European Union (Croatian Accession and Irish Protocol) Bill

David Lidington Excerpts

Tuesday 27th November 2012 Commons Chamber

[Emma Reynolds]

I have my hon. Friends, obviously, whose help and advice are always most welcome.

I look forward to the Minister’s response, but I am pretty confident that my interpretation is correct, and we therefore do not support the amendment.

[The Minister for Europe (Mr David Lidington)]

I thank my hon. Friend the Member for Bury North (Mr Nuttall) for tabling the amendment. He was prompted to so by the seriousness of these issues, and the right hon. Member for Leicester East (Keith Vaz) rightly complimented him on that.

The issues that my hon. Friend spoke about are very important, and I can give him one immediate reassurance. He feared that this might be the last time that Parliament could discuss potential migration from Croatia and, indeed, other aspects of Croatia’s accession process, but there will be at least two further opportunities. First, next year, probably in the spring, the Home Office will bring forward the statutory instrument to provide the detail on and to implement the transitional arrangements on migration. That legislative instrument will have to be dealt with by the affirmative procedure, so I would expect a debate in a statutory instrument Committee, attendance at which is open to any Member of the House, and subsequent approval to be given by the House as a whole in the normal way, as for any other statutory instrument.

Secondly, next March we are expecting the European Commission to publish its third and final interim report on monitoring how Croatia has made progress with the various accession chapters of the negotiating process. That report will be subject to the normal parliamentary scrutiny process. It will go to the European Scrutiny Committee, and it will be open to the Committee, if it so chooses, to refer it for debate on the Floor of the House or in a European Committee.

[Graham Stringer (Blackley and Broughton) (Lab)]

Is that not the real issue? The reports from the European Commission that we have before us are full of hope, but they say, in effect, that Croatia is not compliant and that in some areas it is going backwards. The big issue on immigration is not what the hon. Member for Bury North (Mr Nuttall) talked about; it is that the new EU boundary with Bosnia is insecure. Beyond the Report stage, this House will not have a full chance to debate the Commission’s third report.

[Mr Lidington]

It will be for the European Scrutiny Committee to choose whether to refer the Commission’s third report for debate in the House. As I said on Second Reading, the Croatian Government have made enormous progress towards implementing their integrated border management plan and establishing on the EU external border a system of fully operational border control posts, which are part of its accession process. The key outstanding issue is the Neum corridor, where a small part of Bosnia and Herzegovina divides two pieces of Croatian territory. However, matters are now well under way to put the border control posts in place and to make available the relevant technology and trained staff. It is not just the Commission’s view, but that of the British Government, too, that Croatia is fully on course to meet the obligations into which she has entered.

[Graham Stringer]

Could the right hon. Gentleman clear up a matter of fact? The House of Commons research paper states:

“A further issue is weaknesses in border management: Croatia’s border with Bosnia and Herzegovina will be one of the longest in Europe, posing challenges to EU security, and Croatia has so far made only moderate progression.”

Footnote 42 notes that that information came from the European Commission on 10 October 2012, which was not long ago. The Commission is clearly saying that progress is not being made, which is in direct conflict with what the right hon. Gentleman is saying.

[Mr Lidington]

We debated this at some length on Second Reading, but I will take advice and might give a detailed answer later in today’s proceedings.

In response to the point raised by the right hon. Member for Leicester East, we acknowledge that there have been unacceptable delays to the processing of applications from Romanian and Bulgarian citizens. The UK Border Agency has taken action to provide additional staff resources to deal with that and is confident that the Government’s published target standards for turning around such applications will be met by the new year.

[Bob Stewart (Beckenham) (Con)]

I hope the Committee will forgive me if this has been covered in earlier debates when I was not present, but is it true that if Croatia acceded to the European Union, it would be easier for the International Criminal Court to serve an indictment on an alleged war criminal who happened to be Croatian than is currently the case because Croatia is not a member of the European Union?

[Mr Lidington]

I am not certain about the position of the International Criminal Court, but I will either respond to that question later in the debate or write to my hon. Friend. What I will say is that, in the context of this amendment, which relates to migration, once Croatia has become a full member of the European Union, the normal EU arrangements to combat illegal migration and to secure the return of illegal migrants, overstayers and others will become fully operational. As I hope to say if I reach the later stages of my planned remarks, there is already evidence that Croatia has been very energetic in preparing for those new duties and in implementing a system for dealing with illegal third-country migrants, and that will be to the benefit of every European Union member state.

[Angus Robertson]

Perhaps it would be helpful if I followed up on the intervention by the hon. Member for Beckenham (Bob Stewart) on the potential arrest of a European Union citizen. That, of course, would be subject to the existing procedures for a European arrest warrant, which, indeed, would be beneficial in trying to deal with serious crime, including international war crimes. Would that not underline the total folly of a member of the European Union walking away from a commitment to use European arrest warrants, which the current Tory Government are considering doing?

[Mr Lidington]

I am not going to get drawn into a further debate about the 2014 opt-in, opt-out decision on justice and home affairs. As the Government have pledged, there will be ample opportunities to debate that at length in the House.

I think that everybody in the House shares the concerns of my hon. Friend the Member for Bury North about the need to ensure the appropriate management of potential labour market risks, particularly at a time when there are serious tensions in the UK labour market. At the same time, we have to acknowledge that the principle of freedom of movement has given enormous opportunities to British citizens. Roughly 1 million British people live and/or work in other member states of the European Union at present.

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[Jacob Rees-Mogg]

Applying the amendment to line 7 on page 1 of the Bill would make it say that the accession treaty would be approved,

“except for those provisions requiring the full application”.

