Wednesday 26th January 2011

(13 years, 3 months ago)

Commons Chamber
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David Lidington Portrait Mr Lidington
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What is clear in the Bill is that anything under article 48(7) relating to the giving up of a UK veto or a move to qualified majority voting would require primary legislation here. My hon. Friend the Member for Daventry questioned me on those areas of policy, defined in various parts of the treaty, where article 48(7) could be applied to move from the special to the ordinary legislative procedure, but where QMV still applies now and would apply in the new circumstances. If it would help the hon. Lady, I will happily copy the letter I write to my hon. Friend the Member for Daventry to her as well.

We took the opportunity in working on this Bill to take a fresh look at this issue. We concluded that a general principle could be applied—that articles already in the treaties that provided a “one-way” option should also be considered to be passerelle clauses. These one-way options add to or reduce what could be done within existing areas of EU competence, but without changes to either voting rules or legislative procedures. We felt that they should be subject to primary legislation.

We also looked hard at articles that modify the composition or rules of procedure of existing EU institutions and bodies. We will come on to most of those when we debate clause 10. However, we felt that the article allowing for the amendment of the number of Commissioners was a highly significant article as it could be used to negotiate a reduction in the current requirement that every member state should nominate one Commissioner. We therefore proposed, because of the importance of that matter, that any such decision should require approval by primary legislation.

Chris Bryant Portrait Chris Bryant (Rhondda) (Lab)
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Is it not ludicrous that there are so many Commissioners? There are far too many of them to give them all proper jobs. Half of them do not have a proper job now. We have ended up with a system under which each country gets one Commissioner, but they are not meant to be there as “the British Commissioner”. They should work together as a commission. When it comes to state aid, it is particularly important that they act independently, not as a national representative.

David Lidington Portrait Mr Lidington
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The hon. Gentleman, my predecessor in office, puts a strongly held view with characteristic cogency. Whatever the merits of his argument, it seems to me that departing from the principle that each country should be entitled to nominate a Commissioner would be a change of major significance to the way in which the European Union is organised and run. As such, it would seem appropriate, whatever the merits or demerits of the proposal, that this should be subject to primary legislation rather than any less demanding form of parliamentary scrutiny.

Chris Bryant Portrait Chris Bryant
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rose—

David Lidington Portrait Mr Lidington
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I am conscious of the pressure on time and I am going to try to make some progress.

Let me respond to the challenge from the hon. Member for Caerphilly (Mr David) about the numbers of advocates-general. There are not 27 advocates-general, so we are not in the position of having one for every member state, but it is important that we retain the veto on this, and we have no intention of giving it up.

It is important for the United Kingdom to be able to approve the appointments of judges and advocates-general, and we felt that it was sufficiently important to be included in schedule 1.

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David Lidington Portrait Mr Lidington
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I am afraid that I am going to deny myself the pleasure of hearing a further explanation from the hon. Gentleman.

The other articles listed in clause 7—covering decisions on provisions for elections to the European Parliament, on the system of own resources of the EU, and on the adoption of provisions to replace the excessive deficit procedure—already require primary legislation before this country can agree to them, and clause 7 replicates those earlier requirements. Decisions under the articles listed in clause 7(2) would require approval in accordance with the constitutional requirements of the member state before the member state confirmed its approval of a decision. The four articles that I mentioned are also subject to enhanced parliamentary control in Germany following the judgment of the Federal Constitutional Court on the Lisbon treaty.

For the other decisions listed in subsection (4), primary legislation will be needed before this country votes in the Council of Ministers or the European Council. In other words, the Act will be needed before the United Kingdom can cast its vote. We intend that to happen before the final political decision to use the ratchet clause is made at European Union level but after official-level negotiations have been completed, so that it is clear to Parliament that that is the final text and it can make a decision on what is proposed without the risk of further changes.

Unlike the 2008 Act, the Bill does not contain a disapplication provision giving Ministers discretion to approve a decision that has been amended since being approved by Parliament. That is deliberate. We want Parliament to approve the final version, although it will of course be examining the proposals from an early stage under the existing arrangements for parliamentary scrutiny of European legislation.

I should emphasise that these provisions will apply only when the Government intend to agree to a measure. If the Government of the day did not support the exercise of any of the ratchet clauses, they would simply block their adoption. However, the pledge in the coalition agreement and the commitment in the Bill provide that when the Government would be in favour of such a decision, Parliament must approve it first.

