European Union Bill

Denis MacShane Excerpts

Tuesday 1st February 2011 Commons Chamber

[Emma Reynolds (Wolverhampton North East) (Lab)]

Let me say at the outset what a pleasure it is again to be debating the Bill with the Minister and the select group of Members currently in the Chamber. We welcome the provisions that the Government have set out to give parliamentary approval to the allocation of the UK’s extra seat in the European Parliament. Having worked in the European Parliament for some time, I know the important role that it plays, but I would like to ask the Minister some questions of clarification.

Can the Minister clarify why the so-called Sainte-Laguë process was chosen to allocate the UK’s extra seat in the European Parliament to the west midlands region? I understand that the method was set out in the Electoral Commission report in October last year. What consultation took place between the Government and the Electoral Commission on choosing that method? Was a joint decision made, or was it the decision of the commission or the Government? Did the Government consider any other method to allocate the extra seat, and if so, which? Which methods are being used by other member states to allocate extra seats?

The explanatory note says that the west midlands had the lowest number of electors per MP according to the current electoral register, and on that basis the decision was made to allocate the extra seat. It is perhaps ironic that, although the west midlands will be given one extra MEP, owing to the Government’s plans it is set to lose several MPs. Which electoral register did the Government consider when making their decision: the one from December last year or the year before? Can the Minister tell the Committee what progress other member states are making on ratifying the protocol to increase the number of MEPs, and when he expects the UK to take up its extra seat in the European Parliament?

[Mr Denis MacShane (Rotherham) (Lab)]

The Minister and my hon. Friend have set out clearly the technical reasons for adopting the clause, and I am sure that the Committee will not divide on it. Let me also tell the Minister that it is a great pleasure to have someone on the Front Bench from this Government advocating an increase in parliamentary representation. Whereas the other place so long resisted the culling of foxes, we are shortly to have a sharp culling of MPs, with a reduction in representation. It is therefore good that we are increasing representation in the European Parliament under the current proposal.

[Mrs Main]

I am listening with interest to the right hon. Gentleman on the issue of increasing the number of Members. Does he not share my concern that any increase in the number of elected Members will also see a proportionate increase in costs, pensions and office staff, which, sadly, this country cannot choose to afford?

[Mr MacShane]

The hon. Lady is quite right, but if she checks the debates on the great Reform Bill of 1832, she will find that exactly the same point was made—that any increase in representation in this country would place an unbearable cost on the Exchequer.

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[The Chairman of Ways and Means (Mr Lindsay Hoyle)]

Order. Upper Houses are not relevant to this stand part debate, so let us stick to the clause. I am sure that Mr MacShane will want to come back to that subject.

[Mr MacShane]

I am tempted to say—though, thank goodness, oral amendments are not allowed in Committee of the whole House—that the increase in MEPs at the heart of this part of the Bill could be allocated to representatives from national Parliaments at some future date. I am just stretching the limits of order—[Interruption.] I am about to sit down, Mr Hoyle. I am inviting the Minister to open a debate about how to make the European Parliament more representative and more reflective of the national will in the different countries that constitute the EU. That might require a small treaty change, but not, I am sure, a significant one, so we would not need to initiate the referendum provisions.

We often knock the European Parliament because of expenses or costs or decisions it has taken that we do not like, which is frankly rather childish. What we need is a more serious debate about making the European Parliament more effective, more efficient and more representative—leaving aside those who want to abolish it or to withdraw completely from it. I invite the Minister to engage with that debate, although he may well hope that once proceedings on the Bill are concluded there will be no more debate about the EU on his side of the House for the next few years.

[Mr Richard Shepherd (Aldridge-Brownhills) (Con)]

Does the right hon. Gentleman not give any weight to what the German constitutional court said in respect of democracy—that it lies not in the institutions of the European Union or its Parliament, but in those of the national state?

[Mr MacShane]

The Verfassungsgericht in Germany, of course, sees the German people—das Volk—as the sovereign, and distinguishes clearly between the Bundestag and the Bundesrat. It allocates powers on a subsidiary basis—

[The Chairman of Ways and Means (Mr Lindsay Hoyle)]

Order. Again, we really are drifting from the subject, and we must return to it. The right hon. Gentleman said earlier that he was winding up his speech, but he is now broadening it again.

[Mr MacShane]

Not many Members wish to speak, Mr Hoyle, so I was trying to reply to the hon. Member for Aldridge-Brownhills (Mr Shepherd), but I now invite him to read some expert books on the subject instead.

[Kelvin Hopkins (Luton North) (Lab)]

rose—

[Mr MacShane]

For the last time—because mine was intended to be a very short speech—I give way, as always, to my hon. Friend.

[Kelvin Hopkins]

I thank my right hon. Friend, as always, for being so generous.

