European Union Bill

Debate between Austin Mitchell and Kelvin Hopkins

Tuesday 25th January 2011 Commons Chamber

[Austin Mitchell]

I rise to speak for two reasons. First, I do not want all the speeches from Opposition Members to be an unremitting chorus of euro-enthusiasm. My hon. Friend the Member for Luton North (Kelvin Hopkins) and I are stalwart opponents, and I do not want the chorus from the Opposition Benches to be like the slaves chorus from “Nabucco”, singing the praises of the instrument of our own punishment—the European Union. Secondly, I support some of the amendments—81, 8 and 79 in particular.

I am very supportive of amendment 81, which was tabled by Members representing two glorious ports—I did not know they were fishing ports—in Essex, because it involves an important principle. There are constant attempts to remove our national limits, which were agreed when we entered the common fisheries policy in 1972. A few months before we began our entry negotiations, the policy was stitched together to get European hands on our fish, but we managed to preserve some national limits: the 6 nautical miles around most of the English coast, and the 12 nautical miles around north Britain and Scotland. We police the waters up to the median line, or 50 miles.

When I went out on a fisheries protection vessel, I was distressed to find that when the crew detected European vessels over-fishing, they did not have the right of hot pursuit, so all the European vessel had to do was to beetle across the median line and it was safe. My suggestion that the protection vessel should shell and sink the European vessel was taken as an unfriendly act towards Europe and, for some reason, discounted, but it is important to preserve our waters.

My concern arises from the recent Hugh Fearnley-Whittingstall programmes, which provided a very good service by highlighting the problem of discards. They are inherent among fish allocated by catch quotas. Indeed, if one allocates fish by catch quotas in mixed fisheries, one is always going to get discards. The discards increase as the quotas go down, because fishermen are bound to catch fish that are not in their current quota.

Indeed, I wrote to Fearnley-Whittingstall, suggesting that it would be a brilliant idea to establish a very expensive restaurant on a cruise ship that went round picking up Grimsby fishing vessel discards and cooking them for an exclusive clientele at enormously high prices. He does not seem to have implemented it yet, but it is a viable idea. It is very difficult to stop discards when there is equal access to a common resource, but that is the basis of the common fisheries policy to which Ted Heath unfortunately agreed in 1972 as the price of entry into the EU. He was so desperate to go in that he accepted that condition.

We certainly have to work to control our waters, as amendment 82 suggests, and to stop or reduce discards. There are various ways to do that. I am hoping that Fearnley-Whittingstall will come along to the all-party parliamentary fisheries group to tell us his ideas. I will not tell the Committee mine, because I would go off the subject.

[Kelvin Hopkins]

As my hon. Friend knows, I agree entirely with everything he is saying. Does he agree that we could operate British waters in the way that Norway operates its waters? It controls its own fishing grounds, every fishing boat is monitored, there are no discards and there is no over-fishing. It protects its fish in a proper way. That can be done only if countries husband their own resources in their own fisheries. That is the only way forward.

[Austin Mitchell]

My hon. Friend is absolutely right, as usual. The key is the ability of a nation to control its own waters up to the 200-nautical-mile limit, which it would have been sensible to retain, and which we could have retained had we negotiated harder in 1972, but we did not. Only a nation can conserve its own national resource—what is handed on to the next generations of fishermen. The Heath Government made a tragic decision from the point of view of the fishing industry. I want to reverse that, and we should work to do so. I still want to pull out of the common fisheries policy. Perhaps it would require a few gunboats around the coast to establish that.

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[Kelvin Hopkins]

Spanish fleets would not fish in our waters, because the idea is that countries would fish in their own waters. I cannot see the problem and I agree with my hon. Friend.

[Austin Mitchell]

My hon. Friend is absolutely right. The Liberal Democrats are slavish in their idealism of Europe at any price, and will abdicate any British interest to express their devotion to the nefarious construction called the European Union.

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[Austin Mitchell]

During the debate on the exchange rate mechanism, I remember the right hon. Member for Berwick-upon-Tweed (Sir Alan Beith) leading a huge Liberal crowd up and down Whitehall chanting, “Move to the narrower bands now! Move to the narrower bands now!” That was the Liberal party’s contribution to that great debate. It is slavishly attached to European gestures such as the euro, as was our former Prime Minister. The previous Prime Minister, when Chancellor, kept us out. That was a great achievement. He kept us out and warned that the regime was unstable.

