Treaty on Stability, Co-ordination and Governance

Debate between Denis MacShane and William Cash

Wednesday 29th February 2012 Commons Chamber

[Mr William Cash (Stone) (Con)]

I beg to move,

That this House has considered the matter of the legal and other action now to be taken by the Government in upholding the rule of law and protecting UK interests in respect of the nature and content of the Treaty on Stability, Co-ordination and Governance in the Economic and Monetary Union.

Thank you, Mr Speaker, for approving my application for this debate. I am also deeply grateful to all those Members—some 100 or so—who rose so spontaneously and strongly to support the proposal that I put to the House yesterday afternoon. This is only the fifth emergency debate since 2001. The debate is about the rule of law: not only the rule of law as it affects the United Kingdom but, inevitably, the rule of law in Europe as a whole. The Prime Minister, to his great credit, rightly exercised the veto to protect UK interests, but this is not simply a question of the single market and financial services, however important they may be to the UK economy.

The rule of law is inseparable from democracy, which, based on freedom of choice, leads to the making of law through general elections in line with the wishes of the voters. That is as important as it is simple. Unfortunately, the European Union, despite its much-vaunted claims and aspirations, has increasingly departed from democratic principles and from the rule of law in the pursuit of ideology. We are now witnessing ever-increasing tendencies towards bureaucracy, and even the imposition of technocratic Governments on individual member states, as in Italy and Greece. Yesterday, as it has in the recent past, the Bundestag voted on European bail-outs. According to opinion polls, about 80% of the German people are against the bail-outs, yet the German Government and the Bundestag passed the proposals by a massive majority.

[Mr Denis MacShane (Rotherham) (Lab)]

This line about European technocrats imposing technocratic Governments all over the place is very fashionable. However, the truth is that the current crisis, which is very serious—the hon. Gentleman is right to hold this emergency debate—is about the raw power of politics. It is about the politics in Germany in not wanting to bail out Greece; the politics here; the politics in Greece, where people voted pretty overwhelmingly to accept the bail-out package, with parties splitting up; and the politics in Italy, where people dumped the wretched Berlusconi and put in quite a good guy, Monti, for the time being. The Commission is not involved in this; the technocrats are out of the game; the Eurocrats are off the pitch. It is about raw politics. We are in the driving seat, and the hon. Gentleman might be as well.

[Mr Cash]

I am grateful to the right hon. Gentleman, who makes an important point. However, this is not merely about technocrats but about the brutal fact that the political game as it is now being played is increasingly coercive. That is part of the problem that I shall address.

European Union Fiscal Union

Debate between Denis MacShane and William Cash

Wednesday 14th September 2011 Westminster Hall

[Mr Cash]

Absolutely right. Germany has gained much, but now the chickens are coming home to roost. The system is not working because the Germans have made investments in other countries. If we look at the Greek sovereign debt situation, an enormous amount of investment—by far the greatest amount—is from Germany, followed by France. So the sovereign debt question is now part of the overall problem of Europe as a whole, and the mess created, which many of us predicted, is now with us. Any sovereign debt default will become all the more serious the longer that the European Union attempts to sustain the euro. Economists such as Tim Congdon and others have made that case, but it is absolutely clear that the situation will get worse the longer that the European Union tries to put sticking plaster over what is a clear case for complete renegotiation of the treaties to get some sanity back into the situation.

The idea that those of us who are eurorealists and who have argued this case for so long would take any satisfaction from the fact that the situation might implode is complete rubbish. Of course we do not want it to implode; we want to get stability back, to reduce our deficit and to increase growth, but none of those things can happen if we have over-regulation, too much integration and too much governance from European institutions, which prevent oxygen reaching our small and medium-sized businesses. That is an issue not only for this country, but for other countries, which all face greater and greater unemployment. I therefore strongly urge the Prime Minister to sort this out at the next summit.