No doubt we should welcome the extra seat in the European Parliament as a small extension of democracy, but my right hon. Friend is right about accountability. Would it not be a good idea for some powers to be repatriated to national Parliaments, and would it not also be a good idea to return to single-Member, first-past-the-post seats in the European Parliament? Would that not increase accountability?

[The Chairman]

Order. That has absolutely nothing to with the clause. I think that the right hon. Member for Rotherham (Mr MacShane) had better sum up his speech now.

[Mr MacShane]

Might my hon. Friend possibly accept that on this occasion I really must bow to the Chair and sit down?

[Mr Lidington]

A number of the questions posed by the hon. Member for Wolverhampton North East (Emma Reynolds) invited me to move from clause 15 to clauses 16 and 17. If you are willing to allow me to stray on to that territory, Mr Hoyle, I shall be able to reply to her questions now and perhaps speak more formally later when we deal with those clauses; otherwise I shall have to delay my responses to her.

The right hon. Member for Rotherham (Mr MacShane) made his points very forcefully. I agree with him that there is a disconnection between decisions made by national legislatures in just about every member state and decisions made in the European Parliament—or in Europe more generally—on behalf of those countries, and I think it important for us to consider how to remedy that democratic deficit. However, I do not want to be drawn into a detailed discussion about the treaty changes which would need to be debated and negotiated to produce the outcome that the right hon. Gentleman seeks, and which would have to command unanimous agreement among all member states and, indeed, the European Parliament itself.

Let me say two things about the European Parliament. First, it does an important job. Whatever view I, or any other Member present, may take on whether or not it should have particular powers, my contacts with MEPs of all parties have given me the impression that, for the most part, they take their duties of scrutinising and seeking to amend European legislation very seriously. As a Government and as a Parliament, we need to have regard to and engage consistently with MEPs if we are to pursue successfully the national objectives of the United Kingdom through the European Union.

Secondly, I agree with the right hon. Gentleman that there is an unhealthy democratic gap between the way in which the European Parliament operates and the— in my opinion—correct belief held by most national legislatures that they are more directly accountable to the voters in their respective countries than are MEPs. That is, perhaps, particularly true in the United Kingdom, where there is a significant difference in the method of election: while MEPs are elected through a regional party list system, we in the House of Commons are elected to single-Member constituencies. The right hon. Gentleman has sketched what has the makings of a fruitful debate in the months and years to come.

Let me now deal with the various detailed points made by, in particular, the hon. Member for Wolverhampton North East. While I am tempted to deal at length on differences between the Sainte-Laguë and d’Hondt methods, that would probably reduce the number of Members attending the debate even further. I am happy to offer a seminar. [Interruption.] My hon. Friend the Member for Stone (Mr Cash) indicates that he does not wish to be drawn into a debate about the respective merits of Sainte-Laguë and d’Hondt.

[Mr MacShane]

Let us leave Sainte-Laguë and d’Hondt. Is the Minister in favour of the alternative vote? That is what the Committee and the nation want to know.

[Mr Lidington]

No.

The answer to the question asked by the hon. Member for Wolverhampton North East is that the Electoral Commission decided to use the Sainte-Laguë method following various consultations that it had carried out. There is a debate about whether we should move to that method when it comes to deciding how to elect Members of the European Parliament, but that is a matter for a future occasion.

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The question is, who made those decisions? I wager that the people responsible include those in the Treasury. The legal advice that I asked the Minister to provide and the other advice from the Treasury has been denied to me. The answer will be published tomorrow. It was given to me only 20 minutes or so before these proceedings began, and it effectively states, “You can’t have the answer to these questions, because if we give them to you it will be inconvenient for the running of government.”

[Mr MacShane]

The hon. Gentleman says that the previous and current Chancellors entered into an unlawful act. Is he saying that the current Chancellor of the Exchequer is a criminal?

[Mr Cash]

That is an absurd comment. I am speaking in terms of the vires of the treaty. It is a different question; it is nothing to do with what the right hon. Gentleman has said. It was a serious misjudgment. It was an agreement that cannot be justified by the legal base. The European Scrutiny Committee said in its report that the agreement on that particular mechanism was legally unsound. That is what I mean. It has exposed the British taxpayer to a very significant sum of money.

However, that is just one example. The real question, ultimately, is one of democracy and trust. It is a matter of principle, and that principle is demonstrated by what happened in respect of the Lisbon treaty. We stood here in this House, month after month, debating the Lisbon treaty. I tabled perhaps 120 or 130 amendments. We united the Conservative party: for the first time since 1972, we had complete unanimity. Of those with a different view, only one is still in the party now—the others have all fled to other parties—and he is the Lord Chancellor and Secretary of State for Justice. He is entitled to his view and I respect him for the consistency with which he pursues it, however much I may disagree. The Conservative party was united in opposing every aspect of the Lisbon treaty and united for a referendum, and we voted accordingly. For reasons that have been put forward, but which I simply do not accept, that promise of a referendum was torn up.

