European Union (Approvals) Bill [Lords]

Jacob Rees-Mogg Excerpts

Monday 4th February 2013 Commons Chamber

[The Minister for Policing and Criminal Justice (Damian Green)]

I beg to move, That the Bill be now read a Second time.

The European Union (Approvals) Bill simply provides for parliamentary approval of three draft EU decisions: the proposal to give legal effect to the electronic version of the Official Journal of the European Union; the proposal to agree the five-year work programme—the multi-annual framework—of the EU Fundamental Rights Agency; and the draft European Council decision to maintain the number of EU Commissioners at the equivalent of one per member state. The Bill underlines the importance placed by the Government on Parliament’s role in scrutinising the work of the European Union, which is why we enacted the European Union Act 2011.

The Government have given full consideration to all three measures and are of the view that the UK should support them. We are satisfied that they are in the best interests of the UK, and are sensible and reasonable. None has a significant domestic impact and, in particular, none will result in any additional financial burdens being imposed on the UK. The provisions in the Bill are technical in nature but will, in their own way, play an important role in the future shape of the EU. My right hon. Friend the Prime Minister has recently set out the need to examine the UK’s relationship with the EU. The provisions do not represent far-reaching changes, and there will be further opportunities to examine more fundamental changes in other debates.

The Bill seeks the approval of Parliament on two proposals brought forward under a legal base of article 352 of the treaty on the functioning of the European Union: the proposal to give legal effect to the electronic version of the Official Journal of the European Union; and the proposal for the next the five-year work programme, the multi-annual framework, of the Fundamental Rights Agency. Article 352 allows the Union to take action to attain one of the objectives set out in the treaties, but for which there is no specific power set out in those treaties. Any proposal brought forward under this legal base must be agreed unanimously by the Council and gain the consent of the European Parliament, so that at European level there is a high bar for such a proposal to meet.

For the UK to agree to this at Council, and for the required unanimity to be secured, Parliament must first give its approval. The Government have put in place further parliamentary controls for proposals brought forward under article 352 of the treaty. Section 8 of the European Union Act 2011 states that a Minister of the Crown may not vote in favour of, or otherwise support, an article 352 decision unless it is approved by an Act of Parliament. Therefore, without the agreement of Parliament a proposal brought forward under this legal base cannot be adopted.

The EU Commission currently comprises 27 commissioners, one from each member state. The Lisbon treaty provides for a reduction, by one third, in the size of the Commission from 1 November 2014. However, the treaty also allows the European Council to alter the number of commissioners, subject to unanimous agreement. To secure Ireland’s ratification of the treaty, it was agreed that a decision would be taken to maintain the number of EU commissioners at the equivalent of one per member state. Section 7 of the European Union Act 2011 provides that a Minister of the Crown may not vote in favour of such a decision unless the draft decision is approved by Act of Parliament.

[Jacob Rees-Mogg (North East Somerset) (Con)]

The previous Lord Chancellor thought that the second draft decision, on the multi-annual financial framework, did not require an Act of Parliament because it fell under article 308 of the previous treaties—now section 352 of the new treaties. Do the Government have a clear position on whether anything previously under article 308 will now always require an Act of Parliament?

[Damian Green]

That level has not been reached. My hon. Friend is right that the Minister without Portfolio, my right hon. and learned Friend the Member for Rushcliffe (Mr Clarke), the previous Lord Chancellor, came to that opinion, but, as my hon. Friend will also be aware, the European Scrutiny Committee challenged the basis of the assessment, and it was found that, because the previous agreement had been made under a previous version of the EU treaties that was not specifically provided for in the 2011 Act, it did not fall within the exemption set out in the Act. That is the principle on which the Government will operate.

[Jacob Rees-Mogg]

I am extremely grateful for that clarification. The Act clearly refers to article 352, so would it be fair for the House to assume that if it is not specifically under article 352, the exemptions will not apply?

[Damian Green]

It is fair for the House to assume that were it equivalently done on the basis of previous treaties, the precedent set by the decision would apply, but I would hesitate, off the top of my head, to take that any further.

