European Affairs

Debate between Lord Hammond of Runnymede and Bernard Jenkin

Thursday 25th February 2016 Commons Chamber

[Mr Hammond]

The Government’s position is that the referendum is an advisory one, but the Government will regard themselves as being bound by the decision of the referendum and will proceed with serving an article 50 notice. My understanding is that that is a matter for the Government of the United Kingdom, but if there are any consequential considerations, they will be dealt with in accordance with the proper constitutional arrangements that have been laid down.

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

I rather concur with the right hon. Member for Gordon (Alex Salmond), because I think that before the Government could move to any action as a consequence of the referendum, it would be essential for Parliament to debate the matter and for the Government to obtain consent from Parliament.

On the question of what happens if we leave, may I enlighten the Foreign Secretary? First, there is no obligation to go for article 50. Secondly, we would be taking back control over our borders, our laws and the £10 billion a year net that we give to the European Union. It would buy us plenty of options, which the Government seem determined to prevent us from even discussing.

[Mr Hammond]

My hon. Friend raises again the suggestion that there is no need to treat an exit vote as triggering a notice under article 50. He seems to suggest that there is some other way of doing it. He raised the question on Monday and I looked into it, because he caught my imagination, but I have to tell him that that is not the opinion of the experts inside Government and the legal experts to whom I have talked. We are bound by the treaty until such time as we have left the European Union. The treaty is a document of international law, and Ministers are obliged under the terms of the ministerial code to comply with international law at all times.

The UK’s current access to the single market would cease if we left the EU, and our trading agreements with 53 countries around the world would lapse. It is impossible to predict with any certainty what the market response would be, but it is inconceivable that the disruption would not have an immediate and negative effect on jobs, on business investment, on economic growth and on the pound. Those who advocate exit from the EU will need to address those consequences—the substantive consequences, of the kind that the British people will be most focused on—in the weeks and months of debate to come.

I want to say something about the environment in which the putative negotiations would be conducted, because it is crucial to understand how difficult the discussion would be.

Over the past 18 months, I have got to know pretty well my EU counterparts, and in many cases their senior officials, as well as the opposition figures in most of their countries and key figures in the Commission and the European Parliament. There is, perhaps surprisingly, an overwhelming consensus among them about the importance of Britain remaining a member of the EU. However, they, too, are politicians: they, too, have constituents to whom they are having to explain, even now, why Britain adds so much value to the EU that it has to be allowed a unique and privileged set of arrangements that are not available to any other member state. They have, collectively, already invested a lot of political capital in delivering on Britain’s agenda. I tell the House, frankly, that if we reject the best-of-both-worlds package that has been negotiated by the Prime Minister and if we reject the unique and privileged position in the European Union that is on offer to Britain, the mood of good will towards Britain will evaporate in an instant. That would be our negotiating backdrop. To those who say they would have to negotiate—

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[Mr Hammond]

I will in a moment, but I want to make a little more progress.

In addition, any market access we agreed with our former EU partners would come at a very high price. We know that because we know what the basic models are for access to the single market for non-EU member states. We can look at Norway: pay up as if you were a member state, accept all the rules as if you were a member state, allow full free movement across your borders as if you were a member state, but have no say, no influence and no seat at the table; or Switzerland: spend eight years—

[Mr Jenkin]

It’s silly.

[Mr Hammond]

My hon. Friend says it is silly, but it is a fact that that is where Norway is today. It is a fact that it took Switzerland eight years to negotiate piecemeal access to the single market sector by sector, and it has had to accept three times as many EU migrants per capita as the UK. That surely cannot be the future for Britain that the leave campaign seeks: it is literally the worst of both worlds.

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[Mr Hammond]

The hon. Lady has put her finger on it. That is what this debate will hinge on. Those who propose that we remain argue that we should stick with a proposition we know and understand, and lay on top of that the additional benefits that the Prime Minister has gained for us in the negotiation. Those who propose that we leave do not know—because they cannot know—what they are proposing to the British people. They can tell us what they would like to achieve and what they would hope to negotiate, but by definition they cannot know until afterwards and the British people cannot know until afterwards what proposition they would be voting for.

[Mr Jenkin]

Will my right hon. Friend give way?

[Mr Hammond]

No. I want to move on to setting out what I see as the consequences of Britain deciding to remain.