Other promises with regard to the European issue—promises made in our manifesto—have not been sustained. These are serious matters. It is no surprise that the people of this country lose faith and trust in their politicians if such decisions are taken. This applies just as much to the Labour party or the Liberal Democrats. Broken promises are broken manifesto promises. Manifesto promises are the basis on which people ask to be elected and get into this House to represent the interests of the people who vote for them in the polling booth. If we break our promises, it is hardly surprising if the people of this country begin to feel a sense, first, of unease, and then of contempt for the political system.

This is constitutional reality, but also practical reality: it affects people in their everyday lives. We heard from the hon. Member for Vauxhall (Kate Hoey) about the working at heights directive. We heard from the hon. Member for Bassetlaw (John Mann) about the posted workers directive. We have heard about the working time directive, the nurses agencies directive, and so on. The EU affects every single corner, every single nook and cranny of our lives, and we appear to be powerless to do anything about it.

A few days ago I got the figures from the Library on the balance of trade between ourselves and the European Union. They are alarming. In relation to the 27 member states, between 1999 and 2009—it has got very much worse in the past 18 months—we had an imbalance of £5 billion. With the rest of the world, we have had an improvement of £11 billion. There is a message there: you cannot trade with a bankrupt organisation if you are a successful company. The European Union, with its low growth, its riots and protests, and its failure, demonstrates why a referendum is required, as the new clause says, on the question of

“continuing United Kingdom membership of the European Union”.

For me, this is not just a question of in or out, but of to be or not to be a democratic nation state. This is not a matter to be trifled with.

I have profound views about the manner in which the coalition Government are dealing with this issue. As the Minister for Europe said in the debate last week, the Government have a European Affairs Committee, two thirds of which is Conservative and one third of which is Liberal Democrat. I pointed out to him that that Committee clearly could not have a vote, because we would win every time and we would have the policies that we stood on in our manifesto. So who is wagging the tail? It is clearly the one third of the Committee that are Liberal Democrats, combined with the instincts of those on our side of the equation who want more Europeanisation, although they disclaim it. That is another problem for us.

In Prime Minister’s questions a few weeks ago I asked why it is that at every turn, whenever an issue of integration comes up, we always go in the wrong direction. Why has repatriation been rejected? It is the repatriation of powers, using the well-known formula—notwithstanding the European Communities Act 1972—that would enable us to re-grow our economy and answer the question that is now before the Chancellor of the Exchequer: why is our economy not growing? We can tell him that it is not growing because 50% of our trade is with the European Union, which is itself in deep trouble and has low growth. At the same time, we cannot grow our economy because we are strangled to such an extent by the red tape of Brussels. Those two situations can be retrieved only through a new relationship between us and the European Union.

This is not just a constitutional argument, but an argument of practicality. It is an argument of to be or not to be a democratic nation state, a great sovereign state and a successful country that represents the interests of the people we serve—not ourselves. As I have said so often, it is not our Parliament, it is their Parliament. They are entitled to know that if things have not gone right—things certainly have not gone right with Europeanisation—we have an absolute obligation to ask them for their opinion. That is democracy, that is trust and that is what will restore integrity to this House and the British political system.

[Mr MacShane]

I have considerable sympathy with the speech of the hon. Member for Stone (Mr Cash). A year ago, his party was Cash and Carswell; now it is Clegg and Cable. His party has surrendered the authenticity of its position on Europe for the marriage of convenience with the Liberal Democrats. That is his problem, not mine.

I am not so sure that the European Union is to blame for the fact that we alone of the major European Union economies have zero growth, inflation of 3.6%, a shrinking currency and rising unemployment. This House and this Government could at a stroke tomorrow cut taxes, abolish national labour laws that they do not like and do whatever they think might turn this situation around. I gently suggest that perhaps it is the economic management that needs to be looked at.

I want to address the fundamental point that was made by the hon. Member for Stone and my hon. Friend the Member for Vauxhall (Kate Hoey), who has left her place. Should this democracy be based on plebiscites and referendums, or on the authority of this House? In recent days, the issue that the people of Britain have been in touch with me about is the selling off of Sherwood forest, our woods and our free forest lands to private interests. Perhaps I would like to respond to them by saying, “Let there be a referendum on this issue.” Previously, the issue about which people were in touch with me was the tripling of student fees, on which one of the coalition parties broke, in the most fundamental and flagrant way, a solemn promise that it had made and signed in public. We have no mechanism to have a referendum on that matter. I could also mention the education maintenance allowance.