I turn now to the detail, starting with the electronic version of the Official Journal of the European Union. The Official Journal is the gazette of record for the EU. It is published every working day and records the decisions made and legislative acts of the EU institutions. The electronic version of the Official Journal has existed in parallel with the print version for some years, but a European Court of Justice judgment found that only the printed version was authentic. EU legislation is necessary, therefore, to enable the electronic version to have legal effect.

The EU institutions believe that if publication of the electronic version is given legal effect, access to EU law would be faster and more economical. At the moment, anyone wishing to access the authentic version must order and pay for printed copies of the Official Journal. This proposal will not affect those who wish to continue to have access to the printed version. This is a sensible measure in a world in which electronic communications have revolutionised how information is distributed and accessed. It will have no significant impacts or effects on the UK.

The second proposal for which the Bill seeks to provide approval is the work programme of the Fundamental Rights Agency, established in 2007. Its role is to support the European institutions and member states—when they are acting within the scope of EU law—to take measures and actions that respect fundamental rights. The agency does this through the collection and analysis of information and data. It also has a role in communicating and raising awareness of fundamental rights.

The agency’s work is regulated by a five-year work programme setting out the thematic areas of the agency’s activity. These must include the fight against racism, xenophobia and related intolerance and be in line with the European Union’s current priorities. The work programme, defined by the Council of Ministers, gives the member states control over where the agency undertakes its work.

The agency’s first work programme covered the period 2007 to 2012. In December 2011, the Commission brought forward a proposal for a new work programme to cover the period 2013 to 2017. The proposal was amended through negotiations. The measure for which approval is sought very much continues the themes set out in the previous work programme, although there are some adjustments in the terminology.

The agreement of a new work programme will not alter the tasks of the agency, and nor will it change the agency’s role or remit. The work programme does not set out or define these elements. Those are set out in a completely different instrument—the agency’s establishing regulation—and that instrument is not under review at this time. The work programme simply sets out the themes under which the agency will work. Failure to agree the work programme will deprive the Council of the opportunity to set the direction for the agency by defining these themes.

I turn now to the third element in the Bill: the draft decision to maintain the number of EU commissioners at the equivalent of one per member state. The proposed reduction in the size of the commission and the subsequent loss of a guaranteed commissioner emerged as a concern of the Irish during the ratification of the Lisbon treaty. In order to secure Ireland’s ratification of the treaty, it was agreed that a decision would be taken to maintain the number of EU commissioners before the appointment of the next Commission in 2014. The European Council has put forward the draft decision to fulfil the commitment made to Ireland.

This Government are committed to creating a leaner, less bureaucratic European Union and to improving efficiency in the EU institutions, including the Commission. We believe there is significant room for savings in administration and will continue to push for substantial reductions in the EU’s administrative costs. However, it is also important that the UK maintains its EU commissioner. By agreeing to this draft decision, the UK will retain its guaranteed commissioner and be in a stronger position to influence the make-up of the next Commission. Furthermore, the draft decision states that it should be reviewed before a new Commission is appointed, in 2019, or when the number of EU member states reaches 30, whichever is earlier. The draft decision does not give the go-ahead for the Commission to continue expanding ad infinitum.

I hope the House will agree with our assessment that these measures, although necessary, are administrative in nature, improving the accessibility and legal certainty of the EU’s official record, providing an EU agency with a work programme and fulfilling a commitment to the Irish people.

--- Later in debate ---

[Chris Heaton-Harris (Daventry) (Con)]

It is a pleasure to speak on a matter European where there is general agreement across the House and no time limit on the scoreboard. I shall go on for only a couple of hours, and I have already issued my press release saying I was “speaking to a packed Chamber.” As long as the few Members here keep quiet about it, I shall be fine.

I thought it might be wise to explain why it is important to discuss these matters. As the European Union Act 2011 has brought today’s debate forward on the basis that Parliament is required to pass an Act to approve the relatively low-level EU decisions in clause 1, it might look as though those decisions are of no consequence and do not need to be talked about. As both the Minister and the shadow Minister said, however, these are quite important matters, and some other member states find them amazingly important.