It would, therefore, be a conditional approval of the treaty and I do not believe that the European Court of Justice could rule us in breach of treaty obligations, because Croatia would not have them until the treaty was ratified under our normal constitutional procedures, which, thanks to the European Act 2011—which the Minister presided over—require an Act of Parliament that is unqualified.

[Mr Lidington]

I simply do not think that we can have 27 countries agreeing unanimously on a treaty text and committing themselves to ratifying it, only for 26 countries to ratify it while one country chooses to do so up to a point and not ratify one particular element. My hon. Friend was right in his earlier intervention that it is legally and constitutionally possible for a separate protocol or derogation to be negotiated at the time of an accession treaty to exempt one or more member states from particular obligations. However, that has not happened with any other accession treaty hitherto.

The United Kingdom, under successive Governments, has been committed to the enlargement of the European Union since Margaret Thatcher championed the idea when the iron curtain began to crumble. I remain, in that respect, an enthusiastic Thatcherite. The entrenchment of not just free and open markets, but, even more importantly, the rule of law and democratic institutions in eastern and central Europe that has been brought by enlargement has been of benefit to the long-term strategic interests of the UK, as well as being in the interests of Europe as a whole.

[Wayne David]

The Minister has made an important point. He should not hide his light under a bushel. I urge him to make that point more forcefully and regularly to his Back Benchers.

[Mr Lidington]

My hon. Friends know where I stand on these issues. We always have a good-tempered but serious debate. The points that my hon. Friends have raised this afternoon reflect concerns that are expressed by many thousands of people—

[Mr Nuttall]

Millions.

[Mr Lidington]

Possibly by millions of people, in every constituency in this country. It is right that Parliament should be seen to be paying close attention to those concerns, which are being ably expressed by my hon. Friend the Member for Bury North in supporting the amendment.

Croatia has a small population of only 4.5 million people. The levels of emigration from Croatia to EU member states are currently very low. The official Croatian statistics suggest that in 2011, about 2,000 Croatians migrated to EU member states. The hon. Member for Moray (Angus Robertson) is right that half those people went to Germany and that a fair number of the others went to Austria.

The UK Border Agency’s statistics state that in 2011, 115 Croatian nationals were admitted to the UK for the purposes of employment. Of course, those 115 people will have had to meet the same tests as anybody else who comes here from a third country anywhere else in the world. They will have had to apply successfully under the points system or perhaps as a person of independent means. If we look at the patterns of migration from Croatia and the history of Croatian migration to this country, and set that in the context of a small country with a small population, the Government judge that there is little risk of a mass migration of Croatian nationals to these shores when the seven-year transitional period is up.

I do not think that the travel is likely to be one-way. For example, several thousand British people are now resident in Bulgaria, largely because the Black sea coast is an attractive place in which to settle and is less expensive than the parts of Spain and the western Mediterranean that had previously been fashionable. I can envisage the Adriatic coastline of Croatia becoming a magnet for people from elsewhere in Europe who are seeking a warmer climate in which to settle. I therefore do not think that freedom of movement will be exercised in one direction only.

In conclusion, the accession treaty, which has been signed by all member states already, provides for only a temporary imposition of transitional controls up to a maximum of seven years. It is not possible to extend transitional controls on Croatian nationals beyond the seven-year period. The Government’s careful judgment is that the existing flexibility provided by the accession treaty will protect the stability of the United Kingdom labour market as we would wish. I hope that, having heard the assurances that I have given, my hon. Friend the Member for Bury North will choose not to press his amendment.

[Mr Nuttall]

We have had a useful and interesting debate on the amendment. I thank the right hon. Member for Leicester East (Keith Vaz), who is not in his place, the hon. Member for Wolverhampton North East (Emma Reynolds), the Minister and all the Members who have intervened.

I suspect that the Government’s view on this matter and the stance that is widely taken by Members will only add to the concerns of many of my constituents and, as the Minister has said, of people across the United Kingdom.

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[Emma Reynolds]

I want to reiterate what I said on Second Reading about the Opposition’s support for the Irish protocol, which the Labour Government helped to negotiate. As the hon. Member for North East Somerset (Jacob Rees-Mogg) said, the protocol clarifies but does not amend the Lisbon treaty. It contains assurances that Ireland retains decision-making rights on the right to life, on family and education, on taxation, and on Irish neutrality. It was the Labour Government’s judgment at the time and it is the Opposition’s judgment now that the Irish people have rightly been offered those assurances on the application of the Lisbon treaty.

Finally, I agree with my hon. Friend the Member for Blackley and Broughton (Graham Stringer). The protocol does not reform the EU and is not a renegotiation of the EU-Ireland relationship. It also does not repatriate power from the EU to Ireland.

[Mr Lidington]

Clause 2 provides parliamentary approval for the purposes of section 2 of the European Union Act 2011 for a proposed protocol to be annexed to the treaty on the EU and the treaty on the functioning of the EU following the concerns of the Irish people in relation to the treaty of Lisbon; that has become known in shorthand as the Irish protocol. The clause also confirms, as required by section 2(3) of the 2011 Act, that no referendum is required under that Act for the Irish protocol to be ratified by the UK.

In June 2009, the Heads of State and Government of the 27 EU member states adopted a formal decision on the concerns of the Irish people about the treaty of Lisbon. The decision gave a legal guarantee, binding in international law, that certain matters of concern to the Irish people would be unaffected by the entry into force of the treaty of Lisbon. As my hon. Friend the Member for North East Somerset (Jacob Rees-Mogg) said, those matters included taxation policy, policy on the right to life, policies on education and the family, and Ireland’s traditional policy of military neutrality. It was noted in the June 2009 European Council conclusions that the content of the decision is fully compatible with the treaty of Lisbon and does not necessitate any re-ratification of the treaty.

