is not my description. Provocatively, my hon. Friend is putting words in my mouth. We can step back from this particular issue to all the other issues, saying that in each case Britain would have the ability—in fact, we would have the obligation—outside the EU to step up and do all that work as well, whether it be on sanctions on Iran or any other relationships. The question is: on our own, can we exert greater leverage on a country such as Iran, which continues to have a proxy influence in Bahrain, Damascus and Syria, Baghdad and Iraq, and Yemen and Sana’a, or would we have more leverage and power by leading from within the EU? That applies right across the board.
Mr Chope
I am grateful to my hon. Friend for the way in which he is responding to the debate. May I ask him about the Syrian refugees? I think our Prime Minister and our Government have the right idea in saying, “Let’s take the refugees from the area of the theatre, rather than encouraging them to make the dangerous journey to Europe.” Why does my hon. Friend think the European Union has not been prepared to listen and respond positively to that common-sense approach from our Government?
Mr Ellwood
I am not sure that is quite correct. Federica Mogherini, who leads on these matters for the European Union, is very much in alignment with that view. We discussed these things in Rome recently when we looked at Syrian and Iraq matters. My hon. Friend is right to say that there are a number of challenges—first, the genuine Syrian refugees caught up in the region. We should pay tribute to Lebanon, Turkey, Jordan, Saudi Arabia and other countries, for the massive burden that they have taken on. We have chosen to support those refugees who are most vulnerable. The challenge that has come across Europe comes not just from Syrians. Mixed in with them are Afghans and others from Africa, taking advantage of the patterns of migratory flow. We have said that if we open our doors to them, we are likely to encourage more. That is why we have been very firm.
The consequence is that thousands are still coming in across Europe every day and we need a solution to deal with that. If my hon. Friend visits Greece now, he will see the scale of the challenge there. On beaches that should be for holidaymakers, there are migrant camps and individuals everywhere, some in transit and some having put up a temporary home. EU countries are affected by that, which is why collectively we need a better solution.
Central to that is solving the problem so that people do not feel they want to turn their back on their country, thereby making it all the weaker. Many of the people who can make it and are making it to Europe are the ones with mobile phones, the ones who are fed and have a family. I do not doubt that they are going through an horrific time, but many of them are educated and if they depart from Syria, they deny it the doctors, nurses and engineers that will be needed once the guns fall silent and the country starts to rebuild itself.
Sir Edward Leigh
May I say that the Minister is replying to the debate extremely well? It just shows that sometimes there is an advantage in having to wait a bit before one gets on to the Front Bench because one understands this place better.
May I ask my hon. Friend a serious question about the refugees from Syria? I put this point to the Prime Minister and I am not sure I got an adequate reply. I want the Minister to try and deal with it. I am not so worried about east European migrants to this country because they work hard and integrate. I am extremely worried about the millions pouring in from the middle east, including Syria. I said to the Prime Minister that Merkel’s million would all have a right to come here once they get passports. The Prime Minister said that only 2% of people coming into Germany get passports.
The Minister cannot give me an answer now, but will the Foreign Office do some more work on this? Based on history, I think a much higher proportion of those pouring into Germany now will get passports. I would like the Foreign Office to keep an eye on this because those people would have a right to come here and it is an important issue.
Mr Ellwood
The first thing that has to be acknowledged is that the normal processes in place across Europe for dealing with refugees applying for status are going to be tested, because of the scale of the migration that we are dealing with. Under Germany’s current rules, they would have to wait a number of years—eight years, I think, but I stand to be corrected—before they can gain a passport. If they have a criminal record, they will not get a passport. So there is automatically a delay in the process of securing a passport. The German analysis is that in such a time frame, many will hope to return home or to remain in Germany. We need to keep the problem in context. If they are in Germany, have a German passport and receive benefits there, why would they want to come to the UK? These are big questions, but they are for further down the line. They should not be ducked. The scale of what we are dealing with is unprecedented since the movement of populations after the second world war.
I should just mention that much of the focus of the Syria conference that took place in the Queen Elizabeth II Conference Centre was on some of those questions as well. We raised an unprecedented amount of money—$11 billion was pledged in one day—from the international community. I spoke at one of the non-governmental organisation conferences, and much of the energy was focused on how the European Union deals with such challenges. If I am honest, the EU could be regarded as a fair weather organisation: when economies are doing well, that is all fine and good, but when something such as Ukraine comes up, that is when the mechanics of bringing countries together to achieve consensus has yet to be tested. That is where the European Union is having to learn far faster than NATO, which, from a security perspective, had the machinery in place to be able to react to these events on a more regular basis. None the less, my hon. Friend raises an important point.