We cannot create growth unless the money to pay for the public sector comes from reasonable taxation on private enterprise. It must be reasonable taxation, because growth must come from the development of small and medium-sized businesses. There is no way we will reduce the deficit if we continue trading as we are with a Europe that is bankrupt, with the exception of Germany. Incidentally, while we had a £53 billion trade deficit with the EU in 2010—that went up by £40 billion in one year—we had a trade surplus with the rest of the world of £7 billion, and it could be much more if we made the big strategic change that I am proposing. That, too, underpins my resistance to the idea of fiscal union.

Fiscal union will lead to greater implosion, greater sovereign debt, more defaults and more trouble. It might also—I say this cautiously—lead to the rise of the far right, because that is the consequence of implosion in democracies and of their being forced into situations where their people start saying, “We’re not going to put up with this any more.” One has to be careful about what is done. That is the dangerous crossroads we are at, and the Prime Minister must make the right call.

[Mr Denis MacShane (Rotherham) (Lab)]

As I understand it, the Chancellor is rather keen on fiscal union. Does that mean that the hon. Gentleman opposes the Chancellor’s point of view?

[Mr Cash]

The answer is yes. I did not say it so emphatically, but I said so when the Chancellor made his announcement in the House. I said that even Edward Heath would not have done what we were seeing now, so that probably sums the situation up quite well.

In my exchanges with the Prime Minister about fiscal union—I understand that these things can come out of the blue, but I wonder about the extent to which that was the case—he said:

“Of course, it will have an effect on us, but the clear rule for a referendum…is whether we are transferring power from Britain to Brussels.”

I do not agree that that is the basis for a referendum. It would be under the European Union Act 2011, but where a European decision, treaty or other legal instrument —in this case, there will be a mixture of those—applied on the face of it only to the eurozone, there would, under section 4, be no referendum.

That is why I have introduced a Bill saying we should have a referendum, and that Bill is supported by no less than six Select Committee Chairs, plus some distinguished Members, such as my right hon. Friend the Member for Wokingham (Mr Redwood), and members of the new intake who have taken a great interest in these matters. As I have said, the Bill has been presented, and the good news is that there will be a ten-minute rule Bill debate in October—the Leader of the House is here, and he knows that already. The Bill is intended to advance the case for a referendum on fiscal union.

In the Liaison Committee, the Prime Minister seemed pretty confident that there would not be a treaty. When I said that

“you are implying that there might not be a treaty” ,

he said—this was on 6 September—

“There is an important point on the issue of the treaty…Let us be clear: no one in Europe at the moment is currently talking about a new major treaty to put in place deeper fiscal union or changes in the eurozone. That may well happen in future…and if it were to happen, there would be consequences for Britain. Britain should think carefully about how to maximise our national interest”.

My answer to that is, first, that we now know that there will be a treaty, because the Chancellor of the Exchequer announced it from Marseilles. Secondly, I do not see how Britain can maximise its national interests when the new treaty, by its very nature, will erode the heart of those vital national interests.

There will be consequences for Britain, which raises another issue. We know there will be a treaty. As Mr Barroso said this morning—the Prime Minister has said this, too—it will be dealt with through a mixed bag of measures. Part of the process will no doubt be dealt with through enhanced co-operation, although the legality of that is very questionable indeed, and the European Scrutiny Committee will certainly look at that. Part of the process may also be dealt with through European Council decisions and intergovernmentalism, if those involved can get away with it. However, the bottom line is that the policy and the judgment are wrong, and we should not promote them. The best thing that I can suggest, therefore, is that we go to the next summit, put down a clear marker and insist that we will refuse to accept the treaty for fiscal union.

European Union Bill

Debate between Denis MacShane and William Cash

Tuesday 8th March 2011 Commons Chamber

[Mr MacShane]

There is a curious alliance between two distinguished former Members of the European Parliament—my hon. Friend and the hon. Member for Daventry (Chris Heaton-Harris)—in saying that perhaps this House can learn from the European Parliament. Other right hon. and hon. Members might care to look at that.

The European Union will be taking very big decisions on Friday, when there are two special meetings of the Council, the first of which—

[Mr Cash]

The right hon. Gentleman, in some dispute with my hon. Friend the Member for North East Somerset (Jacob Rees-Mogg), suggested that decisions taken by the Council of Ministers were not legislative acts. Can he think of anything that is more of a legislative act than when, by a majority vote, the decision that is taken is binding upon this House without our having any opportunity to intervene?