The Heads of State and Government also agreed in June 2009 that, at the time of the conclusion of the next accession treaty, the provisions of the decision would be set out in a protocol to be attached to the EU treaties. The effect is to ensure that the guarantees given to the Irish during the Lisbon ratification process will have full treaty status and be binding in EU law.

Although it is true that the Irish protocol clarifies and does not change either the content or application of the Lisbon treaty, and in no way alters the relationship between the EU and its member states, it has a positive effect, as my hon. Friend has pointed out. The consequence of all member states ratifying the protocol is that it will have full treaty status. In effect, it is added, as a protocol, to the list of EU treaties and is binding in EU law. Although it is declaratory and clarificatory in purpose, the declaration and clarification take the form of something that can be justiciable in future litigation at the European Court of Justice, as my hon. Friend said.

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[Mr Lidington]

No, the treaties apply equally to every member state unless an explicit derogation or opt-out is laid down in a protocol or in the body of a treaty—that is the case with the UK’s and Denmark’s right not to join the euro. In this case, the Irish protocol does not provide an opt-out or derogation. Instead, it serves as a formal justiciable clarification of certain provisions of the treaty that apply equally to all member states of the EU. In the hypothetical case that my hon. Friend describes, it would be for the UK or any other member state to cite the protocol in support of its arguments.

[Jacob Rees-Mogg]

The Minister is a mind reader—that was exactly the point I was about to ask him about. Does the protocol therefore effectively apply to all member states and not just to Ireland?

[Mr Lidington]

Yes, that clarification is of benefit to every member state, should such litigation be necessary in future.

The protocol was adopted at an intergovernmental conference in Brussels on 16 May 2012 and signed by all 27 member states. It must now be ratified by them before it can formally enter into force. As I have said, I believe that the clarifications that are provided square with the UK’s interpretation of the treaties; I support what my hon. Friend has said on this. The protocol is therefore helpful to us, and I commend it and clause 2 to the Committee.

Question put and agreed to.

Clause 2 accordingly ordered to stand part of the Bill.

Clause 3 ordered to stand part of the Bill.

Clause 4

Freedom of movement for Croatian nationals as workers

Question proposed, That the clause stand part of the Bill.

[Jacob Rees-Mogg]

I am sorry to trouble the scorers again, Mr Crausby. I hope I will not be the only one trying to be the Mr Pietersen of the Committee for this afternoon’s proceedings. My batting pace would never be quite as fast as his—I am probably more of a Mr Boycott, particularly when it comes to anything to do with the European Union.

The transition arrangements for the free movement of people are an important part of the treaty. What is important here is that the time has come for us to recognise that we need to look at whether the free movement of people is something the United Kingdom can any longer support. The commitments we have made to our immigration policy throughout the European Union have made a nonsense of the rest of our immigration policy. We discovered that yesterday, when we asked a very distinguished person to come and be the head of one of the most important institutions of our country. He will have to queue up in Croydon, even though he is married to a British lady, his children are British subjects and he is a subject of the Queen. If he were coming from Croatia, he would be subject to transition arrangements that would make it a good deal easier for him to come here. That does not seem to be a sensible way of establishing our immigration policy.

There are two problems: first, the number of people who have the right to reside and work here from the European Union, which is legion; and the very tight controls that we have to have on everybody else in the world to make the system vaguely work at all. It is out of balance that countries with which we have much closer and longer standing associations than Croatia—I think, of course, of India, Canada, Australia, South Africa and Zimbabwe—and with which we have had intimate relationships, do not have the transition arrangements to allow their people to come and work here. They have to go through an extremely arduous and onerous process. Even if their grandparents were British citizens, they find it very difficult to get here. On the other hand, if they come from member states of the EU they can just waltz in, or if they cannot waltz in, they can come in under transition arrangements. After a mere seven years at the most, they will be able to come in freely. This has become disproportionate.

In that sense, enlargement has created a problem for Europe. In other ways, enlargement is much to be welcomed, and I agreed with the Minister when he quoted the noble Baroness—something that should be done in this Chamber more often to reinforce any argument that is being made. We have found that there are simply too many people who are eligible to reside here. Transition arrangements are not really enough. They ameliorate to some extent the problem of Croatia, but Croatia is not the problem. As we have already discussed, there are only a little more than 4 million people in Croatia, and unless they were all going to come here and leave Croatia empty for us to go and have our holiday homes there as the Minister suggested, there would not be any real immigration problem from Croatia. It is what has happened in the past, and the effect that that has had on other nations with which we are friendly and with which we have long-term relationships and historic ties, that I am referring to.

I am pleased that my right hon. Friend the Secretary of State for the Home Department has decided to look into this to see whether the free movement of people is something we can continue to cope with. I think that we cannot, and as we reform our relationship with Europe, it is one of the aspects of the European Union—I accept that it is a fundamental aspect—to which we can no longer subscribe.

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[Emma Reynolds]

The previous Government looked at this issue, and the current Government have also tried to raise it. It is a concern for people across the country—it was raised with me during the 2010 election campaign—and I am sure the Minister will have something to say about it. In terms of treaty obligations on the freedom of movement, nationals from other EU member states who come here to work have certain rights and responsibilities. It is certainly true that some of those rights, benefits and payments, from which nationals benefit, although only after a qualifying period, are a concern. We tried to change them when in government, but European treaties and European law prevented us from doing so, and I think the current Government are having the same problems.

The clause deals with the free movement of people, but the hon. Member for North East Somerset (Jacob Rees-Mogg) took the opportunity to make a wider point. Regardless of one’s point of view, it is certainly true that if a change were made it would require a substantial and wholesale amendment of the founding treaties. The 26 other member states—soon to be 27—would have their own opinions on that. Such a renegotiation would be long and difficult if the Government were to attempt to embark on it.