I just want to talk a little about the consequences of exit, which is what this Bill is all about. In fact, as I mentioned earlier, we would have to delay the referendum. There is a trigger notice in article 50, which would prompt negotiation. A country cannot simply walk out of the European Union, nor can it tear up its membership card as one can do, presumably, with a political party. It needs to apply to leave, and in the good old European Union way there is a process to be followed. That process can last up to two years. It also requires the support of the 27 members, and that can take time. With all this, there is a question for those who are advocating departure: if the process were to last more than 24 months, what happens to businesses and where do they fit in? What will happen to deals, negotiations and reputations? How does the City of London continue to attract business if there is a question mark over the departure date—and that is before we have even considered what we might be entering into.
Michael Howard’s comments were referred to this morning. He talked about renegotiating to get back in. So, let us say that a country manages to get out of the EU in two years, it then might have to begin negotiations to get back in again. It took Switzerland eight years to consolidate its deal. That is time consuming. Arguably, the process can be faster. We are a far bigger country than Switzerland or Norway, so the process could be expedited. Again, there will be delays. There is a question mark over where we actually stand and what our relationship is.
It is just worth mentioning article 49, which does not get as much press as article 50 in the European treaty. It says:
“Any European State which respects the values referred to in Article 2 and is committed to promoting them may apply to become a member of the Union.”
Article 49 is all about what a country does to regain its membership. It says:
“The European Parliament and national Parliaments shall be notified of this application.”
All the national Parliaments then have a debate and discussion about a future British application.
“The applicant State shall address its application to the Council, which shall act unanimously after consulting the Commission and after receiving the consent of the European Parliament”.
So the country needs unanimous support. If one country were to say to us, “No, you can’t come back in on those terms” then we are stuck. Also, anybody who knows the European Parliament knows that it has myriad views.
It goes one to say that the European Parliament
“shall act by a majority of its component members…The conditions of admission and the adjustments to the Treaties on which the Union is founded, which such admission entails, shall be the subject of an agreement between the Member States and the applicant State.”
I could go on, but I think that the message is clear. There are an awful lot of hurdles to clear to complete the process. It is not a simple process.
Mr Chope
My hon. Friend seems almost pleased to paint such a grim and complex scenario, but does he accept that that is only one possible scenario? Can he tell us what contingency plans the Government are making at the moment so that leaving the European Union after the vote on 23 June is much more straightforward and that there will not be all the problems that he is talking about?
Mr Ellwood
We will have to wait until 24 June to see whether what that crystal ball says is correct. I am not painting a scenario; it is in article 49 of the Lisbon treaty. That is what we must honour and what we signed up for. We do not have a choice in that matter—that is how it is.
Mr Ellwood
I will contemplate and reflect on what my hon. Friend has said, but my immediate reply is that we must honour the international law to which we have signed up. A nation must first consider article 50—that is about departure and getting out, which I always said is not an easy process—and then article 49, which states how we can get back into the treaty.
Let us pause for a second and think of the countries that are queuing up to join the EU. I was involved a little in encouraging Bosnia to meet the necessary requirements to be accepted into the European Union, and there is also Serbia and other countries. There is a long list of countries that want to become members of the European Union, or have some kind of status—it does not have to be full membership; it could be something similar to the arrangements of Norway or Switzerland. One argument could be that Britain has to get into line—
Mr Ellwood
My hon. Friend shakes his head. I hope that were that horrible scenario ever to take place, recognition would be given to Britain’s place in Europe, but other countries could quite rightly say, “Hang on a minute, We have dedicated teams looking at us. Why should Britain jump the gun?”
Sir Edward Leigh
Why is the Minister spending so much time arguing about a process for how we will get back in the European Union when we will have just left it? I am confused.
Mr Ellwood
Because as I understand, the heart of the argument from the leave campaign recognises that some aspects of the European Union are welcome, such as the single market and some aspects of the security situation, and that there would be a desire for re-entry so that we could have that relationship. [Interruption.] What I heard on the radio this morning is that we would renegotiate aspects of our relationship with the European Union—I have heard that again and again. If my hon. Friends are saying, “No, we will have no truck with the European Union whatsoever”, that is a new direction of travel that I have not heard before, so I am grateful that the debate has clarified what the leave campaign has been after for all this time.
Philip Davies
Is the Minister aware that many countries have free trade agreements with the European Union without being members of it, an example being the agreement that America is seeking to make at the moment? The future for the United Kingdom is to have free trade with the European Union from outside it, in the way that many other big countries do. Does the Minister understand that?
Mr Ellwood
I will heed the advice and encouragement, because other issues have been raised that we must also touch on. Let me be clear: there is a fair bit of bureaucracy to be gone through, but even securing a free trade agreement with the European Union would require a process to be followed and would not happen overnight.
