European External Action Service

William Cash Excerpts
Wednesday 14th July 2010

(15 years, 8 months ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
David Lidington Portrait Mr Lidington
- Hansard - - - Excerpts

I was going to say more about the budget a little later in my speech. I hope that my hon. Friend will bear with me if I try to make some progress. I shall respond later to the points that she was making about the budget, and if she wants to intervene again I shall try to make time for her to do so.

In response to what my hon. Friend the Member for Shipley (Philip Davies) said, I want to give a couple of examples to illustrate that it is possible for the new institutional arrangements to complement an active British foreign policy. The first example concerns political stability in the western Balkans, which is incomplete and fragile. The Government strongly believe that it is in the United Kingdom’s interests to have political stability, human rights and the rule of law entrenched in that part of our continent, but that is not a goal that the UK can secure on its own. It is not an exaggeration to say that the situation in the western Balkans is a litmus test of any EU aspiration to take on an effective diplomatic role. We hope that the EAS will make the Balkans one of its highest priorities and that the new institutional arrangements will make it possible to pursue our common objectives with greater cohesion and consistency than was possible before.

My second example is the threat to maritime trade and the safety of voyagers posed by pirates operating off the coast of Somalia. Already, the different arms of the EU are beginning to work more effectively together: security is a member state and Council responsibility, but development falls to the Commission. The new arrangements maintain the focus on poverty alleviation, but better co-ordination within the single framework of the EAS makes it possible to get development money spent on building new prisons in Kenya to incarcerate pirates, which helps us to achieve our shared security objectives. If the EAS works effectively, the bringing together of the Commission and Council arms of EU external policy under the aegis of the High Representative, instead of their remaining in separate institutions as now, ought to make it possible to achieve a more joined-up policy in tackling other challenges, such as Afghanistan and Kosovo.

The EAS is not going to be some kind of elixir to cure all diplomatic ills and we have to be realistic about what it can achieve. It will be able to act only where there is a common position, as the High Representative can advocate a foreign policy position only on the basis of a unanimous mandate from the Foreign Ministers of member states. As the example of Iraq, which my hon. Friend the Member for Tiverton and Honiton (Neil Parish) cited, illustrates, there are no institutional solutions to problems that, at root, require both political will and consistent, shared views.

The High Representative has made a very good start to her challenging role. She has an impossible job—almost three jobs, in fact: High Representative, British Commissioner in Brussels and chair of the Foreign Affairs Council. She has been criticised for not being at two different ministerial meetings that were held in two different countries at the same time, but that seems more than a little unfair. I am told that she has 400 days of appointments in the year, and she does not yet really have a proper department to help her. The Conservatives wished her well when she embarked on her task and my right hon. Friend the Foreign Secretary and I are already working closely with her.

William Cash Portrait Mr William Cash (Stone) (Con)
- Hansard - -

My hon. Friend has touched on a number of the difficulties for the High Representative in terms of timing and her programme. Does she not have another problem in that some of her functions are based on democratic decision making, such as those in the Council, while others are based on her role in the Commission, which is an undemocratic function, and others still involve a kind of quasi-democracy? Does he acknowledge that that is likely to create a great deal of confusion and uncertainty and that it could cause considerable damage to the clarity that is needed in the very complicated and extremely dangerous world that we now inherit?

--- Later in debate ---
William Cash Portrait Mr William Cash (Stone) (Con)
- Hansard - -

I congratulate my hon. Friend the Minister for Europe on his appointment. I am sure that we will be having many useful discussions, dialogues and even cross-examinations as time goes on.

I regard this whole decision as a triumph of European aspirations and European parliamentary ambitions over reality. I am deeply worried about the manner in which this game of multidimensional chess will play out, and I have already indicated to my hon. Friend the Minister my concern about the overlapping functions and the contradictions that will emerge between the necessity of maintaining our bilateral relations with other countries and the extremely ambitious proposals in this decision on global reach. It is phenomenal to imagine an external action service on this scale that would in any way be regarded as not interfering with our domestic diplomatic service.

I sense that my hon. Friend the Minister and my right hon. Friend the Foreign Secretary know this. We debated the Lisbon treaty together, we were united and we had a remarkable rapprochement during those debates—contrary to the debates over the Maastricht treaty, when I stood in this very spot and had much to say about what I thought would happen. Many people might think that some of the things I suggested would happen have done so, and this is one of them.

I treat the whole issue of the external action service with great concern for the reasons that I have given. It will induce a recipe for confusion—

William Cash Portrait Mr Cash
- Hansard - -

It is not as confusing as that, but it is getting there.

Dennis Skinner Portrait Mr Skinner
- Hansard - - - Excerpts

Speaking as someone who voted against Nice, Maastricht, Lisbon and God knows what else, I may have made a slight error on the Independent Parliamentary Standards Authority. On reflection, I think IPSA should run the EEAS; that will cock it up.

William Cash Portrait Mr Cash
- Hansard - -

rose—

John Bercow Portrait Mr Speaker
- Hansard - - - Excerpts

Order. Before the hon. Gentleman replies to that witty intervention, I will remind him of what I am sure he already knows—that the Minister has a right of reply and will need to be called at 6.52 pm. It is conceivable that other Members might also wish to contribute.

William Cash Portrait Mr Cash
- Hansard - -

Having spoken for only two minutes, I can guarantee that I will not speak for more than five at most. As for intervention of a few moments ago, I think the Court of Auditors might have something to say about the matters that the hon. Member for Bolsover (Mr Skinner) raised. After all, it has not signed off its accounts for the last 15 years.

I am deeply concerned about this whole operation. I add that in the report mentioned in the documents before us, the European Scrutiny Committee said that this important proposal is

“likely to be the most significant change in the conduct of British foreign policy for many years”,

which is why a debate on the Floor of the House was, exceptionally, recommended. That is the truth and the reality. I am deeply concerned that in being asked to consider the functions of the Foreign Office under this decision, there is a huge issue to do with the impact this new global diplomatic service will have on Britain’s ability to promote her own bilateral interests.

This is not a small matter. The question is how we are going to be able to maintain our own bilateral interests if we are suffocated by the decisions that are taken. Anybody who reads these documents in detail—I do not have time to go into that detail today—will appreciate that there is a very severe danger to the continuation of our bilateral interests, however hard my hon. Friend the Minister and the Foreign Secretary will work, as I know they will. Given the depth, the range and the landscape of this monumental creation of a new foreign service on a European scale, it is difficult to see how our bilateral interests can be preserved.

In conclusion, there is also the declaration on political accountability. I would be grateful if the Minister told us some of his thoughts on that. He said in evidence to the House of Lords Select Committee last week that he hoped the decision would

“end up providing a more coherent and effective platform for the delivery of the EU’s engagement with the outside world.”

For my part, I hope that our own foreign policy will be conducted in a manner that will properly reflect the interests of this country. I am happy to co-operate with other countries throughout Europe—and, indeed, anywhere else in the world—because we have a responsibility to do so, but I am deeply worried at the way this entire legal framework is liable to subsume our own ability to ensure our own national interests.

I regard this as a mosaic, as it were, within a labyrinth, and I fear that there will be a confusion of control and command in military matters, in relation to Kosovo and our relations with Iran, for example. We need to be extremely cautious about giving this more than a very tepid welcome.

UK Parliamentary Sovereignty and the EU

William Cash Excerpts
Tuesday 15th June 2010

(15 years, 9 months ago)

Westminster Hall
Read Full debate Read Hansard Text Read Debate Ministerial Extracts

Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.

Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.

This information is provided by Parallel Parliament and does not comprise part of the offical record

William Cash Portrait Mr William Cash (Stone) (Con)
- Hansard - -

It is a pleasure to speak before you in this Chamber, Mr. Streeter. I would like to dedicate this debate to my mother, who died this past weekend, and to my father, who was killed in action in Normandy in the last war.

I heard today that Philip Ziegler’s biography of Mr Edward Heath has just been published. I recall vividly a discussion that I had with Mr Heath in the Smoking Room on an anniversary of the D-day landings. It transpired that we had an enormous amount in common, which may seem very strange. I heard Philip Ziegler this morning describing Edward Heath as a person who stuck to his course, who did what he thought was necessary, and who was bloody-minded. That is not an uncommon characteristic of those of us who get entrenched in European battles.

I recall that Mr Heath was not much disposed to talk at the beginning. He had on an Artillery tie, and I asked him, “Why have you got that tie on?” He said, “It is because of today’s commemoration.” I mentioned the fact that my father had been killed in Normandy, where Mr Heath had fought at the same time. Interestingly—to me, at any rate—he then began to engage in earnest conversation and explained to me the real reason he took the line that he did on Europe, which I do not think has come out in some of the reviews of the book. He felt that if we did not take that line, the problems that he had witnessed in the war might well recur.

I also remember, while I am in historical mode, a Cabinet lunch in July 1990 to which I was unexpectedly invited. Margaret Thatcher, now Baroness Thatcher, invited me to No. 10. She said, “Today we will talk about Europe.” There I was, surrounded by an impressive galaxy of Cabinet Members. She turned to me and asked, “Bill, what do you feel about Europe?” Rather taken aback, I said that I thought that her task was more difficult than Churchill’s. She said, “Did everyone hear that? Bill says that my task is more difficult than Churchill’s. Can you explain?” I said, “Yes, Prime Minister. He was faced with bombs and aircraft. You are faced with pieces of paper.” That is the starting point of my concern about what has developed during the 26 years that I have had the honour of being a Member of this House.

The time has come for action. I quote a passage from “Julius Caesar”:

“There is a tide in the affairs of men

Which, taken at the flood, leads on to fortune;

Omitted, all the voyage of their life

Is bound in shallows and in miseries.

On such a full sea are we now afloat,

And we must take the current when it serves,

Or lose our ventures.”

I believe that we are at such a moment.

It is ironic, perhaps, that this week there will be an incredibly important summit that will deal with the essence of our sovereignty in relation to the proposals for budgetary arrangements and the question of whether they would be presented to the European Commission before they are presented to this sovereign Parliament. Therefore, without overdoing it, I hope, I suggest that, as in the case of the passage I just read out, this is the moment when there will be those who will be seen at Philippi.

There are similar problems today in respect of the sovereignty of our country, our people and our Parliament, and we have a responsibility to deal with them analytically and politically. Sovereignty means supreme power or authority. It means a self-governing state. I hasten to add—this is for my hon. Friend the Minister, with whom I have had the pleasure of debating these matters over many years—that this debate is not specifically about getting out but about the practicalities of how we should now deal with the European issue. It is not about an abstraction but about the daily lives, economic and political, of those who vote us into this Parliament. It is about Euro-realism in the United Kingdom and in Europe as a whole.

This debate is about rules that do not work, economically or politically, and the need for radical reform of a system that has become uniform and inflexible, with the acquis communautaire, which has become sacrosanct and irreversible, and with majority voting and the pernicious system of co-decision. Barring only a total negotiated change by all 27 members in an association of nation states will problems be resolved. If and when that fails, we must assert the sovereignty of the UK Parliament to override this failing system. It is in our vital national interest to do so.

To give but one example of the problems, the system of co-decision is described by someone from the European Commission’s Legal Service as creating a situation in which the European Parliament

“is allowed to propose uniform, irrational, impractical amendments, safe in the knowledge that they have no responsibility for implementation.”

Of course, that is compounded by the role of the European Court of Justice. If the Legal Service takes that view, and it is so seminal to the undermining of the sovereignty of this Parliament, a serious review is called for.

On the “Today” programme yesterday, I heard a pre-eminent German banker state that he believes that there will be “revolts in the street” in “ever higher frequency” and a kicking out of the Government. He described the situation as highly dangerous, and said that there were indications of revolution. Michael Sturmer, who was Chancellor Kohl’s adviser, is also deeply disturbed, and Angela Merkel herself, who, by all accounts in today’s paper, is in serious crisis with her coalition, acknowledged recently that Europe is in danger, as is the euro. So it is, and so are we.

We have already seen hundreds of thousands of people all over Europe coming out on to the streets, and the catastrophic failure in Greece. It is not as if this has not been coming for decades. In a series of essays published in “Visions of Europe” in 1993, I warned of how the then new rules of economic and monetary union, which we opposed at Maastricht, would increase the likelihood of strikes and civil disorder but that there would be less and less practical accountability as the leaders of Europe withdrew from their responsibilities and handed over more decisions to unelected bankers and officials.

I then went on to warn of the neutering of national parliaments and the paralysis of Europe, which would

“give way to the…collapse of the Rule of Law, compounded by waves of immigration from the east, recession and lawlessness.”

I say this not with any sense of self-congratulation—at the time of the Maastricht rebellion, we were under the most intense pressure to disavow what we were saying. I simply ask that, in all honesty—an eminent columnist wrote to me the other day and said that it was lacking—people admit that a problem exists and that it must be addressed.

The real question is what the UK and our coalition Government will do about the situation as it is now—as it has come about—and how they will lead the UK and Europe out of the predicted and present chaos which is damaging to the UK economy and democracy, and to individual European countries and Europe as a whole. That is a practical necessity requiring vision, statesmanship and political will. The argument, I would say, is over, and it is now down to action.

