Commission Work Programme 2014

Gareth Thomas Excerpts

Wednesday 22nd January 2014 Commons Chamber

[Mr Gareth Thomas (Harrow West) (Lab/Co-op)]

I welcome the opportunity to discuss the European Commission’s work programme for 2014. I thank the European Scrutiny Committee for its useful report. The Committee suggested that a debate before Christmas would be timely, and given the thinness of the Government’s agenda for this House, it is surprising that this debate has not taken place earlier.

The work programme published on 22 October is shorter than usual, not least because European Parliament elections are coming up in May and because the new college of commissioners will take office later this year. Our ability to influence the work programme’s direction to achieve UK objectives and protect our national interest depends in no small part on having good relationships with our allies in Europe. Yet, instead of defending our interests in Europe, the Prime Minister all too often puts party before country, opting for policy positions and language that appease Eurosceptic Back Benchers and alienate allies in Europe.

The result is that the Prime Minister finds himself in an increasingly isolated position in Europe. Indeed, the Prime Minister has been attracting an increasing number of openly hostile comments from crucial European allies. Germany, Poland, France and Bulgaria are our allies in Europe, and yet senior figures in their Governments—most recently the German Foreign Minister, Mr Steinmeier—have given briefings on their profound disagreement with our Prime Minister’s views. The political weight of the people in those countries who have made their disagreement with the Prime Minister known and the tone in which they have done so are concerning. Once again, the Conservative party is pushing Britain into the isolated corner that John Major’s Government left us in.

The Prime Minister has promised to renegotiate the terms of Britain’s membership of the European Union. He said that treaty change will deliver important opportunities to repatriate a series of powers that are apparently held by the EU and which he thinks ought to be back with the United Kingdom. Having looked at the work programme, I confess that I cannot see a major treaty change in preparation. It is far from clear that the treaty change on which the Conservative party is banking is likely to happen soon. If the Minister were to be honest with the House about that, I suspect that he would say that he is starting to realise that the game is up. The Chancellor’s recent plaintive call for treaty change in the context of banking union gave the impression that he knows that the possibility of such treaty change is retreating. Even if we assume that treaty change will happen, we still have absolutely no idea which powers the Conservative party wants to repatriate. The Minister has once again failed to tell us today.

The work programme priorities for 2014—economic and monetary union; smart, sustainable and inclusive growth; justice and security; and external action—are critical to the UK. In particular, a strong and stable economy in Europe is crucial to British jobs, security and prosperity. As the UK continues to battle through the Government’s cost of living crisis, with falling wages, rising prices and stagnating growth, our continued membership of and active engagement in the European Union are crucial to Britain’s economic prosperity. Almost half the UK’s trade and foreign investments come from the European Union. More than 3.5 million jobs in the UK depend on our membership of the EU.

[Mr Cash]

The hon. Gentleman knows perfectly well that the figure of 3 million jobs is a monumental myth. It came out 10 years ago and was denied by the National Institute of Economic and Social Research, which described it as Goebbels propaganda.

[Mr Thomas]

The information that I gave was confirmed as recently as 2011 in a written parliamentary answer from the Foreign Secretary. Who am I not to believe the Foreign Secretary on a matter of such importance? If the Foreign Secretary’s view is not good enough for the Chairman of the European Scrutiny Committee, perhaps I could point him towards recent research by the CBI, which estimates that our membership of the EU is worth between £62 billion and £78 billion, which equates to about 4% to 5% of the country’s total economic output or about £3,000 per UK household per year.

[Jacob Rees-Mogg]

Will the hon. Gentleman give way?

[Mr Thomas]

I will give way in a moment.

In short, the Prime Minister is willing to take the risk of a £3,000 hit to the living standards of UK households from a British exit from the European Union in order to try to paper over the divisions in his party.

I give way to the hon. Gentleman. Perhaps he will tell us whether he was one of the 95 who signed the recent letter.

[Jacob Rees-Mogg]

I was proud to be one of the 95. I might mention that if I catch your eye later, Madam Deputy Speaker.

The hon. Gentleman has quoted a figure for the contribution to the economy of our membership of the European Union. What is the counterbalance to that figure? What do we pay through extra regulation and our subscription to the European Union, and does that leave us with a credit or a debit?

[Mr Thomas]

The hon. Gentleman might like to go into a bit more detail with the CBI about its calculations. It appears from the detail of its work that it has weighed up the benefits of European Union membership and the “challenges”, as it describes them, such as the cost of regulation.

[Martin Horwood (Cheltenham) (LD)]

Will the hon. Gentleman give way?

[Mr Thomas]

Okay. Why not?

[Martin Horwood]

Is it not part of the CBI’s rationale that to have access to the single market even countries outside the European Union need to pay a significant amount, as Norway does? Countries do not escape the cost, even if they leave the European Union.

[Mr Thomas]

The hon. Gentleman is absolutely right and perhaps I should have been more enthusiastic about his intervention. It is not just Norway that has a problem. A number of countries find themselves outside the EU with very little influence on what EU regulations are approved, and they often still have to accept 75% to 90% of them

[Mr Carswell]

Will my hon. Friend give way?

[Mr Thomas]

I am not the hon. Gentleman’s hon. Friend, but I am nevertheless happy to give way to him in the hope that one day he might want to join us and become my hon. Friend.

[Mr Carswell]

I always regard the hon. Gentleman as my friend. Does he not agree that Norway does two and a half times more trade per capita with the EU from outside than we do from within, and that Switzerland does four and a half times more trade per capita from outside the EU than we manage from within? It is, therefore, perfectly possible to trade more freely with Europe from outside the EU than it is from within.