If Britain decides to remain a member of the EU, I want it to do so with the mindset of a leader. Having renegotiated the terms of our membership and secured the protections we need against further integration, we need to be a loud voice in the EU. We need to exercise our influence as Europe’s second largest economy and the recognised leader of its reform movement. We need to stop seeing ourselves as passive victims of the EU, and start to see Britain for what it is—one of the most powerful and influential member states, and one to whom others look for leadership in keeping the EU on track as a competitive, outward-looking, free-market union that is engaged with the challenges of a globalised economy.

We can take on that role because Europe is changing. There was a time when Britain, with its sceptical approach to the European project, really was in a minority of one, but the political balance across the EU is shifting away from an unquestioning acceptance of the inevitability of “more Europe” to an engaged scepticism—a desire for the EU to focus on where it can add value, leaving the member states to get on with their own business where it cannot; and a recognition of the benefits of membership, with an increasing focus on the costs and a healthy pragmatism about the limits to what the EU can deliver. In Denmark, Finland, Poland, Hungary and other Baltic and eastern European member states, we increasingly find like-minded partners who share our vision of Europe. Even in the Netherlands, one of the founder member states, the mood has shifted sharply. In that country, there is a slogan that rather neatly sums up what I think most people in Britain think about the EU: “National where possible, Europe where necessary.” Across the continent, the population, as opposed to the political elites, has become more sceptical about the EU and more focused on the need for reform and accountability.

European Union Referendum Bill

Debate between Lord Hammond of Runnymede and Bernard Jenkin

Tuesday 9th June 2015 Commons Chamber

[Mr Hammond]

I will let my hon. Friend the Member for Stone speak for himself in the course of the debate. I am sure, however, that he will await—with a healthily sceptical approach—the return of the Prime Minister from Brussels with that package, and that he will consider it carefully and analytically, safe in the knowledge that underpinning this whole process is an absolute commitment to allow the British people to have the final say on this issue in an in/out referendum.

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

None of the concessions that the Prime Minister has so far obtained from the European Union, including the veto of the fiscal union treaty, has fundamentally changed our relationship with the EU. How does he intend fundamentally to change that relationship?

[Mr Hammond]

My hon. Friend is right, of course. I have already mentioned an area in which we need fundamental change in the way in which the European Union operates. It is now a Union with a eurozone of 19 member states at its core, and those states will integrate more closely together. There needs to be an explicit recognition that those who are not part of that core do not need to pursue ever-closer union. There needs to be an explicit protection of the interests of those non-eurozone members as the EU goes forward. That is an example of an area in which we need specific structural change to the way in which the European Union operates.

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[Mr Hammond]

I am delighted to see that the right hon. Gentleman is robust in his defence of the interests of Tate and Lyle—his constituents—and I will take that representation and put it with the many others from both sides of the House about particular areas that we need to raise in the course of the discussion.

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

Will my right hon. Friend give way?

[Mr Hammond]

I need to conclude my remarks because many Members wish to contribute.

Few subjects ignite as much passion in the House or indeed in the country as our membership of the European Union. The debate in the run-up to the referendum will be hard fought on both sides of the argument. But whether we favour Britain being in or out, we surely should all be able to agree on the simple principle that the decision about our membership should be taken by the British people, not by Whitehall bureaucrats, certainly not by Brussels Eurocrats; not even by Government Ministers or parliamentarians in this Chamber. The decision must be for the common sense of the British people. That is what we pledged, and that is what we have a mandate to deliver. For too long, the people of Britain have been denied their say. For too long, powers have been handed to Brussels over their heads. For too long, their voice on Europe has not been heard. This Bill puts that right. It delivers the simple in/out referendum that we promised, and I commend it to the House.

Ukraine

Debate between Lord Hammond of Runnymede and Bernard Jenkin

Tuesday 10th February 2015 Commons Chamber

[Mr Hammond]

Yes, I assure the hon. Gentleman that they do make representations to the Foreign Office, and of course we take them into account. I should be clear, however, that we have excellent communications with the Ukrainian authorities. I met the President and the Foreign Minister of Ukraine the week before last at the Auschwitz commemorations. We have regular dialogue with them, and they are hugely active in their engagement with the EU and hugely appreciative of how we collectively have responded to their plight.

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

Will my right hon. Friend describe what he thinks a successful outcome to the French and German-led talks with Russia would look like? Would it involve the de facto partition of Ukraine, and how would that be anything else than a permanent reward for Russian aggression?