[Mr Lidington]

Clause 4 outlines, in its various subsections, how the transitional regulations will be structured. I do not propose, unless the Committee presses me, to go through each subsection in detail this afternoon. Suffice it to say that the Home Office will come forward in 2013 with a statutory instrument to implement the transitional regulations. I am sure that there will be ample opportunity at that point for the House to examine in detail exactly what those arrangements propose and how effective they will be in practice. They will no doubt go to a statutory instrument Committee and then to the House of Commons as a whole.

My hon. Friend the Member for North East Somerset (Jacob Rees-Mogg) used the debate on clause 4 to open up broader concerns about freedom of movement. There is no doubt that this issue troubles a lot of people, as he and my hon. Friend the Member for Bury North (Mr Nuttall) pointed out. I do not want to go overboard on this point. However, the fact that transitional controls were not imposed on the previous groups of countries joining the EU, along with the fact that the number of people who were thought likely to come from those countries to the UK was underestimated—the estimates were wrong by a considerable margin—has sapped public confidence in the principle of freedom of movement. It is therefore right that we should say clearly not just that rigorous transitional controls will be employed in the case of Croatia, but that it would be our intention to apply transitional controls to the full extent permitted to any future new accession country to the European Union. That is both right and a way of providing reassurance to our citizens.

People are understandably worried when they see suggestions that the principle of freedom of movement is being interpreted in a way that stretches beyond the rights set out in the treaty—primarily, the right to work and to seek work—and is at risk of being abused by people moving to gain from a more generous welfare system in an EU member state.

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[Mr Lidington]

My hon. Friend is right that those things undermine confidence in the system, despite the fact that freedom of movement has brought significant benefits not only to British citizens working and living elsewhere in Europe, but to British employers and consumers, who have made free use of the advantages of freedom of movement in terms of the skilled people coming to this country. I can assure him that this Government, along with other Governments, take these risks seriously and are concerned about potential abuses of freedom of movement. My hon. Friends in the Department for Work and Pensions have been talking to their counterparts in other member states about that point. The Government intend to pursue the matter and take it very seriously. I hope that that did not lead me too far from the content of the debate and that it provides my hon. Friends with a measure of reassurance.

[Chris Heaton-Harris]

I am sorry to interject, but as Labour seems to recognise this concern—such recognition has been lacking in the past—perhaps it is time to have a full and frank debate about it, especially in terms of welfare claimants and the cost to the NHS of people who possibly would not have been here had there been similar transitional arrangements in the past. Is there a chance, through informal channels, of starting a sensible debate?

[Mr Lidington]

The Government are always willing to listen to constructive ideas, from whichever side of the House they come. We have announced the review of the balance of competences. When my right hon. Friend the Foreign and Commonwealth Secretary launched it, he said that we would welcome contributions and proposals from interest groups throughout British society and political parties on both sides of the House. If anybody wants to propose a way of limiting potential abuses of freedom of movement, they would be welcome to do so.

[Emma Reynolds]

Just for the record, as I set out earlier, what the hon. Member for Daventry (Chris Heaton-Harris) says is simply not true. When the Labour party was in government, we were very concerned about welfare payments being made when they perhaps should not have been, especially when it came to child benefit. Our Ministers made representations about that to European institutions and tried to do something about it, but to be perfectly frank, we hit a brick wall—and that is exactly what this Government are finding too. There is no difference between our parties on this issue.

[Mr Lidington]

rose—

[The Temporary Chair (Mr David Crausby)]

Order. It would be nice if we could get back to clause 4 stand part.

[Mr Lidington]

Indeed, Mr Crausby. I welcome the outbreak of bipartisanship.

Finally, one of the lessons is the importance of building alliances with other member states on these issues, because we are far from being the only country that has these concerns.

[Mark Durkan (Foyle) (SDLP)]

I thank the Minister for giving way, as I know he wants to conclude. He said he did not want to go through the clause subsection by subsection, but will he take the opportunity to clarify the different applicable maximums between England and Wales, on one hand, and Scotland and Northern Ireland on the other? Some of his hon. Friends may feel that those of more dodgy intent could be motivated to stay in England and Wales, rather than Scotland or Northern Ireland.

[Mr Lidington]

This boils down to differences in the legal systems operating in different parts of the United Kingdom. I presume that the hon. Gentleman is referring to subsections (4) to (6).

Subsection (4) provides that an offence by virtue of these regulations will be a summary offence and that any fines or prison sentences imposed will not exceed the applicable maximum levels or terms on the relevant scale. Subsections (5) and (6) provide clarity on the maximum prison terms applicable for these offences and the differences between maximum terms of imprisonment in England and Wales, and Scotland and Northern Ireland. For England and Wales, the maximum possible prison term is 51 weeks. For Scotland and Northern Ireland, the maximum possible prison term for an employee or a deception offence is three months, whereas for an employer this stands at six months.

Subsection (6) further clarifies that if the offences were committed in England and Wales before the commencement of section 154(1) of the Criminal Justice Act 2003, they will be liable for the same penalties previously outlined for Scotland and Northern Ireland—three and six months respectively—but, as the Committee will know, section 154(1) has not yet commenced, so the applicable maximums for the whole United Kingdom will remain at three and six months respectively for the time being. I hope that that provides the hon. Gentleman with the assurance he seeks.

We have had an interesting debate on some of the concerns in the Committee and the country about the freedom of movement, but I think there has also been a consensus in support of transitional regulations. I therefore commend the clause to the Committee.

Question put and agreed to.

Clause 4 accordingly ordered to stand part of the Bill.