[Mr MacShane]

Yes. In my constituency, which is a very strong manufacturing one, the acts of the World Trade Organisation have far more impact, and we do not consider the WTO to be a legislative body.

On Friday, there will be two highly important meetings of the European Council, the first of which will discuss Libya. I am a supporter of much of the robust line that the Prime Minister has taken since he came back from his trip to the middle east. It will be interesting to see whether the Government publish all the details of the propositions that they are putting up for that debate and decision, or whether they offer a referendum lock to the people of Britain on any future military intervention in Libya, as proposed in certain other areas under the Bill.

Once that meeting is over—I sincerely wish the Prime Minister and his team well; I hope that the whole House does, because Libya will continue to occupy our minds and worries for many months ahead—the British Prime Minister will be asked to leave the room. That is because the next set of decisions that will be taken, on economic governance and the euro, will exclude Britain, even though they will impact on us, as the Council will discuss how to react to the new Irish Government’s position in wanting a serious rewriting of the agreement that the previous Government had reached. It may discuss the European Parliament’s call for a ban on naked short selling, which the German Government have already introduced in Germany and which is very unpopular in the City. Britain will not even be there, because it is excluded from that part of the Council. The notion that we will learn about decisions made in Europe if Britain publishes its documents is nonsense, because unless all 26 other members states do the same, we are left in ignorance on the ebb and flow of discussions.

[Mr Cash]

rose—

[Mr MacShane]

If I may, I will continue, because I am sure that the hon. Gentleman will have a good chance to speak shortly.

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[Mr MacShane]

It is a mixture of both. First, one listens to the positions of all 27 member states, then one says things like, “Look, that’s not going to fly for us. We suggest you drop it. Here are our ideas.” Proposals go backwards and forwards between the Council secretariat and the Commission secretariat, and they come back here for discussion, as my hon. Friend the Member for Birmingham, Edgbaston (Ms Stuart) rightly said. Whitehall has a very effective co-ordination operation. As a result, the finest civil servants in the land meet very early every morning—sensibly that is usually done without any gabby politicians present—and over a large English breakfast, on the eighth floor of some Hilton or Hyatt in Brussels, they hammer out a position and work out where every other country will be to maximise what Britain wants. Very often, we are the demandeurs who want to achieve a policy change in the European Union which requires skilled diplomatic negotiation. I say respectfully that the notion that all that can be minuted and published is not realistic.

[Mr Cash]

On a point of information, I just wanted to put it to the right hon. Gentleman that the European conclusions of 4 February, to which he referred in the context of the eurozone and the other member states, specifically state:

“Non-euro members will be invited to participate in the coordination.”

They also state that it will be guaranteed that

“the Heads of State or government of the interested non-euro area Member States are duly involved in the process.”

I therefore do not think he was quite right to suggest that we would not be involved, because the conclusions state specifically that we will be. However, the whole system is completely crazy.

[Mr MacShane]

We will see what happens on Friday. I am concerned, as all hon. Members ought to be, that because we are not in the euro—for perfectly good reasons—Britain is not as fully involved as the other deciders in many areas of decision making. We will leave that to be revealed in Friday’s meeting and future discussions.

I am very attracted to the point made by my hon. Friend the Member for Linlithgow and East Falkirk (Michael Connarty). We can now, in the House of Commons, announce the new Connarty law: there is a precise ratio whereby the more paper provided on any European decision, the less real discussion and debate there is thereon. I hope that he will agree that that new Connarty law should be enshrined as an official part of how we do business in Europe.

I remember that for the constitutional Convention, on which my hon. Friend the Member for Birmingham, Edgbaston valiantly represented the House of Commons, the then Foreign Secretary and myself set up a special Select Committee and published everything. We had regular meetings for the sake of accountability, but not a single Opposition Front Bencher ever came to them and they were often inquorate. The hon. Member for Stone (Mr Cash) was valiantly present at every meeting, but his party leadership was absent. Again, that reflects the Connarty law—the more opportunity and information right hon. and hon. Members are given on Europe, the less inclined they are to take it up and debate it.

