Oral Answers to Questions

Debate between Lord Lilley and Lord Cameron of Chipping Norton

Wednesday 13th July 2016 Commons Chamber

[The Prime Minister]

I do not really have a pasa doble, so I can promise that that is not the case.

Let me thank the right hon. Gentleman for his kind remarks and good wishes to my amazing wife Samantha and my lovely children, who are all watching from the Gallery today. He is absolutely right: the pressure in these jobs often bears hardest on those we love around us. Let me send my best wishes to his family as well.

I have done a bit of research, Mr Speaker. I have addressed 5,500 questions from this Dispatch Box; I will leave it for others to work out how many I have answered. Because of your belief in letting everyone have their say, I think I have done a record 92 hours of statements from this Dispatch Box, as well as some very enjoyable Liaison Committee appearances and other things.

I will certainly send the right hon. Gentleman’s best wishes back to my mother. He seems to have taken her advice and is looking absolutely splendid today.

This gives me the opportunity to put a rumour to rest, as well—it is even more serious than the “Strictly Come Dancing” one. The right hon. Gentleman will appreciate this because El Gato, his cat, is particularly famous. This is the rumour that somehow I do not love Larry; I do, and I have photographic evidence to prove it. Sadly, I cannot take Larry with me; he belongs to the house and the staff love him very much, as do I.

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

Is my right hon. Friend aware that in 33 years in this House watching five Prime Ministers and several ex-Prime Ministers, I have seen him achieve a mastery of that Dispatch Box unparalleled in my time? That is not just because of his command of detail and his wit, but because he commands the respect of friend and foe alike, who know that he is driven not just by legitimate political ambitions and ideas, but by a sense of duty that always leads him to try to make this country more prosperous, more solvent, more tolerant, more fair, and more free. He will command the respect of generations to come.

[The Prime Minister]

Those words mean a lot from my right hon. Friend, who has spent so much time in this House. It is a special place. I think Prime Minister’s questions, for all its theatrics, does have a purpose, because it is a time when every week the Prime Minister has to know absolutely everything that is going on in Whitehall. Often you find out things that you want to stop pretty quickly before 12 o’clock on a Wednesday. I believe that politics is about public service in the national interest, and that is what I have always tried to do.

This session does have some admirers around the world. I remember when I was doing the Leader of the Opposition’s job and I met Mayor Bloomberg in New York. We walked down the street and everyone knew Mike Bloomberg. Everyone came up and said, “Mayor, you’re doing a great job.” No one had a clue who I was, until eventually someone said, “Hey, Cameron. Prime Minister’s questions—we love your show!”

Report of the Iraq Inquiry

Debate between Lord Lilley and Lord Cameron of Chipping Norton

Wednesday 6th July 2016 Commons Chamber

[The Prime Minister]

I well remember that when I was on the Opposition Benches and the right hon. Lady was on the Government Benches, she made very powerful speeches about the appalling things that Saddam Hussein did to his own people and the practices in that country, which is a fair point. I also think that when the case was made, people were acting on the knowledge in front of them. It was not just about weapons of mass destruction; there was a sense that we were trying to uphold the position of the United Nations, and the massive danger that Saddam Hussein posed to the region and to his own people. However, those of us who voted for the war must be frank that the consequences of what followed have been truly very poor. That is what Sir John finds, in the section of his report in which he writes about the Government’s objectives not being met, and he states that far from dealing with the problem of regimes potentially linking up with terrorists, which Tony Blair talked about from this Dispatch Box, this action ended up creating a space for al-Qaeda. We must learn all those lessons, including the more painful ones.

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

Does my right hon. Friend agree that there are lessons for every Member of the House, and every member of the media, regarding how we assess evidence? We can no longer take refuge in the pretence that we did not know the evidence about the non-existence of weapons of mass destruction. The reports states:

“The assessed intelligence had not established beyond doubt that Saddam Hussein had continued to produce chemical and biological weapons”

or that efforts to develop nuclear weapons continued. That evidence was set out in the dossier, and as I showed in evidence to the Chilcot report, someone who read the dossier line by line could not fail to reach the same conclusion as Robin Cook, which was that there were no weapons of mass destruction. The fact that largely we did not reach that conclusion is because we have ceased to look at evidence and we rely on briefings from spin doctors and those on our Front Benches. If the House is to get a grip on issues in future, it must go back to looking at the evidence, and so should journalists.

