Commission Work Programme 2015

Kelvin Hopkins Excerpts

Monday 9th March 2015 Commons Chamber

[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.

[Kelvin Hopkins (Luton North) (Lab)]

I gently say to my right hon. Friend that there is a range of views in our party, as well as in the Conservative party, but I shall not dwell on that.

I heard Mr Timmermans speaking in Rome fairly recently, and to hear him one would have thought there were no problems at all. He was speaking in Italy, where unemployment is at horrendous levels—not as horrendous as in Spain or Greece, but still horrendous. He said that countries could not act on their own. The reason they cannot act on their own is that they are cemented into the euro and have no control over their exchange rates or interest rates. If they had control over macro-economic policy, they might be able to act on their own, but they cannot do so at the moment.

[Mr McFadden]

I thank my hon. Friend for his intervention. Certainly in the speech that I heard last Thursday, the commissioner was not saying that there were no problems at all. He acknowledged many of the problems and said that he was determined to take a different approach in responding to them from that taken in the past. It is perfectly fair for Members to say, “We’ll see how that works out. Let’s see if he’s serious about what he says.” However, that certainly is what he says, and that is reflected in the work programme.

There has been legitimate frustration about over-regulation in the past. If the Commission is serious about weeding out proposals that are not going to go anywhere, that have been lying on the table for years without prospect of agreement or that have been bypassed by events, we should welcome that. I welcome the emphasis on growth and jobs and on regulation in the work programme.

The other measure on growth and jobs, to which the Minister referred, is the Juncker package of investment. As the right hon. Member for Wokingham said, it is a combination of real new money and the encouragement of private sector investment and loan guarantees. If the Minister has a chance to respond to the debate, will he say what bids this Government have made for any proportion of that money? What investment projects have been brought forward and where are they in the country?

Specifically, will the Minister say how that proposal is to be organised in England? There has been concern among local authorities and local enterprise partnerships that they are not permitted to put in bids and that they all have to go through Whitehall. In an environment in which we are discussing devolution to various parts of the country, it is important that areas in England get a fair crack of the whip in terms of submitting bids to this fund for their projects. I hope he will say something about that.

The Minister said that the work of the UK’s commissioner, Lord Hill, on the capital markets union was important. It has long been said that SMEs are too reliant on bank finance and that we need to encourage more forms of finance. What input can this country, with its expertise in financial services, have in those proposals and in the development of the capital markets union, not only from a Government point of view but from a private sector industry point of view? Nowhere in Europe is better placed than the UK to contribute to ideas on financial innovation and financial services.

Of course, some of the work programme does not apply to us. There are measures that apply only to the eurozone. It is important that countries outside the eurozone, such as the UK, continue to play a full part in the EU.

If the Minister responds to the debate, will he update the House on progress on the Transatlantic Trade and Investment Partnership? In the question and answer session that followed Commissioner Timmermans’ speech last week, he was asked about TTIP. He said that if it was to be done, it would have to be done by the end of this year. He did not spell this out explicitly, but I think he meant that after that, the timetable of the American presidential election would make it more difficult to negotiate an agreement. Is it the Government’s view that if TTIP is to be done, it has to be done this year? If it is, what input are we having to ensure that that happens, provided that the important concerns about public services and investor-state dispute settlement procedures are worked through and considered properly?

This debate about the work programme reminds us of the way in which we debate these things. My right hon. Friend the Member for Leicester East (Keith Vaz) asked when the Government received the programme. It always strikes me that we debate these things after they have been adopted. Parliament’s method of scrutinising European affairs is not the subject for tonight, but this debate reminds me that these things can be overtaken by events.

There is reference in the work programme to security issues. Like the Minister, I do not agree with Mr Juncker’s suggestion for a European army. However, I do believe that the issue of security is becoming more, not less, relevant, to our European relations. One need only look at the situation in Ukraine. Since the work programme was published, we have had the shootings at Charlie Hebdo, which were a terrible reminder of the common threat we face from extremism. It is therefore important when debating the programme to realise that whatever was written last year has to keep up with the changing nature of events. When he sums up, will the Minister say a few words about what action is being taken on collective security, not of the kind that Mr Juncker referred to with the European army, but in terms of sanctions against the aggression that we have seen in Ukraine?