The European Communities Act 1972, as Lord Bridge said in the Factortame case, is a voluntary Act. European treaties are subordinate to Parliament—as I established in exchanges with the right hon. Members for Blackburn (Mr Straw) and for Rotherham (Mr MacShane) when they were Foreign Secretary and the Minister for Europe respectively—and that includes the Lisbon treaty. I have made that point consistently and repeatedly, and I have already made three speeches in the new Parliament on the issue. In January 2010, I set out the legal and constitutional case, and in this contribution I wish to concentrate more on the practical questions, as compared with the remedies that I proposed in my United Kingdom Parliamentary Sovereignty Bill.

Over many years, I have set out the case in correspondence with the current Prime Minister and Foreign Secretary for the immediate implementation of the sovereignty Bill. In my view, there is an unchallengeable, legal, political and constitutional case for that Bill, and a necessity to enact it immediately to underpin negotiations that are needed and which include, for example, talks that the Prime Minister will conduct this week in Brussels. The sovereignty Bill was in our manifesto. On 4 November 2009, my right hon. Friend the Member for Witney (Mr Cameron), now Prime Minister, made a speech entitled, “A European policy that people can believe in”, to which I replied in The European Journal. That was on my website during the general election.

Immediately before the general election, I intimated to the current Foreign Secretary that we needed the sovereignty Bill now, so as to underpin negotiations and deal with what appeared to be the inevitable and now present course of events. On 10 May, I wrote to the Prime Minister regarding those fundamental matters in the context of his pending negotiations for the coalition agreement. He replied on 21 June.

The situation has become significantly worse, including proposals in the context of majority voting for the sovereign right of the United Kingdom Parliament to receive and determine its own budget, which the Prime Minister will have to address this week. I regret to say that under the coalition agreement we are now reduced to a mere proposal for a commission to discuss sovereignty, not the manifesto commitment to pass the sovereignty Act on which we fought the election, and to which I referred in my commitments in my election material.

In my judgment, the sovereignty of the United Kingdom Parliament and the imminent practical necessity supersedes the compromises of a coalition. This is no time for dither or prevarication, or for too-clever-by-half manoeuvres by the Foreign Office or diplomats in the Committee of Permanent Representatives, or by others. This is a time for action. We are where we are, and we must address the present crisis that lies at the heart of our constitution and at the axis of our economic and political future.

On “The Andrew Marr Show” last Sunday, the Foreign Secretary replied to questions about the European proposals to submit the UK budget to European institutions before submission to the UK Parliament. He replied that those were only proposals and would be dealt with in due course, and that we will argue for that position and maintain it. So far, so good, but we heard nothing about the use of the veto, no doubt in the knowledge that the proposals will be dealt with by majority voting. There are times when issues cannot simply go on being deferred or avoided, as happened, for example, in very different times during the 1930s. We cannot expect that something will turn up, or that negotiations with recalcitrant parties will somehow succeed.

In 1986, I tabled an amendment to the Single European Act, which is where majority voting comes from. It was refused for debate but stated:

“Nothing in this Act shall derogate from the sovereignty of the United Kingdom Parliament.”

It was supported by only one other Member of Parliament at the time, the right hon. Enoch Powell, who clearly understood why it was important.

There is also the question of the still outstanding Irish guarantees, which take us back to the Lisbon treaty and which we are told will be attached to the next accession treaty, possibly with Croatia. We will be denied a referendum on that, despite the accretion of powers to the European Union that it will involve. We have already been refused a referendum on that treaty, despite the fact that it fundamentally alters the constitutional relationship between the United Kingdom and the European Union—a point that was outrageously denied by the outgoing Government but well understood by the Conservative Opposition during the last Parliament, and about which I made a minority report in the European Scrutiny Committee.

Why can France, Holland, Denmark, Ireland, Spain and other European countries have referendums, yet we deny one to our own people? There is also the question of what are, in my view, the unlawful guarantees given by the former Chancellor of the Exchequer regarding the Greek bail-out. I tabled questions on that, but I have received no satisfactory answers. They appear to have been thrust under the carpet, despite exposing the fact that the UK taxpayer has been saddled with about £12 billion of commitments. That is against the background of the current Government debt and deficit, which is second only to Greece. It is compounded by our being the second greatest contributor to the European Union, with costs rising to £6.6 billion for 2010-11. According to the TaxPayers Alliance, the European Union costs individual British taxpayers £2,000 each per annum, which they certainly cannot afford. In the context of that broad landscape, I have to ask what it is in return for.

Furthermore, there is the proposed European tax on our financial services sector, which infringes the sovereign right of taxation of the UK Parliament, not to mention the European regulation of the City of London, about which I have written in the Financial Times on many occasions over the past few years, and spoken in the House. That tax is again by majority vote, and the jurisdiction—as with all European legislation—is with the European Court of Justice over and above the Bank of England and/or the Financial Services Authority.

Kelvin Hopkins Portrait Kelvin Hopkins (Luton North) (Lab)
- Hansard - - - Excerpts

The hon. Gentleman talks about the costs of the European Union. Does he accept that other additional costs go beyond those that he has mentioned? Because of the European Union, economic growth has been slower than it would otherwise have been. If one adds up the cumulative loss of growth over 30 years or more, it represents a considerable cost to Britain. Additionally, there is the higher cost of food which is a result of being a member of the common agricultural policy.

William Cash Portrait Mr Cash
- Hansard - -

I pay tribute to the hon. Gentleman for his consistent, persistent predictions, all of which have proved to be right, even if he and I may differ as to what use we would make of the sovereignty if it were reclaimed. The right hon. Peter Shore became a good friend of mine, and during the Maastricht debates, he and I debated issues of the kind raised by the hon. Gentleman. We can honestly say that we did our best and that what we demonstrated has occurred.

The hon. Gentleman’s point about costs raises the question of over-regulation and competition. Professor Roland Vaubel of Mannheim university has written on that matter, calling it a form of “regulatory collusion” between the Governments of the member states, with member states using majority voting to create competitive advantage. Vaubel shows that regulation is explicitly used as a means of raising rivals’ costs. People must take that seriously. That is what is going on; it is a form of warfare—as Clausewitz would have said, “War by any other means”. Indeed, Germany followed that model, led by Prussia in a majority coalition after 1871. As with so much of what goes on today, much has already happened in the creation of modern Germany.

There is also the problem of over-regulation calculated by the British Chambers of Commerce in its “Burdens Barometer”, written by Tim Ambler and Francis Chittenden. It shows that in both the United Kingdom and Europe, 70% of over-regulation comes from the European Union, which since 1998 has cost the British economy £76.8 billion.

One of the most invasive legal obligations is the working time directive, which came through the Single European Act. Despite my warnings to the then Government, that directive was misleadingly included in a declaration in that Act, which the Court of Justice subsequently ruled, as I had expected, as a legal obligation—a costly mistake, which has to be reversed. Even the noble Lord Mandelson stated—as did his fellow EU Commissioner Mr Verheugen—that the over-regulation that so undermines EU and UK competitiveness, with China and India for example, amounts to as much as 4% of GDP. Indeed, we heard yesterday that the noble Lord Young of Graffham will lead a review of health and safety legislation. I trust that that review will recognise that so much of this damaging legislation—some of which is necessary—comes from the European Union, and particularly from the powers made under the so-called precautionary principle, which bypasses judicial review and is used by the Court of Justice. That principle will need to be overridden—as will so many other laws—under the sovereignty Act that I propose. That same principle applies in the fields of environmental and consumer protection law, and it is therefore pervasive.

Kelvin Hopkins Portrait Kelvin Hopkins
- Hansard - - - Excerpts

I apologise for interrupting the hon. Gentleman’s flow yet again, but he made a point about competitiveness. There might be many differences between the two of us on economics, but had Britain been a member of the eurozone we would not have been able to depreciate and our competiveness, compared with India and China, would have been even worse.

William Cash Portrait Mr Cash
- Hansard - -

I am delighted that the hon. Gentleman is, as ever, slightly ahead of my curve, but I now move on to the next point.

We hear from the Prime Minister that we want the eurozone to be stable. I have argued for many years that an imploding European Union is not in our national interest. I have been saying that for 20 years; I thought that it would occur, and it has. What has been needed is a realignment of European institutions and Europe itself into an association of nation states, precisely to avoid the implosion that is taking place. Only a few months ago, the Prime Minister himself referred to the desirability of our forming ourselves into an association of member states, which I take to be much the same idea.

The Lisbon agenda has failed. I railed against the stability and growth pact in 1996, when the now Lord Chancellor and Secretary of State for Justice, my right hon. and learned Friend the Member for Rushcliffe (Mr Clarke), was Chancellor of the Exchequer. I wrote to Members of Parliament in reply to his letter, indicating that I did not think that the pact could work. It has failed, and with it, the rule of law. Yet, here they are: I heard Madame Lagarde only yesterday talking about bringing it back again, as if experience cannot be seen for what it is. Experience, in my judgment, crushes hope.

The common agricultural policy, the common fisheries policy and the EUROSTAT statistical system have all failed. I believe that the latter is at the heart of the problem in relation to—let us put it bluntly—the lies that were told about the Greek economy. EU origin marking causes enormous damage to the third world, as the committee of my right hon. Friend the Member for Hitchin and Harpenden (Mr Lilley) demonstrated the other day. We had an interesting analysis from the global governance commission in Washington, which emphasised over and over that the EU origin marking system was one of the major problems for the third world.

There is endemic fraud. The Maastricht deficit criteria of 3% is nothing short of a joke, with massively seriously consequences for the voters in this country and throughout Europe, who are subjected to bungled economic management, and massively increasing debt, with the hidden costs of up to £3.1 trillion——in our own case in real terms—which cannot be swept away. The budget deficit proposals of £6 billion are a mere sop in relation to the mismanagement that is coming through Europe and affecting our economy as well, and we will not convince the bond markets or the rating agencies, which determine our ratings in the global marketplace.

As I have said, we were told by the Prime Minister that we need a strong eurozone, because 50% of our trade is with that zone. However, the eurozone is imploding, and Angela Merkel and 68% of the German people are opposed to the Greek bail-out, precisely because the whole economic and political structure of the European Union does not work.

Gregory Campbell Portrait Mr Gregory Campbell (East Londonderry) (DUP)
- Hansard - - - Excerpts

I thank the hon. Gentleman for giving way again, in this very timely debate. I am listening with great interest to him analysing the situation, both within and without the eurozone. Does he agree with me that if we do not move now and grasp the nettle—as he has accurately said we should—one of the political problems will be the rise of the far right across Europe, which preys on the very fears and concerns that we all know are out there, and which we have seen emerge from time to time in various nation states?

William Cash Portrait Mr Cash
- Hansard - -

I absolutely agree with the hon. Gentleman, and in my essay in “Visions of Europe” in 1993 I said exactly that—that that would be the consequence of the lawlessness that would follow. The problem is that it is not good enough to wring our hands and say, “Oh well, we’d like this to be better,” or “We’re going to go along with it.” We have to have a radical policy based on proper analysis. I wait to hear what my hon. Friend the Minister says, but I cannot believe that he could seriously disagree with anything I have said. These are factual questions. If it is just a matter of culture or attitude: “Oh well, we want to be good Europeans,” or “We don’t want to face up to these things,” or “People such as Bill Cash are just Europhobes who go around ranting about Europe and banging on”—

William Cash Portrait Mr Cash
- Hansard - -

I am glad that my hon. Friend has made the inevitable harrumph, but the matter needs to be taken extremely seriously. Europe does not work as it is now devised; it is pre-eminently a practical matter. It is no good our being committed to a eurozone that is so undermined by its own institutional inadequacies and contradictions, by the diversity of its different economies, and by the real requirements of the voters and the business community in each country. Is it all so difficult, complicated and entrenched that nothing can be done, or do we roll up our sleeves and get down to resolving it? I suggest that at the summit this week we at least start to get serious about the nature of the problem. Europe does not work, not only because of over-regulation and the irreversibility of the acquis communautaire, but because it is essentially undemocratic and authoritarian, which is dangerous, as both German and Greek commentators agreed only yesterday. And it is not only one or two commentators; that view is becoming endemic and demonstrable.

The whole of Europe is trembling and action is needed now. There are those, such as Ambrose Evans-Pritchard of The Daily Telegraph, Martin Wolf and Ralph Atkins of the Financial Times, Walter Munchau, Stephen Glover, Andrew Alexander and a growing band of Euro-realist Members of Parliament who are beginning to speak out, and many who have done so over many years. In Holland, the general election left its message on the table—in France and Germany, the same. Across the entire breadth of the continent, in Italy, Greece, Romania and Bulgaria, in the referendums that have taken place and in the ditching of the constitutional treaty, which was then supplanted by the Lisbon treaty—virtually the same thing—people are disillusioned with the European Union and demand change and action, yet we are still presented with a policy of further enlargement, against which I have argued for many years. In the leader in today’s Financial Times we hear more about Europe’s debt crisis. It states:

“Europe’s sovereign debt worries have prompted parallels to…2008”,

and

“crisis management is not the same as crisis resolution.”

