European Union (Approvals) Bill [Lords]

Bob Stewart Excerpts

Monday 4th February 2013 Commons Chamber

[Damian Green]

It is fair for the House to assume that were it equivalently done on the basis of previous treaties, the precedent set by the decision would apply, but I would hesitate, off the top of my head, to take that any further.

I turn now to the detail, starting with the electronic version of the Official Journal of the European Union. The Official Journal is the gazette of record for the EU. It is published every working day and records the decisions made and legislative acts of the EU institutions. The electronic version of the Official Journal has existed in parallel with the print version for some years, but a European Court of Justice judgment found that only the printed version was authentic. EU legislation is necessary, therefore, to enable the electronic version to have legal effect.

The EU institutions believe that if publication of the electronic version is given legal effect, access to EU law would be faster and more economical. At the moment, anyone wishing to access the authentic version must order and pay for printed copies of the Official Journal. This proposal will not affect those who wish to continue to have access to the printed version. This is a sensible measure in a world in which electronic communications have revolutionised how information is distributed and accessed. It will have no significant impacts or effects on the UK.

The second proposal for which the Bill seeks to provide approval is the work programme of the Fundamental Rights Agency, established in 2007. Its role is to support the European institutions and member states—when they are acting within the scope of EU law—to take measures and actions that respect fundamental rights. The agency does this through the collection and analysis of information and data. It also has a role in communicating and raising awareness of fundamental rights.

The agency’s work is regulated by a five-year work programme setting out the thematic areas of the agency’s activity. These must include the fight against racism, xenophobia and related intolerance and be in line with the European Union’s current priorities. The work programme, defined by the Council of Ministers, gives the member states control over where the agency undertakes its work.

The agency’s first work programme covered the period 2007 to 2012. In December 2011, the Commission brought forward a proposal for a new work programme to cover the period 2013 to 2017. The proposal was amended through negotiations. The measure for which approval is sought very much continues the themes set out in the previous work programme, although there are some adjustments in the terminology.

The agreement of a new work programme will not alter the tasks of the agency, and nor will it change the agency’s role or remit. The work programme does not set out or define these elements. Those are set out in a completely different instrument—the agency’s establishing regulation—and that instrument is not under review at this time. The work programme simply sets out the themes under which the agency will work. Failure to agree the work programme will deprive the Council of the opportunity to set the direction for the agency by defining these themes.

I turn now to the third element in the Bill: the draft decision to maintain the number of EU commissioners at the equivalent of one per member state. The proposed reduction in the size of the commission and the subsequent loss of a guaranteed commissioner emerged as a concern of the Irish during the ratification of the Lisbon treaty. In order to secure Ireland’s ratification of the treaty, it was agreed that a decision would be taken to maintain the number of EU commissioners before the appointment of the next Commission in 2014. The European Council has put forward the draft decision to fulfil the commitment made to Ireland.

This Government are committed to creating a leaner, less bureaucratic European Union and to improving efficiency in the EU institutions, including the Commission. We believe there is significant room for savings in administration and will continue to push for substantial reductions in the EU’s administrative costs. However, it is also important that the UK maintains its EU commissioner. By agreeing to this draft decision, the UK will retain its guaranteed commissioner and be in a stronger position to influence the make-up of the next Commission. Furthermore, the draft decision states that it should be reviewed before a new Commission is appointed, in 2019, or when the number of EU member states reaches 30, whichever is earlier. The draft decision does not give the go-ahead for the Commission to continue expanding ad infinitum.

I hope the House will agree with our assessment that these measures, although necessary, are administrative in nature, improving the accessibility and legal certainty of the EU’s official record, providing an EU agency with a work programme and fulfilling a commitment to the Irish people.

[Bob Stewart (Beckenham) (Con)]

Does this mean that we will be able to get an electronic version of what has happened in the European Union within, say, three hours, as we do for proceedings in this House, and that if one does not have that, it will take several days to get a printed version?

[Damian Green]

My understanding is that there will be no alteration to the accessibility of the printed version. The electronic version already exists; this Bill means that it can be taken as an authentic record of what has happened. The Bill simply changes the status of the electronic record, which—I am told—is published every day. I hope that will assuage my hon. Friend’s concerns, and I commend this Bill to the House.

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[Chris Heaton-Harris]

I completely understand the cultural point that the hon. Gentleman makes, but the European Central Bank uses only a couple of languages and many international institutions manage to cut down the number of languages they use, and they do so purely to keep costs down. The European Commission, the European Parliament and other European institutions do not do that and perhaps they should examine their approach. I merely wanted to make that point in relation to how difficult it is to produce the Official Journal for the very next day in written and electronic form. The Government have given political—not legally binding—agreement to the proposed regulation, with the Council supposedly ready to adopt it and the European Parliament having given its consent.