Chris Bryant Portrait Chris Bryant
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I did not intend to speak, but as the Minister refused to give way—it was the first time I had ever seen a Minister do that in Committee—I wanted to make one very brief point. [Interruption.] I see that the Whip is fulminating. He can go and fulminate on his own.

The problem with the Bill, and with clause 7 in particular, is that it will make it more difficult for us to negotiate with other countries to achieve the outcomes that we want for the British people. Let us suppose, for example, that France introduced a law similar to this and we tried to negotiate a proposal that is in the coalition agreement, namely that we should end the ludicrous caravanserai between Brussels and Strasbourg. It is laid down in the treaties that the European Parliament shall have two places in which to sit, which is ludicrous given the vast amount of money that is spent on the two buildings, the vast inconvenience caused to people, and the creation of a monopoly air service which is also ludicrously expensive. Moreover, I do not think that all that has resulted in a better policy and decision-making process. However, if the French Government had a law such as this, they would simply block every treaty change that might be in our interests.

Stephen Phillips Portrait Stephen Phillips
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As always, I am grateful to the right hon. Gentleman for giving way, but has he not just made the case for why the Bill is so important? In the example that he has given, it would be possible for the French Government to say to other European Governments, “This is in the interests of my country, and I will therefore not be able to get it through.” Is that not the great merit of the Bill, and is it not the sort of Bill that we would never have seen from the Government of whom he was a member?

Chris Bryant Portrait Chris Bryant
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May I just clear something up? I am not right honourable, although many hon. Members have recently referred to me as such. Many would doubt whether I am even honourable.

Nigel Evans Portrait The First Deputy Chairman of Ways and Means (Mr Nigel Evans)
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Order. I am not calling a Division on this one!

Chris Bryant Portrait Chris Bryant
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I do not think you are able to call one, Mr Evans.

The hon. and learned Member for Sleaford and North Hykeham (Stephen Phillips) seems to be arguing that we should adopt a French style of intransigence, permanently trying solely to defend the British interest. In the end, such an approach cuts off our nose to spite our face. I do not think that anybody here thinks that the double-sitting arrangement is sensible, and most French politicians would agree in private. If this country starts setting up barriers to try to make it more difficult to change anything in the European Union, other countries will do the same and we will end up keeping some of the anomalies and ludicrous elements of the European Union. That is why I oppose the clause. I would have dealt with all that in a short intervention on the Minister.

Richard Shepherd Portrait Mr Shepherd
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I do not understand this. The hon. Gentleman says, “It is in the treaty” but this Bill has nothing to do with changing the treaty and is about circumstances that may arise in the future. So what point is he making? If the treaty provides for movement between the two centres on a rotating basis, it is mandatory, is it not? How does this relate to the Bill?

Chris Bryant Portrait Chris Bryant
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The Bill does make reference to treaty change, and understandably so. I thought that the whole argument that the hon. Gentleman and many others have made over the past three or four years during discussion of the Lisbon treaty and its predecessor was that because a treaty change was involved, there should be a referendum. All I am saying is that if that had been the proposition in France, we would never see an end to that element of treaty change. I would, however, be amazed if the Government make any progress on trying to change the Strasbourg provisions, although perhaps the Minister will be able to enlighten us on that.

Mark Reckless Portrait Mark Reckless (Rochester and Strood) (Con)
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The hon. Gentleman mentions that the dual site of the European Parliament is provided for in the treaties. Surely the key issue is that the coalition agreement says that we are going to deal with this situation. The opportunity to do so is coming up, because the eurozone needs our agreement to a new treaty. In return for our agreement, surely we could demand that the European Parliament move to a single site, thus fulfilling what is in the coalition agreement.

Chris Bryant Portrait Chris Bryant
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That little speech was the definition of “denial”, because there is no prospect of the French volunteering a treaty change on the Strasbourg sittings unless an enormous contribution is to be made from our side, which the Government would be able to deliver only if they were holding a referendum. By forcing referendums here, which means that the Government cannot give anything away, the Bill is making it impossible to win the argument on closing down Strasbourg—I mean the sittings there, not the city.

Kwasi Kwarteng Portrait Kwasi Kwarteng
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The issue that the hon. Gentleman raises in his example is clear. He suggests that the French would be reluctant to give away the right to have the two sites. That just illustrates the point that my hon. and learned Friend the Member for Sleaford and North Hykeham (Stephen Phillips) made about the French sticking up for their interests, and it touches on the whole point of this Bill. It seems extraordinary for a Member of Parliament to say, “We don’t like the Bill because sticking up for our interests might in some way damage the whole European project.” That is not what we are trying to do.

