Commission Work Programme 2013

David Lidington Excerpts

Monday 7th January 2013 Commons Chamber

[The Minister for Europe (Mr David Lidington)]

I beg to move,

That this House takes note of European Union Document No. 15691/12 and Addendum, a Commission Communication on the Commission Work Programme 2013, and welcomes the Work Programme as a useful summary that enables the Government and Parliament to plan their engagement.

I welcome the fact that the European Scrutiny Committee has referred this subject for debate. Today’s debate on the 2013 work programme of the European Commission provides us with a timely opportunity for both Government and Parliament to look ahead and plan our consideration of forthcoming European Union business.

As is always the case, the work programme sets out the European Commission’s priorities, in this instance for 2013 and early 2014; and it may be the last substantial work programme under the current Commission, whose term ends in October 2014. The substance of the Commission’s plans is contained in the annex, which previews 58 initiatives, making it shorter than previous work programmes. However, we know that the list of initiatives is unlikely to be exhaustive; previous experience suggests that reactive work will arise. As the House is aware, various European measures from previous Commission work programmes are already in the system, and work on those will be ongoing over the next 12 months or so.

[Ms Gisela Stuart (Birmingham, Edgbaston) (Lab)]

The Minister mentioned reactive legislation. Is any reflective work done? Eleven years ago, 2012 was supposed to be the year when Europe was the most competitive economy in the world. What went wrong?

[Mr Lidington]

We could spend a fair time debating exactly what went wrong and the extent to which fault should be laid at the door of European institutions or of various national Governments who failed to implement the right economic measures to inculcate greater dynamism. I make no bones about the fact that the European Union as a whole would benefit from focusing—perhaps not to the exclusion of everything else, but ahead of all other priorities—on the urgent need for Europe as a whole to rediscover economic dynamism and economic growth through trade and open markets, because in the face of a dramatically changing global economy, that is the only way Governments of European nations can ensure that future generations enjoy both the material standards of living and the degree of social protection that we have come to take for granted in our day.

[Mr John Redwood (Wokingham) (Con)]

I should be grateful if the Minister could tell us whether there is provision in the Commission work programme to deal with the new relationship for the United Kingdom that I believe the Prime Minister will be sketching in his forthcoming speech.

[Mr Lidington]

I appreciate that my right hon. Friend finds it hard to contain his excitement at the prospect of the Prime Minister’s speech. He will, however, understand if I decline to be drawn into speculating about the contents of that speech today. I am very confident indeed that when my right hon. Friend the Prime Minister makes his promised speech on European policy, it will address the important issues facing both the United Kingdom and Europe as a whole, and will chart a way forward that is in the interests of the people of this country in particular and the peoples of Europe more broadly.

[Wayne David (Caerphilly) (Lab)]

As the Minister is waxing eloquent about the Prime Minister’s forthcoming speech, could he tell me whether the Prime Minister intends to consult the Deputy Prime Minister and his own Back Benchers?

[Mr Lidington]

I do not know whether that was a bid from the hon. Gentleman to be involved in the No. 10 drafting team. The Prime Minister will prepare his speech in the way he normally prepares such speeches within Government. The hon. Gentleman will not have to wait long to see the speech and I am sure that he will be first in the queue to express enthusiasm and a warm welcome for what my right hon. Friend has to say.

[Mr Ronnie Campbell (Blyth Valley) (Lab)]

Will a referendum be called for in that speech?

[Mr Lidington]

Again, I have to say that the hon. Gentleman must wait to see what my right hon. Friend the Prime Minister has to say in his forthcoming speech, but I am sure that the answers to the questions that he and other Members have about the speech will be answered in full when my right hon. Friend makes it.

[Andrea Leadsom (South Northamptonshire) (Con)]

Will my right hon. Friend give way?

[Mr Lidington]

I will, but I hope that the House will understand that I then wish to make progress in this time-limited debate.

[Andrea Leadsom]

Further to the questions from Opposition Members, can my right hon. Friend assure me that the Prime Minister will look at the Fresh Start project manifesto that he and other colleagues on the Government Benches received in draft form over the Christmas recess? It proposes significant reforms to Britain’s relationship with the EU.

[Mr Lidington]

My right hon. Friends the Prime Minister and the Foreign Secretary and I follow closely the work that my hon. Friend the Member for South Northamptonshire (Andrea Leadsom) and the Fresh Start group are doing. We think that their ideas represent an extremely creative and valuable contribution to the debate about this country’s future in Europe.