[Mr Hammond]

No, a good outcome would not look like that. It would look like an agreement to a ceasefire and a withdrawal from the current lines of contact, along the lines already suggested, and not just an agreement to its happening tomorrow, but evidence by the end of the week that Russian forces were pulling back; it would look like an agreement on the effective policing of the Russian-Ukrainian border so that once Russian equipment had moved back across the border into Russia, there was an effective, transparent regime for monitoring further equipment crossing the border; and it would look like an explicit withdrawal of Russian support for and endorsement of the separatist forces.

European Union (Referendum) Bill

Debate between Lord Hammond of Runnymede and Bernard Jenkin

Friday 17th October 2014 Commons Chamber

[Mr Hammond]

The hon. Gentleman makes a perfectly legitimate point. Many countries in the European Union are concerned about treaty change because of the implications for their domestic politics, but the EU may have to embrace treaty change anyway. The EU has to deal with the ongoing crisis in the eurozone, which will require structural change to resolve it. He wants to believe that there cannot be treaty change, but given the structural flaws in the eurozone and what will be needed to resolve them, the European Union may get treaty change sooner than it thinks and whether it likes it or not.

[Mr Jenkin]

My right hon. Friend is being very generous to Her Majesty’s official Opposition in saying that they do not believe that treaty change is obtainable. I think he is misinterpreting their motives. I think they like the European Union the way it is and the way it is going. Funnily enough, that is creating high unemployment and global financial instability, but they have no intention of changing it because they do not want to change it.

Defence Procurement

Debate between Lord Hammond of Runnymede and Bernard Jenkin

Tuesday 10th December 2013 Commons Chamber

[Mr Hammond]

The statement that I have made today has no impact on the announcement I made a few weeks ago about the rationalisation of the shipbuilding industry and BAE Systems’ decision to concentrate complex warship building on the Clyde.

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

I commend my right hon. Friend’s statement, not least because it is the statement that the Public Administration Committee wanted him to make, having expressed in our report on procurement some scepticism that the GoCo would work. Is not the DE&S plus plus proposal still something of a contortion to get round stupid, outdated and silly restrictions on the ability to retain senior civil servants in role as senior responsible owners over the lifetime of projects and on the ability to bring in new people with the right commercial skills? Why are we having to go through this exercise when we should be reforming the civil service so that this kind of flexibility is available to all Government Departments and all procurement projects?

[Mr Hammond]

I understand my hon. Friend’s position, which is long held and loudly expressed, but DE&S is, if not unique, a very unusual organisation within the civil service. It is almost wholly commercial in what it does. Most of its interaction is with the commercial sector and it is competing directly for skills with the private sector marketplace. It is not like a policy making department. It is absurd that we are constrained to deal with civil servants whose job is commercial in nature in the same way as we deal with policy making civil servants in a central Whitehall policy Department. The freedoms and flexibilities that the Treasury and the Cabinet Office have agreed for DE&S plus will free us from that constraint, which will make DE&S plus a much more credible and commercially focused proposition. However, as I have said, I would not like to rule out the possibility of challenging it in the future with a GoCo competition to keep it on its toes. Let us try everything and make sure we get the best value for money for the taxpayer.

Better Defence Acquisition

Debate between Lord Hammond of Runnymede and Bernard Jenkin

Monday 10th June 2013 Commons Chamber

[Mr Hammond]

As my hon. Friend knows, the TUPE transfer of an enterprise does not imply any reduction in job numbers at the outset. It is true that a private sector partner taking on a work force of this nature will, over time, look to reconfigure the shape of the work force to make the business as efficient as possible. However, it will have to do that within the constraints of the TUPE regulations, normal employment law and the arrangements that are in place for negotiation with the trade unions.

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

I thank my right hon. Friend for his statement and for the White Paper, which will be of great interest to the Public Administration Committee because it is conducting an inquiry into procurement across Government, including defence procurement. I remain to be convinced that a GoCo is the right idea. If, as he says, the objective is to be able to recruit and reward staff at market rates, why can we not legislate to do that in the Ministry of Defence, instead of contracting it out? After all, is not the acquisition of defence matériel and equipment a core function of the Ministry of Defence? We must have those skills in-house, because we cannot expect to manage them in some arm’s length contractor.

