4 David Lidington debates involving HM Treasury

European Union Referendum Bill

David Lidington Excerpts
Tuesday 8th December 2015

(9 years ago)

Commons Chamber
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David Lidington Portrait The Minister for Europe (Mr David Lidington)
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I thank right hon. and hon. Members in all parts of the House who have taken part in the debate this afternoon. The right hon. Member for Wolverhampton South East (Mr McFadden) was even so generous as to offer an additional filler for my Christmas stocking. I am sure the pamphlet that he proffered to me will take an honoured place on my shelves, alongside the collected works of my hon. Friend the Member for Stone (Sir William Cash).

The House will be aware that this Bill received detailed scrutiny in the Lords. The amendments in this group are part of a wide range of changes that the other House imported into the Bill. Many of those amendment were technical and procedural and were designed to strengthen the fairness and robustness of the campaign framework. The Lords also made technical amendments that ensure that the Bill works appropriately for Gibraltar and responds to recommendations from the House of Lords Delegated Powers and Regulatory Reform Committee. Finally—these are the subjects that have preoccupied the House most this afternoon—in response to concerns from Members of the House of Lords that the British people might not have access to the information they needed to take an informed decision, the Lords added to the Bill the duty to report on three topics: the results of the renegotiations; what membership of the European Union entails in terms of our current rights and obligations; and examples of already existing alternatives to EU membership. In the time that remains I shall address these areas of change in turn.

Amendments 5 and 6 deal with the provision of public information. As my right hon. Friend the Member for Ashford (Damian Green) and my hon. Friend the Member for Harwich and North Essex (Mr Jenkin) both acknowledged, at the end of the negotiating process the Government will express their view and their recommendation to the British people for when the electorate vote at the promised referendum.

What we now have are obligations written on the face of statute for the Government to publish particular items of information. There was a clear appetite in the Lords for such statutory provision. The Lords tabled and debated a series of amendments calling for the Government to set out in very prescriptive detail the potential consequences of remaining in the European Union and also what the consequences of withdrawal would be in a number of areas of national life. Noble Lords called on the Government to set out what their—that is, the Government’s—envisaged relationship with the European Union would be in the event of a vote to leave.

For our part, we did not agree that the Government should speculate on potential consequences in this way and in the detail prescribed by the Lords amendments. In our view, it is for the designated lead organisations to lead the debate on the two sides of the argument. However, the Electoral Commission, in its research into the question, did identify that there is an appetite among the general public for information both on what remaining in the EU would mean and on what leaving could mean. Given the strongly held views that were expressed in the other place, we accepted the principle that the Government should be obliged to play a limited role in ensuring that the public are able to make an informed decision. In our view, the most useful role for the Government is to give information on the renegotiation deal that is achieved, and on the factual nature of membership, to try to aid understanding and to inform the public. Then it will be for the designated lead campaigners to interpret that information and provide their own arguments on both sides.

Amendment 5 is based on an amendment tabled in the Lords by my noble Friend Lord Forsyth, who I think everyone in the House would accept is not someone usually regarded as an unqualified admirer of the European Union. The amendment set a requirement for the Government to report on the outcome of the renegotiation. Building on this, the version of Lords amendment 5 that we now have before us would require the Government to report on what had been agreed by EU member states as a result of the renegotiation and to give their view on this.

Amendment 6 takes us further by requiring the Government to publish a report that would set out

“information about rights, and obligations, that arise under European Union law as a result of the UK’s membership of the European Union”.

This would enable us to describe what membership of the EU entails for this country.

Bernard Jenkin Portrait Mr Jenkin
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Who tabled amendment 6?

David Lidington Portrait Mr Lidington
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Amendment 6, as it currently stands, was tabled by my noble Friend Baroness Anelay, following debate in the Lords, as a way to try to build consensus in that House to enable it to give passage to the Bill.