On enlargement, only last week The Spectator devoted its leader to the proposal for Turkish accession. It is clear that Turkey is moving towards accession, and on both economic and political grounds it should not be regarded as a prospective member of the club, given its current dealings with Syria, Iran and the middle east. As is so often the case in the political and economic sphere, the problem with enlargement is that European Union policies, once espoused, are deemed irreversible. Just when decentralisation and democracy—listening to the people and involving them and the big society in our Government—have become so essential, the institutions and governmental establishments of the European Union and each of the member states career ever more wildly into crisis.

Recently, we have had the experience of the European arrest warrant. The absorption of our criminal justice system is yet another area of deep concern. Under a European arrest warrant, Mr Arapi, a British resident from Leek, in Staffordshire, was convicted in his absence and sentenced to 15 years. We have the inconceivable and unacceptable vision of a British judge ordering Mr Arapi’s extradition, when there is apparently overwhelming evidence that he was not where he was said to have been when he was supposed to have committed a murder in Italy. The whole project is flawed from beginning to end and must be radically reformed, or else.

I turn now to the European Scrutiny Committee. Parliament has a system for dealing with many of the problems that I have outlined or, at any rate, for alerting Members of Parliament to what is going on. I regret to say that the Committee is still not sitting, despite the fact that Parliament has now been back for a couple of weeks. I have been on the Committee for 26 years, sometimes in adverse circumstances; it has been difficult to be heard, let alone listened to and certainly agreed with, despite much evidence. While in opposition in the last two years of the previous Parliament, the Conservative party achieved remarkable unity on the European issue and the Lisbon treaty, barring just one vote on the sovereignty of the United Kingdom.

Although the manner in which Parliament deals with European legislation has been subjected to a number of improvements, we have not gone far enough. Indeed, the present Home Secretary made some significant proposals for reforming European scrutiny. She agreed to adopt my proposal that if the European Scrutiny Committee recommends a European matter for debate, and 150 Members of Parliament propose that it is a matter of national interest, it should be subjected to a free vote on the Floor of the House—I say “vote”, not “take-note motion”, because that is one of the problems. She also proposed that the Committee meet in public, as many of us have advocated for some time. After the issue was finally voted on by the Committee, it was abandoned, and it must be revived.

In my 26 years on the Committee, the establishment and the Government of the United Kingdom have always ensured that there is a majority in favour of European proposals that emanate from Brussels. Matters may be recommended for debate in a European Standing Committee—sometimes by a majority vote—but no vote in such a Committee ever goes against the Government. If one ever does, it is immediately reversed on the Floor of the House as being inconsistent with the European Communities Act 1972. That is no way to proceed. Not one vote has ever gone against Brussels legislation in my 26 years on the Committee. Only last week, a Cabinet Office Minister indicated that there were no proposals for a sovereignty Act to alter that disgraceful state of affairs.

That is how the European Scrutiny Committee functions. I have been on it long enough to know that not one single vote on any European legislation that has been through a European Standing Committee on the recommendation of my Committee has ever been passed on the Floor of the House, and I challenge anyone to come forward with an example. We have take-note motions, Adjournment debates and general European affairs debates, but we do not have votes on seminal matters of the kind I have described.

Whatever the merits of the national interest, which I have already described, it is vital to create a requirement, set out by our Prime Minister in 2005 when he referred to an imperative requirement to achieve competitiveness in the British economy. The European Scrutiny Committee is called in for debates, but issues are not voted on, which makes the process intrinsically futile. The Committee is important, but it must be reformed and improved, although improvements are taking place.

The Committee has the power to impose a scrutiny reserve while debates take place, but it is sometimes overridden out of what is described as urgent necessity. In any case, such measures merely hold down the European juggernaut for the time being, and there is no resistance whatever to majority votes in the Council of Ministers being imposed on the UK Parliament. A work by Sanoussi Bilal and Madeleine Hosli states what some of us know already, although it is worth recording. They say that in the EU,

“a major difficulty arises from the lack of transparency of the decision-making process. In particular, decisions by the Council seldom result in a formal vote, but are rather taken by consensus (or without a vote when no obvious blocking minority has formed)…why would a minority member state cast a vote against the majority knowing it is doom to lose anyway, unless it wants to make public its disagreement. Therefore, most of the time, formal votes at the Council level merely represent the tip of the iceberg of the coalition-building and decision-making process.”

Given that the enormous matters we are discussing affect the entire British economy in one form or other, and given what is at stake, only some of which I have indicated, it is inconceivable that there should be such incredible problems in the fault-lines of the system that has been devised. Once again, the issue needs to be taken extremely seriously, but I wonder whether it will be. If it is not, there will be difficulties of a kind that I do not need to specify.

The Back-Bench business committee proposals, which will come before the House this afternoon, do not include European documents, although the proposals would not seem to preclude votes on European affairs, unless such matters were taken only in Westminster Hall, and that highly contentious question will no doubt be debated this afternoon. We therefore have debates on European matters without votes, on a take-note basis. Much business is conducted behind the scenes in Brussels by the United Kingdom Permanent Representation to the European Union and COREPER, using their own arcane procedures. It is conducted within and parallel to the European establishment and it is intertwined with it. Why and how can that be allowed to continue?

Not only is most business conducted behind closed doors, but the majority voting system itself is not transparent. More often than not, we do not even know which way the UK will have voted or whether it will have deliberately abstained—we know a bit more about the German situation—to acquiesce in or even appease the European institutional consensus. At the same time, the UK Parliament, and therefore the British people, are bypassed and stitched up.

Recent events relating to the 1922 committee concern the independence of Conservative Back Benchers, but the same applies to the parliamentary Labour party. It is essential that those of us on the Back Benches have systems, mechanisms and procedures that can act as a safety valve. We do not necessarily want those things because we want to act in a hostile manner or to be difficult or awkward, but because there is an alternative view, and expressing it is part of our freedom of speech and vitally affects the interests of those who vote us into this place.

The BBC has consistently declined to give proper coverage to the European issue and has adopted that policy with tenacity and editorial contrivance since the 1950s, as has been well documented. Anyone who raises serious and seminal questions about the European issue—most of their predictions have turned out to be true—tends to be regarded as Europhobic or worse.

What can now be said with certainty is that, as we speak, our economy, our democracy and our constitution are on the line. This week, the summit will discuss proposals for our Budget to be presented to the European institutions before our Parliament sees it. There may be attempts to create some obscurantist device, perception or spin to make it look as if these things are not really happening or that they are all happening under the aegis of the majority vote. At last, however, the penny has begun to drop. The mask is being stripped away. Our national interest is at stake, and the need for political will to reaffirm the sovereignty of the British people through their representative Parliament has become paramount in the national interest, as is there for all to see.

This critical summit is the time for us and the European Union to face up to action and reality. Let us put our commitment to a sovereignty Act on the table this week. Let negotiations commence between all 27 member states for a voluntary association of nation states to get out of the mess that exists, which will get worse. Even the Prime Minister has recently put forward the idea of an association of member states. If that falls on deaf ears at the European Council, let those member states who want to, including Germany and France, use the enhanced co-operation procedure for a fiscal and political union—a new Zollverein with a new treaty—with a referendum here in Britain on the proposals; for they will affect us in a fundamental change in our relationship with the European Union. We can remain with other like-minded states in an associated status within the amended European arrangements, as I proposed in my pamphlet of 2000 called, in deference to Churchill’s time-honoured phrase, “Associated, Not Absorbed”.

Kelvin Hopkins Portrait Kelvin Hopkins (Luton North) (Lab)
- Hansard - - - Excerpts

May I say first what a pleasure it is to serve under your chairmanship this morning, Mr. Streeter, and secondly may I convey my sympathy to the hon. Member for Stone (Mr Cash) on his bereavement? I congratulate the hon. Gentleman on raising this important debate. I thought it important to come along and put a democratic socialist perspective, arriving at the same conclusions from a different perspective on the European Union.

This is a critical time in the development of the European Union and in Britain’s history. The European Union and, indeed, Britain, are suffering severe economic difficulties. The eurozone is in crisis and the plans of the extreme federalists are unravelling before our eyes. That is a welcome movement, and is happening not before time. It is possible that Germany is in the process of re-establishing the Deutschmark, or a Deutschmark area. It has great difficulty in doing that, because it is so exposed to other member states of the European Union, which have great economic difficulties, but that shows the folly of imposing a single currency on different economies, with different levels of economic success. It does not work and on many occasions elsewhere it has been proved not to work.

The peoples of Europe are deeply sceptical about the European Union and the direction that it has taken. The danger, as the hon. Gentleman said, is that there could be a rise in nationalism as a reaction. Such a reaction results from the fact that the peoples are not listened to. The opposition to much of what the European Union has been doing recently comes from the left. The referendum in France was won—that is the sense in which I see it—by people of the left. The left was also in the lead in the Dutch referendum. Even to go back to the Swedish referendum on joining the euro, which was another substantial no vote, it was the left—trade unionists, socialists and social democrats—who pressed that case.

Over and again I have to point out that, although we keep talking about Europe, we are discussing not Europe but the European Union. Europe is a geographical entity with many historical and cultural links. The European Union is an invention of humankind, imposing a political structure on many of the nations of Europe, but it is not Europe itself. Although I may be accused of being a Europhobe I genuinely love Europe. I am culturally European. Clearly, Britain is European. I love European music, languages and literature. I love and enjoy everything about Europe, but I do not approve of the European Union.

William Cash Portrait Mr Cash
- Hansard - -

In relation to art, music and culture, and in every other way, I endorse what the hon. Gentleman says 100 per cent.

Kelvin Hopkins Portrait Kelvin Hopkins
- Hansard - - - Excerpts

I thank the hon. Gentleman for that positive intervention. In a few weeks I shall be sojourning in Provence, sampling wonderful European wine, listening to music and so on. Europe is a wonderful place, but the European Union is deeply flawed.

The hon. Gentleman has said that even this week the European Union is trying to interfere and to impose its will on Britain’s decisions about its budgetary situation and economic policies. That was reported yesterday in the Evening Standard, so it is not going away. I hope and trust that the new Government will tell the European Union in no uncertain terms that decisions about our budgetary and economic policies will be decided by the British Government, who will be accountable to the British Parliament, and will not be determined by the European Union. Perhaps the EU is under the illusion that it can manage Britain as well as it has managed the eurozone. That would lead us pretty much into disaster.

While I am on the question of the European Union’s recent policies, I shall mention enlargement. It is interesting that the hon. Gentleman mentioned Edward Heath. I listened to one of his last speeches to Parliament before he retired 10 years ago, and he made a strong point to the effect that enlargement would not work. He was against it. I do not speak for or against it today, but Edward Heath was strongly opposed to it because he thought that a European Union covering more than the developed nations of western Europe would not work. He wanted a deeper and stronger European Union, possibly with a single currency, but he believed that it could not work if it were to be widely enlarged. One of the reasons I have supported enlargement is that I believed it could weaken the European Union. That may be a cynical view, but I thought that over time people would realise that ramming countries or nation states together in that way would not ultimately work. Therefore I have gone along with enlargement. I think it is a way of ensuring that in the end people come to their senses.

I am not against international alliances or co-operative relationships with all our neighbours. Indeed, those are vital. I am sure that everyone would be in favour of those things if they were based on democratic Governments agreeing to work together for mutual benefit on behalf of their peoples. That is what the European Union should become, in my view. We must stop the drive towards a federal Europe now, retain what sovereignty we have, and begin to roll things back: the EU and what it has taken over from Britain and other member states.

I have often mentioned my concern about the common fisheries policy, which is completely barmy. I think that Edward Heath decided at the last minute that we should go into that, but it has been disastrous. Some of the biggest fisheries in Europe are Britain’s, and the EU itself has reported, in the past week or two, that 30 per cent. of fish stocks are at the point of collapse, and all fisheries are being overfished. The only way to overcome that is for fisheries to be restored to member states, which will then have the sense of ownership and responsibility for managing the areas in question. Then fish stocks can start to recover. Reforms have taken place and there are non-fishing areas, but it will not work until member states take over responsibility for their historic fisheries and husband them as they did in the past.

The costs of agriculture are enormous and every member state in the European Union has its own approach. Some are more agricultural than others. We are one of the most efficient agricultural nations, but that is only a small part of our economy. Other countries are overwhelmed by agricultural costs and inefficient, small-scale agriculture, but it is up to those member states to manage their own agriculture. If we need to transfer revenues between member states, that can be done on a voluntary basis, and if poorer states need to be sustained by richer states perhaps fiscal transfers can take care of that. The common agricultural policy distorts the whole of agriculture and operates in an inequitable way. Some member states pay more than they should and some receive more than they should, in a way that bears little relationship to their relative wealth. We should start to roll back agricultural policy.

I hope that the Government will give notice that we want to return to a world in which member states manage their own fisheries—an abandonment of the common fisheries policy. If other member states or the European Union refuse, Britain should give notice that, after a period, we would re-establish control of our historic fishing grounds. I hope that that would put sufficient pressure on the EU to make some sense of it.

