European Institutions

Jonathan Lord Excerpts

Wednesday 7th September 2011 Westminster Hall

[Mr Lidington]

However tempting my hon. Friend’s suggestion might be, the problem with unilateral action is that it can so easily be used to justify unilateral action by others that would be profoundly detrimental to our national interest. Aspects of the European Union—most obviously the single market, the creation of Margaret Thatcher’s Conservative Government—have benefited the prosperity of and employment among British citizens. They have helped attract vast foreign direct investment to these shores. Other European countries have, at times, fumed and sworn at the fact that the single market meant that they had to dismantle protectionist barriers. However frustrating some aspects of the way in which the EU is organised may be, and however we might aspire to see changes in those structures, I caution my hon. Friend against unilateral action, because that could set a damaging precedent.

We in this Government believe that tax policy is for member states to determine at national level. The Commission has proposed certain new EU taxes. We think that those would introduce additional burdens and damage European—not just British—competitiveness. The United Kingdom will oppose any such new EU taxes.

If we look beyond the annual 2012 budget to the next, probably seven-year, financial perspective, where unanimity rather than qualified majority voting applies, we will see that the Prime Minister has stated jointly with his EU counterparts that the maximum acceptable expenditure increase is a real freeze in payments and that that should be year on year from the actual level of payments in 2013, not from the level of commitment, which is usually above the level of the money actually paid out.

I also assure my hon. Friends that the Government will certainly defend the United Kingdom rebate, which remains fully justified owing to expenditure distortions in the EU budget. We should not cease to remind the British people of the fact that the increases in our direct contributions, to which my hon. Friend the Member for Beckenham has referred, are the product of the shoddy budgetary deal negotiated by our predecessors, Mr Blair and the right hon. Member for Kirkcaldy and Cowdenbeath (Mr Brown), when they were in office.

[Jonathan Lord (Woking) (Con)]

I welcome what the Minister has said about EU taxes and his approach to the budget, but what are we going to do about some of the social directives about temporary workers and so on when we desperately need to deregulate our economy to get growth? What are we going to do about that avalanche of new regulation coming from Europe?

[Mr Lidington]

The Minister of State, Department for Work and Pensions, my right hon. Friend the Member for Epsom and Ewell (Chris Grayling), is working hard to assemble a coalition of like-minded Ministers and is engaging with the Commission to seek to avoid the sort of damaging additional social regulation to which my hon. Friend rightly refers. We are also keeping a particularly close eye on the position of the working time directive. The Commission may come forward with new proposals in the next 12 months. Our priority will be to protect the opt-out, which is valuable to British competitiveness. If there also prove to be ways in which to mitigate or reverse the impact of the European Court of Justice judgments that defined time on call as working time we would seek to do that as well.

My hon. Friend the Member for Witham called for greater efficiency and the reduction of waste. I support her on that, as I do on her call for increased transparency over all the activity and detailed expenditure of the institutions. The more transparency we have over EU spending and the legislative process, the greater evidence we will find to support our arguments for improved efficiency and the reduction of waste. An important part of transparency is scrutiny, and I am keen to ensure that we do everything possible to make our own parliamentary scrutiny processes still more significant. It is a vital part of the democratic process and the Government are committed to ensuring that scrutiny committees can clear proposals before we agree to them at ministerial level.

My hon. Friend is right that the priority should be growth, competitiveness and jobs. That is where Europe should be focusing its energy and attention now. We are pushing for a further drive on the liberalisation of the single market, on breaking down barriers to trade, and on making European regulation less burdensome and expensive, especially for small and medium-sized enterprises, on which so many jobs throughout Europe, not just the United Kingdom, depend. We are determined to resist any gold-plating of European Union legislation.

My hon. Friend talked about the Council of Europe and prisoner voting. The Commons has given a clear view that prisoners should not have the vote. Indeed, my right hon. Friend the Prime Minister has echoed that call. The Government believe that it is right to consider the final judgment in the Italian case of Scoppola, as well as the wider legal context, before setting out the next steps on prisoner voting. I want those next steps to be as close as possible to the clearly expressed will of the House of Commons.