The Bill also deals with the proposed EU decision establishing a multi-annual work programme to cover 2013 to 2017 for the European Union Agency for Fundamental Rights. Again, one can give a parting shot, at least, about the growth in the number of these EU agencies; there is a huge number now and, as with commissioners, one at least has to go to each member state. In 2007, the EU adopted a regulation, based on the flexibility clause, establishing the agency, which is based in Vienna. Its objective has been outlined by the hon. Gentleman, but according to article 2 of its founding regulations it is to provide “assistance and expertise” to support member states in fully respecting fundamental rights. Under article 4 of its founding regulations, the agency’s activities include: gathering, analysing and disseminating information; publishing reports; and developing “a communication strategy” and a

“dialogue with civil society, in order to raise public awareness of fundamental rights”.

In 2013, the agency will receive a subsidy of €21.3 million from the EU budget, about half of which will be spent on staffing. According to article 5 of the agency’s founding regulation, the Council needs to adopt five-year multi-annual frameworks that set out

“thematic areas of the Agency’s activity, which must include the fight against racism, xenophobia and related intolerance”.

In addition to the multi-annual framework, the agency can respond to requests from the Council, the European Parliament or European Commission for it to conduct studies or produce conclusions on particular topics.

The draft Council decision before Parliament is the proposed multi-annual framework for the four years between 2013 and 2017, proposed by the European Commission on the basis of the flexibility clause. Under that decision, the thematic areas of the agency’s work in that time period will be: access to justice; victims of crime, including compensation for victims of crime; the information society, particularly respect for private life and the protection of personal data; Roma integration; judicial co-operation, except in criminal matters; the rights of the child; discrimination based on sex, race, colour, ethnic or social origin, genetic features, language, religion or belief, political or other opinion, membership of a national minority, property, birth, disability, age or sexual orientation; immigration and the integration of migrants, visa and border control and asylum; and racism, xenophobia and related intolerance. The Government have given political but not legally binding agreement to the proposed decision. The Council is apparently ready to adopt the proposal and the European Parliament has already given its consent.

That leaves us with the final measure, which is probably more controversial than was originally said: the retention of one European commissioner per member state under clause 2. The European commission consists of one national of each member state, so there are 27 commissioners and there will soon be 28 when Croatia comes in. Following great debate in the European Parliament and many other EU institutions and in the Parliaments of many member states, the treaty of Lisbon introduced the ratio of two thirds commissioners to member states. The logic was quite sensible: it was an attempt to stop bureaucracy growing out of control and to maintain some easier management of the bureaucracy from the top. The member states whose nationals would be commissioners would be decided

“on the basis of a system of strictly equal rotation between the Member States, reflecting the demographic and geographical range of all the Member States”.

The system would be agreed by unanimous decision at the European Council and each commissioner’s term would be five years.

Article 17(5) of the treaty on European Union states that the European Council, acting unanimously, can vary the size of the Commission from November 2014. As the Government’s explanatory notes to the Bill state in paragraph 12:

“when the Irish people voted ‘no’ in a referendum on Lisbon Treaty ratification in June 2008 the loss of a guaranteed”

Irish commissioner in every Commission

“emerged as a key concern. Without Irish ratification the Treaty could not enter into force, and as a result EU Heads of State and Government offered concessions to Ireland”.

One of the main concessions, offered in December 2008 and reiterated in June 2009, provided that when

“the Lisbon Treaty entered into force, a decision would be taken…to the effect that the Commission shall continue to include one national of each Member State”.

Those concessions seemed enough for the Irish people, who voted in the second referendum in October 2009 and approved that treaty.

The draft European Council decision based on article 17(5) has now been introduced and provides that from November 2014 onwards that the number of commissioners will continue to equal the number of member states. The draft decision states that it will be reviewed in advance of the appointment of the Commission due to take office in 2019, but for the decision to be altered there will need to be unanimity in the European Council, meaning that any member state can veto such a change. Having a European commissioner is a big deal for many, if not all, of the countries of the European Union, so it is highly unlikely that the change will ever be made. We will therefore continue to build on the number of European Commissioners.

[Bob Stewart]

Does that mean that every European Commissioner will need a department to be built to support them or will there be commissioners without portfolio?