There cannot be a common currency without a common Government to back it and redistribute money to the regions that are damaged by the common currency and the higher interest rates imposed by it. The basic problem is that the euro cannot work, because it brings together regimes under one currency that vary enormously in their productivity and power. The southern economies are not only weaker, but insolvent to boot and certainly uncompetitive. Those uncompetitive economies cannot be united in a currency with the powerful German economy, which is extremely competitive. Inflation is kept very low in Germany by investment, the restructuring of the economy and the agreement with the unions to keep wages down. It is impossible for economies such as Greece, Spain, Portugal and Ireland to remain competitive in that situation. To be competitive, they face a constant diet of cuts and attempts to get their inflation rates down to the German level. That is difficult and it has to go on for years. By joining the euro, those countries effectively said that they would deflate their economies, punish their people and face riots in the streets for 20 or 30 years in a desperate attempt—which will not work—to get their levels of competitiveness down to the same as Germany’s. That situation does not work.

[Kelvin Hopkins]

I agree entirely with my hon. Friend again. It is interesting that there has been friction recently between France and Germany because France wants to integrate the whole European economy more deeply and Germany is holding back. Germany can see that it will constantly have to shell out euros—or disguised Deutschmarks—to help the poorer countries in Europe, and it does not want to do that because it would become the paymaster of the whole of the European Union in perpetuity.

[Austin Mitchell]

That is true. Under the old system, the inflation rates in France and Italy were higher than that in Germany, so they were constantly getting out of kilter and becoming uncompetitive. They constantly resorted to devaluing, which brought them back to a competitive level because it reduced their costs of production in terms of foreign currencies. There is a history of France and Italy devaluing. They cannot do that when they are in the euro.

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[Austin Mitchell]

Right, and then it will lapse. Until then, we could be liable for enormous sums. Imagine what the British electorate would say. We have already extended a massive loan to Ireland, even though the Chancellor tells us that our country is over-borrowed and cannot borrow any more because world markets will cancel our credit cards and stop our credit on the bond markets. Suddenly, however, he can borrow huge sums—billions—to help Ireland. He says that it is a one-off and not a precedent, but if it is carried out under article 122 of the Lisbon treaty, it is a precedent for acceptance of a mechanism that is designed to deal with natural disasters.

The hon. Member for Stone hoped that the mechanism would be ruled illegal by the European Court, but I have given up faith in the European Court. It never rules how I want it to rule, whereas our courts do sometimes. It is probably composed of Liberal Democrat jurists, for all I know. It certainly gives that appearance.

[Kelvin Hopkins]

Again, I agree entirely with my hon. Friend. The ECJ has shown itself to be a political organ, not a legal one, by taking the side of employers in the Viking Line dispute and other cases. It is a court of the business class and of big business, not a court for ordinary people.

[Austin Mitchell]

That is true. It gives any verdict one wants, provided that it supports and advances the EU. That is the nature of the European Court, so should we ask that body to rule on the legality of treating article 122 as an all-purpose rescue operation to which we have to contribute?

The Minister smiles—indulgently, I hope. I hope that he will explain the Government’s view on the matter, because to my mind it is crucial that amendments 8 and 79 are accepted. I am glad to hear that the hon. Member for Stone will force a vote, because they are key amendments. We need to be sure that the British electorate will not be faced with a series of massive loans, such as the Irish loan, to support Portugal, for instance, or Spain if things go belly-up there. That is quite possible, and the costs there would be huge because Spain has a much bigger population than Ireland, Greece or Portugal. Why should an electorate who are facing a blitzkrieg of massive cuts and tax increases welcome with joy a decision to fork out more billions to help people whom we warned that they were entering into a disastrous situation by taking on the euro? That would be totally unacceptable, and the Government would be laughed out of court.

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[Austin Mitchell]

Oh it is difficult talking to Liberal Democrats! I did not actually say that we would be outside the effects of the euro. In fact, the foolish deflation that is going on all over Europe damages us, because half of our trade is with Europe and we want our exports to Europe to increase. With our ability to devalue, we have the ability to increase our exports, and they are increasing for the first time in many years—thanks to devaluation. I want markets in Europe to be healthy, but I do not want the British taxpayer to be asked to support Europe in its folly.

[Kelvin Hopkins]

I want to reinforce what my hon. Friend is saying. We have a massive trade deficit with the rest of the EU. Even if in some mad world we decided to have a trade block, that would be beneficial. We would have more money to spend on our own things and to generate our own economy, and more money to spend elsewhere in the world. The idea that we benefit massively in trade from the EU is complete nonsense. It benefits massively from having us next door.

European Union Bill

Debate between Austin Mitchell and Kelvin Hopkins

Tuesday 7th December 2010 Commons Chamber

[Austin Mitchell (Great Grimsby) (Lab)]

I am enthusiastic about speaking on this Bill, because I would not want the views of Labour Members to be taken to be the extrusion of Euro-cant that has poured in from Rotherham and the Rhondda. The views of some Labour Members are much more in tune with what our voters think. My hon. Friend the Member for Vauxhall (Kate Hoey) has given us a clear indication of those views.