The real question is one of democracy—of whether the populations of the various member states have control of their own destinies and can choose to be free market capitalist or democratic socialist countries. I have campaigned all my life for a democratic socialist Britain, and I do not want that possibility to be taken away by EU bureaucrats. Equally, some want to see a more free market capitalist world in Britain. We will not want bureaucrats in Brussels telling us that we cannot do things if the people of Britain have chosen to go in those directions. It is about democracy. One of the great advantages of our system of government is that when the population gets fed up with the Government or do not like what they are doing, it can kick them out and put in another Government with a different view. The essence of democracy is a real choice of policy in how people are governed.

British economic policy should be decided by British Governments that are elected by the British electorate. As and when we need to co-operate with other member states and other nations, we should do so on a democratically agreed basis. I am sure that that would be most agreeable to everyone, as well as being beneficial. It would also help us resist the tendency to nationalism. If people become frustrated about the EU and the lack of democracy, they may turn to other forms of politics, some of which would be much more unpleasant—one such is nationalism—and there is talk, even in Germany, of serious disorder if things are not made democratic. If the Germans and the Greeks can decide their future, so can we. Although we have friendly relations with other member states, if we rather than the European Commission and the European Union were able to decide our future, everyone would be a lot happier. The danger of extreme politics would go.

Kelvin Hopkins Portrait Kelvin Hopkins
- Hansard - - - Excerpts

I agree entirely with my hon. Friend. The fear was that the only way to roll back what was then described as Thatcherism was by going along with the European Union. The TUC flip-flopped right over from being critical and sceptical about Europe to being enthusiastic. Subsequently, however, judgments have been made by the European Court against trade unions and in favour of employers, because it thinks that they interfere with how the market should operate. The trade unions, and even John Monks, a great enthusiast for the European Union, are becoming more sceptical.

William Cash Portrait Mr Cash
- Hansard - -

May I mention again the extremely important paper written by Professor Roland Vaubel of Manheim university on the raising of rivals’ costs? Much of that is to do with labour regulation. I shall give the hon. Gentleman a copy, as it demonstrates how regulatory collusion can create disadvantages for certain countries.

Kelvin Hopkins Portrait Kelvin Hopkins
- Hansard - - - Excerpts

I thank the hon. Gentleman for that. I take a slightly different view on some of these things because I think that trade union rights should be decided though the democratic governance of member states.

International involvement comes through the International Labour Organisation, with its minimum standards for labour regulation. That is where we should stand, but we fall below those standards. I want us to move forward and restore trade union and worker rights at least to the ILO standards, in many ways going back to the sort of regime we had in the past. That would not be agreeable to the Government, no doubt; and other countries, too, might choose another approach. However, that is the approach that I would like to see, and I would like to see it voted on by the working people of Britain, who I hope would support the election of a Labour Government committed to re-establishing trade union and worker rights. It is another example of democracy. I do not want to see the European Union telling me or other trade unionists or socialists that we cannot legislate in a particular way. We should decide our trade union rights, not the EU.

The EU and its ultra-federalists have over-reached themselves. It is time to roll back the EU, and restore sovereignty and democracy to member states. Member states may choose to go down a socialist road or a non-socialist road, but the direction should be down to them and to their electorates and peoples. I congratulate the hon. Gentleman on raising this important subject, and I hope that my brief comments are helpful.

--- Later in debate ---
Chris Bryant Portrait Chris Bryant
- Hansard - - - Excerpts

Which shows what a generous soul I am.

It is good to see the hon. Member for Aldridge-Brownhills (Mr Shepherd) in his place. He pointed out that Parliament consistently assents to such measures, which relates to the point I made earlier about the European Union and scrutiny in this House. Parliament assented originally in the European Communities Act 1972, and we continue to assent every time we choose not to have a vote, and every time we choose to do so and vote in favour. In a sense, therefore, the nub of the question about sovereignty is rather different.

William Cash Portrait Mr Cash
- Hansard - -

Will the hon. Gentleman give way?

Chris Bryant Portrait Chris Bryant
- Hansard - - - Excerpts

If the hon. Gentleman does not mind I will not give way, which means I will shut up sooner. He spoke for some time and we want to hear from the new Minister.

There are some significant paradoxes and problems facing the Union. We all rightly fight for fiscal autonomy for each of the member states, but also know that we are economically interdependent. If the euro collapsed it would be bad for the British economy, not least because to all intents and purposes, in many regards we are Europe’s banker. We want the rest of Europe to shoulder more of the security burden around the world, particularly in Afghanistan. At the same time, the only way we can achieve that is by cajoling and persuading. We want Europe to punch its weight in relation to the emerging economies—Brazil, Russia, India, China and so on—but we rely on self-discipline to achieve that and often, self-discipline does not work when Russia holds out its paw with an enormous financial offer.

We want better protection—for instance, for British people who have chosen to live in Spain and whose houses are being pulled down—but we are not prepared to ensure that Europe has the enforcement powers when rights are not being protected. We want better EU regulations so that financial services organisations in Cyprus, for instance, do a better and more legitimate job, but at the same time we want to ensure the autonomy of the UK financial services industry. We want Romania and Bulgaria to be members of the Union, but at the moment I can see no prospect of allowing Romanians and Bulgarians to work in the UK. I suspect that the same might be true of Croatia and the other countries we hope will become members of the European Union in the near future, such as the western Balkan countries. We want them to join, but I suspect that the Government want a derogation so that those nationals cannot enjoy freedom of employment in the UK from day one; perhaps the Minister will clarify that point later.

Likewise, I have always considered the operation of the common agricultural policy immoral in many ways, as other countries are unable to compete because we subsidise so much. At the same time, if there was not a common agricultural policy there would be a French, Italian, German or Greek one, which could be considerably worse. There is a constant clash at the heart of Europe between subsidiarity and collective action, and now is a key moment in European politics to decide how to reconcile such issues. I suspect that such a reconciliation will happen at a dinner on Wednesday evening when Angela Merkel and President Sarkozy meet up. Let me say gently to the Minister that I hope he ends up joining the European People’s party, because it is easier to do business sitting at the table when the decisions are being made, rather than waiting for the moment after the decisions have been made by the big players.

The hon. Member for Stone did not refer much to his or the Government’s sovereignty of Parliament Bill. I have expressed views on the matter before, so I will not bore the Chamber with them again. Suffice it to say that it will either mean nothing because Parliament is already sovereign—it could, if it wanted to, withdraw from the European Communities Act 1972, it could repeal the Act or decide that the legislation no longer applies—or it will mean something, in which case this House can say, “We don’t care what has been decided through the co-decision process; we simply disagree.” It could say, “I don’t care whether the Government have signed up to it; we disagree and we are going to strike down that legislation.” Such a move, however, is potentially very dangerous because it puts us on course for leaving the Union.

I have a few questions for the Minister. He told us that there would be a new Europe Committee—a Cabinet Sub-Committee. Has it met yet and is it to meet in public? It will be fascinating to see the Deputy Prime Minister and the Foreign Secretary publicly debating Europe. Will the Committee include Members from the devolved Administrations in Wales, Northern Ireland and Scotland? Some of the issues that come up at such meetings are devolved responsibilities, so there might be a particular value in including those Members. I have similar questions about the committee on parliamentary sovereignty. Who will chair it and who will be on it? When will it meet and what resources will it have? Will it effectively be a parliamentary commission, and if not how will it conduct its business; and when will it complete its work? Finally, what is its precise position on whether Britain and countries outside the euro should be required to present their budgets to the Commission? It seems bizarre that the European Union or the Commission—in whatever format—should be able to have sight of a British Budget before the British Parliament.

David Lidington Portrait The Minister for Europe (Mr David Lidington)
- Hansard - - - Excerpts

I congratulate my hon. Friend the Member for Stone (Mr Cash) on securing this debate, and also express my sincere condolences to him on the recent death of his mother. He clearly set out his views on sovereignty. In the last Parliament, he championed the United Kingdom Parliamentary Sovereignty Bill to allow for further debate and consideration of such matters. As my hon. Friend knows, the Government are now considering a United Kingdom sovereignty Bill, and the programme for government agreed by both parties in the coalition states:

“We will examine the case for a Bill to make it clear that ultimate authority remains with Parliament.”

As my hon. Friend the Member for Aldridge-Brownhills (Mr Shepherd) pointed out, the common law is clear; Parliament is sovereign. European Union law takes effect in this country only by virtue of an Act of Parliament. The European Communities Act 1972 states that European Union law should have primacy. That means national laws, including Acts of Parliament, must be interpreted in such a way as to comply with EU rules. Where the two are incompatible, UK law is disapplied. The 1972 Act, therefore, gives EU law primacy over UK law for so long as that Act remains in force. However, as successive Governments and the courts have recognised, such measures do not impact on sovereignty, because it is always open to Parliament to amend or repeal an Act; it is Parliament’s choice that EU law has primacy, and it can, if it chooses, change its mind. I do not want to underplay the enormous political consequences that would flow from such a decision, but those are the constitutional facts, and they were confirmed in the most trenchant language in the metric martyrs’ case in 2002 when the courts ruled that

“Parliament cannot bind its successors by stipulating against repeal, wholly or partly, of the [1972 Act]…there is nothing in the [1972 Act] which allows the Court of Justice, or any other institutions of the EU, to touch or qualify the conditions of Parliament’s legislative supremacy in the United Kingdom. Not because the legislature chose not to allow it; because by our law it could not allow it…being sovereign, it cannot abandon its sovereignty.”

The Government are now exploring how they can ensure that the fundamental principle of parliamentary sovereignty is upheld. They want to assess whether the common law provides sufficient ongoing and unassailable protection for that principle. It is an important process, and it is only right that sufficient time is allowed for discussions within Government and for appropriate advice to be taken. Once the Government have decided on whether there should be a Bill to reinforce the principle of parliamentary sovereignty, we will make an appropriate statement to the House.

William Cash Portrait Mr Cash
- Hansard - -

My hon. Friend the Minister will know that I have spoken on both this subject and the metric martyrs’ case on many occasions. Does he not accept that we voted against the Lisbon treaty, which is a consolidating treaty and incorporates all the treaties? In addition to that, the issue of primacy is already clearly stated in Costa v. ENEL and in other cases. They say that the European Court of Justice asserts its primacy over our constitution. I hope that the Minister will come on to that, because that is where a big problem starts to get even worse.

David Lidington Portrait Mr Lidington
- Hansard - - - Excerpts

My hon. Friend will have to forgive me if I say that the kind of questions that he asks are precisely those that the Government will wish to consider in the exercise that I have just described—when they come to a view as to whether we should introduce primary legislation to reinforce the principle of parliamentary sovereignty. So far, as he knows, the British courts have upheld the principle of parliamentary sovereignty. We want to ensure that such a principle is unassailable and ongoing.

European Affairs

William Cash Excerpts
Thursday 3rd June 2010

(15 years, 9 months ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Lord Hague of Richmond Portrait Mr Hague
- Hansard - - - Excerpts

I very much take that point. The hon. Gentleman can see how seriously we take the matter from the fact that his right hon. Friend the Secretary of State for Energy and Climate Change is the deputy chair of the Committee. I shall talk about climate change during my speech. It was noticeable in the final stages of the Copenhagen meeting that the European Union was not at the final table—in the final discussions—and we have to put that right for the future. That will be part of the approach that we are trying to put together in the European Affairs Cabinet Committee.

The main issue before the forthcoming European Council is, of course, the current economic situation. A number of member states face severe fiscal difficulties, and growth across Europe is anaemic. The priority for all of us is to rectify our budgetary problems and deal with the fundamental underlying problem of weak economic growth. The Government have made it clear that we will stay out of the euro, but at the same time, we must acknowledge that the EU is our single biggest trading partner. Problems in one member state affect us all, whether we are single currency members or not. Recent developments in the eurozone have exemplified the need for fiscal consolidation, which is the No. 1 priority across Europe. We have made an urgent start on dealing with the deficit, and those actions will be crucial for the stability of our public finances, after those who are now on the Opposition Front Bench bequeathed the country the worst peacetime deficit in modern times.

The major issue dominating discussion of European affairs is the difficulty facing the eurozone. A strong and healthy eurozone is, of course, in this country’s interests. That is a view held even by those of us who have always opposed Britain joining the euro. Much of our prosperity depends on our neighbours’ prosperity: 49% of our exports go to the eurozone.

William Cash Portrait Mr William Cash (Stone) (Con)
- Hansard - -

My right hon. Friend is making an incredibly important point about the eurozone and our trade with it. We acknowledge that there is significant trade, but would he also accept that one of the reasons why the eurozone is imploding is the vast amount of social and employment legislation––the over-regulation and burdens on business not only in Europe but imposed on this country as a result of European directives and regulations? Will he therefore accept that the Prime Minister’s commitment to repatriate those powers is essential not only for us but for negotiations in the European Union? If that does not happen we will not have jobs, growth or enterprise, nor will we be able to reduce the debt or pay for public services where necessary.