[Chris Heaton-Harris]

I shall address that point in a moment, but yes, no commissioner is merely in charge of paper clips. Every commissioner needs a cabinet—a group of people around them from the top of the civil service—and normally brings an extra language with them, so a huge amount of cost and bureaucracy is associated with it.

The Government have given political but not legally binding agreement to the proposed decision, which is scheduled to be formally adopted by the European Council some time this year. Agreeing with the decision sits slightly oddly with something that the Prime Minister said in his speech on EU policy last week under the theme of competitiveness:

“Can we justify a Commission that gets ever larger?”

That is a fair question, considering that many other European bodies—the European Court of Auditors, for example—have an appointee from each member state, and work by having so many cooks making this particular broth. Appointments to EU agencies, as I have said, seem to be farmed out nearly one per member state, and it has almost got to the point where we need to have a serious discussion about how, if the European Commission is to work effectively, that can be done.

It is a particularly thorny issue, and warrants much more discussion. It is amazingly political. As I have said, it was one of the more important assurances gained by the Irish to secure a yes vote in their referendum. Everyone in Parliament will remember that the UK, along with four other large countries, had two commissioners, but we gave up our second commissioner with the enlargement of the EU in 2004. It is de rigueur in the EU for each country that comes into the club to get a commissioner—a seat at the main decision-making table in Europe. While that is a fine principle, it brings with it, as my hon. Friend the Member for Beckenham (Bob Stewart) suggested, some powers to guide and oversee, but also a mass of bureaucracy. I believe that that is one reason why my right hon. Friend the Prime Minister raised that question in his excellent speech at Bloomberg the other week.

One does not have to be pro-European or Eurosceptic to see that the European Commission has become unwieldy in size, and while this might not be the time to sort out the issue for good, it would be a good opportunity to raise this thorny issue for discussion with our European counterparts. With many new accessions down the line, it seems that this is an opportunity missed. Certainly, it would be an interesting discussion to have at roughly the same time that the multi-annual financial framework is decided. I wonder, if we had a reasonable debate on the subject, whether proposals at least to trim the Commission’s total budget for the next seven years could be achieved, even if it is not possible to trim or cap the number of commissioners.

I conclude where I began. It is really good to see some proper scrutiny as a result of the European Union Act 2011. I thank the Government for introducing that excellent piece of legislation and for sticking to both the letter and the spirit of it.

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[Bob Stewart]

It might not be of much importance that the electronic publication of the Official Journal goes ahead, but I put it to my hon. Friend that it is pretty important how many commissioners are appointed, because that has a direct spin-off in cost terms.

[Jacob Rees-Mogg]

There are two parts to my hon. Friend’s point. On the first part, I disagree with him. The form in which instructions are sent out is important, and it is right that people should know about it. It is a long-standing principle of our law that ignorance of the law is no excuse. If that is fair, it is also fair that knowledge of the law should be made available to people in a timely and efficient way, because it is something that might affect their lives, and that when a change to the method of notification takes place, that should be debated in this Chamber and passed into law. On the second part, I completely agree that the number of commissioners is significant.

The second point that I raised with my right hon. Friend the Minister is crucially important. It relates to the change from article 308 of the previous treaty to article 352 of the treaty on the functioning of the European Union. Article 352 is broader in scope. Had it been assumed that anything previously incorporated under article 308 could be transmuted under article 352, that could have allowed all sorts of laws—my hon. Friend the Member for Daventry (Chris Heaton-Harris) went through a number of them—to pass into the body of European Union powers without any further scrutiny by this House. As is often the case, something that is in itself minor has set an important precedent in protecting the rights of this House to scrutinise these matters and to ensure that the interests of our constituents are protected.

I wish briefly to discuss the number of commissioners. I do not have the confidence that some hon. Members have in our commissioners, and I do not feel happy that we have one representing us. Commissioners take an oath that they will act in the best interests of the European Union. Some have argued that that is directly contrary to the oath that they have taken as Privy Counsellors, and we should be concerned about that. They are there, by design, to represent the interests of Europe, not of the United Kingdom. Perhaps because of our history and our civic traditions, our commissioners tend to take that very seriously, whereas commissioners from some other countries may simply represent the nation state that has sent them. I do not have great confidence that the person representing the United Kingdom is waving the Union Jack; they could just as well be waving that awful European Union flag.

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[Mr Cash]

I do not want to be drawn too far down that route, but the simple reason for primary legislation is that, without it, there would not be adequate legislative authority, even for the questions that arise under this Bill.