[The Prime Minister]

A lot of things have changed since that evidence was produced in the way it was, and one of the most important things is the renewed independence and practices of the Joint Intelligence Committee. Ministers still see individual pieces of intelligence, and one wants to have a regular update, but the process of producing JIC reports and assessments is incredibly rigorous. I do not think that what happened could happen again in the same way, because the reports that we get from that Committee are now much clearer about what it knows, and what it thinks or conjectures, rather than anything else. I think we can avoid that situation. However, that does not solve the problem for the House of Commons, because it is impossible to share all that intelligence information widely with every Member of Parliament.

European Council

Debate between Lord Lilley and Lord Cameron of Chipping Norton

Monday 21st March 2016 Commons Chamber

[The Prime Minister]

What I would say to the right hon. Gentleman, who in my view speaks a lot of sense about this issue, is that this country has to make a decision—it is not just one political party or another that has people on both sides of the argument. It is time for us as a country to have this debate, look at the advantages of staying in the EU, look at the risks on both sides, and make a decision. I am clear about what that decision should be, but we cannot hold a country inside an organisation against its will, and it is time again to put this question to the British people. I will campaign enthusiastically for remaining in the EU, not least after the agreements that I have achieved, and it is for others to set out their arguments. As democrats in this House of Commons, we should not be frightened of the will of the people.

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

Has my right hon. Friend noticed that the £3.5 billion savings on benefits for disabled people that the Chancellor needed to find is exactly equal to the planned increase since his previous Budget in our EU contributions over this Parliament? Given his success in persuading our partners—most of whom are not seeing any increase in their contributions—to be flexible over VAT, will he challenge them to forgo our increase? The British people will not take kindly to the idea that we must cut benefits for vulnerable people in order to hand over every penny to the EU.

[The Prime Minister]

I respectfully disagree with my right hon. Friend about this fundamental European issue. The £46 billion that we spend on disability benefits is many, many times more than anything we give to the European Union. Indeed, if we think about it, for every £1 paid in tax, a little over 1p goes to the EU for our net contribution. My right hon. Friend and I will be on different sides of the arguments, but I believe that 1p out of every £1 in tax gets us the trade, investment and co-operation that we need. He takes a different view, but I am sure that we will have a civilised argument about it. Because of the budget agreement that I reached in the last Parliament, our contributions are much lower than they otherwise would have been. We have a falling EU budget, rather than a rising EU budget, and that is because of this Government and this House of Commons.

European Council

Debate between Lord Lilley and Lord Cameron of Chipping Norton

Monday 22nd February 2016 Commons Chamber

[The Prime Minister]

First, let me thank the right hon. Gentleman for his remarks about the Europe Minister, who was with me in Brussels for this marathon negotiation —I thought his eyes were shutting for a minute there. He has been doing the job for six years, and has done it extremely well.

The point about spousal visas is important. For many years, we argued that this needed to be sorted out, and for many years the EU said back, “Well, if you want to equalise the rules, change your own rules.” Now, we have in effect managed to change its rules, so it is a real breakthrough.

In terms of the help that we are giving to Italy and Greece, the discussions in Brussels were very intense because the numbers really have to be reduced, and reduced radically. That is why I strongly support, and Britain will contribute to, the maritime operation—it will have strong NATO support, as well as EU support—to try to bring together Greece and Turkey, with a common information picture or common intelligence about what is happening, so we can stop so many of these criminal gangs operating in the area. Without that, there will not be the right chance of getting this situation under control.

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

For decades, British Ministers who have had involvement with Europe—I include myself in this—have been tempted to exaggerate the influence we bring to bear and conceal our inability to achieve British interests. Is that why it took a freedom of information request to establish that over the last two decades, Britain has voted against 72 measures in the European Council and been defeated 72 times, and that the pace of defeat is accelerating? If we make the mistake of taking the risk of remaining in the EU, how many defeats does the Prime Minister expect over the next two decades?

[The Prime Minister]

I do not for one minute underestimate the frustrations and challenges of being a member of this organisation. The research that I have seen—perhaps I will write to my right hon. Friend with a copy of it—states that deep analysis of whether a country achieves its position shows that Britain does so in 90% of cases, which even, I think, outranks the Germans. I have seen for myself that when we work hard and form alliances, we can get things done.