Mr Ellwood
Let me come on to free trade, because those issues were raised in the debate and perhaps I can answer my hon. Friend’s point. The European Union is our main trading partner and, as has been said, that trade is worth more than £500 million a year. That is half our total trade in goods and services. However, we can still trade with the rest of the world as well, and the EU has free trade agreements with more than 50 countries—that is alongside the 28 countries in the single market. Around 45% of Britain’s exports are designed for the single market itself, while 56% go to the single market and to countries the EU has free trade deals with. [Interruption.] I will give way to somebody if they would like to give me a break so that I can clear my throat.
Oliver Colvile
Could not failing to go through the right procedures end up delaying our exit from the EU because the issue would need to go the various courts? It is a bit like when a planning application goes wrong and someone is not happy with the process.
Mr Ellwood
I am grateful for that intervention—from a number of angles—and my hon. Friend makes an important point.
We have dealt with the delays, so I will move on to TTIP’s impact on the health service, which hon. Members raised. Many hon. Members have received emails on this subject questioning what the situation is. I should make it clear that TTIP poses no threat to the NHS whatever. It cannot force the UK to privatise public services, and any suggestion to the contrary is irresponsible and, indeed, false. The Prime Minister, the European Commission and the US Government have made that clear. The NHS—indeed, public services—will not be privatised through the trade deal, nor will the deal open NHS services to further competition or make irreversible any decisions on the provision of NHS services that are taken by the UK Government. I hope that that makes the position clear in answer to the many emails many of us have had on this issue—in fact, there might even be a 38 Degrees campaign on this.
Mr Ellwood
That is why these debates are helpful. I can only make clear what the Government’s position is. I can also ask the Minister for Europe to place a letter in the Library to set out in more detail what the consequences would be. Given the number of emails, there is clearly huge interest in this matter across the country, so I am pleased to have this opportunity to address it.
Guidance to the civil service was mentioned. The example was given of the fishing Minister’s dilemma in being unable to participate fully in the debate on the European Union. Of course, he can participate fully, but to clarify—the Prime Minister also responded on this issue at Prime Minister’s Question Time—the Government have a clear position, which is to recommend to the country that people vote to remain members of a reformed European Union.
Quite exceptionally, Ministers are being allowed to depart from the normal rules on collective responsibility, in order to dissent from the official Government position on the referendum question. However, the civil service exists—we cannot get away from that—and it is there to support the Government of the day and the policy agreed by the Government of the day. The letter published by my right hon. Friend the Prime Minister, and subsequently extended by formal guidance from the Cabinet Secretary to civil servants, does no more than give effect to that.
Mr Ellwood
I am coming to that shortly, when I will go into the details of the timetable, but I just wanted to clarify the position, because it may be raised again in relation to other Ministers who have different views as well.
Philip Davies
The Government’s view seems to be that we should stay in the European Union. I presume that even they would concede that being a member of the EU is disadvantageous in some ways, although their view overall is that it is better for us to remain. If their view on fishing, for example, is that it may be to our disadvantage to be in the EU, and the fishing Minister wanted to use the Government machinery to come up with something better, would he be allowed to do so, or are we in the ridiculous situation where every Minister has to pretend—whether it is true or not—that every aspect of EU membership is in our interests?
Mr Ellwood
The Prime Minister returned from the European Council having managed to secure the changes necessary for him and the Government to confirm the position that a reformed European Union is in the interests of British membership. From that perspective, there is a collective responsibility to support it. The reason for the change is the unique situation of having the vote. It is absolutely the case that individual Ministers can dissent, but people cannot pick and mix—they cannot take out a slice and say, “I don’t agree with that”, because that would make a mockery of participation and involvement in the European Union.
I was going to wait until the part of my speech dealing in detail with the timetable before I answered the question on purdah, but because of the lack of time, I am pleased to confirm that it will begin 28 days before the vote. I hope that helps my hon. Friend the Member for Gainsborough.
Several hon. Members have discussed VAT on sanitary goods. In our view, EU member states should have the flexibility to apply a zero rate of VAT to sanitary products. The Financial Secretary to the Treasury has written to the European Commission and other member states setting out the Government’s view that EU member states should have full discretion over the rate of VAT they should apply. The Financial Secretary has been informed by the Commission that its action plan may put forward options to allow member states greater flexibility in the application of the reduced and zero rates of VAT. I am sure that he will make more statements on this in due course.
We have touched on the trade deficit, which is an important issue. The Office for National Statistics’ “Pink Book” with data for 2015 and 2014 confirms that UK total exports to the 28 nations of the EU were £229 billion, and UK imports from the 28 states were £291 billion. The UK’s trade deficit with the EU 28 was therefore £62 billion. However, it would be disingenuous to use that figure on its own because of the difference between goods and services, of which hon. Members will be aware. We are far stronger in the services aspect. With the reforms that are coming through, that is where the single market is likely to grow in future, and where we are likely to be in surplus rather than in deficit. It is very important to recognise the opportunities for Britain in remaining in the European Union as a result of that.