Clause 5

Orders under section 4: Parliamentary control.

[Jacob Rees-Mogg]

I beg to move amendment 1, page 4, line 4, at end insert ‘or subsequent’.

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[Emma Reynolds]

I appreciate that the hon. Members for North East Somerset (Jacob Rees-Mogg) and for Bury North (Mr Nuttall) are seeking to improve parliamentary scrutiny of these matters by providing for the use of the affirmative procedure for any statutory instrument arising from clause 4. I very much look forward to the Minister’s response. Given that the Government do not seem to have much business for us to scrutinise at the moment, surely there might be time for such provision. I did not go through the Lobby once last week—to my disappointment—so we would welcome any move towards increased parliamentary scrutiny and we await the Minister’s response with bated breath.

[Mr Lidington]

The purpose of amendments 1 and 2 is to require that any regulations to implement the transitional restrictions pursuant to clause 4 be subject to the affirmative resolution procedure. Amendment 5, standing in the name of my hon. Friend the Member for Bury North (Mr Nuttall), would give Parliament the opportunity to amend the initial set of regulations on transitional controls. By contrast, the Bill as drafted would require that the initial regulations made pursuant to clause 4 be subject to the affirmative resolution procedure, but that subsequent regulations, if any, be subject to the negative resolution procedure. That would provide Parliament with the opportunity to give or deny approval, but not to amend the regulations.

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[Jacob Rees-Mogg]

indicated dissent.

[Mr Lidington]

I would not impute that to my hon. Friend, but I was conscious of the fact that Simon de Montfort, despite his contribution to our constitutional developments, ended up being slain at the battle of Evesham, after which his body was hacked apart and the various portions sent to please those members of the nobility who had taken the lead in supporting Prince Edward against him. Although I have absolute confidence in the generosity of spirit with which my hon. Friend spoke, I hope I can count on him to speak for all members of the European Scrutiny Committee and on others to adopt a different role towards de Montfort than he has taken today.

I have thought carefully about the amendments that my hon. Friends have proposed. The initial regulations that we intend to make pursuant to clause 4 would set out in detail the scheme of restrictions to be applied to Croatian nationals. They would set out the circumstances under which a Croatian national may be authorised to take employment and the penalties that may be applied for any breach of the restrictions. It is clearly appropriate that there should be a presumption that such regulations, setting out a broad scheme of controls and penalties, should require the positive approval of the House. We are therefore providing for the affirmative resolution procedure. However, any subsequent regulations pursuant to clause 4 are likely to be different in character and to have only a limited and technical purpose. For example, it may become necessary to make technical adjustments to the regulations to reflect European Court of Justice case law on the exercise of free movement rights or to adjust the circumstances in which work authorisation may be given, to reflect particular labour market circumstances.

Let us look at the precedent of the regulations applied to Bulgarian and Romanian nationals, recalling that our intention is to apply the same transitional regime to Croatian migrants as already applies to migrants from those two countries. There have been subsequent amendments to the original regulations, but to address minor and technical issues. For example, further amendments to the regulations have referred to arrangements for students undertaking employment during their holidays or vocational employment linked to their studies. Those amendments have brought the treatment of such students into line with the treatment extended to third-country nationals. There have also been technical changes to the arrangements for family members of Bulgarian and Romanian workers, which the treaty required be lifted once the restrictions had been in force for two years.

Those were matters concerned with responding to legal issues about the proper administration of restrictions, as they arose, rather than matters pertaining to their general shape and force. Equally, it might prove necessary to make amendments to the initial regulations simply in order to ensure that they take account of changes made to the controls applied to third-country nationals. I do not think it is proportionate that amendment of the regulations to deal with this kind of technical issue should require the affirmative resolution procedure.

Of course, if a future hypothetical Government were, through sleight of hand, to use the negative resolution procedure to make a more substantive change to the character of the transitional regulations—which I am sure that this Government would not do—I am confident that the political reaction in the House of Commons would be such as to require, through a prayer tabled under the normal procedures of the House, a debate and vote in Committee and then in the House as a whole. It is unlikely that such a major amendment would be brought forward, however, and there are sufficient safeguards in our proposals. It is probable, however, that there will be a need for minor and technical amendments to be made. The negative resolution procedure accords with the precedent adopted in respect of previous accessions and it is proportionate to the case.

My hon. Friend the Member for Bury North tabled amendment 5, which would allow Parliament to amend the secondary legislation. He will know that the procedure that he is proposing does not fall within the normal forms of House approval. I do not blame him for raising the subject; it has cropped up in more than one debate since I have been a Member of Parliament. However, it would be wrong to use the Bill as an occasion for adopting what would amount to a significant precedent in how Parliament holds the Government to account. There might be a case for what he is proposing, but it would best be addressed, if it is going to be, as a matter of general principle rather than in this way.

Under our current procedure, secondary legislation is not subjected to the type of line-by-line scrutiny and the possibility of amendment that we afford to primary legislation. The affirmative process, which we are suggesting for the first set of regulations, requires a motion in favour in both Houses before the regulations can be made. The House will be able to reject the draft statutory instrument if it is not content with it. The Government believe that that is an appropriate level of scrutiny, and that the use of the negative resolution procedure for what are likely to be minor and technical amendments is also proportionate to the probable course of events. I hope that, having heard those assurances, my hon. Friend the Member for North East Somerset will be willing to withdraw his amendment.

[Jacob Rees-Mogg]

I have listened to the Minister with great care. The problem with comparing anybody to the great figures of history is that so many of them came to a sticky end. That does not, however, undermine the valour of their actions before they met their sticky end. It is the way of politics nowadays that people are reshuffled, whereas in olden times they were rather more finally dealt with. This is perhaps one respect in which I am a moderniser, in that I am glad and reassured that political careers now end more gently than they did in times gone by. I was comparing my right hon. Friend the Minister to Simon de Montfort at the height of his powers when he was successfully commanding the country and advancing democracy.