Perhaps it would be useful for me to explain, in response to comments made in this debate, how the Government interpret the obligation imposed on us by the amendments and how we would propose to see those obligations implemented. By “rights”, as set out in amendment 6, we mean rights that the United Kingdom has as a member state of the European Union, and also the rights granted to individuals and businesses as a result of our membership, such as access to the single market. By “obligations”, we mean the things that our membership of the European Union commits us or obliges us to do. Most obviously, this is at member state level, but there would also be implications for businesses or individuals. An obvious example is our obligation as a member state to transpose EU law in particular areas and to accept the primacy of the EU so long as we are a member of the European Union. The duty written into amendment 6 does not require the Government to set out information about every single right and obligation. Such a report would not be meaningful, and the purpose of the duties is to provide useful and relevant factual information to allow for greater public understanding.

Amendment 6 requires the Government to describe some of the existing arrangements that other countries that are not EU members already have with the EU.

John Redwood Portrait John Redwood
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I do not understand how the Minister can say that only some of the obligations are mentioned. Surely the Bill as drafted says “the obligations”, which must include all the legal requirements on individuals, companies and the state, as well as the massive contributions and legal supremacy involved. I hope that he is going to mention that nothing is said about trade. He must not limit himself to the trade arrangements but must also look at the defence arrangements, the political arrangements, and all sorts of other arrangements.

David Lidington Portrait Mr Lidington
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The amendment refers to “rights, and obligations”, not to “the rights and obligations”. It gives the Government the discretion to select for presentation the rights and obligations that we think will best aid public understanding. I want to make it clear that our purpose in recommending acceptance of these amendments is that they should enable us to provide for greater public understanding. I completely agree with my right hon. Friend that membership of the EU touches on matters other than trade or economic policy. I am sure that the relative balance of advantages and disadvantages that arises out of EU membership on all those issues will be a matter of vigorous debate during the referendum campaign, but we do not envisage that debate taking place in the context of the obligation placed on us by amendment 6.

Lords amendment 6 is about providing factual information on the basis of which the public can take an informed decision. It is also about describing some of the existing arrangements that non-member countries already have with the European Union. We think that that is a better course of action than for the Government to attempt to hypothesise about what the United Kingdom’s future relationship with the EU would be in the event of a vote to withdraw, because that depends on assumptions made about not only the future intentions of the British Government, but the likely response of other European countries.

William Cash Portrait Sir William Cash
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On rights and obligations, the Minister is already beginning to move the argument into the arena of the question of impartiality and accuracy. If the Government pick and choose, the public will not have a clue whether what is chosen suits the Government or them, and it is the voters who will have to make the final choice.

David Lidington Portrait Mr Lidington
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To follow my hon. Friend’s logic, the implications of a requirement to provide an exhaustive list would mean going through the entire corpus of EU law—not just the particular areas of competence, as specified in general terms in the treaties—and trying to draw out from that what would be a voluminous list of both the rights and the obligations that derive from each of the measures. I simply do not think that that would aid public understanding. Actually, I think it would act as a formidable deterrent for many members of the public to read the document at all.

My hon. Friend the Member for Harwich and North Essex (Mr Jenkin) asked about the form of publication. No decision has been taken yet, but I envisage it being comparable to a White Paper, if not an actual White Paper. As is normal these days, such a publication would be available online, so it would be widely accessible. The reports would have to be published at least 10 weeks before the referendum, which would give the campaigners clear time to lead the public debate. I emphasise that neither Lords amendment 5 nor 6 in any way affects the section 125 restrictions on Government publications during the final 28 days of the campaign. I hope that my hon. Friend the Member for Stone, in view of what I have said and of the Electoral Commission’s express view that it does not agree with his amendment, will agree to withdraw it.

William Cash Portrait Sir William Cash
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Before I declare whether I am going to withdraw my amendment, I have asked my right hon. Friend several times to make it absolutely clear, on behalf of the Government, that when they give information under Lords amendments 5 and 6 they will do so with due accuracy and impartiality. Is he going to do that or not?