European Union Bill

Debate between Denis MacShane and William Cash

Tuesday 1st February 2011 Commons Chamber

[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.

European Union Bill

Debate between Denis MacShane and William Cash

Tuesday 25th January 2011 Commons Chamber

[Mr William Cash (Stone) (Con)]

Does the right hon. Gentleman recall the case of the person in Leek, Staffordshire whom it was proposed, under an arrest warrant, should be taken over to Italy, and who was convicted in his absence to 15 years, but who, thanks to the intervention of my hon. Friend the Member for Staffordshire Moorlands (Karen Bradley) and the Prime Minister, has been completely exonerated? He was not even within 1,000 miles of where the murder took place.

[Mr MacShane]

The hon. Gentleman is perfectly right, but we could all list examples in Britain of improper arrests. It does not vitiate the need for international co-operation against criminality—I mentioned trafficking, but there are other examples—if that is what we want. International co-operation on the basis of, “Well, you’ll co-operate with us, but we won’t co-operate you”, will never happen. I am glad that there was not a referendum lock on the EAW, because otherwise that gentleman from 7/7 would still be waiting in Rome until we had had our referendum.

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[Mr MacShane]

Well, I am tempted to—

[Mr Cash]

Sit down?

[Mr MacShane]

To be told to sit down by the hon. Gentleman, who, to his great credit, has never long warmed a Bench if he could stand up, is undoubtedly a real pleasure to be had from my small contribution to this debate.

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[Mr MacShane]

I will not give way. The hon. Gentleman will make his points in due course.

In opposition, it was possible for the Conservatives to campaign as Eurosceptics, but they cannot but govern as Euro-realists. This we have seen in whole range of—

[Mr Cash]

rose—

[Mr MacShane]

I am sure that the hon. Gentleman will have a chance to make his point very shortly.

As Euro-realists, this Government have been—by my standards—responsible and helpful, shovelling out money to Ireland and working with Chancellor Merkel on serious treaty amendments that will increase economic surveillance of all the 27 member states, on foreign policy and on other issues. I really have no huge complaints to make about the Government at all. I say again, however, that it is inconceivable that any Minister of any Government in the future is going to come back from Brussels and say, “I’ve signed such a bad treaty. I’m not really sure about it. It is so significant in its alteration of the powers between the UK and the rest of the EU that I want it put to a referendum.”

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[Mr Cash]

The right hon. Gentleman is making a big show about all this. First, there was a referendum in 1975 under a Labour Government. Secondly, there was also a promise in the Labour manifesto about a referendum on the constitutional treaty. Thirdly, if the right hon. Gentleman had been here yesterday, he would have heard those on his own Front Bench proposing a mechanism to ensure that, in certain circumstances, there would be a referendum on all matters within the treaties. So, for practical purposes, he needs to ask himself whether the Labour party is now contradicting the position that he is adopting.

[Mr MacShane]

I will leave that point for my right hon. and hon. Friends on the Front Bench. I am not sure whether their new clause has been selected for debate today, but it proposes to set up a broad oversight committee, which might indeed be a rival to the Committee of the hon. Member for Stone (Mr Cash). I do not think that the proposal will make much progress, however.

The worry for me is that, at least among the majority party on the Government Benches, we have a Eurosceptic majority. We have to accept that. There are also many Eurosceptics on these Benches—[Interruption.]

European Union Bill

Debate between Denis MacShane and William Cash

Tuesday 11th January 2011 Commons Chamber

[Mr Cash]

I am deeply grateful to my hon. Friend for his intervention, because he is exactly right. Since 1972, there has been an accumulation that has now turned into a tsunami—a sort of Pied Piper of Hamelin, whom we all remember from our childhoods—as the accumulated rumbling and tumbling has gone on and on. We are now faced with a continuous stream of legislation divesting the House of its right to legislate, and this is an opportunity—one not invented by me in terms of the clauses proposed by the Government—to enable us to regain the sovereignty that belongs to the people of this country, the voters in general elections and Members of Parliament elected to the House for the purposes of protecting those voters’ interests.