Lord Hague of Richmond Portrait Mr Hague
- Hansard - - - Excerpts

There are several parts to my hon. Friend’s question about the reasons for low economic growth in the European Union. One of those reasons is the extent of regulation, inflexibility and bureaucratic burdens. I think that is true in most, if not all, the countries of the EU, for a mixture of reasons. Some of that regulation is at EU level and some is at national level. I was going to deal with that issue.

Winning the argument for appropriate regulation is a very important part of the plans that we have put forward to revive economic growth in the EU, and sometimes that will mean having lighter regulation. That can be addressed partly through the European Union regulating more effectively and in a less burdensome way, and partly by nations doing so individually. The extent to which we can deal with the issue by changing the balance of competences between the EU and member states is something that we now have to examine as a coalition. My hon. Friend has a long-held view on the subject, and I have expressed views about it. We are a coalition Government, and he and I must accept that there is not necessarily a majority in the House of Commons for every single thing that we would have wanted to do. We must examine the issue as a coalition, and we are now doing so.

--- Later in debate ---
Lord Hague of Richmond Portrait Mr Hague
- Hansard - - - Excerpts

I do not think that that is the danger that we face. Deficits unaddressed or regulation that prices people out of work in some European nations are the real dangers to economic growth in the long term. When we consider the position of the countries in the eurozone that face the most severe fiscal difficulties, their problem is not insufficient state spending or insufficient regulation, but very much the opposite. I am sorry—the hon. Gentleman and I agree on so many aspects of European policy, but we will have to disagree on that one.

William Cash Portrait Mr Cash
- Hansard - -

Does my right hon. Friend accept that the objectives that he would try to achieve by negotiation, in particular on some of the economic proposals that are coming forward, will be subject to majority voting? If and when he is outvoted in that context, what is his fall-back position? Will he introduce and enact a sovereignty Bill so that he can underpin those negotiations with a firm opportunity for the House to override European regulation in our vital national interests?

Lord Hague of Richmond Portrait Mr Hague
- Hansard - - - Excerpts

My hon. Friend has a long-standing campaign for such a measure. We are examining the case for a sovereignty Bill in the coalition, for the reasons that I explained to him earlier. It was part of the Conservative party’s election manifesto, but not part of the Liberal Democrats’ manifesto. We must therefore examine that together, and that examination has already begun. Of course, we will come back to the House with our conclusions.

I was making a point about the importance of extending the single market, where we think there are real opportunities to boost growth by further opening up energy and services sectors and moving forward on patents. There are many helpful proposals in Mario Monti’s recent report about relaunching the single market, on which we want to build. All that is germane to the Europe 2020 strategy, which will be the main formal item of discussion at the forthcoming European Council. It is the successor to the Lisbon strategy, which is widely acknowledged to have been well intentioned but disappointing in its results.

The current crisis in the eurozone demonstrates that it is vital that the EU has a coherent strategy for growth and jobs, but it must fully respect the balance of competence between member states and Community action. We will work with our partners on the Commission’s proposals for a Europe 2020 strategy to promote growth. The strategy is intended to drive growth in the next decade and secure jobs, and those are, of course, the right objectives, but we will want to pay close attention to the detail.

At the spring European Council, five EU-level target areas were identified: employment; research and development; energy and climate change; education; and social inclusion. We are concerned that some, while not legally binding, may stray into the competences of member states. Some are inappropriate for the different systems and models that various member states use. That variety must be respected in creating a meaningful strategy that addresses the economic issues faced across Europe.

We are clear that the EU has a role to play, for example, through providing a deeper and stronger single market, with smarter regulation, a more strategic approach to trade and a framework for innovation. The 2020 strategy faces two other immediate problems that need resolution. First, the next financial perspective—the seven-year EU budgetary framework—needs to cohere with it. In our view, its priorities should be aligned with the strategy. It is deeply unfortunate that the budget review has been so long delayed that linking the two is more difficult than it should be. Secondly, the 2020 strategy is a long-term strategy—it is meant to be—but recent events require a more immediate response to drive growth now. As I said, that response will be the Government’s priority. If we can get the 2020 strategy to be more coherent with the financial framework, and link its long-term nature with the immediate action that is needed, perhaps we can avoid the risk of a strategy again proving disappointing in the benefits that it brings to European nations.

--- Later in debate ---
Lord Hague of Richmond Portrait Mr Hague
- Hansard - - - Excerpts

There is nothing “renewed” about my enthusiasm for referendums—I am simply setting out exactly what I said in the last Parliament and in the general election campaign. There is great merit in a Minister doing what he said he was going to do before the general election. I voted against a referendum at the time of the Maastricht treaty because I was a member of the Government—[Hon. Members: “Ah!”] The Government had the absolutely correct policy on that. We secured the opt-outs on the euro, for instance, of which we spoke earlier, and built in the commitment to a referendum on the euro if ever there was a proposal to join it, which is exactly the policy that will be encapsulated and legislated for in the Bill that we will introduce.

William Cash Portrait Mr Cash
- Hansard - -

I am listening with great interest to my right hon. Friend on this hugely important matter. He referred to the question of further treaty transfers of powers, and as he will know, the coalition agreement states:

“We agree that there should be no further transfer of sovereignty or powers over the course of the next Parliament”

before referring to the working time directive. Will he concede—I am sure this is the case in a legal and constitutional sense—that “powers” in that context includes the extension of powers under the Lisbon treaty and the introduction of directives?

Lord Hague of Richmond Portrait Mr Hague
- Hansard - - - Excerpts

I was just coming to that point. The Bill will ensure that primary legislation will be required before the British Government may authorise the use of ratchet clauses in treaties—as some of us have called them—some of which result from the Lisbon treaty. Such clauses allow for a modification of treaties or provide options for existing EU powers to expand, which is my hon. Friend’s point. The proposed use of a major ratchet clause—for example, the abolition of vetoes over foreign policy—would also be subject to a referendum. That will be built into our legislation. Taken together, those measures will ensure that unlike under the Labour Government, the European Union can increase its powers vis-à-vis the United Kingdom only with the agreement of the British people. That is a major step towards rebuilding popular trust in the EU.

--- Later in debate ---
David Miliband Portrait David Miliband
- Hansard - - - Excerpts

The Foreign Secretary and I jested earlier, when he said that my hon. Friend had always been a staunch supporter of the former Government, but I worry that he has been reading something left by the previous Opposition Whips Office, before the general election, setting our its view of what happened in 2004-05. I will make one important point to him: he will remember that six months before the budget deal was agreed, the then Government were denounced by the then Opposition for their failure to agree a deal. In June that year, there was a failure to agree a deal, and only under the British presidency, in December, did we get an agreement on the budget deal. So I do not accept his description.

William Cash Portrait Mr Cash
- Hansard - -

Will the right hon. Gentleman give way?

David Miliband Portrait David Miliband
- Hansard - - - Excerpts

No, I will make some progress, and if I may, I will come back to the hon. Gentleman later. He made at least two interventions on the Foreign Secretary.

I shall focus on the June Council agenda, which is understandably dedicated to addressing first the economic situation. The difficulties are well known, but the extent and possible permutations of the solutions are still relatively unknown, causing some instability in European and global markets. Concerns about Greece’s sovereign debt have led to market concern about other southern European economies. Eurozone growth figures are due to be released tomorrow—one disadvantage of having this debate before the European Council—and they will obviously provide a useful indicator for Council action.

All that matters to Britain, as the Foreign Secretary suggested, because 55% of our exports go to the EU. We are part of the largest single market in the world, along with our European partners. Half of UK inward investment comes from the EU. Out of the euro, we should still want the euro to succeed. In the light of those problems, the European Council needs to be clear about what needs to be done. The instability in the global economy as a result of Greece’s problems emphasises the need for effective and co-ordinated European action, as well as certainty for financial markets. A clear resolution framework is needed, and the eurozone countries must reach agreement between their members on the way forward.

However, this Council must be about growth, too, and it should look at the European economy as a whole. Competitive austerity, blind to the need to secure growth, will secure neither deficit reduction nor economic growth that improves living standards. In Europe and at the G20 meeting in Toronto, it is vital that the Government make that argument. As the US Treasury Secretary Tim Geithner said only yesterday:

“we want…fiscal reforms to happen in a way that’s growth friendly.”

That must surely be the right approach for any sensible Government. We on the Opposition Benches certainly share that view, for Europe and the global economy going into the G20. Deficits need to be brought down, but Europe also needs to think about generating growth, not simply stymieing demand through cutting too fast and too far. We urge the Government to push that argument, as well as that expressed by President Obama’s Administration.

The European Council has an extremely important role in agreeing ways of supporting European economic growth and better governance, and in fostering understanding between some of the strongest economies in the world. The last European Council meeting in March agreed, at the instigation of the then Prime Minister, a series of propositions on competitiveness, the prospects for European growth and the state of preparedness for the G20 summit.

William Cash Portrait Mr Cash
- Hansard - -

In the context of what the right hon. Gentleman has just said, will he concede what Lord Mandelson said about the extent of over-regulation that comes from European directives and the like, which is that 4% of the European Union’s GDP is absorbed in unnecessary and burdensome regulation? That is the real reason why the eurozone is imploding. It simply does not have the capacity to produce enterprise and jobs. Indeed, enlargement, to include Bulgaria and Romania, is extremely suspect, because those countries have acted as a drag on the opportunity for the rest of Europe to prosper.

David Miliband Portrait David Miliband
- Hansard - - - Excerpts

The hon. Gentleman asked almost exactly the same question of the Foreign Secretary. Difficult as it is for me to say it, the Foreign Secretary gave him rather a good answer, which is that a lot of the regulation to which he referred is, in fact, national regulation, not simply European regulation.

William Cash Portrait Mr Cash
- Hansard - -

Four per cent. of GDP.

David Miliband Portrait David Miliband
- Hansard - - - Excerpts

I am sorry that the hon. Gentleman was unable to listen properly to what his right hon. Friend the Foreign Secretary said, but in this case what he said was actually true.

--- Later in debate ---
Simon Hughes Portrait Simon Hughes
- Hansard - - - Excerpts

Well, it was in Cheshire, and some of us think it always has been and always will be. We may disagree on that, but we both come from that part of the world, and we both ended up being politicians in Southwark. I pay tribute to her for the four years she served on Southwark council for the Brunswick Park ward and for being deputy leader of her group in that period. We are glad to see her here, whatever our party differences.

I welcome the new Minister for Europe, the Foreign and Commonwealth Office Minister, my hon. Friend the Member for Taunton Deane (Mr. Browne), and the Foreign Secretary to their briefs. We hope that they do well in their representation of us in the European Union and more widely in Europe, but we also hope that Baroness Ashton continues to have the support and good wishes of Ministers and the Government. We wish her well in her responsibilities.

I started my intervention on the Foreign Secretary by making it clear that one of the great reasons why the European Union and wider international organisations are needed is that many issues do not stop at boundaries—and the threat to our climate is one of those. I hope that the Minister for Europe and his colleagues will be forward-looking and robust on the challenges of the international climate crisis to which Europe can positively respond. If we are really clear about the science, we should seek to limit the temperature rise to 1.7° Celsius, not 2°. We should also ensure that the European Union—as per the agenda for the European Council this month—moves to a 30% reduction in emissions as our target. I regret that that was not achieved in Copenhagen. If we are to be really robust in our leadership, we will also ensure that we have strategies not just for European economic recovery and dealing with the world economic crisis as it affects our continent, but for the environmental crisis.

We should do better at promoting the fact the European Union has as its agenda the things that matter most to this continent. The main item on the agenda later this month will be the strategy for jobs and growth, and how we come out of the recession stronger and better, in spite of the huge difficulties. Other agenda items include preparing for the G20 summit, ensuring that we focus much more on achieving our millennium development goals, and dealing with the climate threat. We have heard some excellent contributions on the interrelated economic issues. It is clear that, as a continent, we need strategies for addressing the financial and banking sectors. Although any levy raised may be spent nationally, we must have a more effective Europe-wide strategy to ensure that bankers do not play with people’s money and take the profits.

For the avoidance of doubt, although my party has said that there may be a time when it is right to join the euro, I have never campaigned for us to join. Nor has my party, and we are clear that the time is not right. I am therefore happy to sign up to the agreement, as part of the coalition, that the pound should remain for the whole of the coalition agreement for this Parliament, and that no attempt will be made to change that position. I am also clear, however, that we need to revisit some decisions, such as the working time directive, where the European Union made mistakes. My great enthusiasm for the European Union and better collaboration across Europe does not make me blind to those things that have not gone well or where we need to do better. Overly prescriptive regulation, such as the working time directive, is one such example.

William Cash Portrait Mr Cash
- Hansard - -

I am greatly encouraged by the line that the hon. Gentleman is taking on this issue. In the spirit of good fellowship, does he agree that in negotiations to change the working time directive—or any of the other massive burdens on business that Lord Mandelson suggested were costing 4% of GDP—we would need to be able to repatriate those powers? Otherwise we would end up with a European Union that did not work because we would not be able to trade effectively.