The problem is whether the Bill is worth supporting. It is a sad little Bill that should really be called the “Closing of the stable doors after every horse has bolted across the countryside” Bill. I am sure that the nation wants a referendum on this issue. It wants to be consulted and wants its say on Europe, but it has not been allowed it since 1975, when it was consulted on something totally different called the Common Market—a harmless, fun place that was going to make the weather better and make everybody happy. That is the last time that people were consulted, and they now want to be consulted on the shape of the current monster that is taking more and more powers.

This Bill does not provide for that consultation. The Conservatives told us in opposition, and I think in their manifesto too, although I do not have it here to check, that they were going to repatriate criminal justice and the laws on social and employment issues, but that has all gone. The stable is empty, for practical purposes, and I see the pathetic spectacle of the Foreign Secretary stood at the stable door after he has closed it singing “Will Ye No Come Back Again?” to the horses from Europe galloping all over the United Kingdom’s countryside.

The Liberal Democrats’ approach was even more comic. They promised us a referendum on the treaty and then suddenly became aware of the fact that it would be defeated if it were put to a referendum. They therefore changed what they were asking for from a referendum on the treaty, which they said was no longer a treaty, to a referendum on “in or out”, with which they thought they might stand a better chance. However, they knew that nobody would give them such a referendum; they were trying to get a referendum that was an impossibility.

I cannot be over-critical because my own party’s position was, at best, ambiguous. We said, “Yes, we shall have a referendum”, and then we said, “Well, this isn’t really a treaty—it’s something else.” Perhaps it was a German sausage or something; I am not quite sure what it was supposed to be. Anyway, we said, “It’s not a treaty worth having a referendum on; it’s something else, and therefore we won’t give you a referendum.”

This is a history of betrayal by all three parties, and we have to make good to the people, who want a referendum. There is a need for a referendum, but this Bill does not provide for it. As my right hon. Friend the Member for Normanton, Pontefract and Castleford (Yvette Cooper) said, it will be a lawyer’s charter, and one that ignores much of what is going on in Europe. What is going on is the steady process of accretion of power, money and control over this country.

We should look at the increasing costs of Europe. The annual budget contribution is now £7 billion, and rising because of devaluation—it will rise to £10 billion fairly shortly. There is £2 billion for projects such as Galileo, which will build, at enormous expense, a satellite guidance system that the Americans already provide for free. There is £8 billion for the costs of the common agricultural policy, which comes from buying food on a dearer market when it is available more cheaply elsewhere. There is £2.8 billion for the costs of the common fisheries policy, with our fish being caught by foreign vessels and taken to Europe to provide jobs there. There is the cost of regulation, which has been calculated at £20 billion. Then we can add the cost of the monstrous machinery of the new foreign service, the European External Action Service, which will be more expensive than our own Foreign Office. All its ambassadors will have, at enormous cost that we are paying for, bullet-proof cars and bomb-proof embassies. If we add that lot together, we get to £40 billion—perhaps more. If we were not paying this Eurogeld every year, across the exchanges, we would not need the diet of cuts that the Chancellor and the Liberal Democrats are proposing for us.

[Kelvin Hopkins]

My hon. Friend has omitted to mention—I know that he knows this to be true—that we have had slower growth in the European Union than we would have had had it not existed. We had faster growth when we had stable but separate currencies, and that led to the prosperity that we knew in the post-war era. Slower growth in the European Union, which has been compounded over many years, means that we are now less well-off than we would have been had there not been a European arrangement.

[Austin Mitchell]

My hon. Friend is exactly right. We have suffered from slower growth, and now we have a 25% devaluation. We cannot generate the exports that we want because of the deflation in Europe that is necessary to heal the problems of the euro.

That brings me to the second problem that I want to deal with. Not only have the horses bolted from the stable, but it is on fire as the crisis of the euro continues. We warned Europe that it would not work and it has not worked. One exchange rate and one interest rate cannot cover the varied circumstances of Europe. A central Government is needed to redistribute to areas that suffer from the single currency and the single interest rate. Countries all have different rates of inflation. It is impossible for the weaker economies to get down to Germany’s low rate of inflation. The result is that their trade suffers, because they cannot get export prices down to a competitive level. Gaps have therefore emerged and those gaps have led to a crisis, and Europe’s way of dealing with that is to dole out more funds from a big bucket—a bucket to which we have contributed in the case of Ireland.