[Mr Hammond]

My hon. Friend says that he remains to be convinced; I am glad to confirm that I remain to be convinced. It is exactly the point of the assessment phase to convince us collectively that this is the right way to go. This proposal is about being able to employ staff at market rates, but that is only a small part of the total challenge. There are many other cultural and behavioural changes that need to be delivered to make it work. He is right that defence procurement is a core function. That is why we will maintain a competent customer function in the MOD, led by the Chief of Defence Matériel and supported by an external private sector consultant to build the intelligent customer function, to ensure that we are in a robust position to manage the GoCo contractor, if that is the route that we choose, not just now but through future evolutions of the GoCo and future appointments of GoCo contractors.

Army 2020

Debate between Lord Hammond of Runnymede and Bernard Jenkin

Thursday 5th July 2012 Commons Chamber

[Mr Hammond]

The hon. Gentleman says that the announcement is not underpinned by any strategic analysis, but he supported a Government who did not conduct a strategic defence review in 12 years. The announcement is underpinned by the findings of the strategic defence and security review of 2010, which established a National Security Council, which continuously reviews the strategic context.

The hon. Gentleman asks about people who will remain in the forces. I hope to be in a position very soon to make an announcement about the military pension scheme, and we are well advanced in designing what the military calls the new employment model, which will set out more clearly our offer to military personnel, including how we can make the remuneration package that underpins the armed services more flexible and responsive to the needs of individuals than it has been in the past.

The Army has well-structured arrangements in place to support those leaving the service, but we are looking at additional measures, including working with external charities, to ensure that they are supported in every way possible.

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

However painful the statement is, and it must be bitter for my right hon. Friend to deliver it, we recognise that it is an inevitable consequence of the circumstances we face. Does he accept, and will he underline in his response, that there is an element of gambling in every defence review and decision, and that the ability to regenerate is central? Will he also confirm that the importance of maintaining the equipment programme—equipment takes much longer to regenerate—is reflected in the priorities of his Department?

[Mr Hammond]

My hon. Friend is absolutely right. It is critical that we make the Army sustainable by dealing with the underlying fiscal chaos that we inherited. Labour did not deal with the equipment programme but simply pushed the problems further to the right, building up a larger and larger bubble of unfunded theoretical projects that would never be delivered. That does not help anyone. He is correct, of course, that the ability to regenerate is critical to the Army’s strategic resilience. We do not know what will happen in five or 10 years, so the ability to regenerate capability is our greatest protection for the future.

Nuclear-powered Submarines

Debate between Lord Hammond of Runnymede and Bernard Jenkin

Monday 18th June 2012 Commons Chamber

[Mr Hammond]

Our strategic missile submarines serve two functions. They provide a national strategic deterrence and they are committed to NATO as part of the NATO strategic deterrence. Part of NATO’s strategic posture involves having more than one nuclear-capable platform.

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

Will my right hon. Friend explain, particularly to the Scottish nationalists, how many jobs would be lost in Scotland if the investment were to be cancelled or if Scotland were to vote for separation from the rest of the United Kingdom? In that case, all the UK defence jobs in Scotland would be withdrawn.

[Mr Hammond]

Ultimately at stake are the 6,000 jobs —civilians, military and contractors directly employed in Her Majesty’s naval dockyard of the Clyde and at Coulport. Those jobs would be lost if the submarines were not built and deployed at Faslane.

Afghanistan

Debate between Lord Hammond of Runnymede and Bernard Jenkin

Tuesday 18th October 2011 Commons Chamber

[Mr Hammond]

The draw-down of troops will take place between 2012 and 2014, and the profile of that draw-down has not yet been decided or confirmed. At the same time, the Afghan national security forces will be taking an ever greater role in maintaining security in the country. I would like to think that by that stage the political process will be able to go on in a constitutional fashion, while the Afghan national security forces protect the security of the country and the population and create the stable baseline that will allow for that political process.

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

I thank the shadow Secretary of State for his kind and sincere words about my right hon. Friend the Member for North Somerset (Dr Fox). I also express my faith in my right hon. Friend the Secretary of State; I am sure that he will fulfil our expectations that he will do a good job in his new role. Is he concerned that President Karzai has, once again, ruled out any dialogue with the Taliban when it is quite obvious that any stable political settlement in Kabul is essential if security is to be maintained as we withdraw from Afghanistan?

[Mr Hammond]

It is clear that politicians in Kabul will have to respond to the assault on the peace process that the assassination of former President Rabbani represents. However, it is also clear that in the long run there is no alternative to an inclusive peace process that will bring all elements of the Afghan population into a durable and sustainable settlement.