[Mr Denis MacShane (Rotherham) (Lab)]

Will the hon. Gentleman give way?

[Mr Cash]

I certainly will. I am always glad to see the hon. Gentleman.

[Mr MacShane]

Just as we start this interesting debate, I would like to know whether the hon. Gentleman accepts the broad principle of pacta sunt servanda.

[Mr Cash]

To which I would simply reply:

“Et sine lite loquax cum Palladis alite cornix”.

[Mr MacShane]

rose—

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[Mr MacShane]

rose—

[Mr Cash]

With the greatest respect, we have already had one intervention from the right hon. Gentleman. Perhaps he would be kind enough to wait.

It would be ironic to say the least if the slogan “Working together in the national interest”, which we saw at our party conference, were to become “Working together against the national interest”. I do not believe that any Member of Parliament or any Minister would agree that the coalition—a “temporary alliance”, according to the “Oxford English Dictionary”—should be employed in any way to pass legislation that would undermine parliamentary sovereignty. Incidentally, I am somewhat appalled at the lack of coverage not of this debate but of the European Scrutiny Committee report when it came out, given the fundamental nature of the issues at stake, and the quality of analysis not only in the report itself but in the evidence given to us by probably the most distinguished constitutional experts in the land.

I will turn first to the constitutional and legal issues that clause 18 raises and which were carefully considered for several weeks by the European Scrutiny Committee, which received evidence on a completely even-handed basis, which, because of the fundamental importance of the issues to our constitution and our democracy, was well worth doing. In the course of the proceedings it became clear that many of the constitutional experts concerned felt that, at the very least, clause 18 was completely unnecessary. The most compelling evidence—the evidence that we received from Professors Tomkins and Goldsworthy, along with a number of others—was that clause 18 was hazardous and dangerous, particularly in the light of the Government’s assertions.

The issue of parliamentary sovereignty has been a matter of fundamental concern, importance and action since the 17th century. However, parliamentary sovereignty acquired a special and fundamental significance with the extension of the franchise in the mid-19th century, from the Reform Act of 1867 onwards—for example, through the Reform Acts of 1885 and 1884—and is undoubtedly the democratic basis of the United Kingdom constitution. However, irrespective of its now democratic basis, parliamentary sovereignty has become increasingly questioned recently—and only very recently—by reason of judicial assertions. Although on the tin, as well as in many repeated statements, we were told—I refer now to my hon. Friends on the Conservative Benches—that we would be getting a sovereignty clause or even a sovereignty Bill, clause 18 is emphatically not a sovereignty clause. For reasons that I will explain, the clause will actually undermine parliamentary sovereignty by encouraging judicial supremacy. The explanatory notes put forward the dangerous notion that parliamentary sovereignty is a “common law principle”, and therefore subject to judicial authority. However, even if the explanatory notes were disavowed on this matter, the problem of judicial assertions relating to parliamentary sovereignty would not disappear.

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[Mr Cash]

I should be more than happy to show the hon. Gentleman a book that is entirely devoted to the issue of the sovereignty of Parliament. The point is that there is no need to define parliamentary sovereignty. The Constitutional Reform Act 2005, which gave greater independence to the judiciary and the whole of which ultimately turns on the rule of law, does not contain any definition of the rule of law. Certain fundamental principles, and methods whereby we are governed, do not require definition for that purpose. They are applied, in the case of both sovereignty and the rule of law. There is a natural constructive tension between the two, but it is our job to protect the element that involves the sovereignty of Parliament.

[Mr MacShane]

I do not disagree with what the hon. Gentleman has been saying, but the fundamental rule of international law in regard to treaties is “pacta sunt servanda”. Those who sign a treaty must abide by it. If Parliament does not like a treaty, it has a sovereign right to withdraw from it. We can withdraw from the European convention on human rights, which is concerned with deporting people and so forth, and we can do the same in regard to the European Union. That is not a nuclear option; it is a perfectly fair choice that this Parliament could take. I rather wonder whether that is the speech that the hon. Gentleman should be making.

