Commission Work Programme 2015

John Redwood Excerpts

Monday 9th March 2015 Commons Chamber

[Mr Lidington]

I do not want to pre-empt tomorrow’s debate on the European Union’s relations with national Parliaments and the principles of subsidiarity and proportionality. My hon. Friend is right to identify this as a challenging agenda and to indicate that the European Parliament, in particular, is likely to be resistant to the idea of a stronger voice for national Parliaments, but I think that he is too pessimistic in his assessment of Frans Timmermans. After all, it was during Mr Timmermans’s tenure as Foreign Minister of the Netherlands that the Dutch came forward with a number of specific proposals for strengthening the role of national Parliaments in holding EU decisions to account. I take heart from the fact that we have in this powerful role within the Commission somebody who has previously gone on the record to say that the guiding principle should be, “Europe where necessary, but national where possible”, and who has been very sympathetic to ideas for strengthening the role of national Parliaments.

The Commission has set out a clear intention to be more strategic and to act in a smaller number of areas where there is real added value for the EU. It has also said that it wants to demonstrate a particularly strong focus on jobs, growth and European competitiveness, which are objectives that the Government strongly support. The Commission has pledged to create a closer partnership with member state Governments and national Parliaments. We can see some evidence of the Commission’s approach by looking at some of the numbers in the work programme. The work programme includes just 23 legislative and non-legislative policy initiatives and—importantly— 80 measures proposed for either withdrawal or modification.

[Mr John Redwood (Wokingham) (Con)]

Does the Minister not note that most of the measures being withdrawn are either obsolete, having been superseded by a measure that has already gone through, or being withdrawn in favour of a more ambitious proposal? It is complete nonsense to say that the Commission is giving up power and wishes to do less. This is a massive work programme and the 80 measures are just a con trick.

[Mr Lidington]

I think that my right hon. Friend is being too pessimistic. As I said earlier, the test will be whether at the end of five years we can look back and say that the Commission has delivered in practice what its words indicated at the start of its tenure. I completely accept that there is a real problem with the Commission’s working culture, which, to be fair, like many national Government Departments, tends to judge success by the output of new law and new regulation, rather than the quality of what is actually done on a number of core priorities.

I was pleased to note that the Commission confirmed this weekend that 73 of the measures proposed for withdrawal have now been formally withdrawn. By comparison, the 2014 work programme proposed 29 new initiatives and prioritised a further 26 measures for adoption, and in 2010 there were some 300 new measures proposed. This work programme is focused on fewer measures, and on measures that will encourage growth and jobs, deepen the single market, conclude trade agreements and improve regulation, freeing up business from unnecessary regulatory burdens. The Government welcome that new focus.

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[Mr Lidington]

As I told my hon. Friend when I last gave evidence to his Committee, the Government take decisions collectively and it would not be right for me to go into detail about internal Government communications. I will come to the issues raised by the amendment shortly, but first I want to say more about the importance of the proposed work on economic affairs and competitiveness.

The United Kingdom has long argued for ambitious trade deals. The ongoing Transatlantic Trade and Investment Partnership and EU-Japan negotiations could benefit this country annually by more than £15 billion, so the comprehensive stocktake of trade policy proposed by the Commission is welcome.

The EU’s greatest achievement—the single market—is still very far from complete, so we are pleased that the Commission plans to push liberalisation in sectors that could boost GDP the most, such as construction and professional services. We want EU legislation to enable the dynamic development of the future economy by supporting and not hindering a continent-wide digital single market. If that is done right, in a way that encourages the growth of online trade—both retail and business to business—it could generate €250 billion over the lifetime of this Commission.

We also support the Commission’s vision of a well-regulated and integrated capital markets union of all 28 member states that maximises the benefits of capital markets and non-bank financing for the real economy. Lord Hill’s recent Green Paper on the subject spelled out the approach he plans to take, and the Government will, of course, engage with his team as the policy is developed further.

We welcome the fact that the Commission intends to consider a range of approaches, and not just legislation, to develop Europe’s capital markets, and that much of that will be delivered through member state and industry action, rather than through EU-level law or regulation.

[Mr Redwood]

Will the Minister comment on the investment programme, which is said to be significant? How much of it is a spending commitment by the European institutions from their levies on member states, and how much will be done by gearing and leverage through guarantees and loans?

[Mr Lidington]

If I get the chance, I will give my right hon. Friend the exact figures at the end of the debate, but only a relatively small amount of the European fund for strategic investments—the so-called Juncker package—is derived from reallocating parts of the existing EU budget. The majority of the proposed €315 billion for the EFSI relies very much on private sector input on the basis of gearing.