David Lidington Portrait Mr Lidington
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Certainly, that is the case, because it would probably have a perverse impact on the Government’s recommendation if they were to be seen to be acting in an excessively partisan manner. I say again to my hon. Friend that, at the end of the negotiation, the Government will express their view, their recommendation and their reasoning, but we see the statutory provisions laid out in the Lords amendments as being about the provision of actual and factual information.

Lords amendment 13 has also been debated in detail. It would allow the Electoral Commission to designate a lead campaigner for only one side of the argument in the event that either there were no applications for a particular outcome or the Electoral Commission was not satisfied that any applicant met the statutory test of adequately representing those campaigning for that outcome. Given the vigour we already see in opposing campaigns, it is very unlikely that we will end up in such territory. I hope that the House will accept Lords amendment 13 to prevent gaming by one side of the campaign to the disadvantage of the other.

William Cash Portrait Sir William Cash
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I simply say that in the light of the clear assurance that there will be due impartiality and accuracy, I will not press my amendments to Lords amendments 5, 6 and 13. I beg to ask leave to withdraw amendment (a) to Lords amendment 5.

Amendment, by leave, withdrawn.

Lords amendment 5 agreed to.

European Union Referendum Bill

David Lidington Excerpts
Tuesday 16th June 2015

(9 years, 6 months ago)

Commons Chamber
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Tasmina Ahmed-Sheikh Portrait Ms Ahmed-Sheikh
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I will not give way, as I do not have much time. I apologise.

In the days before Scotland’s independence referendum last year, the Prime Minister called the UK a “family of nations”. If he means what he says, and if the Government back him, surely all members of the family should have a voice of their own. During the referendum, we were invited to lead the UK, not leave it.

Let me be clear. I welcome the constructive and positive moves—alternatively referred to as a “cave- in”—from the Government to rule out holding the referendum on the same date as the Holyrood elections next year. I am heartened that they are listening and acting, in this instance, to support Scotland’s best interests in relation to the timing of the vote. But that must be the start of the listening exercise, not the end. The House should pay careful heed.

If Scotland were to be taken out of Europe, despite voting as a nation to remain in it, that would inevitably provoke a strong reaction among ordinary voters in Scotland against the settlement that we agreed last September. The safeguards that we propose could avoid that outcome. We urge the Committee to support our amendments and I commend them to the Committee.

David Lidington Portrait The Minister for Europe (Mr David Lidington)
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I start by congratulating the hon. Member for Hampstead and Kilburn (Tulip Siddiq) and my hon. Friend the Member for Morley and Outwood (Andrea Jenkyns), who made maiden speeches in this afternoon’s debate. Both spoke with warmth and conviction. The House looks forward to hearing from both hon. Ladies many times during their parliamentary careers.

The amendments that we are debating cover a wide range of issues. The House will expect me to spend most of my time addressing the arguments about the proposal to disapply section 125 of the Political Parties, Elections and Referendums Act 2000. However, I will start by addressing amendment 16, moved by the right hon. Member for Gordon (Alex Salmond). I was not surprised that he and his party should have moved such an amendment or that they had the support of Plaid Cymru in so doing, but I doubt whether the right hon. Gentleman will be shocked when I say that the Government do not intend to accept it.

Amendment 16 does not make sense in the context of the Bill. The legislation is about holding a vote; it makes no provision for what follows. The referendum is advisory, as was the case for both the 1975 referendum on Europe and the Scottish independence vote last year. In neither of those cases was there a threshold for the interpretation of the result. The Government take the view that, in respect of EU membership, we are one United Kingdom. The referendum will be on the subject of the United Kingdom’s membership of the European Union and it is therefore right that there should be one referendum and one result. I hope that the right hon. Gentleman will choose not to press his amendment.

I say briefly to the hon. Member for Ilford South (Mike Gapes), who spoke to amendments 49 and 50, that the timing of the referendum should, subject to the deadline at the end of 2017, depend on the progress of negotiations at European level. I do not think that the inflexibility introduced by his amendments would be helpful in that process.

