UK Parliamentary Sovereignty and the EU

Chris Bryant Excerpts

Tuesday 15th June 2010 Westminster Hall

[Chris Bryant (Rhondda) (Lab)]

It is a great pleasure to see you chairing the debate, Mr Streeter. Following the contributions this morning, I think the Minister and I will be the more pro-European contributors, which is perhaps ironic. I congratulate the hon. Member for Stone (Mr Cash) on securing the debate and on his consistency, constancy and determination. I am sure he will apply as much rigour to his scrutiny of the new Minister for Europe as he did to that of the previous one; indeed, if anything I suspect his scrutiny will increase slightly. I am sure he will look forward to that. I, too, pass on my condolences to the hon. Gentleman; he spoke movingly about his father and mother. Many of the positions we adopt on European matters spring not only from an intellectual position but from an emotive argument that has sustained itself in our hearts. I do not say it is a bad thing; it is an entirely laudable one.

One area on which I agree with the hon. Gentleman is European scrutiny: we still do not do it properly—not only in this House but across Parliament. It tends to be done by a very small number of people who could perhaps be described as obsessives or anoraks—I include the hon. Gentleman, my hon. Friend the Member for Luton North (Kelvin Hopkins) and myself in that category—and we need to find a means of doing it better. The hon. Gentleman is right: we rarely vote on European matters and that ought to change. I have never understood why European affairs debates have to be on the motion for the Adjournment or a general debate. I do not know why they cannot be on a substantive motion before the House, which might encourage the Whips to take a greater interest in ensuring that more people attend such debates, and might extend the range of issues that we discuss. The focus is often narrow—on what is going on in the European Union—rather than broad.

My hon. Friend the Member for Luton North and I both nominated the same person for leadership of our party, but we may end up voting for different candidates. I say gently that I also believe in democratic socialism, but I do not believe that it can be built in one country alone. We have to strive for it internationally, because the rights and principles that one adheres to apply to all.

[Kelvin Hopkins]

The candidate that my hon. Friend and I nominated is a Eurosceptic.

[Chris Bryant]

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.

[Mr Cash]

Will the hon. Gentleman give way?

[Chris Bryant]

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.

--- Later in debate ---

[Mr Lidington]

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.

[Chris Bryant]

Before the Minister’s speech, we were told by the Government that a committee will be set up to do such work. Now, however, he seems to be saying that there will not be a committee, but just a general process of cogitation, regurgitation and general thinking. Does he describe that as the backburner or the long grass?

[Mr Lidington]

It is certainly not the long grass. The work has already started, but it requires proper consideration. I understand the hon. Gentleman’s impatience and eagerness for an outcome to this exercise, but given that we are only a month into the new Administration, he will have to bear with us a little longer before we come to a conclusion. I can assure him that as soon as a decision is taken, we will make a statement to Parliament, so that he and other hon. Members can question and challenge us on the outcome of that debate within Government.

The Government have been clear about what we intend to propose in legislation at the earliest opportunity. We have agreed that there should be no further transfer of sovereignty or powers from the United Kingdom to the EU over the course of this Parliament, and that commitment is written into the coalition programme. The Government are also committed to increasing democratic and parliamentary control, scrutiny and accountability in relation to EU decision-making. We will introduce a Bill to ensure that the British Parliament and the British people have more of a say, and that will increase the democratic accountability of the European Union. The Bill that was listed in the Gracious Speech has two main elements: a referendum lock and greater parliamentary control over the use of the so-called passerelle or ratchet clauses in the Lisbon treaty.

Let me describe briefly what we propose in terms of a referendum lock, although my hon. Friend the Member for Stone and the House will appreciate that very detailed work is now going on to determine the precise language of the Bill. Any proposed future treaty that transferred competences or areas of power from the UK to the EU would be subject to a referendum. No Government would be able to pass more powers to the EU unless the British people had agreed that they should be able to do so and no Government would be able to join the euro unless the British people had agreed that they should do so.

My hon. Friend said that there might be an attempt to bring about treaty change to create some form of economic governance in light of the current financial crisis. I can say to him that there is no consensus so far even in the euro area that there should be a further treaty. Any EU treaty, even one that applied only to the euro area, would need the unanimous agreement of all 27 member states, including the UK. Each of those 27 member states would have a veto. Even in the case of a hypothetical treaty that the British Government were prepared to endorse, the fact remains that any treaty that proposed to transfer powers from the UK to the institutions of the EU would require a referendum for ratification, under the terms of the programme for Government that the coalition has set out.

We also plan to change the law so that any Government would be required to pass primary legislation before they could give final agreement to any of the so-called ratchet clauses. There is a variety of those clauses; there is no easy definition of a ratchet clause. Some provide for modification of the treaties without using the ordinary revision procedure and some are one-way options that are already in the treaties, whereby EU member states can decide together to exercise those options, and which allow existing EU powers to expand. There are options, for example, in the common foreign and security policy, in justice and home affairs, and in environment policy. Besides the provisions on primary legislation, in our Bill we will also ensure that the use of any major ratchet clause that amounts to the transfer of an area of power from the UK to the EU would be subject to a referendum.