Perhaps my right hon. Friend will be reassured to know that when I visited the European Investment Bank recently to discuss its approach to the programme, it was very firm in saying that it took very seriously its responsibility to its shareholders—the member states—and that it would exercise its responsibilities as a bank, that there would be due diligence, that it was not prepared simply to wave projects through on the basis that any sector or country deserved a particular slice, and that it would look at the real economic benefit that each proposal for capital investment offered to Europe as well as to the member state.

One of the sectors that we think could benefit from the EFSI is energy, where there is a need for work on interconnectors that would not only make more possible a genuine single internal market in European energy, but meet the strategic objective of trying to reduce European energy dependence on Russia. We think that the Commission communication on energy union is an important step towards not only strengthening Europe’s energy security, but decarbonising our economies and deepening the internal energy market.

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[Mr McFadden]

I do not believe that that is what I said. I am interested in the hon. Gentleman’s intervention, because I thought that the issue for him was principally parliamentary sovereignty, rather than the free movement of people. Perhaps he has shifted his position, and I should stand corrected.

The Minister outlined the position on the numbers in the measures. I noted the scepticism with which the right hon. Member for Wokingham (Mr Redwood) greeted the numbers. I do not propose to go over that ground as the Minister has done so, but on the face of it the Commission is proposing a narrower, more focused programme—under 10 headings and 23 specific measures —than it has in the past.

At the top of the Commission’s agenda is something we would all welcome—an emphasis on growth and jobs. In a continent still struggling to recover from the financial crisis, it is right to have such an emphasis and focus on the very high level of youth unemployment, on doing what is right on the big issues, and on less interference in and over-regulation of issues that do not need it.

In his speech in London last week, Mr Timmermans, the vice-president of the Commission, said:

“It is incredibly important that we follow through on limiting the initiatives we take to those areas where EU action is urgent and needed. For too long we worked on the premise of doing things because they were nice to do; I want to work on the premise that we do it because we need to do it, because Member States can’t do it by themselves alone. There needs to be added value of acting on a European scale.”

I very much welcome that emphasis from Commissioner Timmermans, and I hope that it is followed through in reality as well as in the written plan.

[Mr Redwood]

As the right hon. Gentleman is such a fan of all this interference, will he say which of the 23 measures will actually reduce the shocking levels of youth unemployment, which are the curse of Europe thanks to the idiotic policies of this Union?

[Mr McFadden]

I thank the right hon. Gentleman for painting me as a fan of all the measures before I have even spoken about them. One measure that could help to create jobs would be a properly negotiated free trade agreement between the EU and the United States. That has the potential to help our exporters and create jobs.

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[Mr McFadden]

I very much agree with my right hon. Friend. The Italian Foreign Minister told me that of the estimated 270,000 illegal migrants who landed in the EU last year, 170,000 landed in Italy. This cannot be a problem for just one member state, because it is broader than that. I shall be interested to hear the Minister’s views on our Government’s input in dealing with both the consequences and causes of this problem.

Concerns have been raised about what is not in the programme. The Minister wrote to the Chair of the European Scrutiny Committee about the air quality package and the circular economy package. Concerns about that have been raised by Members of the European Parliament as well. A number of Select Committee Chairs have written to the Chair of the European Scrutiny Committee on the matter. It is therefore clear that there is a lot in the work programme that will concern the House.

Before I end, I want to turn to the amendment tabled by the hon. Member for Stone (Sir William Cash) and his colleagues on the European Scrutiny Committee. It asks that the Government ask the Commission to develop policies relating to the free movement of citizens. That is something that the Labour party has put forward, and before Christmas my hon. Friend the Member for Leeds West (Rachel Reeves) produced proposals that related to how free movement interacts with access to benefits and public goods. We would like the Commission to work with member states on that, because access to benefits and public goods is not an issue just for the UK but for other member states. We saw that in the recent European Court judgment on the Dano case, which was initiated in Germany and affected a lady who it was judged did not have the right to access social security benefits. We have an interplay between a founding principle of the European Union and social security systems that are national in nature, and it is right that we discuss work in that area with the Commission.

[Mr Redwood]

When the right hon. Gentleman said that Italy should not be expected to handle the problem of migrants to Italy on its own, is he recommending burden sharing? Is he saying that other member states should take a share of those migrants through a common policy?