The other point I make to my right hon. Friend is that if we are outside the single market, the same countries will write the rules, but without us. We will have to comply with them when we sell into Europe, but will have absolutely no say over what they are. That, to me, is the illusion of sovereignty, rather than real sovereignty.

UK-EU Renegotiation

Debate between Lord Lilley and Lord Cameron of Chipping Norton

Wednesday 3rd February 2016 Commons Chamber

[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.

Syria

Debate between Lord Lilley and Lord Cameron of Chipping Norton

Thursday 26th November 2015 Commons Chamber

[The Prime Minister]

I thank the hon. Gentleman for his response and for the fact that his party wants to engage with the arguments, think very carefully and consider the key national security arguments before making its judgment. I know that the national security adviser was pleased to brief its members last night and stands ready to brief them and answer any detailed questions that they might have. I am determined that there should be no knee-jerk reaction. I take very seriously what happened in Paris. I know absolutely that that could just as well happen in the UK, as it could happen in Belgium or elsewhere in Europe, and that the threat that we face is very, very severe. I want us to consider this and to think it through. I do not want anyone to feel that a good process has not been followed, so that if people agree with the case being put, they can in all conscience vote to support it.

The hon. Gentleman asked two specific questions. On humanitarian aid, we will continue to deliver that. On no-bomb zones, the dangers and difficulties with no-bomb zones and safe zones are that they have to be enforced, and that can require the taking out of air defences, which would spread the conflict wider and which, in many cases, requires the presence of ground troops. We will not be putting in ground troops for those purposes. I do not want to declare a safe zone unless it is genuinely safe. Of course what we want is a growing part of Iraq and a growing part of Syria to be no-bomb zones because there will no bombing taking place as we will have a political agreement that will deliver the ceasefires that we need, and we will have taken action to reduce ISIL.

On the question of ground troops and the role of Saudi Arabia and other Gulf countries, they on the whole have been helping to fund the moderate Syrian opposition which, in my view, needs to play a part in the future of that country, and they strongly support the action that Britain proposes to take.

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

My right hon. Friend is absolutely right that boots on the ground are ultimately essential if bombing is to be relevant. I would like him to convince me that what he refers to as the Free Syrian Army actually exists and is not a label that we apply to a rag-bag group of clans and tribal forces with no coherent force. I would like him to convince me that there is a moderate group that we can back, whereas in times of constitutional dissolution it is almost a law of human nature that people rally to the most extreme and forceful advocate of their group; there are no moderates. I would like my right hon. Friend to believe that these forces, if they exist, can this time can be persuaded to act against the Islamists, whereas last time he wanted and expected them to act against Assad.

[The Prime Minister]

I very much respect my right hon. Friend’s point of view because he is absolutely asking the right question about what troops there are on the ground to help us, and the truth is that there are moderate forces—the forces of the Free Syrian Army. They have a particular role in the south of the country abutting the Jordan border. They have taken the fight to ISIL, and they have, as I said in my statement, prevented ISIL from taking vital ground. When we work either with them or with Kurdish forces, we can see the effect of them taking ground, holding ground and, indeed, administering territory, as I set out in my reply to the Foreign Affairs Committee. Let me add that there is one way to ensure that the only choice for Syrians who do not back Assad is to join ISIL, and that is if we do not support the moderate forces. Most people in Syria are neither massive fans of Assad or psychopathic Islamist extremist killers. Most people in Syria want to have a pluralistic country where they can get on with their lives. That is who the Free Syrian Army and other moderate groups are fighting for, and that is why they deserve our support.

Oral Answers to Questions

Debate between Lord Lilley and Lord Cameron of Chipping Norton

Wednesday 11th February 2015 Commons Chamber

[The Prime Minister]

As ever, I am very happy to look at the individual case raised by the right hon. Gentleman. Of course, with the replacement of disability living allowance by the personal independence payment, the most disabled people will be getting more money and more assistance, rather than less, but as I say, I will happily look at the case.

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

Q5. Given the widespread cynicism about politicians’ promises and claims, will my right hon. Friend remind people, however long it takes, that this Government have presided over the creation of more than 2 million additional private sector jobs, which is far, far more than we ever promised? Does not that discredit the claims of the Opposition that our efforts to cut the deficit would destroy jobs?