My hon. Friend the Member for Stone and the hon. Members for Luton North (Kelvin Hopkins) and for Rhondda (Chris Bryant) spoke about the inadequacy of our current system of parliamentary scrutiny of European legislation. The Government plan to improve the scrutiny of EU decision making, and getting the scrutiny system right is a very high priority for us. I am currently examining ways of strengthening the existing system of parliamentary scrutiny and I am keen to discuss proposals with the new Scrutiny Committees of both the House of Commons and the House of Lords, once they are formed. I hope that they will be formed in the very near future.

[Mr Lidington]

The hon. Gentleman makes a clear point that we in Government and the House as a whole will want to bear in mind when it comes to taking decisions about the scrutiny process. It is also important that we look at the practice of scrutiny in other EU member states. I had a meeting last week with the chairman of the Swedish scrutiny committee, and we are exploring the models of scrutiny that are in use elsewhere in the EU, to see whether there are any aspects of those processes that we might usefully adapt for our own purposes here.

[Chris Bryant]

The Minister is being very generous in giving way. I sensitively suggest to him that most other member states conduct scrutiny remarkably worse than we do, which is quite a thing to be able to say.

In addition, all I would say to the Minister is that we still do not have the European Scrutiny Committee set up. For the life of me, I cannot see why the chairmanship of that Committee was not established when the other Select Committees that we have already elected were established. Also, I hope that a new scrutiny reserve resolution will be tabled fairly soon. I urge the hon. Gentleman to try and make this issue as much a matter for the House as for the Foreign Office, because it should be a matter for the whole of the House to decide on.

[Mr Lidington]

I take very seriously the points that the hon. Gentleman has made. He also asked me about the new Cabinet Committee on European Affairs. That Committee is chaired by my right hon. Friend the Foreign Secretary, and the deputy chairman is the Secretary of State for Energy and Climate Change. It has met; it met for the first time last week. However, I must disappoint the hon. Gentleman by saying that it does not meet, and does not intend to meet, in public. There is no difference in that regard to the system for any Cabinet Committee. Members of the devolved Administrations are not members of the Cabinet Committee on European Affairs but they continue to meet under the aegis of the Joint Ministerial Committee on Europe, to prepare for the European Councils each year.

[Chris Bryant]

Waste of time.

[Mr Lidington]

The hon. Gentleman says that, but we want to make our relationships with the devolved Administrations work a lot better than they used to during his time in office; that is one of the differences that the new Government intend to make. We want to turn not only those formal meetings but our regular contacts with our colleagues in the devolved Administrations into something that informs the development of our approach to European affairs. Now, having said that, I must press on.

My hon. Friend the Member for Stone asked questions about a number of detailed issues and I want to reply very quickly to those questions. So far, there are no proposals at all on the table that would require the UK or any other member state to submit its budget plans to the Commission in advance of informing Parliament, and my right hon. Friends the Prime Minister, the Foreign Secretary and the Chancellor have all made it clear that we would be utterly opposed to any such proposal.

My hon. Friend is right to draw attention to the importance of some of the current proposals on financial services, which are with the European institutions now. In particular, the de Larosière package on financial supervision is a matter of primary importance to the interests of this country. Yesterday, in both the formal proceedings of the General Affairs Council and in bilateral conversations with some of my counterparts from other countries, I said that we wanted to see the unanimous agreement that was reached on the proposal at ECOFIN in December 2009 maintained in any future drafts of that proposal.

The hon. Member for Luton North asked about agricultural policy reform. The Government remain committed to a policy of common agricultural policy reform that would see an end to the direct subsidy of production, a reduction in the external tariffs on foodstuffs, bringing them down to the same level of external tariffs that apply on other goods, and an end to the practice of dumping EU produce on the markets of developing countries, which undercuts those countries’ own farmers.

A number of hon. Members spoke about excess EU regulation. I know that both the Cabinet Committee on European Affairs, which I am a member of, and the Regulatory Sub-Committee of the Cabinet Committee on Economic Affairs will be keeping a very close eye on that issue. Excess EU regulation comes not only from Europe itself. Too often, there is gold-plating in Whitehall of European legislation, which is something that we are also determined to guard against.

My hon. Friend the Member for Stone said one thing that I will quarrel with him about—in a good-humoured manner—and it was about EU enlargement. I disagree with him on this issue. I think that the enlargement of the EU has entrenched political stability, the rule of law and democratic institutions in Spain, Portugal, Greece and in central and eastern Europe. It is actually a tremendous achievement on the part of the EU. If one contrasts the picture today in those parts of our continent with what we saw in those same countries in the 1920s and 1930s, I think that the advantages and the strengths of the EU’s approach are demonstrated.

My hon. Friend rightly said that many people in Europe are frightened, angry and disillusioned. That is why we need to push forward a positive British agenda, to get European people back to work, to free up markets, to enhance free trade with the rest of the world and to demonstrate an advance towards a cleaner and greener European economy. At the same time, we need to champion vigorously the interests of the UK within the EU, to increase accountability to the British people and to increase the democratic legitimacy of the decisions that Ministers take in Europe, ensuring that it is the people who can take the final decision on any future transfer of power from this country to European institutions.