[Keith Vaz (Leicester East) (Lab)]

rose—

[Mr Lidington]

I ask the right hon. Gentleman to allow me to continue. Perhaps he could try to intervene later; I will seek to give way to him then.

Overall, we agree with the Commission that the No. 1 task facing the European Union is to tackle the economic crisis, return Europe to growth and enable its member states to compete in the global economy. Globalisation means that the EU faces increased competition from rapidly developing countries outside Europe, but it also brings us opportunities to build new markets for our products and services. To meet those challenges, the European Union should prioritise the promotion of trade, within the EU and outside it. It should seek to free private enterprise and enable businesses to compete, and it should support those priorities by ensuring that the limits of EU power are respected. I would therefore like to highlight three cross-cutting themes that are of the highest importance to the Government: growth, better regulation, and safeguarding the interests of the United Kingdom. I shall deal first with growth.

[Kelvin Hopkins (Luton North) (Lab)]

The Minister is talking about the importance of European Union member states competing in the world, and indeed with each other. The only way that they can do that fairly is if they have an appropriate value for their currency. They cannot have that when they are fixed inside the euro.

[Mr Lidington]

I think that this country’s decision to stay outside the euro was right. I am certainly not in the least tempted to see the United Kingdom abolish sterling and participate in the euro, but I say to the hon. Gentleman that we, as a democratically elected House, have to respect the sovereign decisions of other European democracies that have chosen, for reasons of their own that they have explained publicly, to commit themselves to the single currency project.

[Keith Vaz]

Will the Minister explain to the House how the work programme will fit in with the principles of the presidencies that will take place this year? As he knows, Ireland has taken over the presidency, and has presidency priorities. In six months’ time, another country will take over. How will that fit in with what the Commission intends to do?

[Mr Lidington]

The way this works, as the right hon. Gentleman will know from when he held my position, is that the Commission, under the treaties, has the right to initiate legislation, but even in the post-Lisbon world, the rotating six-monthly presidency chairs the various sectoral Council meetings and working groups, and has considerable influence in determining the relative priorities given to particular measures. A presidency may choose to try to fast-track a particular measure, and use its diplomatic resources to seek early agreement on it; it may place another measure, about which it cares less, on the back-burner. There is negotiation between the presidency and the Commission in that respect.

The Government have long argued for the Commission to come forward with measures to help boost growth, through agreements with important trading partners, and by strengthening and deepening the single market. I am sure that the House will welcome the news that, last month, the European Union successfully concluded a free trade agreement with Singapore, which will create new opportunities for United Kingdom businesses, particularly in the export of services, green technologies, automotive, electronic and pharmaceutical items, and medical devices. There are also opportunities to bid for public procurement contracts in Singapore.

We will continue to work on many more such agreements. I hope that it will be possible to conclude the proposed EU free trade agreement with Canada in the coming weeks, to open negotiations between the EU and the United States by the summer, and to take forward free trade negotiations with Japan. We will also continue to support efforts to achieve EU free trade agreements with India, Malaysia and other countries.

[Mike Gapes (Ilford South) (Lab/Co-op)]

On free trade agreements with the United States, does the Minister agree with me and with many commentators that the chances of the European Union getting effective agreement with the United States will be significantly less if the UK is not part of the negotiation, and that it is in the UK’s interests that the European Union is able to negotiate effectively with the United States and other countries, which would not be possible if we were outside?

[Mr Lidington]

I have always taken the view that if the United Kingdom were to walk away from the table, the most ardent and most influential champion for free trade and open markets would be removing itself. I am quite clear in my mind, particularly with the pressures that we can observe globally for protection rather than free trade, that it is important that we continue to bring our influence to bear within the European Union and within other multilateral organisations to promote greater freedom of trade across the world.

[Mr William Cash (Stone) (Con)]

My right hon. Friend, in line with many other members of our party, is deeply committed to the idea of free trade, but given that the European Union has exclusive competence in relation to trade, and with the qualified majority vote and with our having only 8% now, and only 12% even when the Lisbon treaty proposals are introduced in a few months, how will we be able to exercise the degree of influence that he claims, and how will we maintain bilateral trading relations, which will be the answer to all these problems?