[The Prime Minister]

My right hon. Friend is absolutely right. The figures are clear: we have created 2 million additional private sector jobs, and if we look at the number of extra people in work, public and private sector combined, it is 1.75 million more people. Behind those statistics are families who now have a pay packet and a job, and the chance to have a more secure future, and all that at a time when the Leader of the Opposition was very clear: he warned that our policies would cost 1 million jobs. He was 1 million per cent. wrong, and it is time that the Opposition withdrew what they said and apologised for all those statements.

European Council

Debate between Lord Lilley and Lord Cameron of Chipping Norton

Monday 30th June 2014 Commons Chamber

[The Prime Minister]

First, on this specific issue there were detailed cross-party discussions to ensure that we all did everything we could to try to stop the conveyor belt of the leading candidates. We should build on that. I set out a very clear agenda in the Bloomberg speech, including deep engagement with business. The British Chambers of Commerce and the Institute of Directors supported what I did at the weekend, and we will go on talking to British businesses to ensure that we deliver what they also think is right, which is reform of the European Union.

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

Given that my right hon. Friend’s position had the support of the Labour party and the Liberal Democrats as well as of the Conservatives, was he not right to ignore the advice of those who urged him to turn tail as soon as some of our allies turned coat? He was right to stand his ground, and by so doing he has made it more likely that we will win real reform in future. I congratulate him above all on stating the British position with such conviction. As Mrs Thatcher said, the half-hearted always lose; those with conviction ultimately win.

[The Prime Minister]

I am grateful to my right hon. Friend for what he has said. This is always important, because in the European Council there is always a temptation simply to go with the flow, to sign up to whatever is being proposed and to try to seek some sort of bauble or extra bit of leverage on the way. Indeed, I suspect that that is what happened in a number of cases. I was very clear that this was an important principle, that I thought Europe was taking a wrong turn, and that I was not going to turn away and do anything but oppose it.

Oral Answers to Questions

Debate between Lord Lilley and Lord Cameron of Chipping Norton

Wednesday 11th December 2013 Commons Chamber

[The Prime Minister]

I am delighted that happiness is maintained in the Harris household. I could put it another way. It was only when I started to talk about the married couple’s allowance that the Leader of the Opposition tied the knot. The tax system moves in mysterious ways.

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

In the light of the call by the Leader of the Opposition for urgent action in response to the Independent Parliamentary Standards Authority’s proposal for an increase in MPs’ pay, will my right hon. Friend immediately retable the Boundary Commission report, which would simultaneously pay for any increase and increase the workload of MPs? It would surely be hypocritical for the Leader of the Opposition or the leader of the Liberal Democrats to oppose that measure.

European Council

Debate between Lord Lilley and Lord Cameron of Chipping Norton

Monday 11th February 2013 Commons Chamber

[The Prime Minister]

There was not a specific discussion about Frontex, but under the so-called heading 3 the home affairs heading, spending is going up from €12.4 billion to €15.7 billion. That is an area where there are new responsibilities, not least because of the new member states, which is why the spending under that heading is going up.

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

May I congratulate my right hon. Friend on demonstrating that when a British leader takes a resolute, reasoned and constructive approach on what is good for Britain and good for Europe, we can succeed in carrying other people with us, and on disproving the craven prediction of the Leader of the Opposition that by articulating Britain’s distinctive vision for the future of Europe we would undermine our influence?

[The Prime Minister]

I am very grateful to my right hon. Friend for that. What is required is not only building these alliances and making those arguments, but, as I said, making it clear that if you cannot get a reasonable deal, you are prepared to go on negotiating right through the night, as we did, or, as we did in November, saying, “This deal isn’t acceptable. You have to go back and think again.”

Leveson Inquiry

Debate between Lord Lilley and Lord Cameron of Chipping Norton

Thursday 29th November 2012 Commons Chamber

[The Prime Minister]

The right hon. Gentleman is entirely right. One of the things that the victims have been most concerned about is that part 2 of the investigation should go ahead—because of the concerns about that first police investigation and about improper relationships between journalists and police officers. It is right that it should go ahead, and that is fully our intention.

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

The two scandals that gave rise to this inquiry were phone hacking and bribing the police, both of which are against the criminal law. Now, some 90 arrests have been made. Strangely, however, Lord Leveson concludes:

“More rigorous application of the criminal law…does not and will not provide the solution.”