Chris Bryant Portrait Chris Bryant
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I think that the hon. Gentleman misunderstands me. I am sure that that is my fault, because I cannot have expressed this at sufficient length or ably enough. The point I am trying to make is that our insistence that there will be no treaty change without a referendum makes it more difficult for us to achieve changes in the treaty that we want to pursue, because other countries will simply say, “We know that you are determined not to have any treaty change whatsoever, which is why you have created this referendum lock and all the rest of it.” That is why, I think, Government Members who are delighted that the coalition is committed to trying to change the situation in relation to the dual sittings and Strasbourg are profoundly deluded.

Nick de Bois Portrait Nick de Bois (Enfield North) (Con)
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How does the hon. Gentleman reconcile his statements about our having a referendum, when lots of negotiations have gone on while many countries have had referendums?

Chris Bryant Portrait Chris Bryant
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Referendums in different countries operate in different ways. I think that I have heard the Minister say on a couple of occasions both here and elsewhere that there was never a referendum that supported the Lisbon treaty. That is completely untrue, as the Spaniards were the first to hold a referendum and it had an 83% or 84% yes vote, so he is wrong about that.

I think I have made my argument on Strasbourg.

Wayne David Portrait Mr David
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My hon. Friend is making a very important point. He has used the example of Strasbourg, but he is making a wider point. The process of change in the European Union, as anybody who knows anything at all about it will be aware, is based on negotiations. The point of the Bill is that it makes it impossible for future Governments in this country to negotiate in Britain’s national interest.

Chris Bryant Portrait Chris Bryant
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Absolutely. There are many different things in the European Union—many determined in treaty—that I want to change as a pro-European and as somebody who wants always to defend the British interest. I do not see those two things running counter to each other. My argument in essence is that the Government must have enough freedom to proceed in negotiations, so that they can gain concessions from the other side. If a country has already locked itself down, it is impossible to gain concessions from the other side.

Chris Bryant Portrait Chris Bryant
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I will give way to the hon. Gentleman, then to my hon. Friend, and then please release me.

Mark Reckless Portrait Mark Reckless
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I would suggest that the hon. Gentleman has not entirely seen my point. A referendum is only one lever that the UK can use to extract concessions. Our agreement is needed on the new treaty for the eurozone, which is desperately needed to try to put in place a permanent bail-out mechanism. My suggestion and, as I understand it, the commitment in the coalition agreement is that as a coalition we will ensure that the Parliaments move to one site and work to limit the application of the working time directive in the UK. Surely that new treaty gives us an opportunity to do so.

Chris Bryant Portrait Chris Bryant
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No, because one requires treaty change and the other does not. If we have already locked ourselves down by saying that any element of change would have to be submitted to a referendum, when we effectively know that most referendums on many of these issues would be lost in the UK—that is the whole tenor of the argument made by the hon. Gentleman and others on the Government Benches—it will be impossible for us to negotiate with a free hand. In the end, that will be bad for the British interest.

Baroness Stuart of Edgbaston Portrait Ms Gisela Stuart
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I want to make an offer to Members of running classes on how the EU works. Anybody who has ever worked in the EU would turn in their grave if we were to rerun the past 10 minutes—except those who are not there yet. The comments have shown a complete and utter lack of understanding of how the EU works and how treaty changes work. What is most amazing about the Bill is that I find myself for the first time in years agreeing with those on my Front Bench—that shows how wrong the Government are. Negotiations are different; none of this has anything to do with clause 7 and hon. Members are utterly wrong. I am happy to run a workshop on that afterwards.

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Chris Bryant Portrait Chris Bryant
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It is a delight to agree with my hon. Friend. I do not think that she and I have ever agreed on anything before. That is perhaps a slight exaggeration; I think we agreed that a Labour Government were better than a Conservative one.

Many thanks for calling me to speak, Mr Evans. I think I have made my one point eight times now, and that will probably suffice.

Question put and agreed to.

Clause 7 accordingly ordered to stand part of the Bill.

Clause 8

Decisions under Article 352 of TFEU

William Cash Portrait Mr Cash
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I beg to move amendment 53, page 6, line 41, leave out ‘(3) to (5)’ and insert ‘(3) and (4)’.