[Mr Lidington]

I have more confidence than does my hon. Friend in our ability to form alliances with other countries to achieve the objectives that he and I share. Our right hon. Friend the Prime Minister has already discussed at length with Chancellor Merkel their shared objective of an ambitious free trade agreement between the European Union and the United States. The leaders of our country and of Germany recognise that the prize at stake is not only the phasing out of tariff barriers but the elimination of non-tariff barriers, thereby establishing, in effect, global regulatory standards agreed on a Euro-Atlantic basis, which would have to become the model for the rest of the world and which other parts of the world would find it difficult to challenge.

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

Will the Minister give way?

--- Later in debate ---

[Mr Lidington]

I will give way to the hon. Gentleman, but then I will try to make progress.

[Graham Stringer]

It is often said that if this country were to leave the European Union, we would get all the disbenefits of all the European laws, without any of the benefits implied. Will he tell us, therefore, how many EU laws Singapore has adopted, or any EU laws that the United States will adopt if a free trade agreement is arrived at?

[Mr Lidington]

The arrangements for dismantling barriers, for the mutual recognition of each other’s standards or for a common standard are negotiated and set down in writing in the terms of a free trade agreement. I am happy to send the hon. Gentleman a copy of the EU-Singapore free trade agreement if he wishes, so that he can inspect this in detail.

[Graham Stringer]

indicated assent.

[Mr Lidington]

It is to the advantage of business and, therefore, ultimately of workers and consumers in the United Kingdom that more such free trade agreements are achieved, particularly with the fast-growing economies of Asia and Latin America.

[Robert Flello (Stoke-on-Trent South) (Lab)]

Will the Minister give way?

[Mr Lidington]

Briefly.

[Robert Flello]

I am grateful to the Minister, who is being extremely generous. I have great concerns about Colombia and the move towards EU free trade with the Colombian regime, as I refer to it. Under President Santos there are ongoing human rights abuses and there is a huge issue concerning the current peace discussions with the FARC. When considering the work programme, will the right hon. Gentleman bear in mind the huge problems with Colombia?

[Mr Lidington]

As I am sure the hon. Gentleman knows, there are standard human rights clauses in all EU free trade agreements. I am aware that these human rights issues, particularly the rights of trade unionists in Colombia, have long concerned politicians and Ministers not just in the UK but in a number of other European countries. This is a live issue and it is one that we raise bilaterally with our friends in Colombia.

The European Council has called on the Commission to publish the proposals already identified in its communication on the Single Market Act II by the spring of this year, and it is encouraging that the work programme includes measures to improve the single market in both services and digital, such as those on access to regulated professions, reducing the cost of broadband deployment and e-invoicing.

We also welcome measures that aim to put the EU economy on a more sustainable long-term footing, including through innovation and the green economy, such as a new climate and energy framework up to 2030. We also support measures to improve transparency and customer protection and to tackle systemic risks in financial services. Better financial regulation is necessary to financial stability, and common rules are essential to safeguard the single market and the competitiveness of the UK’s financial services sector.

However, the Commission also needs to ensure that its proposals on complex financial services dossiers are properly worked out through the legislative process and that new proposals do not simply add to the existing backlog. We believe that the Commission should prioritise only the most important issues to ensure that sufficient time and expertise can be devoted to them, and that proper consultation takes place with practitioners in that sector.

We are concerned about the potential impact of a relatively small number of measures that are labelled as growth promoting. Those include the review of the institutions for occupational retirement pensions directive, which could significantly increase the cost of occupational pensions and reduce investment.

Right across the range of single market and other measures, we are working closely with the Commission, other member states and the European Parliament to encourage them to follow smart regulation principles. This brings me to the second important theme for the Government in the work programme.

Tackling regulatory burdens on business is vital for boosting economic growth. While EU regulation is needed in some areas—for example, in eliminating barriers to the single market—we need to reduce unnecessary costs to business from EU regulation. Our chances of heading off or shaping new EU regulations are much higher if we influence the European Commission before it has published a formal legislative proposal, so the Government use the Commission work programme to identify forthcoming proposals, and challenge the Commission about these in the early stages. We share feedback from British businesses on the potential impacts of proposals and build alliances with other member states so that we speak with a louder voice in Brussels.

[Sir Alan Beith (Berwick-upon-Tweed) (LD)]

I am grateful to the Minister for recognising that it is extremely important that Select Committees of this House are made aware at an early stage of developing legislative proposals in Europe in time to influence them, and I hope that he will continue attempting to ensure that the invaluable help that comes from UK representatives to Select Committees is strengthened and that they are enabled to do this vital job.

