European Union

Debate between Emma Reynolds and Lord Bellingham

Tuesday 13th December 2011 Commons Chamber

[The Parliamentary Under-Secretary of State for Foreign and Commonwealth Affairs (Mr Henry Bellingham)]

I congratulate our friends in the Democratic Unionist party on securing this debate on the Prime Minister’s decision last Friday to protect the national interest. They are true allies in these challenging times. I pay tribute to the right hon. Member for Belfast North (Mr Dodds) and the hon. Member for East Antrim (Sammy Wilson) for their speeches.

As the Prime Minister explained to the House yesterday, we went to the European Council in good faith, seeking to reach an agreement acceptable to all 27 members of the European Union. In doing so, we were clear on the need to have the necessary safeguards in place to protect our national interests on the single market as a whole and on financial services. We did not seek special treatment or carve-out for the UK, but safeguards that would ensure a level playing field. As my right hon. Friend the Minister for Europe said, those safeguards were modest, reasonable and highly relevant. As he also pointed out, it was a question of protecting not just the City of London, but financial services across the whole of Europe. As it was not possible to reach agreement on satisfactory safeguards, we were not able to agree to a treaty at 27. That was clearly the responsible course for us to take in order to protect the United Kingdom’s national interest.

The hon. Member for Wolverhampton North East (Emma Reynolds) asked whether the Government had been properly prepared, and concluded that they had been ill prepared. She said that we had asked for too much, too late. Where has the hon. Lady been for the last month? The Prime Minister and the Deputy Prime Minister talked to most leaders and visited key capitals during that period. The Prime Minister saw Chancellor Merkel three weeks before the Council, and met President Sarkozy a week before it. The Prime Minister was clear about the position on safeguards, and made it crystal clear that the safeguards he wanted were moderate and reasonable. As was pointed out by my hon. Friends the Members for Folkestone and Hythe (Damian Collins) and for Stroud (Neil Carmichael), the position was well understood.

[Emma Reynolds]

Will the Minister give way?

[Mr Bellingham]

I will not, because I must cover as much ground as possible.

The course taken by the Prime Minister allowed eurozone countries and others to proceed with a separate treaty in which they could pool their sovereignty on an intergovernmental basis with the aim of implementing tighter fiscal discipline in the eurozone as part of the process of restoring market confidence. It is right and important for eurozone countries to take the action that they deem necessary to deal with the crisis in the eurozone. We want and need the eurozone to sort out its problems. That is in Britain’s national interest, as it is clear that a crisis in the eurozone is having a negative effect on the UK economy.

Oral Answers to Questions

Debate between Emma Reynolds and Lord Bellingham

Tuesday 9th November 2010 Commons Chamber

[Mr Bellingham]

I am grateful to the hon. Gentleman, my coalition colleague, for that question. I will do all that I can to facilitate his visit to St Helena, which is an important overseas territory. I am delighted that one of the first things that DFID did was to put an end to the prevarication and delays in the announcement of the airport. The project, which will cost a substantial amount of money, will hopefully go forward apace. Although I do not want to prejudge the commercial negotiations that will have to take place, the news is, none the less, good.

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

The Chief Secretary to the Treasury recently said that tax evasion and avoidance were unacceptable, and he announced a crackdown on those hiding money offshore. Will the Minister explain to the House why his Government have abandoned the demands of the previous Government for the Cayman Islands to give up their tax haven status and introduce some form of direct taxation?

[Mr Bellingham]

I am grateful to the hon. Lady for her question, and I congratulate her on her appointment. Having been a special adviser at the Foreign Office, she will have a great deal to bring to her new Front-Bench job. The previous Minister with responsibility for the overseas territories, the hon. Member for Rhondda (Chris Bryant), approved last year’s Cayman Islands’ borrowings at £217 million with conditions attached. This year, I approved borrowings of £123 million, with the same conditions attached. For the Cayman Islands to get their economy moving again, we strongly feel that they need to maintain their offshore status, and we are following the policy of the previous Government.