[Mr McFadden]

It has already been agreed that Triton will be a European programme and not just an Italian one—the right hon. Gentleman is a little behind the pace if he thinks that is a new departure, because it has already been agreed. The question is about the resources given to the programme and whether it is capable of meeting the task it faces. I remind him of the terrible figure given by my right hon. Friend the Member for Leicester East of the number of people who have drowned in the Mediterranean over the past couple of years.

[Mr Redwood]

rose—

[Mr McFadden]

I have already given way to the right hon. Gentleman.

In conclusion, I believe that this work programme is a step forward from previous ones. It is closer to British priorities and reflects much of what we want to see, although we do not endorse everything in it and some of it does not apply to us. Like all such programmes, it is only a plan on paper and it will remain to be seen whether the Commission delivers as it has promised. It is certainly urgent that it does deliver to meet real and urgent priorities, and ensure that the European Union works in the interests of its citizens over the next five years. Whatever the plan says on paper, that is ultimately how it will be judged.

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[Sir William Cash]

My hon. Friend is right in every respect and we have all the transcripts to prove it, including from various Secretaries of State. It is effectively an example of decisions being taken behind closed doors in smoke-free rooms. Those are the new modernising methods of government. I disapprove of them and so does my Committee, as shown by the fact that we tabled this amendment.

Let us move on and accept that we are now able to debate free movement; I particularly want to concentrate on EU migration and benefits in that context. I wrote a letter to the Prime Minister on 18 November, which was 10 days before he made his speech at JCB in Staffordshire on the question of free movement, and I drew attention to the fact that I believed we were faced with a real problem. However much we might want to make certain changes, unless we were prepared to dig in and make this Parliament supreme on matters of such vital national interest, we would not get the necessary changes because some of them required treaty change and others required overriding the charter of fundamental rights. Although the Prime Minister accepted in questions after his speech that some of those matters would require treaty change, in reality that is not on offer in any substantial way from the other member states.

The principle of free movement is embedded in the ideology and principles of the other member states, and particularly the European institutions and European Commission, despite how that may affect us as a small island with a greatly increasing population and pressures on social housing and education—the list is endless. Unlike other member states such as France, Germany and Spain that have large land masses and can absorb many more people, we simply cannot do so. It is therefore a matter of vital national interest—quite apart from questions that I will mention in a moment about abuse of the system—that has led us to a position where we have desperately wanted to put our foot down. Some of us believe that we should override European legislation and the charter of fundamental rights by using the “notwithstanding” formula—that is notwithstanding the European Communities Act 1972, which is past legislation as I have said many times before—so that we can ensure that our Supreme Court obeys the laws of this Parliament which is elected by our voters in general elections.

When the election comes—it is only a matter of 60 days or so—this issue will be at the centre of gravity in that election, and we will be asked whether we will take the necessary steps in line with what voters insist on. I am afraid the answer to that question is that there will be no treaty change or overriding of the charter, and when I have asked Ministers and the Prime Minister whether they will use the “notwithstanding” formula, I have been told no.

[Mr Redwood]

On the narrower point of benefits, the Minister gave us encouraging news that we have control of our benefits system, as that is a reserved matter under the treaties. Does my hon. Friend recollect that on several occasions Ministers have been unable to change our benefits system in the way the British public want because of European legal blockages?

[Sir William Cash]

That is completely right. People think—in elements of the BBC and elsewhere, I suspect—that this is somehow a matter of policy, and that by using the right words one can change the effect of European law. No, we cannot. We have to pass legislation. There has to be a majority in this House to override European laws and regulations. It is, ultimately and tragically, a legal framework rather than just simply a question of policy based on the wishes of voters, as expressed by their representatives in Parliament. This has only fairly recently begun to gain traction with some people in the public arena, but not sufficiently, I am afraid, to achieve the kind of impartial analysis I believe is needed, for example in the BBC. Without going into this now, I have invited—in fact, I have effectively forced—the director-general and the editor-in-chief of the BBC to appear before my Committee to explain this problem in the kind of language that ordinary people can understand. That will take place on Wednesday afternoon at 2.30 pm, for those who want to take note.

The Prime Minister’s speech had a lot in it, which demonstrated the extent to which he wants to try to resolve many of these questions. That is undeniable, but the question we have to address, and to which I now turn, is the extent to which it would require treaty change or otherwise—that is the acid test.

My first general remark is that the package includes only one proposal that directly limits or imposes a quota on the number of EU migrants. This would relate to future accessions and so could be part of normal negotiations. However, to impose a direct limit on migration from existing member states would certainly require treaty change.