The German Federal Constitutional Court talked about article 352 of the treaty on the functioning of the European Union—the flexibility clause that has caused so much excitement in the past—on which these proposed decisions are based. It considered that article as part of its 2009 judgment on the constitutionality of German basic law and the Lisbon treaty when Germany was seeking to ratify the treaty. Specifically, it considered the question of whether the article, which gives the European Union sweeping legislative power, was compatible with democracy as enshrined within German basic law.

The court had already found that, to have democratic legitimacy, the powers of the EU must be rooted in a democratic decision of Germany’s national Parliament to confer those powers to the EU. The German court said:

“Article 352 TFEU not only establishes a competence of action for the European Union but at the same time relaxes the principle of conferral.”

That is the principle that powers must be conferred on the EU by member states under article 352. The court continued:

“action by the European Union in fields set out in the Treaties is intended to be possible if the Treaties have not provided the specific competence necessary…The provision can thus serve to create a competence which makes action on the European level possible in almost the entire area of application of the primary law”

across the EU treaties.

The court ruled that

“As regards the ban on transferring blanket empowerments or transferring Kompetenz”—

the competence for the EU to decide its own powers—

“the provision”—

that is, article 352—

“meets with constitutional objections because the newly worded provision makes it possible to substantially amend Treaty foundations of the European Union without the mandatory participation of legislative”—

national—

“bodies beyond the Member States’ executive powers”.

Essentially, the court said that the German Parliament would have to examine these matters again.

It is good that we are at least mimicking the German Parliament, albeit a few years later. We are here to discuss relatively important issues, as has the German Parliament. It could perhaps be argued that the German public may be a tiny tad less Eurosceptic, because their Parliament talks about these matters sensibly and regularly, and that they therefore may understand them slightly better.

[Jacob Rees-Mogg]

Will my hon. Friend give way?

[Chris Heaton-Harris]

I knew that I was going to provoke some reaction.

[Jacob Rees-Mogg]

I am very concerned that our speaking about these matters will make the country more pro-European. I want to encourage people in their Euroscepticism, so I think that we should perhaps talk about them less.

[Chris Heaton-Harris]

I think that all scepticism should be based on reality. We should talk about things with decent facts in front of us. This is a very good forum in which to discuss the facts, so let us do that.

The Bill has been produced as a result of the requirement of the excellent European Union Act 2011 to approve the three EU decisions that have already been mentioned. Under the Act, before a United Kingdom Minister can give final agreement in the Council of the European Union or the European Council to decisions proposed on the basis of the EU treaties being used in these cases, the proposed decisions must be approved by an Act of Parliament. That is what we are doing today. Although certain proposals based on the EU flexibility clause are exempt from the requirement for an approving Act of Parliament, those exemptions do not apply in these cases. I will happily go into the details if Members want to know what they are. The hon. Member for Blaenau Gwent (Nick Smith) is obviously keen to discuss them; perhaps we will do so afterwards, over a beer.

Under the EU treaties, EU decisions of this kind require unanimity in the Council or the European Council, which means that without the UK’s support they cannot be adopted, at least to cover all member states.

Members have already listed what the proposals would achieve. There is an EU regulation enabling the electronic rather than the printed version of the Official Journal to take EU legal effect. There is an EU decision that would set out the broad areas of work of the European Union Agency for Fundamental Rights between 2013 and 2017. There is also an EU decision on the number of European commissioners.

Although the first two proposals may not seem to be hugely important, they are based on the flexibility clause, which gives the EU sweeping powers to adopt laws when the treaties have not otherwise given it the power to legislate. It has been used to adopt significant EU measures in the past, such as the creation of the EU bail-out fund for non-eurozone member states. It was therefore thought to warrant parliamentary control, and that thoroughly good idea was introduced by the European Union Act.

The two proposals dealt with by clause 1 are being introduced under the flexibility clause: they are article 352 decisions—flexibility decisions. As I said, the flexibility clause has been used to co-ordinate national social security systems for the benefit of all member states’ nationals when moving within the EU; to provide for measures against the counterfeiting of euro coins that apply to member states outside the euro; and for the bail-out fund. We are talking about significant measures.