The mood of the Committee today suggests that it would probably not vote in support of my amendment, and I shall therefore seek leave to withdraw it. However, I would just add that, to use an old cliché, a bird in the hand is worth two in the bush. It would be an advantage to place in the legislation a requirement for the affirmative resolution procedure, because we cannot guarantee what future Governments will do or, more particularly, what the European Court of Justice will do. The Minister referred to that possibility. There is a risk that the Court could make a highly political judgment that would change the regulations or cause them to be changed by the Government. That could allow the Government to use the negative resolution procedure, because the decision had come from the ECJ, without giving the House the opportunity to debate a genuinely important political matter. I regret that Her Majesty’s Government are not going to accept my proposal, but I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 5 ordered to stand part of the Bill.



Clause 6

Extent, commencement and short title

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[Mr Lidington]

Clause 6(1) makes provision for the territorial extent of the Bill. It extends to the whole of the United Kingdom. Subsection (2) indicates the intention that the Bill, should it be granted Royal Assent, will come into force immediately, and subsection (3) provides for the short title.

The purpose of the amendment tabled by my hon. Friend the Member for Bury North (Mr Nuttall) is to delay the entry into force of a specific clause. The amendment would require a motion in both Houses before clause 1, the element of the Bill providing approval for the Croatian accession treaty, could enter into force. I must say plainly to the Committee that in the Government’s view delaying Croatia’s accession to the EU, as proposed in the amendment, would not be helpful to the UK in securing its objectives in EU enlargement policy and it might cause some damage to our interests overall. I intend to respond in detail to the points raised about some of the outstanding questions in respect of Croatia’s progress towards meeting the Commission’s benchmarks in the various accession chapters.

I start by saying that the Government have, as my hon. Friend the Member for North East Somerset (Jacob Rees-Mogg) pointed out earlier, enhanced the role that Parliament has played in the approval of EU decision making through the European Union Act 2011. The Scrutiny Committees in this place and in the other place have also followed the Commission’s monitoring reports on Croatia’s progress towards accession. The Government’s judgment, on the basis both of the Commission’s successive monitoring reports and of our own bilateral engagement, is that Croatia is on track to be ready in full to accede to the EU on 1 July 2013. The Croatian Government have already responded positively to the October call for action on the remaining areas by preparing an action plan to address outstanding concerns, as they did in response to the Commission’s monitoring report in April. The treaty also includes a range of safeguard measures that could be imposed, both before and after accession, in specific areas where reforms were not complete. For example, the Commission is empowered under the accession treaty to recover all state aids paid by the Croatian Government to state-owned shipyards if Croatia does not meet EU requirements under chapter 8, on competition, by the time of accession.

As my hon. Friend said, the Government always have the option, as a final resort, in the wholly unexpected event of Croatia not being ready, of holding back from depositing the instrument of ratification. In reality, if there were such a crisis—if some new Administration in Croatia did not commit themselves to the accession process with the enthusiasm that we see from the current Croatian Government—that would not just be a matter for the United Kingdom; it would be a matter for a very large number of member states and for the EU institutions.

We do not expect to need to use those safeguards. In answer to the point made by the hon. Member for Caerphilly (Wayne David), let me say that I have talked to Commissioner Füle about Croatian accession as well as to members of his team in the Commission. We need to emphasise that while the Commission is doing its job in going through the fine print of what Croatia has done and checking to what extent it has met the benchmarks laid down for it, Commissioner Füle personally and the accession team he leads remain very confident that although more needs to be done between now and July, Croatia is on track to be ready for accession at the date set down for it to join the European Union.

The hon. Gentleman also mentioned Štefan Füle’s comments about regional issues. As he knows—this came up on Second Reading—there are some outstanding issues with Slovenia, in particular, but the solution does not lie wholly in Croatia’s hands. A long-standing banking dispute going back to the break-up of the former Yugoslavia is still unresolved and the UK continues to urge both Slovenia and Croatia to find a way forward to settle that bilateral dispute in a way that respects the relevant international agreements. We have also said—this applies not only to Croatia but to other accessions—that bilateral disputes should not be used as an excuse to block progress when a candidate country is meeting its accession benchmarks.

We agree with Commissioner Füle that there is more work to be done. We have supported him in urging the Croatian leadership at the most senior levels to keep up its work to complete the outstanding tasks. The Croatian Government assured Commissioner Füle when he visited Croatia on 25 and 26 November that of the 10 key issues that the Commission had highlighted, work on seven would be completed by the end of 2012 and on the remaining three by the end of January 2013. Those assurances and the knowledge of how far Croatia has come and how committed its Government are to delivering in full on their obligations cause both Commissioner Füle and the UK Government to be confident that Croatia is in the right place to have crossed those hurdles by July 2013.

As a number of hon. Members have said, the accession process has been much more rigorous for Croatia than it was for Bulgaria and Romania, and because of that Croatia is better prepared for membership than those two countries were before their accession. The level of transparency and accountability in the Croatian judiciary has increased significantly over the reform period, institutions have been established and continue to develop to verify assets and conflicts of interest, and noteworthy progress has been made on investigations of and convictions for high-level corruption, most recently with the conviction of the former Prime Minister, Ivo Sanader, who was convicted of corruption and sentenced to 10 years’ imprisonment. There could be little more by way of a clear demonstration of the independence of the Croatian courts and of Croatia’s determination to show clearly to her future partners that no one is exempt from an independent judicial process and rigorous laws against corruption.