My second general comment is that many of the relevant treaty obligations have already been interpreted in this context by the European Court of Justice. The Court plays a huge, vital and exceptional role, and cannot be appealed against. It has already interpreted these matters as providing limitation on the action that member states can take in this area. Indeed, the recent case of Dano, which is frequently referred to—the Foreign Secretary referred to it on “The Andrew Marr Show” only this weekend—demonstrates that the Court can change its approach.

However, some of the judgments mentioned are long-standing, well-entrenched and engage charter rights. Any change along the lines suggested by the Prime Minister would therefore not be sufficiently strong, to the extent that they rely on the Court of Justice changing its established jurisprudence. That is why we want the Commission to take account of these points—these are the issues. The European Commission is the legal guardian of the treaties. The point I am making in this speech is that, in order to change the law to ensure that we can actually deal properly with the problems that come from free movement, we have to persuade the Commission, in its work programme, to take account of such relevant questions. It could be inferred from what the Prime Minister had to say that he accepted that some treaty change would be required—and in fact, when he was asked questions, he accepted that towards the end—but there are a number of real problems, and I will now turn to them.

The first problem that the European Commission will have to consider in its work programme is a stronger power to refuse entry and to deport criminals. The free movement directive, which the European Commission has to enforce, requires decisions to be taken on a case-by-case basis on the grounds permissible by the treaty. That provision reflects Court of Justice jurisprudence extending across a wide range of treaty rights, including the freedom to travel to other member states to receive services, which is highly relevant to the work programme. It is likely that any significant stronger action will require treaty change, particularly if it detracts from the requirement derived from the principle of proportionality to look at each individual case.

Secondly, I believe a ban on re-entry for those who have abused EU rights may be possible, as this falls within the public policy exception to the treaty right of free movement. However, there are again questions of proportionality.

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[Mr John Redwood (Wokingham) (Con)]

This debate is a disgrace. This is a massive work programme with huge implications for the British people and our own country, yet we have been given 90 minutes. I can now make only a few of the points I wanted to make because two of my colleagues rightly wish to join in.

The Minister told us that he was delighted that this was a small and compressed programme of just 23 measures. These measures are huge for the jobs, growth and investment area. There are proposals that will have a direct impact on the economies of the European Union. In the section on economic and monetary union, two new taxes are proposed—a common consolidated corporation tax and a financial transactions tax. The Minister did not even mention them: I believe that they will be opposing them for the United Kingdom. One would have thought that a couple of major European taxes might have been worth a mention.

Nobody has had a chance to discuss the energy union proposals, which will directly impact on the United Kingdom. It is put down as one measure, but it is a whole raft of measures. The one that is scored is a strategic framework, but the strategic framework will lead on to a massive programme of regulation and legislation. The Minister obliquely referred to the idea that we want to integrate the market. Why do we wish to integrate it? Why do we wish to integrate the United Kingdom’s rather different energy market—we are an island with access to a lot of its own energy—with the continent of Europe, which has a terrible geopolitical problem because it has made itself so dependent on Russian gas.

As if that was not enough, my hon. Friend the Member for Stone (Sir William Cash) rightly said that migration and border controls—one of the leading issues in the run-up to the general election—is at the core of this work programme. That is exactly right.

I found rather surprising the Minister’s remarks about our legal opportunities for benefit reform. It seems to me that most of the proposals for solving our difficulties on benefits for migrants in the United Kingdom would be illegal under the current treaty. I have been going on about this for years and have recommended to Ministers that they put our benefits on a contributory basis and that they should be paid only if people have paid in for a specified number of years and/or have been in full-time education in the United Kingdom between the ages of five and 16, so that all British people would qualify, without it being discriminatory on grounds of country. If we did that, we could make the changes we want, but Ministers do not respond. They pretend that they can make these other changes, but they have not delivered them all and I think they will discover that a lot of them are illegal.

The economic programme should be much more urgent. I find it extraordinary that the Labour party can come here and show no anger or passion about the mass unemployment on the continent. If there were anything like 50% youth unemployment in Britain today or 25% general unemployment, Labour Members would be outraged and they would be here in their hundreds—not just three Members as now.

[Kelvin Hopkins]

rose—

[Mr Redwood]

I am sorry, but I do not have time. The hon. Gentleman wants to make his own speech.

Labour would be outraged, but because this is happening on the continent of Europe and is the result of the euro and economic union policies from which we have rightly opted out, they do not seem to care less. They just accept that it has to happen. I think this House should be deeply angry about the mass unemployment on the continent and deeply angry about the permanent recession that has hurt certain countries. We should be deeply angry about the shambles that is the euro, which is doing so much damage to prosperity, opportunity and life hopes. We have no time to discuss any of that because we have been given only 90 minutes.