The Bill deals with the EU Official Journal, which is not exactly the most exciting document in the world but, as the hon. Member for Caerphilly (Wayne David) said, it contains striking elements of importance to the functioning of the single market, and to EU business and UK business in general. I have a small problem with it, because everything has to be translated into each of the official languages of the European Union. This is not a debate for now, but that approach means that everything that is said in the Official Journal has to be translated into, for example, Gaelic, and that is perhaps not the best use of money.

--- Later in debate ---

[Martin Horwood (Cheltenham) (LD)]

It is great to see the European Union Act 2011 in action. It has certainly drawn in the crowds today, in just the way that we might have warned that it might not do when we discussed the Bill. During its passage through Parliament, we warned that the Bill might represent a slightly disproportionate response to concerns about scrutiny and democracy in relation to European affairs.

The fact that we have ended up spending parliamentary time on the Floor of the House discussing the publication in electronic format of the European Parliament record suggests that we might have had a point. I remember Ministers optimistically assuming that a debate such as this might assuage the Eurosceptic concerns about democracy and scrutiny in relation to Europe. I thought at the time that that might be optimistic.

[Jacob Rees-Mogg]

I am not sure whether my hon. Friend heard all of the speech of my hon. Friend the Member for Daventry (Chris Heaton-Harris), which explained that the Germans have an exactly similar procedure in regard to article 352 on the treaty of the functioning of the European Union to ensure that those measures are legislated upon by their Parliament. Surely if it is good enough for the German people to have proper ratification procedures, it should be good enough for us.

[Martin Horwood]

Only yesterday the hon. Gentleman was declaring on Radio 4 that he was taking his lead from the Catholic hierarchy. Now he tells the House that he is taking a lead from the German Parliament. At this rate he might get a reputation for being a Europhile, which might not do his reputation within the Conservative party too much good.

--- Later in debate ---

[Jacob Rees-Mogg (North East Somerset) (Con)]

It is a pleasure, as always, to follow my hon. Friend the Member for Cheltenham (Martin Horwood), with whom I disagree on almost every matter regarding Europe, this being no exception. I think it is fantastic that we are spending parliamentary time scrutinising what is being done in the European Union. So many laws come to our nation from the European Union practically rubber-stamped as an appendix to a report put out by the European Scrutiny Committee that is not even debated in a Committee upstairs. The percentage that we send through for debate in Committee is small, and that which comes to the Floor of the House smaller still.

Article 352 of the treaty on the functioning of the European Union allows the European Union very widespread powers to extend its abilities to legislate across its areas of competence, and it is important for us to scrutinise and control that.

[Martin Horwood]

How many of the hon. Gentleman’s constituents or lobbying organisations have contacted him with their concerns about the electronic publication of the Official Journal of the European Union?

[Jacob Rees-Mogg]

I am bombarded with messages from across the country, and probably internationally, from people who want to know that the laws that affect them are made clearly so that they know what they are and are not caught out by trickery and underhand practices. That is a fundamental principle of why they send me here. I would argue that everybody who voted at the last election wants to sleep securely in their beds knowing that the law is fairly and properly made.

[Kelvin Hopkins]

I often agree with the hon. Gentleman, but on this point I agree very strongly. I am perhaps alone in insisting on having hard copy in my Select Committee meetings rather than an iPad. I can operate an iPad but I want hard copy, and I still have it. Much as we know that we are in an electronic age, paper still has its place.

[Jacob Rees-Mogg]

The hon. Gentleman, as so often, is wise and right in this instance.

[Bob Stewart]

It might not be of much importance that the electronic publication of the Official Journal goes ahead, but I put it to my hon. Friend that it is pretty important how many commissioners are appointed, because that has a direct spin-off in cost terms.

[Jacob Rees-Mogg]

There are two parts to my hon. Friend’s point. On the first part, I disagree with him. The form in which instructions are sent out is important, and it is right that people should know about it. It is a long-standing principle of our law that ignorance of the law is no excuse. If that is fair, it is also fair that knowledge of the law should be made available to people in a timely and efficient way, because it is something that might affect their lives, and that when a change to the method of notification takes place, that should be debated in this Chamber and passed into law. On the second part, I completely agree that the number of commissioners is significant.