My hon. Friends raised a number of more detailed questions about Croatia’s readiness for membership. I want to try to respond to them, as they all involved serious matters. Let me first take the question of the police, to which my hon. Friend the Member for North East Somerset referred. In the run-up to the December 2011 general election in Croatia, one of the last acts of the outgoing Government was to approve a package of amendments to the police Act, which was seen as allowing for political influence in the promotion of officers. Following the election of the current Government, the new Interior Minister attempted to introduce changes to the amendments, drawing on his own experience as a previous police director general, to create a system that was demonstrably based on merit and transparency. However, the European Commission expressed concern with certain details of the new law, and the United Kingdom raised the need for consultation with the Commission to ensure that Croatia embedded reforms and conformed with the EU acquis. The Croatian Government therefore delayed their domestic legislation process to take account of the Commission’s recommendations and to bring their own reforms into line with EU best practice.

The Commission has now approved proposed amendments to Croatia’s police law and we understand that these will be finalised and adopted by the end of the year, but already on the basis of the police Act in Croatia, further byelaws have been adopted, including a code of ethics for officers, the appointment of a director general of the police, and various ordinances on the conduct of officers and procedures.

My hon. Friend the Member for Bury North spoke about the pressures on the Croatian system of civil justice, and he is right to say that between December 2011 and June 2012 the number of unresolved cases in the civil justice system rose by 0.6% from 827,102 to 832,919, but it would be a mistake for the Committee to look at those totals and make the assumption that nothing had changed. Those are aggregate figures that conceal very significant changes and significant improvements.

What happened overall was that more new cases came into the Croatian civil justice system than were resolved by the Croatian civil justice system, but if we look at the old cases, we see that during that six-month period the number of cases that were more than 10 years old fell by nearly 5%, and the number of cases that were more than three years old fell by more than 4%, so we can honestly say that Croatia made good progress. The Croatian Government have introduced measures such as a new enforcement Act, new powers for their financial agency to recover fines, a new courts Act, new civil procedure and penal procedure codes to improve case management within the Croatian court system, and modern IT systems to help the courts transact their business more efficiently.

Finally, on budgets, it is true that the Commission has said that it wants €15 billion more in the multi-annual financial framework compared with its original proposals, and that that €15 billion includes €10 billion supposedly earmarked for Croatia. Our position all along has been that although Croatia should be entitled to funding on the same basis as other member states once it joins the EU, the EU budget must look for priorities and savings have to be found to accommodate additional expenditure. The position set out by my right hon. Friend the Prime Minister remains as he expressed it yesterday: we are going into these negotiations determined that the outcome we will accept will be a cut or at most a real-terms freeze in the EU budget.

I believe that further enlargement of the EU will help to promote the security, stability and prosperity of Europe and of the United Kingdom; that the expansion of the single market will benefit this country by bringing increased trade opportunities to a wider market; and that bringing Croatia into that single market will benefit the opportunities for UK business.

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[The Temporary Chair (Mr David Crausby)]

I think that relates much more to Third Reading, when the Minister will have an opportunity to deal with the question.

[Mr Lidington]

I am grateful for that guidance, Mr Crausby. I have some details on that matter and will be happy to speak about it on Third Reading.

Member states signed the Croatian accession treaty with the firm intention that it should be ratified by 1 July 2013. We believe that new member states should be able to join the EU when they have fulfilled their commitments as part of the tough and demanding accession process and are ready to take on the obligations of membership. Given the progress Croatia has made and the transparent commitment of its Government to completing the reforms that are still outstanding, we think there is no reason to delay this legislation coming into force and that we can be confident, on the basis of evidence, that Croatia will be ready. We should be eager to grasp the opportunities for the United Kingdom, both political and commercial, that stem from EU enlargement. Therefore, I think it is right to ask my hon. Friend the Member for Bury North to withdraw his amendment and for the House to support clause 6 as it stands.

[Mr Nuttall]

I have listened carefully to the Minister and to the debate. I must say that if Croatia is as ready for accession as the Minister would have us believe, my proposed amendment would not hold that up. Croatia would complete all the requirements put on it and would be able to satisfy Members of this House, and when a Minister of the Crown laid an order before us we would happily pass it. However, I heard what the Minister said and feel that my hon. Friend the Member for North East Somerset (Jacob Rees-Mogg) and I, despite the views we have put forward, are perhaps in a minority in the Committee, so I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 6 ordered to stand part of the Bill.

The Deputy Speaker resumed the Chair.

Bill reported, without amendment.

Third Reading

[Mr Lidington]

I beg to move, That the Bill be now read the Third time.

I thank all right hon. and hon. Members who have participated in our debates on the Bill. It is hard to single out individual Members, but I would like, as always, to express my thanks to the members of the European Scrutiny Committee for their work, particularly the Chair, my hon. Friend the Member for Stone (Mr Cash), and my hon. Friend the Member for North East Somerset (Jacob Rees-Mogg). In this afternoon’s debate and throughout our proceedings my hon. Friend the Member for Bury North (Mr Nuttall) has been active, concerned and sincere in the questions and challenges he has posed to those on the Front Bench. I would like to thank the hon. Member for Wolverhampton North East (Emma Reynolds) for her support for the Bill and that of the official Opposition. I also wish to put on the record my gratitude for the outstanding work of Government officials not only in the Foreign and Commonwealth Office, but in the Home Office and the Ministry of Justice, in putting together this legislation.

The enlargement of the European Union and the establishment of the single market are two of the EU’s greatest achievements. Both are initiatives for which the United Kingdom can claim considerable responsibility and in which it can take great pride. The EU, alongside NATO, has been an instrument of peace and reconciliation that has helped to spread and entrench democracy and the rule of law across Europe, including swathes of our continent where those traditions and values were crushed for most of the 20th century. The single market has opened up prosperity and opportunity to hundreds of millions of people, to the mutual benefit of us all.