Instead he goes off on building proposals for what would ultimately be statutorily underpinned regulation, which is largely irrelevant to what has happened. I congratulate my right hon. Friend on not going down that route, as that would not solve the problems that gave rise to the inquiry.

[The Prime Minister]

I am grateful for my right hon. Friend’s support. I would, however, make the point that, while the press must always act within the law—it is subject to the criminal law, the civil law and the laws on data protection, and that is vitally important—there is also a role for strong, independent regulation. Those victims should not have had to wait for action through civil litigation, and they should not have had to wait until the criminal actions were taken. A proper regulatory system could have protected more of those people and prevented many more of them from becoming victims in the first place.

EU Council

Debate between Lord Lilley and Lord Cameron of Chipping Norton

Monday 2nd July 2012 Commons Chamber

[The Prime Minister]

As I said, I want to stay in the European Union for the reasons I have given. But I will always stand up for the British national interest as I see it. That is the job of being Prime Minister.

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

My right hon. Friend will know that my opposition to excessive centralisation of power in Europe has never been in doubt. Indeed, the only doubt that my Euroscepticism has given rise to was that which John Major cast upon my paternity. Will the Prime Minister, none the less, agree that what we need is not a commitment to an in/out referendum, but a commitment to insisting that our partners give us back powers to govern ourselves if they want our agreement for them to subordinate themselves further to centralisation in Europe?

Ministerial Code (Culture Secretary)

Debate between Lord Lilley and Lord Cameron of Chipping Norton

Monday 30th April 2012 Commons Chamber

[The Prime Minister]

I respect hugely the right hon. Gentleman and his experience in government and I think he would know that I consulted the Cabinet Secretary, asking the question, “What is the right process to follow to ensure we get to the truth and we deal with this issue?” The right process to follow is to allow Lord Leveson to find the facts of the case and if at any stage there is a question of the ministerial code being broken I can act. The ministerial code in respect of special advisers is absolutely clear: Ministers are responsible and they have to take responsibility, and that is what my right hon. Friend the Secretary of State did when he came to the House.

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

Given that the role of the adviser on the ministerial code is purely to advise the Prime Minister on whether a Minister’s actions are in breach of that code, and not to investigate or establish the facts of those actions, is it not sensible to allow the Leveson inquiry to establish the facts and, in the unlikely event—in my view—that it discovers that there is a prima facie case to answer, then to refer it to the independent adviser on the ministerial code?

[The Prime Minister]

My right hon. Friend is entirely right. It is worth examining for a second what would happen if the independent adviser was commissioned to set off down a process of factual discovery. He would have to look at all the information that is about to be provided and is being provided to the Leveson inquiry, which would literally duplicate the findings of fact and would literally be prejudging what the judge himself will be judging.

EU Council

Debate between Lord Lilley and Lord Cameron of Chipping Norton

Monday 12th December 2011 Commons Chamber

[The Prime Minister]

The right hon. Gentleman, like so many of those who oppose what has happened, is part of exactly the same group of people who wanted us to join the single currency in the first place. They are never prepared to recognise that there are occasions when we need to safeguard our nation’s interests and we have to be able to say no.

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

Does my right hon. Friend agree that the best way to increase one’s influence within Europe and, indeed, within a coalition Government is to set up one’s position and stick to it?

[The Prime Minister]

I am very grateful to my right hon. Friend for that question. I always find this slightly surprising. Before going to Brussels I set out exactly what I was going to do and what I would do if I could not get the safeguards. I did exactly what I said I was going to do, but apparently in politics these days that is very surprising.

Libya

Debate between Lord Lilley and Lord Cameron of Chipping Norton

Monday 5th September 2011 Commons Chamber

[The Prime Minister]

I certainly will do that and it is a vital issue. There is no doubt that the Libyan provision of Semtex to the IRA was immensely damaging over many years, and it possibly still is today. We need to be clear that this will be an important bilateral issue between Britain and the new Libyan authorities. Clearly we have to let this Government get their feet under the desk, but this is very high up my list of items.

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

After the liberation of Kuwait, in which Britain also played a significant part, the financial costs of our contribution were fully reimbursed, largely by Kuwait itself. Does my right hon. Friend intend to seek a similar contribution from the Libyan authorities once oil begins to flow?