[Mr Lidington]

I am grateful to my right hon. Friend for what he says. It is true that the departmental Select Committees of this House can play an important role complementing the work of the European Scrutiny Committee by trying to look ahead of formal legislative proposals being tabled for scrutiny. The sort of work that the Select Committees can do in taking evidence from those business sectors that may be affected by a particular Commission initiative, producing evidence-based reports, can help better to inform the Government’s negotiating position and, on occasion, can have a direct impact on thinking within the European institutions themselves. I welcome what my right hon. Friend says and I hope that other Select Committee Chairs will look to the example that he and, in fairness, a number of others have set.

[Mr Cash]

My right hon. Friend will know that the European Scrutiny Committee is currently holding an inquiry into European Scrutiny Committee matters. Does he accept that timing is very important? What my right hon. Friend the Member for Berwick-upon-Tweed (Sir Alan Beith) has just said is, of course, extremely welcome, but does the Minister not accept that unless the Government are prepared to release the information they have early enough, it could turn out to be far less valuable? Therefore, could not the Government ensure that we all get the information as early as they do?

[Mr Lidington]

I am always willing to explore how the Government can help to make information available to Parliament, particularly its Committees, in a way that enables a better informed debate and allows Parliament an input at the earliest stage in proceedings. As my hon. Friend will be the first to understand, there is always a balance to be struck between our wish on the one hand to do that and our concern on the other hand not to divulge ahead of negotiations all the details of our negotiating position, including on those areas that are the highest priority objectives and those on which we might be prepared to make concessions. However, I am always happy to look at concrete ideas for improving how we do business.

[Andrea Leadsom]

In the interests of better scrutiny, does not my right hon. Friend also agree that it would be a good idea for this House to consider whether we ought to have European business questions periodically, rather than just on these unusual occasions? Without wishing unilaterally to promote him, should not it also be considered whether Secretary for Europe should in fact be a Cabinet post?

[Mr Lidington]

It is always nice to be flattered, but to attempt an answer really would be well above my pay grade—

[Mr Speaker]

Order. I am sure that the Minister of State hopes that the point has been heard by the Whip on duty.

[Mr Lidington]

Mr Speaker, the Whips on duty hear everything.

Overall, the Government have achieved some success in trying to shift the Commission away from a culture of regulation. Our reform agenda has widespread support and 12 other member states joined us in November in backing a 10-point plan for EU smart regulation. On 12 December the Commission published a new better regulation strategy, which includes a proposal that the Commission should use EU common commencement dates, which ought to help businesses plan for changes in regulation. It has also promised to introduce summary sheets for impact assessments to make it easier for businesses to assess the cost of new legislation.

[Mr Redwood]

Has not the EU been legislating all my lifetime? It has far more regulation than anyone could conceivably want. Why does it not have a year off? How can the Minister possibly say that it is going our way when all we see is more and more needless, time-consuming and costly regulation?

--- Later in debate ---

[Mr Lidington]

To be fair, that is a charge my right hon. Friend has levied not only at the European Union but at successive Governments in this country. I certainly agree that too often the European Commission’s first instinct—to be fair, too often it is the first instinct of Departments of State in this country—is to measure its activity and political success by the number of new legislative measures it invents and takes through the legislative process. Often—I certainly believe this is true at European level—more could be achieved more effectively and significantly more cheaply through a sensible exchange of best practice, by looking at what works in one member state but perhaps does not work in another and seeing whether it is possible to encourage the dissemination of best practice rather than always looking at legislative measures as the first step.

I do not want to exaggerate the extent to which the Government have been able to shift a deeply ingrained culture that looks to legislation, but I think that it is important that the House appreciates that we have managed to secure some changes that none of our predecessors, of either party, managed to secure. Last year we got agreement to a measure under which businesses with fewer than 10 employees should be exempt altogether from any new EU legislative proposals unless there was a good reason for their inclusion. This is the first time in the EU’s history that the default position has been that there should be an exemption from regulations rather than the inclusion of all companies within them. Agreement was reached, too, that lighter regimes should be developed for those occasions when such businesses needed to be included. For example, in March last year agreement was reached that exempted up to 1.5 million UK small businesses from certain European Union accounting rules.

[Ms Gisela Stuart]

The Minister says that there will be an exemption unless proved otherwise. What is the mechanism whereby we keep track and action is reported back to us, because we hear this year after year but nothing happens?