I shall now turn to one or two issues relating to the Bill that required a considerable amount of consideration by the European Scrutiny Committee. I will give a tiny bit of history on the multi-annual framework for the European Union Agency for Fundamental Rights, but I will try to be as brief as possible. The Justice Minister, Lord McNally, stated in an explanatory memorandum that was issued to the House and the European Scrutiny Committee in January 2012 that he thought that the proposal was justified. He said that the Government would have opposed the proposal to extend the multi-annual framework, but wanted to consider whether the technical issues that they disliked had been addressed.

The European Scrutiny Committee reported on the proposal on 1 February 2012. We asked the Government whether they accepted the view of the European Commission that

“with the entry into force of the Lisbon Treaty, the Agency’s remit automatically extends, in principle, to all areas of EU competence under the TFEU, and that the Agency may therefore undertake activities within the field of police and judicial cooperation in criminal matters without any further amendment to its founding Regulation”.

We questioned the Government’s view that this decision satisfied the exemption requirements under section 8(6)(a) of the 2011 Act and would not require an Act of Parliament. Our 10th report, which was published on 17 July 2012, set out our concerns in greater detail. The draft decision remained under scrutiny.

The former Lord Chancellor, who is now the Minister without Portfolio, told the European Scrutiny Committee in July 2012 that a political agreement had been reached on the draft decision which excluded any new activity covering EU policing and criminal law measures. In a letter that he sent on 22 November, he told the European Scrutiny Committee that, having heard what we had said, the Government were now—although they had not been before—of the opinion that the exemption did not apply in this case, and that primary legislation would be introduced.

That is why we have this Bill—the European Scrutiny Committee did its job and asked for further clarification. [Interruption.] I am extremely grateful to the Under-Secretary of State for Foreign and Commonwealth Affairs, my hon. Friend the Member for Boston and Skegness (Mark Simmonds), for nodding his head, because sometimes people wonder what all the detail is about and whether we have to be so intricate. The bottom line is that the European Scrutiny Committee, by pointing out the legal objections and having a dialogue with the Government, who in turn had a dialogue with the European Commission, helped to make the legislation better. We helped to guarantee that there would be primary legislation and that, in the absence of the authorisation through the 2011 Act that had been deemed to be appropriate, this House would have the opportunity to consider the matter in the way we are considering it today. Indeed, after this debate, there will be a Committee stage and a Report stage.

The European Scrutiny Committee reported on the proposal again on 28 November. We cleared the document, but in January 2013 we pointed out to Ministers that the Government’s uncertainty about whether the exemptions applied to this decision had prevented the new measure from being agreed in good time. That is the history of this matter and it is important to put it on the record.

The draft decision on the number of European Commissioners provides another example of the European Scrutiny Committee takings its findings to the Government and, thereby, to the Commission. We received an explanatory memorandum and a letter from the Minister for Europe on 27 September. He stated that the size and composition of the European Commission was a fraught subject. He went on to say that it was difficult to identify a solution that was equitable, legitimate in terms of the relative size and weight of different European countries, and efficient. That is all in our report.

The European Scrutiny Committee considered the draft decision in its 13th report, which was published on 2 November 2012. We noted that because of delays in the draft decision being communicated to member states and because Parliament was in recess, it was not possible for us to scrutinise the proposal before political agreement needed to be reached on the draft decision at the General Affairs Council on 16 October 2012.

I put that on the record because it is important that these matters have a proper legal base and that Parliament has an opportunity to debate them. We are having this debate on the Floor of the House, so it is open to any Member of Parliament to discuss these proposals, to oppose them, to examine them in Committee and to table amendments.

[Bob Stewart]

Will my hon. Friend give way?

[Mr Cash]

I will give way in just a moment, if I may.

The problem is that when we provide for amendments to be made to matters that have been through the Council of Ministers, we are obliged under section 2 of the European Communities Act 1972 to continue to pass that legislation through our Parliament. That poses the very questions regarding the role of national Parliaments that the Prime Minister raised in his recent speech. The European Scrutiny Committee is currently conducting an inquiry into scrutiny and that is among the matters that we are considering.

If the House of Commons—or indeed the House of Lords, although I will stick to the House of Commons for my purposes—were to take exception to a provision that was included in an Act of Parliament for lack of a legal base or for some other substantive reason and wanted to vote against it, that would raise the very question that was embedded in the White Paper of 1971, which led to the passing of the 1972 Act. Under section 2 of that Act, we must implement all decisions that have been decided in the Council of Ministers, irrespective of any other factors. Under section 3, we must agree to all decisions of the European Court.