The work programme refers to migration—that is, migration from outwith the European Union into the European Union. Last week, I met Ministers in Rome. This Minister will be aware that migration is an issue of huge concern for the Government of Italy, given the steady flow of boats from the desperate situation in Libya. The Italian Government feel, with some justification, that they are dealing with a situation that affects all of Europe. We have seen the end of the Mare Nostrum programme and the adoption of the Triton programme. That does not resolve the intense humanitarian crisis nor the political problem in Libya, where there is no Government of any coherence.

--- Later in debate ---

[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.

[Kelvin Hopkins (Luton North) (Lab)]

I shall curtail much of what I was going to say. I had a lot to say, and I greatly agree with the right hon. Member for Wokingham (Mr Redwood) about the crisis in the eurozone. I personally feel very angry as do many people in those countries. The so-called socialist party has disappeared in Greece to be replaced by Syriza, while Podemos is now in the lead in Spain. Working people are getting very angry about the appalling state of their economies and the impact on their people.

Let me speak briefly about the amendment moved by the hon. Member for Stone (Sir William Cash), the Chairman of the European Scrutiny Committee, of which I am pleased to be a member. I support the amendment, and I am pleased that the Minister intends to accept it, although I hope this is not going to take the place of a proper full debate on free movement and some declaration of what Government policy will be on free movement and what they are going to do about it. It matters greatly to our constituents.

I spent some six hours knocking on doors in my constituency on Saturday and Sunday, and the issue that cropped up the most was immigration and free movement. We cannot run away from it. We have to reach a position. If we want to say that free movement is fine and we are not going to do anything about it, then we should say that, although I think it will bring about a degree of anger from people. I agree with my right hon. Friend the Member for Leicester East (Keith Vaz), the Chairman of the Home Affairs Select Committee that this matter has not been taken seriously. He mentioned Frontex, which is an administrative and policy organisation; it does not have a border force.

What we really need is a European border force to help out countries such as Greece—a relatively impoverished country, with a big land border with Turkey—and Italy, with its enormous sea border and islands close to the north African coast. If we are serious about the problem, those areas have to be helped by a border force that is European in scope. When we visited Frontex in Warsaw some two or three years ago, it could not say that free movement was a shibboleth that it could not talk about, but that is what it hinted at in its speech. I think we have to take these issues more seriously.

As the right hon. Member for Wokingham said, unemployment in some of the euro countries is quite appalling. If we had Spanish levels of unemployment in Britain, we would have 7.5 million unemployed instead of about 1.9 million. Ireland has overcome its unemployment problem by exporting 300,000 people. That is the pro rata equivalent of 4.5 million Britons leaving. Just imagine if we had 7.5 million unemployed and 4.5 million emigrating to find work. That is the situation that faces these European countries and no one should gloss over the fact that this is all the result of forcing a single currency on these countries, which then prove unable to adjust to it.

After the crisis, we in Britain devalued and depreciated sterling by 27% against the euro and by 31% against the dollar. That was a major factor in helping us to avoid some of the extreme stresses that happened elsewhere. Even in Europe, we are seeing a country such as Switzerland pegging its currency to the euro for a little while, but when the peg was taken away, the currency appreciated by 30% overnight. There are great distortions in currency values right across Europe.

Denmark has pegged its currency to the euro and it is taking desperate measures to try to hold its currency down. I do not call it the euro; I call it, privately, the deutschmark because that it what it really is. Other countries are effectively pegging their currencies to the deutschmark. Desperate steps have been taken to hold it down. We are in trouble now—the Government are right that this is a problem for Britain—because the euro is depreciating pretty rapidly against sterling, which will cause serious problems for our economy, too. All these problems are caused by the foolhardiness of imposing a single currency on different economies, which should be able to flex their currencies, choose their own interest rates and create demand in their own economies so that they can give jobs to their people.