Simon Hughes Portrait Simon Hughes
- Hansard - - - Excerpts

That opens some big questions. I do not oppose considering the repatriation of some powers—it depends on the power. I do not take the view that we should only ever have one-way traffic of power from member states to the European Union, but we have to be careful that we make the right judgment. Some things clearly need European responsibility—aviation, for example, which cannot be dealt with on a purely national basis as the boundaries do not permit that. Environmental issues are another example. There are many issues on which the European Union is a better sized organisation to compete in the world. It is better that we have a common market when it comes to taking on China, India and the US. So there are advantages to the European Union, but I am not against the repatriation of individual issues and subject areas. I hope that we can consider that sensibly and with as little partisanship as possible.

The one big point of difference between us and the Tories during the election campaign, Europe, has been resolved in the coalition agreement, which is testimony to intelligent draftsmanship and savvy political work. In passing, I pay tribute to my right hon. Friend the Member for Yeovil (Mr Laws), who was one of the authors of the agreement, and whose service to our party and—already—Government I hope will be continued before too long, following his recent difficulties. The Liberal Democrats made it clear that we need Europe to ensure that we deal with criminals better, and the European arrest warrant and other mechanisms are important parts of a wider European collaboration.

There are organisational matters to deal with too. We must keep on the agenda the fact that it is a nonsense for the European Parliament to meet sometimes in Brussels and sometimes in Strasbourg. That has to be sorted. I understand why we are where we are, but it is right that it should be on the agenda, and it is also right that we continue to look at the EU budget. It is unacceptable that it has never been adequately audited, and we need to ensure that the rules are complied with. There is also a continuing issue about agricultural subsidies, but that does not stop us being proactive and helpful to rural communities that need us to support people moving on to the land and being able to inherit tenancies.

I am clear, too, that we now have a clear, popular and reasonable position on future referendums: we will not have one if, for example, Croatia wants to join, but we will have one if there is a major political change. I welcome the fact that both coalition parties have said that they believe in the expansion of the EU, but expansion should come with a transition period for every country, as in the agreement, in relation to the right to move freely around the EU—the Bulgaria and Romania example. I have always been suspicious, privately and publicly, about whether we should have opened the doors immediately to all the previous accession states, at the time that Poland was given free access. The right hon. Member for Sheffield, Brightside and Hillsborough (Mr Blunkett), the then Home Secretary, argued for immediate access, and on the basis of the figures projected, we went along with that, but I was clear that it was a risk. A phased admission of people from new countries would be a much better process and reduce the fears about immigration and migration that the public naturally express.

I would like to raise a few issues about individual countries. It would be helpful if the Minister could tell us the latest news on the conversations with Iceland, which is now an applicant country, and with Turkey. I welcome very much the fact that Turkey should be seen to be an important part of the EU. I ask him to give our condolences, concern and support to the Government and people of Poland after their terrible national tragedy of the air crash only a few weeks ago. I also encourage him to do what his predecessor as Minister for Europe did: understand that sorting out the Cyprus problem is a big priority. It is a nonsense that the EU has not yet been able to resolve that issue.

I ask the Minister publicly, as I have done in private, to pay attention to Russia and the Russian issues that have been raised on the Floor of the House. The relationship with Russia is important, but so too is that with Ukraine, which is an important European country that has not fulfilled its potential. There are economic issues, as well as human rights issues, in relation to both. Finally, the wider European concerns must be that the EU is proactive in the world in leading on conflict prevention; in dealing with the situation in the middle east, which is a crisis and a tragedy; in continuing to sort out the legacy of the civil war in Sri Lanka; and in promoting human rights in Africa, Iran and China. I welcome this debate and wish Ministers well.

--- Later in debate ---
William Cash Portrait Mr William Cash (Stone) (Con)
- Hansard - -

I had the pleasure of being able to refer to some of the matters I wish to mention in the Queen’s Speech debate. I am grateful to you, Mr. Deputy Speaker, for giving me another opportunity to carry the matter forward, particularly in the light of some absolutely superb speeches from Back Benchers on our own side on the question of the European Union as a whole and also in the light of the contribution of the hon. Member for Bermondsey and Old Southwark (Simon Hughes), who began to move quite perceptibly towards the centre of gravity of where we are now in the coalition Government.

It is no secret that my concern about any coalition Government remains that we must keep to our principles and our manifesto promises. It is essential that we stick to our template and manifesto commitments on sovereignty—I originally proposed a sovereignty Bill some five to seven years ago—and human rights, with which I will deal shortly, and the associated charter of fundamental rights, for a simple reason. There are three categories of activity in coalitions: the easy stuff, the difficult stuff and the red lines stuff. As I said repeatedly on radio and television in the aftermath of the coalition announcement, we must stick to the red lines because they are about who governs us and how. I do not need to elaborate, but a sovereignty Bill and the repeal of the Human Rights Act 1998 are central to that.

As hon. Members who spoke this afternoon have strongly emphasised, we have a responsibility and an obligation to put the sovereignty of Parliament at the top of our agenda because, as I have often said, it is not our Parliament but that of the people who elect us. The question, “Who governs the United Kingdom?” is therefore central and we have no right to make any concessions on that.

Like the hon. Member for Luton North (Kelvin Hopkins), I pay tribute to the hon. Member for Birmingham, Edgbaston (Ms Stuart) for her speech. By the mettle of her arguments and the manner in which she addressed the questions that I asked in several interventions on the Foreign Secretary and the shadow Foreign Secretary about the burdens on business and deregulation, she gave the impression that she had somehow been liberated.

With great respect, it is not good enough to imply that gold-plating and national over-regulation is the real problem, when the problem is the extent of the acquis communautaire. It has an enormous impact on burdens on business—£88 billion according to the British Chambers of Commerce recently. I pay tribute to Tim Ambler and Francis Chittenden for their remarkable analytical work, from which I drew the figure of 4% of GDP, to which Lord Mandelson referred when he was a Commissioner. Mr Verheugen gave similar figures about the over-regulation of European business.

The eurozone does not function properly because of the economic model of the Lisbon agenda—my hon. Friend the Member for North West Leicestershire (Andrew Bridgen) admitted that it had not been working. For years, the European Scrutiny Committee has shown that it has not worked properly. That is all part and parcel of the reason for the widening of our trade deficit with Europe. We cannot manage to trade with an imploding eurozone, part of which is affected by profligate public expenditure, as in the case of Greece, and part of which is affected by the deeply flawed statistical base of the EUROSTAT system. People are allowed to engage in what would be regarded as false accounting in any company.

We are in a European Union that simply cannot work as it is. It is imploding. It cannot compete with China and India because it is inherently ossified. It is a great concrete jungle of over-regulation. One cannot change the nature of employment, yet the whole social and employment base must be changed. To my mind, whether we transfer further powers is neither here nor there. It would be wonderful if we had a referendum on the European question, but the notion that we would be committed to it only when a further transfer of powers occurred is wrong. I have heard it all before. I heard it when Lord Hurd was Foreign Secretary during the debates on the Maastricht treaty. I stood in this very place, inveighing against it. As the hon. Member for Luton North said, we got so much about that right at the time. The late Peter Shore and I found an amity based on a common understanding that that system was not going to work, and so it has proved.

Kelvin Hopkins Portrait Kelvin Hopkins
- Hansard - - - Excerpts

The hon. Gentleman may know that Lord Hurd, a euro enthusiast, said last week that it would now be difficult to find more than one in 10 people in Britain who are prepared to contemplate the single currency.

William Cash Portrait Mr Cash
- Hansard - -

I certainly do, and I say without any sense of self-congratulation that when we said such things in the Maastricht debates, we were vehemently criticised by the then Government. We were rubbished, if I may use that expression, for daring to suggest that the single currency would not work. The same goes for the paraphernalia that followed in a succession of treaties. I must have tabled at least 150 or 200 amendments—I cannot remember exactly how many—to each of the treaties from Maastricht onwards, including the Lisbon treaty, which we simply must not implement.

The whole European system must be radically and drastically reformed, precisely because it is impossible to repatriate powers without a sovereignty Act—I repeat my call for that to be introduced as urgently as possible—and we need that to underpin the negotiations on economic recovery. We must have economic recovery because otherwise, we cannot reduce the debt or pay for the necessary public services. We are living in a fool’s paradise if we think otherwise. That is fundamental.

I am concerned about further enlargement, and my earlier exchanges with the shadow Foreign Secretary are on the record—I was slightly pulled up for following my point up. The European Scrutiny Committee asked very serious questions about the accession of Bulgaria and Romania. Those countries are reasons why we should not enlarge any more, to include, for example, Albania, Croatia, Macedonia and Turkey. I do not have time to go into those arguments now, but the bottom line is that the European Union is more than large enough, and unfortunately, it does not work, and must be reformed drastically.

If there is no way of reforming the EU from within because of the acquis communautaire and the role of the European Court of Justice, and because other member states are simply not prepared to negotiate sensibly on legislation that requires unanimity to repeal, we are going to be stuck by the majority vote. All the protestations, hopes, aspirations, and perhaps some rather over-enthusiastic promises, will come to nothing, because it is impossible to change the system under majority voting when there is no will to do so on the other side, which takes us back to repatriation and the sovereignty Act.

The human rights question is enormously important. The necessity for the repeal of the Human Rights Act 1998 runs in tandem with the charter of fundamental rights. In a recent speech to judges, the Lord Chief Justice stated:

“The primary responsibility for saving the common law system of proceeding by precedent is primarily a matter for us as judges…Are we becoming so focused on Strasbourg and the Convention that instead of incorporating Convention principles within and developing the common law accordingly as a single coherent unit, we are allowing the Convention to assume an unspoken priority over the common law?…We must beware.”

We must take such things very seriously.

Lord Hoffman has said that the European Court of Human Rights in Strasbourg

“has been unable to resist the temptation to aggrandise its jurisdiction and to impose uniform rules on Member States. It considers itself the equivalent of the Supreme Court of the United States, laying down a federal law of Europe.”

The same applies to the charter of fundamental rights. We must stop that process.

--- Later in debate ---
Chris Bryant Portrait Chris Bryant
- Hansard - - - Excerpts

I was about to make exactly that point. It is so rare for my hon. Friend to help me in any debates on Europe, but it is a great pleasure. It might just be a facet of today’s debate, but, as I was just about to say, it is an enormous shame that, while we have had several maiden speeches from women Opposition Members, we did not have a single one from a woman Government Member. I do not want to make a big partisan point about that, but we must achieve a House that is more representative of the whole of Britain.

There have been some excellent speeches. The hon. Member for Wyre Forest (Mark Garnier)—

William Cash Portrait Mr Cash
- Hansard - -

rose—

Chris Bryant Portrait Chris Bryant
- Hansard - - - Excerpts

Ah! Captain Mainwaring himself.

William Cash Portrait Mr Cash
- Hansard - -

I cannot resist it. Does the hon. Gentleman take upon himself the mantle of Godfrey?

Chris Bryant Portrait Chris Bryant
- Hansard - - - Excerpts

Far be it from me to take any mantles upon myself at all, although I thought that I might be Warden Hodges, who was always the nemesis of Captain Mainwaring.

Anyway, we had a splendid speech from the hon. Member for Wyre Forest—[Interruption.] He has moved! He gave us some wonderful geographical outlines of his constituency, and I thought that I could just hear Elgar playing in the background.

We also had a splendid speech from the hon. Member for Brighton, Kemptown (Simon Kirby), who talked about how the French razed Brighton at some point. He thought that the people of Brighton were rather troubled by the French, but then he went on to praise the Norman church. I think that at some point the Normans were the French, were they not? So there seemed to be a bit of inconsistency there, but he made a splendidly short speech, and brevity is the soul of wit in this Chamber. [Interruption.] That does not apply to me. [Interruption.] Neither brevity nor wit.

We had a splendid speech from my hon. Friend the Member for Wirral South (Alison McGovern), who gave us a great sense of a passion for culture, which is not just an add-on to political life, but absolutely intrinsic to the life of her constituency. She also referred to our former leader, Harold Wilson, and his time in the constituency.

We had a splendid contribution from the hon. Member for York Outer (Julian Sturdy)—a peculiarly named and, perhaps, constructed constituency. He referred to it as a doughnut constituency and he did, indeed, sound like the representative of the York tourist board, as of course all hon. Members do at some point—well, not for York, obviously. He said that it is his 39th birthday, so we wish him well. He does not look 39 yet, but I can assure him, given the way that Independent Parliamentary Standards Authority is treating us all, that within a year he will look considerably more than 40. I also note that he looks a little like his father, the Member of the European Parliament.

We heard a splendid speech from my hon. Friend the Member for Newcastle upon Tyne North (Catherine McKinnell), who referred to Doug Henderson. I hope that she will be running marathons as well. He was, I think, the third fastest marathon runner in the House; there is a tradition that several are run every year. She referred to Rolos—I never liked Rolos very much—and Andrews Liver Salts, which did not seem like a particularly interesting combination of food. She is a very astute woman, because she praised the local media assiduously; I am sure that that will get her a fine headline in her local newspaper.