The right hon. Member for Wolverhampton South East (Mr McFadden), who spoke to amendments 4, 5 and 6, was right to say that the British public will expect information to be provided about the consequences of the UK’s leaving the European Union. For the most part, that will clearly be the job of the designated campaign organisations for the two camps during the campaign. However, at the end of a period of renegotiation, the Government will obviously want to set out their conclusions and reasons for the recommendation that the Prime Minister and the Government will make at that point. In the past I have mentioned that that could be done through a White Paper or some other such communication. It would not be right for specific requirements to be set out, especially at this early stage even in the negotiation process, about what the Government would be obliged to publish at a given time ahead of the referendum. Neither is it necessary to define in statute responsibilities on the Bank of England or the Office for Budget Responsibility. As has been said by others during this debate, they are independent entities, and ultimately it is for them to decide whether and how to express their views to a wider public.

I move on to section 125 of the Political Parties, Elections and Referendums Act 2000. In response to my right hon. and learned Friend the Member for Beaconsfield (Mr Grieve), I highlight to the House the fact that schedule 1 provides for a disapplication of section 125 in relation to this referendum and no other. The underlying statutory framework would continue unless Parliament decided that it wanted to have a similar provision for disapplication for any future referendum.

David Lidington Portrait Mr Lidington
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Yes, but I do want to respond on the detail.

Andrew Murrison Portrait Dr Murrison
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Many Conservative Members will trust these Front Benchers and I accept his remarks about section 125, but does my right hon. Friend not accept that a precedent would be set and that many of us would be worried in case, under different Governments, referendums were not conducted on the fair basis that he and I both want?

David Lidington Portrait Mr Lidington
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I want to explain to the House why section 125 causes some real difficulties. We should not be under any illusions about the starting point. It is not at all the same as the purdah guidance that is published by central Government at election time. The purdah traditions for both national and local elections rest on convention. With section 125, we are talking about a very wide-ranging statutory prohibition on Government activity. In the words of the section, public bodies are banned from publishing material that

“deals with any of the issues raised by any question on which such a referendum is being held”,

as well as general information, putting arguments or even setting out the competing arguments, and encouraging people to take part in the referendum. The definition of publication in the section is very broadly phrased: the word “publish” is defined as making material

“available to the public at large, or any section of the public, in whatever form and by whatever means”.

Under section 125, there is a very wide-ranging ban on what the Government can do.

David Lidington Portrait Mr Lidington
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I will not give way, if the hon. Gentleman will forgive me. I have about eight or nine minutes, and I want to respond to the debate.

That ban would clearly cover printed material and some electronic communications, although it is fair to say that when PPERA was drafted we were not in an age of social media and interactive digital technology—Twitter, Facebook and other such accounts—and there is a serious question about what would be captured by the phrasing of section 125 as it stands.

Section 125 would be unworkable because the world and normal EU business will not stop for the referendum. Let me take the example of the very active public debate about migration, particularly at the moment from north Africa, but also about what is happening at Calais. It should be common ground that when we get to the referendum campaign, questions to do with migration, freedom of movement and the accessibility of welfare will form part of the debate. During the four weeks, section 125 would prevent the Government or any public body from making any comment not necessarily on the referendum question but on an issue that might be discussed in the Council of Ministers meeting or in response to a European Court of Justice judgment. The Government need to be free to respond in the national interest and to conduct ordinary day-to-day EU business, and that freedom would not be permitted if we left section 125 as it stands.

Lord Cryer Portrait John Cryer
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Will the Minister give way?

Bernard Jenkin Portrait Mr Jenkin
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Will my right hon. Friend give way?

David Lidington Portrait Mr Lidington
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I will give way to my hon. Friend.

Bernard Jenkin Portrait Mr Jenkin
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I just want to place on the record the fact that I really do challenge that interpretation of the section. My right hon. Friend says that he has counsel’s opinion: let him lay it before the House, or we will obtain counsel’s opinion of our own.