The second point that I raised with my right hon. Friend the Minister is crucially important. It relates to the change from article 308 of the previous treaty to article 352 of the treaty on the functioning of the European Union. Article 352 is broader in scope. Had it been assumed that anything previously incorporated under article 308 could be transmuted under article 352, that could have allowed all sorts of laws—my hon. Friend the Member for Daventry (Chris Heaton-Harris) went through a number of them—to pass into the body of European Union powers without any further scrutiny by this House. As is often the case, something that is in itself minor has set an important precedent in protecting the rights of this House to scrutinise these matters and to ensure that the interests of our constituents are protected.

I wish briefly to discuss the number of commissioners. I do not have the confidence that some hon. Members have in our commissioners, and I do not feel happy that we have one representing us. Commissioners take an oath that they will act in the best interests of the European Union. Some have argued that that is directly contrary to the oath that they have taken as Privy Counsellors, and we should be concerned about that. They are there, by design, to represent the interests of Europe, not of the United Kingdom. Perhaps because of our history and our civic traditions, our commissioners tend to take that very seriously, whereas commissioners from some other countries may simply represent the nation state that has sent them. I do not have great confidence that the person representing the United Kingdom is waving the Union Jack; they could just as well be waving that awful European Union flag.

[Kelvin Hopkins]

I thank the hon. Gentleman for giving way yet again. I am one of those who have been concerned for many years about our commissioners, not just because they do not represent my view, but because I do not think they represent the collective view of our people, if there is such a thing. One possibility might be for them to be elected. We have started to elect police commissioners, but European commissioners are much more important.

[Jacob Rees-Mogg]

That is a brilliant idea. If they were elected, there would be less chance of their going native, because they might be able to stand for election again. At present, there is a fear that, when people go off to Europe, the moment they arrive they send out for Belgian dress so that they can appear to fit in with the ethos of the European Union.

I want to address the question of Ireland and the specifics of what it was given to persuade it—bully it, perhaps—to ratify the Lisbon treaty. That shows—I think that this strengthens the Prime Minister’s renegotiation position—that countries can renegotiate with the EU for things that they feel they need when discussions are being held in the European Councils. That is an important point. We have often heard people say, “The Prime Minister can go off to Europe, but they will not give him anything. It’s too bad: you’ve just got to like it or lump it.” Actually, the European Union, for all its many faults, is a fundamentally pragmatic body in how it gets agreement among member states. It does a lot of horse trading, one way or another, to get agreements. I do not know whether the hon. Member for Wolverhampton North East (Emma Reynolds) wants to intervene, but she seems to be nodding vaguely in response to that particular point.

The situation means that, if we go to the EU and say, “If you want X, you must give us Y,” or, “If you want X, you must give us A to Z in return,” that is a strong position for us to be in when the requirement is for unanimity. What Ireland has done, and what we are bringing into law, is very important and very encouraging for the United Kingdom and for the position of my right hon. Friend the Prime Minister in his negotiations.

Finally, I praise the Government for the Bill, which has been proposed as a consequence of the 2011 Act. When the Act was going through Parliament, it was not universally welcomed, certainly not by those on the Opposition Benches, but even Eurosceptics on my side were sceptical about the effect that it would have. I was extremely pleased to hear the hon. Member for Caerphilly (Wayne David) welcome the Bill and I am pleased that the Government have changed their view so that the multi-annual financial framework has to go through British law. That shows that the 2011 Act is working and acting as a proper check on what goes on in the European Union.

Without the Act, none of the three things under discussion today would have required legislation, but, because of it, they all do. As a result, crucial issues, such as the future number of European commissioners and renegotiations such as that which took place with Ireland to get it to support the Lisbon treaty, have come before this Chamber. Although in this instance the Bill has turned out to be uncontroversial, it could have been very controversial. I think that we are now secure, thanks to the Government, in having a better check on the accretion of powers to Europe. I might like to reverse them, but at least we are now checking them.