[Mr Cash]

I shall deal with that point shortly, but—with respect to the right hon. Gentleman—he will have to be a little patient.

As Members will have noticed, I have sought only to strengthen clause 18, which, as it stands, merely refers to the “Status of EU law”. We were promised a sovereignty clause, and my amendment would achieve that. The clause as it stands would be subject to statutory interpretation, and it would be strange, uncertain and hazardous not to insert this provision in the framework of the European Communities Act 1972 itself. Clause 18 is a stand-alone clause. It refers to the “Status of EU law” and to section 2 of the European Communities Act, but it does not amend the Act. I am talking here about section 2 through section 3, when the judges apply themselves to any law. The clause is only six lines long, but it incorporates and absorbs within it every single piece of European legislation, so it applies to everything. However, although we know that law from the European Union emanates through from the 1972 Act, this measure does not amend the Act when incorporating the status of EU law. I am extremely concerned about that and find it very strange. In fact I will go further and say that I think the measure is deliberately contrived to make sure it is not an amendment to the 1972 Act.

Draft EU Budget 2011

Debate between Denis MacShane and William Cash

Wednesday 13th October 2010 Commons Chamber

[Mr William Cash (Stone) (Con)]

We heard a very interesting and comprehensive analysis from the Minister, and I intend to press my amendment (a) to a vote. I agree very much with the sentiments that lie behind the amendment tabled by my hon. Friend the Member for Clacton (Mr Carswell). I wish only that, before tabling it, he had had a word with me about its wording, because I suspect that we would then have been able to arrive at an agreement. For some reason that completely escapes me, however, he decided to go ahead with his wording.

I went ahead with my amendment, because I have to recognise that the Government are about to engage in some incredibly important negotiations. They have to achieve a blocking minority, which I shall explain in a moment. That is not just a technical question, but a question of whether the Government can, first, get enough people to vote on the conciliation agreement, assuming that we reach such a point, and then achieve a blocking minority so that the Commission has to propose a new budget. That is what we are fighting for.

[Mr Denis MacShane (Rotherham) (Lab)]

Does the hon. Gentleman agree that to secure such leverage in the conciliation process, it is not helpful if the main Government party is in alliance with those whom the Deputy Prime Minister calls nutters, homophobes and anti-Semites from extreme fringe parties in east Europe, and not in the same family as Mrs Merkel, Mr Sarkozy and other centre-right leaders?

[Mr Cash]

rose—

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[Mr MacShane]

Will the hon. Gentleman give way?

[Mr Cash]

No, I have heard enough from the right hon. Gentleman. All he does is repeat his old mantras—[Interruption.] I do not accept that: I simply need to get to the next point that I wish to make about the procedure that is to be followed.

It is clear in the light of the current state of affairs that the Government should adopt my amendment and reject the increase. The European Parliament, in the current austerity conditions, is wilfully affecting the economies of the 27 member states, and of the United Kingdom in particular. My European Scrutiny Committee has today agreed to have a full inquiry reaffirming the sovereignty of the United Kingdom Parliament in relation to the assertions of the European Court of Justice on such matters. The Government have agreed to the Committee’s demand for pre-legislative scrutiny, and I am happy to announce that the Minister for Europe will give evidence in public on these critical matters—and that will have an impact on the issues that we are discussing in this debate—as will other experts on the compatibility of Britain’s membership of the European Union with the doctrine of parliamentary sovereignty in the light of the European Union’s own assertions that the parliamentary sovereignty of this Parliament has been overtaken.

The Government have announced that they will introduce a clause to address the question of parliamentary sovereignty, but our Committee will examine the implications of this in the light of the declaration of primacy of European law by the European Court of Justice and as contained in the Lisbon treaty. All these matters require the closest analysis for the sake of our democracy and the electors of the United Kingdom on questions relating to taxation, spending, the European budget, our contributions and all the functions of the European Union. We have an absolute requirement to get this right and we will have a full examination of the issue of parliamentary sovereignty, including the subject matter of this debate.