That is why the United Kingdom supports further, conditions-based enlargement. Croatia’s accession will further demonstrate the transformative power of enlargement, marking the historic moment at which the first of the western Balkan countries that were involved in the wars of the 1990s as Yugoslavia broke up joins. Croatia’s accession negotiations were closed in June 2011 following six years of significant reform. As I have explained, Croatia has faced the most demanding and challenging negotiations of any candidate country. As my right hon. Friend the Foreign Secretary made clear when he visited the Balkans this October, the Government fully support the ambitions not only of Croatia but of all countries of the western Balkans one day to join the European Union. That is a further reason why we believe that it is so important that Croatia’s accession is a success; it is blazing a trail that we hope that other countries of the western Balkans will, in due course, follow.

[Henry Smith (Crawley) (Con)]

My right hon. Friend is absolutely right that Croatia should have had to face a very high test to join the European Union. Does he regret that when Romania and Bulgaria joined the EU, they were not subject to the same rigour?

[Mr Lidington]

When I talk to Bulgarian and Romanian Ministers, they are the first to say that the current situation is deeply unsatisfactory. They feel at times that they are treated as second-class members of the EU, while other member states feel that the standards required at the time of accession were not fully met; hence we have the co-operation and verification mechanism. It is to the credit of Štefan Füle and the European Commission that they have learned from that experience. Chapter 23, in particular, was created explicitly to avoid any repetition of what happened with Romania and Bulgaria.

We have strengthened things even further in the light of our experience with Croatia. The policy now adopted by all member states and the Commission is that for future candidates, beginning with Montenegro, chapters 23 and 24 will be addressed first in any accession process, opened early but then kept open until practically the end. That means that justice and home affairs reforms, including impartial administration of policing, will be taken through national Parliaments and put into law. It also means that as the years of accession negotiations continue, we will see a track record built up so that at the end nobody can be in any doubt that the criteria have been met and that the country concerned is truly committed and ready for the obligations of membership.

That brings me on to the questions from Members on both sides of the House as to whether Croatia is ready. I will not repeat what I said during our debate on the last group of amendments, but I do want to respond to the comments of the hon. Member for Blackley and Broughton (Graham Stringer) about Croatia’s record in dealing with immigration and the management of its immigration and asylum systems and border controls.

Croatia has made substantial progress to deliver the necessary reforms required in border management and migration policy. The implementation of Croatia’s new immigration Act began in January, bringing migration legislation in line with that in other European countries. Croatia is already co-operating both with its immediate neighbours and with the EU on the return of illegal migrants and has apprehended 2,370 illegal migrants during this monitoring period. Croatia drafted a new migration strategy in July. We expect it to be finalised by the end of the year and adopted in early 2103.

In 2006, Croatia adopted an integrated border management action plan. This provided a comprehensive framework for the preparation of the external border once it joined the European Union, and it has kept its priorities under review and has been ready to amend them as it has moved towards accession. Croatia already has 81 fully functioning border crossing points. We have made it clear, as has the European Commission, that completion of the remaining BCPs is a priority and the Croatian Minister of the Interior has given us an assurance that they will be completed.

Although there is still work to be done over the next few months, Croatia has put in place strong foundations to manage migratory pressures. The most crucial outstanding requirement is the reconstruction of the two land border crossings at Klek and Zaton Doli in the new corridor between Croatia and Bosnia and Herzegovina. Intensive work is now under way to ensure that those border crossings and the other outstanding BCPs are complete prior to accession, and our understanding is that the work on the outstanding BCPs will be completed and delivered next spring, ahead of Croatia’s planned accession date.

Our judgment is that there is no cause to fear that Croatian accession will lead to an impact on the United Kingdom through illegal migration, asylum or human trafficking. Let me explain our reasons for that judgment. First, there will continue to be border controls between Croatia and neighbouring EU countries after accession. This will continue until Croatia fully implements the Schengen acquis, which is subject to its own evaluation process. As a result, third-country nationals will continue to be subject to the same levels of controls after accession if they seek to leave Croatian territory to go to another EU member state. There is not expected to be any significant increase in illegal immigration to the UK as a consequence of Croatia’s accession.

Secondly, Croatia does not present a high risk to the UK as either a source or transit country for illegal migration. Thirdly, we have not identified any victims of trafficking from Croatia in the UK. As I noted on Second Reading, in 2011, the US State Department’s “Trafficking in Persons Report”, which ranks countries in terms of their capacity to tackle trafficking and protect victims, designated Croatia as a tier 1 country, alongside the United Kingdom. That means that Croatia is viewed as fully compliant with the minimum standards of the US’s Trafficking Victims Protection Act, so again I think we have good reason to be confident about Croatia’s record.

The Commission’s monitoring helpfully identifies those issues that remain outstanding, but it is also clear that the Commission expects Croatia to be ready on time and we share that assessment. Following the publication of the Commission’s October report, the Croatian Government prepared an action plan, a copy of which has been shared with the two parliamentary scrutiny Committees. That action plan was a clear indication that the Croatian Government have grasped what they need to do, and it is now up to them to deliver.

The Government support EU enlargement and the benefits it will bring to the UK. We are in favour of Croatia joining the EU, we believe that it is well on its way to demonstrating its readiness to join the European Union and we are fully confident that it will be ready by next July. The impact that Croatian accession will have in promoting stability and sending a message of hope across the western Balkans should be welcomed by every party in this House. I commend the Bill, and its Third Reading, to the House.