David Lidington Portrait Mr Lidington
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My hon. Friend is obviously free to take legal opinion of his own, but if he looks again at the wording of section 125 and applies it to the conduct of EU business, he will find that there would be very serious problems in carrying out day-to-day business in the national interest at EU level if the section is left untouched.

We believe that applying the section would be inappropriate because the referendum is taking place as the result of a clear manifesto commitment to negotiate the terms of the UK’s relationship with the European Union and to put them to people in a referendum. Section 125 could make it impossible to explain to the public what the outcome of the renegotiation was and what the Government’s view of that result was.

The Government must be able, and legitimately should be able, to offer their views, including up to the day of the referendum. However, as I have said, the Government are not a campaign: it is not the Government’s job to supplant the role of the lead campaign organisations during the referendum campaign, and it is certainly not our intention to act in that way. We recognise and understand the strength of feeling that exists on this issue, and I am grateful for the constructive and courteous tone in which the debate has been conducted both this afternoon and in private conversations outside the Chamber.

Jacob Rees-Mogg Portrait Mr Rees-Mogg
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My right hon. Friend said that the Government may not be able to give their view on the outcomes of the renegotiation. Surely that cannot be true. It cannot be the case that the renegotiation will only be finished within the purdah period.

David Lidington Portrait Mr Lidington
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What I am saying is that the Government will need to be able to say why they have come to the conclusion and recommendation that they have reached.

As the Foreign Secretary said and as I repeated on Second Reading last week, the Government will exercise restraint during that period. We have listened to what colleagues in all parts of the House have said and are therefore committing ourselves to table amendments on Report to write into the Bill measures that will provide reassurance on that point. I accept completely the point made by my hon. Friend the Member for North East Somerset (Mr Rees-Mogg) and my right hon. and learned Friend the Member for Rushcliffe (Mr Clarke) that it is vital that the British public and both sides in the referendum debate accept that the referendum is being conducted fairly and therefore feel able to accept the result.

James Cleverly Portrait James Cleverly (Braintree) (Con)
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I have had concerns about the implications of the complete removal of section 125. Does my right hon. Friend recognise that the sustainability of the result of the referendum, whatever it may be, will depend on whether the public has confidence in it, and that the assurances that we have all received from the Foreign Secretary and from him today must be delivered in full?

David Lidington Portrait Mr Lidington
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I completely understand that concern. I repeat that we will not ask the House to rely only on the words of Ministers from the Dispatch Box. We have made a commitment to introduce into the Bill changes that give expression to the assurances that we have given.

Alex Salmond Portrait Alex Salmond
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On a point of order, Sir Roger. Some of my hon. Friends were asked, in courtesy to the Committee, to shorten their speeches so that the Minister would get to speak. Is the Minister not going to extend the same courtesy to those who should be summing up on the amendment? If that does not happen, there will be other occasions when the Minister can be talked out.

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Roger Gale Portrait The Temporary Chair (Sir Roger Gale)
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That is not strictly a point of order for the Chair. The Minister knows whether to sit down or not.

David Lidington Portrait Mr Lidington
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We will ensure that there is a clear mechanism so that in the four weeks before polling day, the Government will not undertake a range of activities that most would regard as the province of the campaign, such as issuing mailshots, running commercial advertising campaigns and emailing voters in one way or another.

There are various ways in which that might be done. Some colleagues have talked about a code of conduct. The Opposition have tabled a constructive amendment, which we welcome, but there are some technical problems with it, not least how the Government could anticipate what might be published by all public bodies, which is required by the text of amendment 54. As an alternative to a code of conduct, we could include provisions in the Bill that would restrict Government activity to particular named forms of publication or prohibit the Government from taking part in specific forms of communication.

We will not programme the Report stage until the autumn, which provides ample time for Ministers to consult parliamentary colleagues in all parts of the House to understand their concerns and views more closely, and to frame a set of amendments that will command the widest possible consensus in the House on Report. That is probably the best way to ensure that the referendum is conducted on a basis that everybody believes to be fair.