[Mr Lidington]

The hon. Lady makes a perfectly fair comment. That is why at European Council after European Council my right hon. Friend the Prime Minister keeps coming back to the charge and saying, “We all agreed as Heads of State and Government two or three months ago that the Commission should come forward with a set of proposals on smarter regulation; now we want to see what it has actually been doing in the meantime.” One of the key objectives of the Prime Minister and of my right hon. Friend the Secretary of State for Business, Innovation and Skills is to ensure that we do not simply relax having achieved a paragraph in the conclusions of a European Council that commits everybody to a measure of deregulation but follow it through so that in all our conversations with the Commission, in our work with MEPs, and in the work that we do bilaterally with other member states we try to co-ordinate a more growth-friendly approach across the European Union. These high-level declarations need to be nailed down in terms of concrete action, and the Commission should be expected to report back. We are making progress on that. I am the first to say that there is still a great deal more to do, and we will encourage the Commission to consider further and more ambitious measures.

[Mr Cash]

I suggest that the Minister uses the word “ambitious” because annexe 2 of the programme refers to “simplification” and “administration burden reduction initiatives”. There are three of those, two of which are legislative and one non-legislative. If one turns to the rest of the work programme and goes through the entire list, one finds that 48 of the 58 are new legislation. I am afraid to have to say to my right hon. Friend that ambition is one thing and vanity is another.

[Mr Lidington]

My hon. Friend displays his usual prescience in these matters, because I was about to refer to the list that he recited. The Government welcome the inclusion in the work programme of a list of simplification measures, but we need to be vigilant to ensure that they deliver genuine savings for business. The list of 14 withdrawn proposals that the Commission has published is disappointing, because those measures are obsolete already or are due to be replaced by further proposals. The Commission needs to do much better than that to remove unnecessary or excessive legislation from the statute book, and not only the Government of the United Kingdom but the Governments of a significant number of other like-minded member states are committed to achieving that.

[Mrs Anne Main (St Albans) (Con)]

On the commitment to reducing the burden of these legislative measures, does the Minister have any idea of how many we would like to get rid of? Are we suggesting that anything is dropped instead of just waiting for the Commission to show us what it is proposing?

[Mr Lidington]

Yes. My right hon. Friend the Secretary of State for Business, Innovation and Skills keeps returning to this point. The working time directive is one example that the Prime Minister mentioned again in his television interview on Sunday. The best thing I can do for my hon. Friend is to undertake that I or one of my colleagues in the Department for Business, Innovation and Skills will write to her with more detail on this point.

A third important theme for the Government is safeguarding the United Kingdom’s interests as a sovereign state. As set out in the coalition agreement, we will not participate in the establishment of a European public prosecutor and the UK will not exercise its opt-in for this measure, which is proposed in the Commission’s work programme. Several other measures in the area of justice and home affairs will also trigger opt-in decisions. These will be considered on a case-by-case basis, with a view to maximising our country’s security, protecting civil liberties, preserving the integrity of our criminal justice and common law systems, and controlling immigration.

We also have concerns about subsidiarity in relation to a small number of items in the work programme, such as those with regard to standardising VAT forms throughout the EU. Parliament, of course, has an important role to play in this regard, not least in deploying the additional powers that it has under the Lisbon treaty to issue a reasoned opinion when it considers that a proposal is not consistent with the principle of subsidiarity.

I hope that today’s debate will set the tone for close consultation between Parliament and Government on European Union issues in 2013 and beyond. We consider Parliament’s role to be vital in strengthening democratic oversight of EU activity and, more broadly, in improving trust in the decision-making process between citizens, Parliament and Government, and fuelling a well-informed public debate on EU matters.

Of course, responsibility for most of the measures in the work programme lies with other Government Departments and not the Foreign and Commonwealth Office, but I will be happy to discuss further, both with the European Scrutiny Committee and departmental Select Committees, how best to engage in a deeper dialogue about EU issues during all stages of their development. The scrutiny of EU legislation by Parliament is vital to the robust functioning of democracy.

[Sir Alan Beith]

I say to the Minister that we and the Liaison Committee have had that dialogue and that it is now delivery time.

[Mr Lidington]

It is right to say that it is delivery time, but that means that it is delivery time for Parliament as well as for Government. It has to be for each of the relevant Select Committees to decide the way in which they should give, perhaps, a higher priority to their EU responsibilities, which are, after all, included in their terms of reference under Standing Orders. The Government are taking their responsibilities seriously and I look forward to working with not just my right hon. Friend but the other Committee Chairs in successfully providing the level of scrutiny and debate on European matters that I think we all wish to see. That is why I welcome the opportunity for debate today and I commend the motion to the House.