In the context of the Prime Minister’s speech— I welcome his comments on the referendum, although I think it will come too late—we have to evaluate where the power lies in passing legislation. We need an Act of Parliament for the provisions contained in the Bill for the reasons that have already been given, which I endorse. However, could Parliament veto the provisions that it covers if we did not want them to go through? We should be allowed to do so, and that will be part of the inquiry that the European Scrutiny Committee is now conducting. It is difficult to justify to the British people the fact that if they vote in a general election to have certain legislation implemented, they can then find that it is all decided in the Council of Ministers, where 91.7% of votes go in favour of European proposals. That brings up the whole business of how UKRep advises, or even decides, on such legislation, which is a vital question that affects the daily lives of this country’s voters.

[Mr Cash]

It is difficult to make sense of a lot of things that come out of the European Union, and I am reminded of what Alice said in “Alice’s Adventures in Wonderland” about believing half a dozen impossible things before breakfast every day. That is possibly one example.

The reality is that there are 27 member states, and there was a lot of discussion about whether there should be an equivalent number of commissioners. It was decided that each member state would continue to have a commissioner. I understand well what my hon. Friend says, and it is quite difficult to justify given countries’ comparative size, geography, GDP and so on. On the other hand, if some countries were to be denied a European commissioner, I suppose some people would say that they were being treated unfairly. Finally on the number of commissioners, I have argued in the past that the European Commission should be relegated to the role of a secretariat rather than the role that it currently enjoys.

[Bob Stewart]

My hon. Friend has eloquently, and at some length, posed and answered the question that I was going to put to him earlier. I was going to say that whatever we do here, it will have no impact on the number of commissioners.

[Mr Cash]

That is correct, given that the veto that was promised to us has been taken away.

Right at the beginning, when the European Communities Act 1972 went through, the functions of the European Union were fairly restricted. Up to the Single European Act in 1986, which I voted for, there were a limited number of qualified majority voting arrangements. That Act greatly expanded them, and I tabled an amendment at the time suggesting, “Nothing in this Act shall derogate from the sovereignty of the United Kingdom Parliament”. I was then advised by the Clerks—indeed, I went to the Speaker about it—that it was not possible to move such an amendment, because it would challenge the fabric of the 1972 Act. Time has moved on, and qualified majority voting is now used in a lot more cases.

There was a qualification in the 1971 White Paper, which led to the passing of the 1972 Act by a mere six votes. It stated that there would be no essential erosion of British sovereignty, and that we would have to retain the veto in our vital national interest, because doing otherwise would undermine and endanger the very fabric of the European Community itself. I repeated that point the other day and will do so again and again, for one reason—the mass of legislation that there has been since the referendum in 1975, including all the treaties, with some 35 million people in this country never having had an opportunity to express their view on that legislation. As I said in The Times the other day, treaty after treaty has gone through on a three-line Whip, without a referendum. There has been a vast accumulation of qualified majority voting, and all that legislation has been passed.

The Bill contains just one provision. Matters that would normally require a Bill have gone through both Houses of Parliament without one, but this one, which is based on a few lines in a directive or regulation, is in a Bill. There is a complete mismatch in proportionality in how we legislate.

There may well be no Division this evening, but that does not alter the fact that we have done our job, both in the European Scrutiny Committee and in the House, by examining a matter that would otherwise not have had a legal base under article 352. It is dangerous to legislate without having the power to do so. The rule of law is essential to the running of a stable Government and a stable European Union—if there is to be a European Union, it had better be stable and in accordance with the rule of law. Increasingly, the EU is demonstrating its lack of regard for the rule of law on matters such as the stability and growth pact. We also see it in the unlawful manner in which 25 member states went ahead after the Prime Minister had exercised the veto. There are many other examples. When a body that vaunts the rule of law as much as the EU is blatantly in breach of its own rules, there is trouble ahead.

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[Mr Chope]

In that case, Mr Deputy Speaker, I shall raise my voice to make it obvious that this is not a private conversation. My hon. Friend the Member for The Cotswolds (Geoffrey Clifton-Brown) would like to have this conversation on the record—it certainly would not be on the record if it took place in the Tea Room. The short answer to his question is that we have a great opportunity, because the FRA has its multi-annual framework approved every five years. If we believe it has the wrong priorities, this is the moment to change it. The Bill could be amended to reflect the concerns of this Parliament.

[Bob Stewart]

I will talk directly to you, Mr Deputy Speaker, but also to my hon. Friend on my right flank. It would be impossible to amend the framework. As my hon. Friend the Member for Stone (Mr Cash) said, what hon. Members say will have little impact on the final decision.

[Mr Chope]

I hope that that is not correct. My hon. Friend is demonstrating pessimism—or realism.