We have always been clear that it is not our intention that the Government should be a lead campaigner in the referendum. It is right that the Committee should seek reassurance from us on that point. We are happy to bring forward the amendments that I have described and, in the meantime, to discuss proposals with hon. Members in all parts of the House. However, I believe that section 125 of the 2000 Act is deficient for these purposes and urge right hon. and hon. Members not to press the amendments that would impose the provisions of that section on the referendum.

Banking Union and Economic and Monetary Union

David Lidington Excerpts
Tuesday 6th November 2012

(12 years, 1 month ago)

Commons Chamber
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David Lidington Portrait The Minister for Europe (Mr David Lidington)
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I think that what has united all my hon. Friends who have spoken tonight is their justified anxiety to safeguard a vital strategic interest of the United Kingdom, namely our financial services industry. Let us never forget that most of the jobs in financial services in the United Kingdom are outside London, and that when we talk of the City we are also talking about firms that employ thousands of people in Scotland, Wales, Northern Ireland and the northern and midland cities of England.

The City has thrived through a single market in European financial services. Roughly a third of its business is in Europe, and we should be proud of the fact that it is not just a strategic asset for the UK. The presence in London of a global financial services centre is an asset for Europe as a whole, and we should be prepared to shout loudly about that: about the millions of French workers whose savings are invested through London funds, about the energy companies throughout Europe whose exposure to dollar exchange rates is hedged by funds in London, and about the projects involving privatisation and public-private partnerships in eastern and central Europe that look to London for both expertise and capital. We are standing up for the interests of the British people and, indeed, those of citizens throughout Europe in defending the interests of the financial services sector.

For a single market, we need a common rule book, and we need the EBA to help with the enforcement of common rules. I felt that there was a lot of common ground between the views of my hon. Friend the Member for South Northamptonshire (Andrea Leadsom) and the Government’s position. We do indeed believe that, in negotiating free trade arrangements with the rest of the world, the EU should ensure that services constitute one of the key dossiers, and that is what we are pressing for in every free trade agreement negotiation. I also agreed with the strictures expressed by my hon. Friend the Member for Northampton South (Mr Binley) about the financial transaction tax. We could not have made it clearer that we will not accept such a tax on a European level. If other countries are so foolish as to implement it, that is a matter for them.

We are faced with the reality that our friends in the eurozone are committed to a single currency. We respect their decision and want that currency union to be stable, which must involve a banking union. The package of measures that we have before us groups together some elements on a single market treaty base which will be determined by qualified majority, along with, critically, a key measure which, under article 127(6) of the Lisbon treaty, requires the establishment of a single supervisory mechanism in the European Central Bank that requires unanimity. We have always seen those different elements as a package. I must tell my hon. Friend the Member for Basildon and Billericay (Mr Baron) that we could not have been clearer about the fact that we will not agree to a measure to establish the single supervisory mechanism under article 127 unless the package overall protects our interests.

In his opening speech, my right hon. Friend the Financial Secretary said that we would insist that the proposed changes in the EBA were not acceptable, and would require full protection for the UK and the other non-eurozone members’ positions within the EBA. The documents that we have here are draft texts which do not represent the final position. If they were to represent the final position, we would not agree to them in their current form.

I agree with my hon. Friend the Member for Braintree (Mr Newmark) that the amendment, although well intentioned, misses the point. We are not going to agree to something that is unlawful, and neither is Germany. I ask the House to have confidence in the Government’s determination to defend and advance the interests of the United Kingdom, and in particular to safeguard our financial services sector. I also ask the House to contrast that with the view of Labour’s Front-Bench team, the logic of which was not simply to be in the room, not simply to take part in negotiations, but to follow it through to join—

Remuneration of EU Staff

David Lidington Excerpts
Tuesday 21st February 2012

(12 years, 10 months ago)

Commons Chamber
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Cathy Jamieson Portrait Cathy Jamieson
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I have listened closely to the hon. Gentleman, but his party is now in government and it has to take responsibility for what has happened in the past year. I absolutely understand that past decisions have implications for the issue before us, but I want to focus on where we go in the future and what this Government have done in the past year. My concern is that, apart from trips to Berlin and Paris, for example, neither the Prime Minister nor the Foreign Secretary travelled to the EU’s capitals before they went to Brussels. Britain was singled out for criticism by the Foreign Minister of Poland, a country that was one of our potential allies. If we want to change things in Europe, surely we must build alliances rather than destroy them.