[Mr Thomas]

It is interesting that a series of Norwegian politicians have confirmed their lack of influence over EU regulation, and have pointedly suggested that we do not go down the route—I know the hon. Gentleman is an enthusiastic supporter of this route—of denying ourselves the opportunity to have influence over the detail of the single market.

[Wayne David]

My hon. Friend paints a pessimistic picture of the Conservative party becoming increasingly Eurosceptic, but does he take heart from the strong rumour going around Brussels that the Conservative party might be reconsidering its decision to leave the European People’s party group and might apply to join it once again?

[Mr Thomas]

It is not for me to comment on the Conservative party’s membership, or not, of the EPP. We will no doubt hear more if there is any truth in the rumour.

The Commission’s work programme quite rightly cites deepening the single market as a key priority. It is the biggest such market in the world: a consumer market of 500 million people that generates £11 trillion in economic activity. It remains a deep concern of many in business that the Conservative party is willing to put at risk Britain’s membership of such a huge market for British goods and services. The Prime Minister also appears to be willing to risk our participation in bilateral free trade agreements, not least the hugely important potential EU-US trade agreement.

We on this side of the House recognise that to help Britain compete in the global market and uphold British living standards, the UK needs to advance, together with others in Europe, a reform agenda that promotes economic growth across the EU and, as a result, helps to tackle unemployment, particularly youth unemployment. That includes, as the work programme sets out, the need to extend and complete the single market—I agree with the Minister’s comments on the digital market—so that British companies can benefit from the opportunities of trade with our nearest allies. The operation of the single market in existing sectors must be protected in the face of potential closer integration between eurozone states.

The work programme outlines the continuing work of the Commission on economic governance and the banking union. Clearly, the stability of the eurozone, and sorting out the problems faced by banks in eurozone countries, is not just of great importance to countries in the single currency—it has a significant impact on the UK, too. Why it takes the European Union to clamp down on bankers’ bonuses, when the Government should be doing it, is a question we are still waiting to get a sensible answer on from Ministers. In this country, we still need real reform of competition in our banking sector to help small businesses get the support they need to grow, employ more people at decent wages and help Britain earn its way to better living standards.

Another important theme of the work programme is European co-operation on justice and security. The Commission is currently negotiating with the UK on the justice and security measures that we can opt back into. Our police and security forces are rightly working ever closer with their counterparts across Europe, co-operating on issues such as international terrorism, organised crime and human trafficking. For example, we would not have seen the arrest of one of the terrorists responsible for the 7/7 attacks in London without help from our European colleagues. More than 4,000 suspected criminals have been sent back to other EU countries to face justice, more than 90% of whom were foreign citizens, and while not perfect, the European arrest warrant has helped to tackle the so-called Costa del Crime, with 49 of the 65 top UK fugitives hiding in southern Spain having been returned to face justice. In short, we depend on our European partners for intelligence and operational support in order to protect the British public and the freedoms they enjoy. To ensure that those goals continue to be realised, the Opposition want to see the EU’s collective effectiveness further improved.

As I mentioned, the Government have triggered the justice and home affairs opt-out. Indeed, the Home Secretary and the Justice Secretary told the House that the block opt-out was first and foremost about bringing powers back home, yet the European Scrutiny Committee, chaired by the hon. Member for Stone (Mr Cash), having reviewed the significance of the justice and home affairs opt-out, said,

“we see little evidence of a genuine and significant repatriation of powers.”

Whom should the House believe when making that judgment—our European Scrutiny Committee or the Home Secretary?

[Mr Clappison]

Will the hon. Gentleman remind us who negotiated the opportunity for a block opt-out?

[Mr Thomas]

It was one of a series of sensible reforms that the Labour party negotiated when in power. It was right that we had that judgment to make. It is clear from the work of the European Scrutiny Committee, however, that the list of measures the Government want to opt back into will not deliver what the Home Secretary and Justice Secretary claim it will—a significant repatriation of powers—or at least that appears to be the case, on the basis of the Committee’s conclusions.

It might help the House to reach our own judgment were the Government to update us on the negotiations with the European Commission on the measures they want to opt back into. For example, can the Minister reassure the House that the European arrest warrant will not be put at risk this year? If Ministers’ rhetoric is taken at face value, there remains a threat to continued British participation in European co-operation on cross-border police investigations, while UK involvement in criminal record sharing, work on trafficking and online child pornography, as well as deportation arrangements for suspected criminals, are all at risk too as a result of the opt-out. Such measures provide a vital legal process to prevent people from fleeing justice and to ensure that those responsible for crimes are held accountable.

Finally, on the tobacco products directive, the House might recall that Labour MEPs voted in favour of a range of proposals aimed at protecting children from being targeted by tobacco companies, including graphic warnings on packaging, the banning of chocolate and strawberry-flavoured cigarettes and a future ban on menthol cigarettes. Ignoring warnings from Cancer Research UK, the British Heart Foundation and even the advice of their own Health Secretary, Conservative MEPs voted to weaken cigarette warnings, for weaker regulation of electronic cigarettes and to delay the ban on menthols, and blocked a ban on slim cigarettes, which I understand are particularly targeted at young women. Will the Minister tell us how those negotiations are progressing?

In general terms, the Opposition support the work programme, but 2014 will be remembered less for this programme and more, I suspect, for how the Prime Minister’s continued weakness in front of right-wing Back Benchers threatened our influence across the European Union.