Passports have been mentioned. My hon. Friend the Member for Shipley talked about what happens when an individual from the European Union enters our borders and has their passport swiped. There is a watch list system used by Home Office staff for the purposes of border and national security, and the detection and prevention of crime. During business as usual, 100% of passengers arriving in the UK have their identity documents scanned against the watchlist, so somebody on it will be identified and can be detained if need be. The Government’s strategic objective to enhance border security and militate against organised criminality and terrorism risks has led to a requirement to check arriving passengers against the Schengen information system at the border. This is another great example of “what if?” If we were to depart from the European Union, would we have to renegotiate ourselves back into the ability to use SIS II, as it is called?
Philip Davies
Will the Minister confirm that, contrary to the assertions made in yesterday’s debate, when somebody comes into the UK from the European Union their entire criminal record does not flash up before the Border Force, and we do not then cart them off to kick them out of the country on that basis? Will he confirm that that was a wholly false assertion?
Mr Ellwood
I was not privy to the exact point in the debate when that comment was made, but I will ask the relevant Home Office Minister to write to my hon. Friend to clarify exactly what does happen. I am now mildly curious to find out those details myself.
Mr Ellwood
I feel an element of consensus breaking out in the Chamber, which is a rare thing.
As I bring my introductory remarks to a close, may I congratulate my hon. Friend the Member for Christchurch on promoting the Bill, and my hon. Friend the Member for Wellingborough, who has been an astute advocate of debating these matters in more detail? The issue of Europe is not only topical, but of the utmost importance. It received a full day’s parliamentary debate yesterday and we will have further debates leading up to 23 June.
The British public made it clear that they were not happy with the status quo, and the Prime Minister sought to address that, so last November he wrote to Donald Tusk, the President of the European Council, setting out in detail the four areas in which he sought change to the European Union, namely economic governance, competence, sovereignty and immigration. At the February European Council he achieved a deal covering each of those areas.
As the Prime Minister has said, we said that we would get Britain out of ever closer union and give national Parliaments the power to work together to block unwanted EU laws. The deal we have delivered means that we will never become part of a European Union superstate.
We said that we would make Europe more competitive, and we have delivered that in this deal as well, with commitments to cut red tape, in particular for small businesses. That means we can create more jobs and security for working people in Britain.
We said that we would protect Britain as the eurozone continues to integrate. We have delivered that in this deal, which means that British taxpayers will never be required to bail out the eurozone and that British businesses can never be discriminated against because we are not part of the euro.
We said that we would put an end to the “something for nothing” welfare culture for EU migrants so that we can control immigration from Europe, and we have delivered on that as well. EU migrants can no longer claim full in-work benefits for four years, which some people said would be impossible to achieve, and child benefit will no longer be sent overseas to Europe at UK rates. We have already delivered our commitments to require EU migrants to leave Britain after six months if they have not found work and have no genuine prospect of finding a job, and to stop EU migrants being able to claim universal credit while looking for work.
This is a legally binding and irreversible deal that delivers for Britain. It means that we will never join the euro, never join a European army and never be part of the Schengen borderless zone.
Soon the people of Britain will have their say on the UK’s membership of the EU. The Prime Minister has announced that he intends to hold the referendum on Thursday 23 June, and that must now be agreed by both Houses of Parliament. We have already published information on the outcome of the Government’s negotiations on the UK’s membership of the EU, as required by the European Union Referendum Act 2015. In time, we will publish information on the rights and obligations resulting from the UK’s membership of the EU, as well as examples of countries that are not members of the EU but have other arrangements with it.
This will be a once-in-a-generation moment to shape the future of our country. Ultimately, it will be for the British people to decide, but the Government have made it clear that we support continued membership of a reformed European Union. I want to set out in more detail the Government’s thinking on renegotiation, but first I will explain some of the benefits—I am sure that Back Benchers will appreciate this—of our membership of the EU.
The Government’s long-term economic plan is delivering economic security for families and businesses, underpinned by sound public finances, by investing in the UK’s future, addressing the productivity challenge and rebalancing the economy towards trade and investment. With turbulence in the global economy, membership of the EU supports that plan by giving British businesses access to the free trade single market and dozens of trade deals across the world. The Government’s deal keeps the EU moving firmly in the right direction. It hardwires competitiveness into the decision making of the EU and commits the EU to pursuing more trade deals with non-EU countries. We contribute a huge amount and get a huge amount in return. We cannot be a force for good in a reformed Europe if we are not at the heart of what is going on. We are a major player—