David Lidington Portrait The Minister for Europe (Mr David Lidington)
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Just to correct the record, the Prime Minister did travel to see Chancellor Merkel and President Sarkozy in the run-up to the December Council and the Prime Minister, the Deputy Prime Minister, the Foreign Secretary and other Ministers had conversations with their counterparts in a number of other member states as the Council approached.

Cathy Jamieson Portrait Cathy Jamieson
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I am happy to accept that correction to the record. However, I want the House to be aware of our concern that what was presented by the UK was done very much at the last minute. I hope that in future we will spend time building alliances, rather than be sidelined.

I want to focus again on the issue of budgetary restraint. The Minister has indicated that there is an intention to be tough on Europe on budgetary restraint, but we have not seen or heard the detail today of how that will happen.

The Conservative party is riven with splits. The Deputy Prime Minister has said that the Prime Minister’s behaviour in Europe risks making the UK

“isolated and marginalised within the European Union”.

The Italian Prime Minister, Mario Monti, has said that Britain will no longer be

“in the heart of Europe”

following the veto and that our “capacity to influence” events will be greatly diminished. The concern of people in the wider world is that the Prime Minister has indicated that he is willing to put appeasing his own party first and the national interest second. Let us be clear about one thing: our place in Europe and our seat at the table are too important for that. To cut ourselves off from a market of 500 million customers would be devastating to British companies. In an era of billion-person countries and trillion-pound economies, we need to find ways to amplify our voice, not dampen it.

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William Cash Portrait Mr William Cash (Stone) (Con)
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I am in the unusual position of largely agreeing with not only my own party’s Front Benchers—that is always a great pleasure, if something of a rarity in European affairs—but, as it happens, the Opposition spokesman. This is a very important debate, because it indicates what is going on in the European Union. There is a complete cloud cuckoo land, which I observed when I went to the multi-annual surveillance framework meeting a few months ago.

David Lidington Portrait Mr Lidington
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indicated assent.

William Cash Portrait Mr Cash
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I am glad that my right hon. Friend is nodding vigorously, because it was simply staggering. There we were, faced with a huge European financial crisis, and all people were doing was getting up, one after another, and demanding more and more money.

There is so much common ground in the House that I am happy to be brief and allow my hon. Friends to explain their points of view and concerns. I am conscious of the fact that I have had quite a few opportunities to do so. However, I wish to point out that my right hon. Friend the Prime Minister recently signed a joint letter with Mr Rajoy, the Prime Minister of Spain, and other EU leaders. It is also signed by the Prime Ministers of a number of Nordic and Baltic countries, together with the Polish Prime Minister. It is about building up a sense of alliance, and it is reported in today’s Financial Times under the headline, “Cameron steps up moves to rebuild links with Europe”. I trust that that is being done on an entirely realistic basis.

For example, to return to the point that I made to the Economic Secretary, I hope that the group getting a blocking minority and voting consistently against the measures in question will include a sufficient number of member states to ensure that the Commission cannot get away with what is no more or less than the manipulation of the rather arcane formulae contained in the regulations. The European Scrutiny Committee is deeply concerned about the situation, as other Members will be.

I entirely agree that the European Commission’s analysis is faulty, and it is also completely out of date, to say the very least. I am being rather generous in saying that, because it has fitted the facts to what it wants to hear. That is why the Committee describes what it has done as “self-serving”. As my hon. Friend the Member for North East Somerset (Jacob Rees-Mogg) said, there is also the problem that the Commission is the judge and jury in its own case.

We must also consider what we might expect to get from the European Court of Justice. Serious questions often arise about whether many of its decisions are taken on too much of a political basis rather than a strictly juridical one.