My hon. Friend the Member for Sunderland Central (Julie Elliott) made a fine speech. I did not understand any of the stuff about football, because I have never understood football; I look forward to switching off all the televisions over the next month. She referred to Chris Mullin, a Member who was respected across all parts of the House for his work—and feared, in equal measure, because of his diaries. There are more instalments to come, I fear.

The hon. Member for North Warwickshire (Dan Byles) kindly referred to Mike O’Brien, who was, again, respected by many people. He mentioned the bun day at his local school, with the giving out of buns. It sounded as though that was happening during the general election, which I thought counted as “treating”, but there we are. He referred to his time in the Royal Army Medical Corps and in Banja Luka in what was, I think, normally referred to as the mental factory rather than the metal factory. It is good to have such a mix of people who have served in the armed forces in this House, especially when we are still at war.

My hon. Friend the Member for Nottingham South (Lilian Greenwood) made a very good speech. For me, the most moving point was when she referred to the squandering of the talents of so many women. She has experienced that in her own family’s history, but it is also true in very many walks of life, and it is something that we still need significantly to address.

The hon. Member for North West Leicestershire (Andrew Bridgen) started with a risqué joke. I myself have never used a risqué joke, or tried to be risqué, in the past. He said that he loved Europe, but of course we knew what was coming—he does not really like Europe very much, or any of its institutions, and certainly not the single European currency.

My hon. Friend the Member for Sefton Central (Bill Esterson) made an important speech, particularly in relation to the need for 21st-century buildings if we are to provide 21st-century educational standards. He talked about the exploitation of foreign workers, with a very interesting story from his own family.

The hon. Member for Hove (Mike Weatherley) said that he is an Iron Maiden fan, or supporter; in any case, he intends to wear his T-shirt in here at some point. He mentioned various films because he has a history of his own in that line of work.

My hon. Friend the Member for Easington (Grahame M. Morris) made an extremely passionate speech referring to the problems that mining constituencies have had—something that I know about from my constituency in Rhondda, where we still have to overcome some of the problems that were given to us from the past.

The hon. Member for Dartford (Gareth Johnson) mentioned Wat Tyler’s revolt. I thought that we were about to hear a radical, left-wing speech and that he was going to give us Wat Tyler’s lines, “When Adam delved and Eve span, who was then the gentleman?”—but then we know, of course, that it is every single member of the new Cabinet.

The hon. Member for Dover (Charlie Elphicke) went right back in history to the time of Julius Caesar and said that the border controls were rather good in those days; well, they were not, really, because we were entirely invaded. He described Dover as the gateway to England, whereas I think of Bristol as the gateway to England from Wales—a far more important avenue.

The hon. Member for Great Yarmouth (Brandon Lewis) started by talking about the death warrant for Charles I. I was a little bewildered at that point, because I thought that he was going to blame that on the European Union.

Chris Bryant Portrait Chris Bryant
- Hansard - - - Excerpts

I see the hon. Gentleman nodding. He thinks that everything bad that has ever happened is basically down to the European Union, the Labour Government or, for all I know, me personally.

There were also important contributions that were actually about Europe. In particular, the hon. Member for North Dorset (Mr Walter) referred to the issues relating to the Western European Union, in which he has played a significant part. I hope that the new Minister for Europe will be able to answer some of those questions, particularly about what his plans are for making sure there is a replacement, so that the important job of scrutinising European foreign and defence policy is not just assumed by the European Parliament. That would not be the right place for that to be done.

My hon. Friend the Member for Linlithgow and East Falkirk (Michael Connarty), who I hope is not only the past Chairman of the European Scrutiny Committee, but the future Chairman, made some important points about how we conduct scrutiny in the House. I have always thought that we have not done it very well and, during my time as a Minister, I tried to improve that. I hope that the Minister will be able to say whether he will table a new scrutiny reserve resolution for that Committee as soon as possible. That was very much in the pipeline before the general election and I hope it can be arranged as soon as possible.

I celebrate the presence of my hon. Friend the Member for Birmingham, Edgbaston (Ms Stuart) in the Chamber. Even if she can sometimes slightly irritate me, I am delighted she is here. The doughtiness of her campaign in her constituency stood her in good stead in the general election and, even though we sometimes disagree with her, I am sure that we all accept that the doughtiness of her argument is well put. She made some important points this afternoon about the euro and the genuine crisis in Europe, as did my hon. Friend the Member for Luton North (Kelvin Hopkins). However, he did say something rather odd about Argentina’s economy, which I would suggest is nowhere near as prosperous as he seems to think.

The speeches of the hon. Member for Stone (Mr Cash) speak for themselves and I cannot add to them. He put his Front Benchers on the spot a bit about whether there should be a referendum, which was an important point also well made by my hon. Friend the Member for Bassetlaw (John Mann). One of the most controversial European issues––it certainly has been over the past six months in British politics, although it is rarely expressed in public––is that of migration within the European Union, and I do not understand why accession treaties should not, under the logic being advanced by the new Government, be subject to a referendum as well. It is one of the issues that will most materially affect member states.

William Cash Portrait Mr Cash
- Hansard - -

As I am sure the right hon. Gentleman knows, the problem specifically arises in relation to Croatian accession, particularly the linking of that to the Irish guarantees. That takes us back to the constitution under the Lisbon treaty.

Chris Bryant Portrait Chris Bryant
- Hansard - - - Excerpts

The hon. Gentleman makes a point to which I hope the Minister will be able to reply.

Gaza Flotilla

William Cash Excerpts
Wednesday 2nd June 2010

(15 years, 9 months ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Lord Hague of Richmond Portrait Mr Hague
- Hansard - - - Excerpts

I understand, in every case in which right hon. and hon. Members express their outrage at what has happened, the strength of feeling in many parts of the House and of the country. As I have explained, in the pursuit of practical foreign policy we should concentrate on the two things that I have identified—the setting up of the right kind of investigation and inquiry, and doing so quickly, and making the coherent case, including to the Israelis, for lifting the blockade on Gaza. Those are the right things to concentrate on. The right hon. Gentleman refers to British naval protection and deployment, but the previous Prime Minister promised a British naval deployment in the Mediterranean to try to stop arms smuggling to Gaza, and no ship was ever sent. I will not make empty promises; we will concentrate on the two issues that we have identified as necessary.

William Cash Portrait Mr William Cash (Stone) (Con)
- Hansard - -

Given the importance of the investigation that the Foreign Secretary referred to, does he not also believe that there is a very powerful case for referring this to international arbitration and/or the international court at The Hague? After all, this involves not only questions of international law. The political causes are well known, but they have not yet been resolved by the political intervention of the Quartet, and so forth, and international arbitration may well be a very good move to adopt.

Lord Hague of Richmond Portrait Mr Hague
- Hansard - - - Excerpts

The position that we have taken does not exclude those things, but they are quite difficult things to bring about and seek agreement to, so the priority is to have an inquiry and investigation established as soon as possible that meets the criteria that I have set out. However, we have not excluded advocating other courses of action if that is not heeded.

Foreign Affairs and Defence

William Cash Excerpts
Wednesday 26th May 2010

(15 years, 9 months ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Lord Hague of Richmond Portrait Mr Hague
- Hansard - - - Excerpts

I shall have to try to get to the end of my speech at some point.

William Cash Portrait Mr William Cash (Stone) (Con)
- Hansard - -

Will my right hon. Friend give way?

Lord Hague of Richmond Portrait Mr Hague
- Hansard - - - Excerpts

As a major concession, I shall give way to my hon. Friend the Member for Banbury (Tony Baldry) and then to my hon. Friend the Member for Stone (Mr Cash). I shall then try to conclude.

Lord Hague of Richmond Portrait Mr Hague
- Hansard - - - Excerpts

They are different from each other, of course. I am glad to say that when the right hon. Member for South Shields visited China before the general election, he concluded agreement on a strategic dialogue with China, which is something that we have wanted across the parties. The immediate priority is to take that forward. I shall seek an early opportunity to visit China in order to do exactly that. We have some very important British work in the commercial sense going on, particularly at the Shanghai Expo where there is a tremendous British pavilion. Every opportunity should be taken to pursue our commercial links. With India, there are of course also considerations of expanding commercial links but there is an even greater opportunity to expand our cultural, educational and scientific contact. There is more catching up to do in our relationship with India, which has been uneven at times. We will commit ourselves to doing that.

William Cash Portrait Mr Cash
- Hansard - -

I am extremely grateful to the Foreign Secretary for giving way, and I would not want to disappoint him. As he appears to be reaching the end of his remarks, I should like to ask him a simple question. In the context of our relationship with the European Union, which is familiar territory in debates of this kind, but to which he has not really referred in any detail, will he be good enough to confirm that the proposals that would help us to underpin negotiations with the European Union will necessarily include a gold-standard sovereignty Act, which would enable us to ensure that we negotiate for a position of strength and that we reaffirm the right of the House to determine how we are governed in this country?

Lord Hague of Richmond Portrait Mr Hague
- Hansard - - - Excerpts

My hon. Friend will be delighted to know that I am coming to Europe. I am trying to get to that part of my speech so that I can conclude. We have said in the coalition agreement that we will examine the case for that Act. Let me be explicit. The Conservative party was committed to it in its manifesto, but this is a coalition Government: we have to look at the issue with our partners in the coalition, and the agreement says that we will do so. I will state our European approach in a moment, but I am conscious that other people wish to speak.

We remain acutely concerned about the human rights situation in Zimbabwe, Sudan and the horn of Africa. The Government are fully committed to achieving, from 2013, the UN target of spending 0.7% of our gross national income on overseas aid. We will enshrine that commitment in law, as we believe that locking in our commitment is both morally right and in our national interest. That will place Britain in a position of clear international leadership and will encourage other countries to live up to their commitments. Value for money will be central to everything we do. So, the Department for International Development will be completely transparent about the cost and performance of British aid programmes, using independent evaluation and a focus on results to drive a step change in the effectiveness of Britain’s aid efforts.

The European Union is the last major subject that I want to tackle. The Government will be an active and activist player in the European Union. We will be very vigorous and positive in the promotion of this country’s national interests in the EU while working to make the European Union as a whole a success. All the countries of the EU face profound challenges that will require us to work together using the means and institutions of the European Union. Our efforts will be concentrated on Europe’s global competitiveness, on tacking climate change and on global poverty. The current economic difficulties pose questions for each nation, varying with the state of their public finances, but collectively we need to encourage growth and job creation, so we will press strongly for the expansion of the single market and the removal of obstacles to business. It is also in our interests and in the EU’s general interest for the nations of the EU to make greater use of their collective weight in the world. We share many interests and values, and taking common action to advance them is, where appropriate, greatly to our general benefit—Iran’s nuclear programme is an important instance of that.

The EU’s standing in this country has fallen in recent years.

Lord Hague of Richmond Portrait Mr Hague
- Hansard - - - Excerpts

Or perhaps it was the responsibility of some of those who have been the Minister for Europe. The right hon. Gentleman might reflect on that.

The British public have felt that they have had too little democratic control over developments in the EU. To remedy that and to provide what we regard as necessary protections for our democracy, the Government will bring forward a Bill amending the European Communities Act 1972. The Bill will require that any proposed future EU treaty that transfers areas of power or competence from Britain to the EU will be subject to a referendum. The British people will then have a referendum lock to which only they hold the key. The measure will cover any proposal to join the euro.

We also need greater democratic scrutiny and accountability over provisions in treaties that allow the rules of the EU to be modified or that provide options for existing EU powers to expand without the need for a new treaty. The use of any ratchet clause or passerelle will require an Act of Parliament to be passed, and the use of any major ratchet clause, such as the abolition of national vetoes over foreign policy, will require a referendum for its authorisation.

William Cash Portrait Mr Cash
- Hansard - -

rose—

Lord Hague of Richmond Portrait Mr Hague
- Hansard - - - Excerpts

I cannot take any more interventions, but, on my hon. Friend’s point, in this context, we are considering and discussing the case for a United Kingdom sovereignty Bill. In addition to the Bill, the Government have agreed and determined that there will be no further transfer of sovereignty or powers from the United Kingdom to the European Union in this Parliament. We will also examine the current balance of competences between this country and the European Union.

As set out in the coalition agreement, we will push for the EU to demonstrate leadership in tackling international climate change, including by supporting an increase in the EU emission reduction target to 30% and by working towards an ambitious global climate deal that will limit emissions and explore the creation of new international sources of funding for climate change adaptation and mitigation. At the Cancun conference in November we will have the opportunity to establish a strong framework for global climate action.

I know that I have spoken for too long, Mr Speaker, but every time I mention a country, someone asks me a question about it. I want briefly to mention two areas of Europe of particular importance to our foreign policy—Russia and the Balkans. We make no criticism of the previous Government, who faced significant difficulties in relation to Russia and always had our full support, but it is not in the interests of Britain or Russia to be in a state of permanent confrontation. A sustained improvement in our relations will require a major effort on both sides. On Britain’s part, the door is open to an improved relationship and we hope that invitation is taken up. We attach great importance to progress in the western Balkans. A prosperous and stable western Balkans will aid the general prosperity, stability and security of Europe. I intend to attend, next week, the meeting in Sarajevo to consider these issues.