[The Prime Minister]

That is not a consideration that we have gone into so far. Clearly there have been costs to the UK from this operation, which are in the region of £120 million, excluding munitions. Obviously, that has been funded from outside the defence budget through the reserve, so it will not impact on other defence spending. My right hon. Friend makes an important point that we can bear in mind.

Public Disorder

Debate between Lord Lilley and Lord Cameron of Chipping Norton

Thursday 11th August 2011 Commons Chamber

[The Prime Minister]

I can see that I am going to get a number of very enticing invitations today. I think the whole country admires the protection of the temple in Ealing, Southall. I have huge admiration for those people who want to protect their homes, their properties and their communities. Of course, that should be the job of the police and we need to ensure that the police are on the streets in greater numbers to do that. I pay tribute to the people of Ealing, Southall for what they achieved.

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

Does my right hon. Friend accept that the problems addressed by his statement and those that will be addressed by the subsequent statement from the Chancellor have one factor in common: a widespread belief that anyone can have anything they want without paying for it and without living within their means? Will my right hon. Friend therefore resist the siren calls to give up his plans to make all departments, including the police, live within our means, especially as every police officer whom I know and to whom I have spoken says that they could dramatically increase the proportion of their time used effectively to the public good if they were deployed more efficiently? It cannot be beyond the wit of man to live within those budgets and improve good policing with 6% less resources.

European Council

Debate between Lord Lilley and Lord Cameron of Chipping Norton

Monday 27th June 2011 Commons Chamber

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

Does my right hon. Friend agree that the worst outcome for the British economy from the Greek crisis would be a disorderly and chaotic default by Greece and subsequent departure from the euro? What discussions did he therefore have with colleagues about preparing for that default, which is inevitable, and that departure, which is desirable, and in particular with President Václav Klaus, who has said that neither departure from the euro nor the dissolution of a monetary union need be disorderly? He dissolved the monetary union of the Czechs and Slovaks over a weekend without too much disruption.

[The Prime Minister]

As on many previous occasions, I had a very interesting meeting with President Klaus in Prague, at which he made that interesting point. However, dissolving a monetary union between the Czech Republic and Slovakia is very different from changing arrangements within Europe, where there are some very serious issues of equilibrium. The other point I would make is about those of us who do not want to join the euro, would never join the euro, and think that countries should maintain their own flexibilities. I have always held that view, but those of us who do hold that view should not misunderstand the fact that there would clearly be very big consequences for Britain were there to be a disorderly situation in Europe. To put it another way, it is much easier to stay out of the euro than to leave it.

G20 Summit

Debate between Lord Lilley and Lord Cameron of Chipping Norton

Monday 15th November 2010 Commons Chamber

[The Prime Minister]

A series of deals were agreed while my ministerial colleagues and I were in China, including a very large deal involving Rolls-Royce. It is also worth remembering that the trade mission that President Sarkozy spoke of included a very large Airbus deal, which I know has very positive effects for Britain and indeed Wales.

The hon. Gentleman is right to say that our export performance needs to improve. Obviously we have seen a change in the level of our currency, but I am focusing on ensuring that all the things that UK Trade Investment and the Government can do to help our exporters are in place. I will go on leading missions to fast-growing parts of the world. So far, in six months, I have been to Turkey, a very fast-growing economy that some people call “Europe’s BRIC”—a reference to Brazil, Russia, India and China. I have been in the largest trade delegation ever taken to India, and now in the largest one to China. I am going to keep up with that. I think it is important that we get behind our exporters and help them to create jobs in our countries.

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

Can my right hon. Friend confirm that, should there be a rescue operation for any eurozone member under the European financial stability pact, the only reason why there is a danger that Britain may be required to contribute under qualified majority voting is that the last Labour Chancellor of the Exchequer shamefully signed up to that requirement after the election but before the coalition Government were formed?

[The Prime Minister]

My right hon. Friend is entirely right. The European financial stability mechanism, which was established just before this Government came to office, was established on the basis of qualified majority voting. It allows money to be spent with a budget that lies between the European budget and the own resources ceiling is, and yes, that money could be distributed in the way that he says.

That is not to be confused with the European financial stabilisation facility, which does not involve the UK. I also point out to my right hon. Friend that the treaty amendment that the European countries are looking at will not affect Britain’s potential contributions. However, he is right that the financial stability mechanism was established before this Government came to power and very much against our advice.