Many of the issues I have touched on are immensely challenging and will require years of international co-operation to be overcome. But despite the sometimes seemingly bleak horizon in foreign affairs, the themes of opportunity, optimism and faith in human nature should run throughout our foreign policy. As the Gracious Speech confirmed, this year holds many opportunities for the United Kingdom to seek the strengthening of international institutions and effective multilateral co-operation. We look forward to the G8 summit in Canada and the G20 summits in Toronto and South Korea. Her Majesty the Queen will pay a royal visit to Canada in June and to the United Nations in July. It is remarkable to reflect that Her Majesty, who last addressed the General Assembly in 1957, will do so again not only as Queen of the United Kingdom and of 15 other UN member states but also as Head of the Commonwealth, which is itself a network of 54 states. We should be alive to the extraordinary diversity and youthfulness of an organisation such as the Commonwealth, which is very important in a networked world.

We look forward to the papal visit in September.

--- Later in debate ---
Mike Hancock Portrait Mr Mike Hancock (Portsmouth South) (LD)
- Hansard - - - Excerpts

May I say what a pleasure it is to see you, Hugh Bayley, sitting in the Chair as Deputy Speaker? My only regret is that you will not be one of the candidates who will occupy it on a long-term basis; that is the House’s loss.

I point out to the hon. Member for Dwyfor Meirionnydd (Mr Llwyd), who has just spoken, that there is one Liberal Democrat who knows exactly where he stands. I am totally opposed to the replacement of Trident and the continued holding of nuclear weapons by this country. There is no ambiguity there.

I congratulate the Foreign Secretary on his speech and the Secretary of State for Defence on the interventions that he made; they were helpful. It is regrettable that there is not a single former Defence Minister on the Labour Benches at the moment. I congratulate the right hon. Member for North East Hampshire (Mr Arbuthnot), who has left the Chamber, on his contribution as the current Chair of the Defence Committee. He has shown honesty in chairing the Committee and owning up to every mistake made by the Governments in whom he served when it came to defence. The first thing he did at the Defence Committee was to apologise for all the mistakes for which he was responsible—and even for some for which he was not responsible. However, we have heard no similar apologies or comments from the current batch of former Defence Ministers from the Labour party.

I congratulate the hon. Members for Bolton South East (Yasmin Qureshi) and for Beckenham (Bob Stewart) on two excellent maiden speeches; the House will look forward to further contributions of equal class and style from them both. The hon. Member for Beckenham raised a very important point that other Members have talked about—the critical role of how we treat our veterans and their families when those veterans return from conflict suffering sometimes grievous injuries. Many have suffered, and continue to suffer, long-term effects, particularly relating to mental health. It is interesting to note the serious concerns that are now being expressed about the long-term psychological wounds that many of our servicemen and women have suffered over the past few years and will, sadly, suffer well into the next phase of their lives.

Coming from Portsmouth—I am sure that I can also speak on behalf of the recently elected hon. Member for Portsmouth North (Penny Mordaunt)—it would be wrong of me not to say that we are very concerned about the future role of the Royal Navy, particularly the naval base in Portsmouth. It is not helpful when leaks from the Ministry of Defence suggest that, once again, the future of the naval base and its 17,000 jobs are very much on the front-line agenda. I was delighted to hear that in fact no such proposition has been on Ministers’ desks, and I hope that it will not be. Such leaks and comments are not helpful when people’s livelihoods are put at risk time and again. They sap not only the loyalty of the staff and service personnel who work on the naval base but the long-term potential to protect those critical jobs. Long may the carriers be part of the defence of this country, long may they be based in Portsmouth, and long may there be no big question mark hanging over the future of the naval base.

One ship that currently resides in Portsmouth dockyard is HMS Endurance, which has not been to sea since it was returned on the back of another ship after its unfortunate flooding in South America last year. A decision on the future role of HMS Endurance is long overdue, and I hope that one of the first things that the Defence Secretary does is to come clean and make a proper statement to this House about that. Is it going to be refitted, scrapped, or replaced by a bought-in trawler, as has happened in the past, or is there no longer any need for us to have a ship of that nature going regularly to the Antarctic? One thing is for sure: we need answers to those questions.

On Afghanistan and Pakistan, the right hon. Member for Tonbridge and Malling (Sir John Stanley) talked about the possibility of our taking responsibility for Kandahar. I sat on the Defence Committee when we were told by the then Secretary of State for Defence, John Reid, that all the intelligence that he had received just prior to going into Helmand led him to believe that hardly a shot would be fired, and he certainly did not envisage any casualties. How wrong those words were, but how wrong it was that the intelligence services had got it so wrong about Helmand province. The former Minister who spoke earlier rightly stressed that we should not take on another commitment in Afghanistan unless we are absolutely sure that the intelligence we are getting about Kandahar will materialise and that we will get the support of others in the fight against insurgency and the remnants of the Taliban there. If Helmand was difficult, Kandahar would be twice as difficult because of its historical links and the strong power base that the Taliban and al-Qaeda had there in the past. I urge a lot of caution on that proposal.

On the role of the Royal Navy and other navies off the coast of Africa, the big problem is the rules of engagement that naval captains in the Royal Navy, the American navy and others have as regards what they can and cannot do about stopping ships, boarding ships or even sinking ships that might be engaged in piracy. One of the big drawbacks that allows the problem to continue is the failure to get common agreement on rules of engagement that would allow naval captains in the area to act on their own initiative in difficult circumstances and be sure that they would be supported after the event. I urge the Secretary of State to consider carefully the rules of engagement that are given to our naval personnel engaged in that work.

I wish to raise the issue of the scrutiny of defence and security as a European concept. Under the Lisbon treaty, many matters will cease to be the responsibility of the old Western European Union, which will cease to exist. There will be no national Parliament monitoring of European defence and security, and I suspect that many in the Chamber would not welcome the European Parliament taking on that role.

William Cash Portrait Mr Cash
- Hansard - -

It is quite possible.

Mike Hancock Portrait Mr Hancock
- Hansard - - - Excerpts

It is, and the European Parliament would grasp the opportunity willingly, but we have to have a proper way of ensuring that there is national parliamentary scrutiny of what is happening in Europe when it comes to defence and security. If we do not, we will be badly letting down the people of this country and our armed forces. I do not want more powers to go to Europe, and I certainly do not want defence and security powers to be scrutinised by the European Parliament with this Parliament having little or no say on them.

I wish also to make a point about EU integration and further countries entering the EU. I was disappointed that there was not a clearer approach in the past, particularly about Turkey, and I hope that in the coming weeks and months we will have a clear indication from the coalition Administration of what their policy is towards Turkey and greater expansion of the EU. I would very much welcome Turkey being in the EU, as well as Croatia and possibly one or two other countries, but the Government must sign up to a plan for how that can be done.

I echo the sentiments of my right hon. and learned Friend the Member for North East Fife (Sir Menzies Campbell) about the Chinook crash. One of the biggest disgraces during my second spell in Parliament was that in 1997, the Defence Committee refused to carry out an inquiry because of the lead that it was given by one of its advisers, a retired air chief marshal who took the Air Force line that the pilots had to be to blame. We refused to carry out an investigation, but our colleagues in another place grasped the initiative and carried out an inquiry. The results were different from what the RAF came up with. The two young men who flew the helicopter that day deserve to have their reputations returned to them, and that can be done only if there is a proper independent inquiry and all the facts and information relating to the crash are put on the table. Without that, it is a disgrace to the RAF, the Ministry of Defence and this Parliament that those two young men’s lives and careers were besmirched by the findings of the RAF board of inquiry, which in my opinion did not give the whole truth of what happened on that day.

--- Later in debate ---
William Cash Portrait Mr William Cash (Stone) (Con)
- Hansard - -

It is an enormous pleasure to speak in this debate, which has had so many notable contributions by new Members, including the hon. Members for Bolton South East (Yasmin Qureshi), for Stalybridge and Hyde (Jonathan Reynolds) and for Burnley (Gordon Birtwistle), my hon. Friend the Member for Beckenham (Bob Stewart), who made a very good speech indeed, my hon. Friend the Member for Halesowen and Rowley Regis (James Morris), and my hon. Friend the Member for Stafford (Jeremy Lefroy), whose constituency I had the honour of representing for about 14 years some years ago. I was fascinated by his reference to Izaak Walton, who I think I am right in saying left his estate to the citizens of Eccleshall, in my constituency. However, under the terms of the charitable trusts, if they did not behave themselves the estate was to be left to the citizens of Stafford. There is an interesting interaction there. I pay tribute to my hon. Friend for the campaign that he maintained during the Stafford hospital crisis. We worked closely together and he showed his mettle, as I know he will as he proceeds in the House over the next few years.

To revert to the subject before us, I begin by invoking the words of Disraeli, that great one-nation Tory. His book, “Sybil, or The Two Nations” was one of the spurs that brought me into politics. In his great book, “Coningsby”—this was in about 1849, after the repeal of the corn laws, with which my family was somewhat associated—he said that there was a great deal of shouting about Conservative principles, but “the awkward question” of what we are supposed to conserve “naturally arose”. He also said that

“England does not love coalitions”.

We will have to a make a good fist of this one, but Disraeli said something else that I urge hon. Members to bear in mind in the context of this important debate. He said that

“the Tory party, unless it is a national party, is nothing”.

He did not say “nationalistic”, which is extremely important. In other words, we put the national interest first.

As I suggested in an intervention on my right hon. Friend the Foreign Secretary, we really must look at the question of the negotiations that will be necessary because we are now in government, not opposition. We have to receive legislation from Brussels and decide what we are going to do about it—not only from Brussels, but all the European institutions, which operate by majority vote, so that we do not have an option. It is not like legislation that comes from Downing street, the Cabinet Office or the legislation committee or wherever—it comes from the European Commission, which makes the proposals.

We must react to those proposals, but what are we going to do? We must decide yes or no when there is a majority vote. I shall give the House but a few examples. Recently, on the question of the bail-out, £15 billion of British guarantees were subject to a majority vote. The previous Chancellor of the Exchequer suggested that there were legal guarantees. As a long-time member of the European Scrutiny Committee—26 years now—I shall be looking into that very closely in the next few weeks. Is it a guarantee and is it legal? Is it binding upon us despite assertions to the contrary? Is the Barnier report, which came out only yesterday, binding upon us by majority voting?

Above all else—many other things—there is the question of European economic management and whether our own Budgets will be imposed upon us by a surveillance system before they come to Parliament. Those are crucial matters that go to the very heart of how we are governed.

I wish that hon. Members and others outside would get rid of the idea that somehow those of us who raise such questions are wrong. If I may say so—not in any vainglorious manner—we have been proved right in our rebellion on the Maastricht treaty, which I conducted from this very spot some 20 years ago. When we look back, we should recognise that we were right over the exchange rate mechanism, and monetary and political union.

Under the headline “Markets in turmoil”, City AM, which is edited by Allister Heath, who became director of research of the European Foundation, a think-tank that I happen to have the honour of chairing, states:

“SHARES worldwide plunged yesterday as fears that Europe’s sovereign debt crisis would lead to a fresh collapse in the banking sector… Investors are concerned that Greece’s debt crisis is spreading across the Eurozone, in particular to Spain”.

We cannot exempt ourselves from the consequences of the mistakes that have been made in the European Union, the Lisbon agenda, high unemployment rates and our massive trade deficit, which results from the fact that we are trading with a Europe that is in turmoil.

We have to revise our views about the European Union and I urge the Government to take that seriously. After all, my party was badly afflicted by the European issue in the general election. The United Kingdom Independence party deprived us of as many as 23 seats. We would not be sitting in this configuration if those 23 seats had come to us, as they would have done had we had a more robust policy on Europe. I do not doubt that many people would agree.

How do we restore this nation’s economy, its respect in the world and the respect of our people for their Parliament? This is not Europhobic nonsense: these are realities that we have to tackle if we are to govern ourselves. That is what the general election was about—whether the views of the people who voted for us are reflected in the laws that affect them during their daily lives. This is not about some theoretical abstraction; it is about the realities of life. Unemployment levels in other parts of Europe are astronomic. Europe is in turmoil. We need an association of nation states and, with respect to our own economy, small businesses can thrive only if we repatriate social and employment legislation—something that my right hon. Friend the Prime Minister described as his imperative requirement in a speech he made in 2005. We must restore our ability to reduce our debt, which can come only from a vibrant and enterprising economy. That requires the repeal of that very legislation.

The British Chambers of Commerce has suggested that small business legislation from Europe and elsewhere costs the enormous sum of £88 billion. That is completely and totally impossible and has to be reformed. Our competitiveness internationally will depend on our ability to ensure that we get the balance right.

I am serious about this issue. We are now in government. We know that we have a responsibility to discharge. As I said in an intervention on my right hon. Friend the Foreign Secretary, we need a sovereignty Act to underpin negotiations on this issue. My Bill has been published and some have been good enough to refer to it as a gold standard. We have to require that, notwithstanding the European Communities Act 1972, we will legislate where it is in our vital national interest to do so, and require the judiciary to take account of the legislation passed in this House and override European legislation when necessary to restore this country to prosperity and well-being.