European Union Bill

Lord Hague of Richmond Excerpts

Tuesday 7th December 2010 Commons Chamber

Second Reading

[The Secretary of State for Foreign and Commonwealth Affairs (Mr William Hague)]

I have it in command from Her Majesty the Queen to acquaint the House that Her Majesty, having been informed of the purport of the European Union Bill, has consented to place her prerogative, so far as it is affected by the Bill, at the disposal of Parliament for the purposes of the Bill.

[Mr Deputy Speaker (Mr Nigel Evans)]

Mr Speaker has selected the amendment in the name of the official Opposition.

[Mr Hague]

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

In the past 25 years, the EU has changed many times, each change marked by a new treaty: the Single European Act, the Maastricht treaty, the Amsterdam and Nice treaties, the failed EU constitution and its modified successor, the Lisbon treaty. As a result, the EU now has a greatly enlarged place in our national life, policy and politics. At the same time, we have seen a growing disconnection between the people who put us here in Parliament—the British people, the voters—and the EU’s institutions. There is a growing sense, shown by falling turnout in European elections and a variety of surveys, that the EU’s democratic legitimacy in this country has been weakened.

It can be said in mitigation that all but one of those treaties had its place in the manifesto of the party that won the general election, the exception—a rather important exception—being the last such treaty, the Lisbon treaty. It cannot be denied, however, that there is a problem—a severe one—that will only grow worse unless we take steps to address it, and the European Union Bill is part of the coalition Government’s answer to that problem. Indeed, the crowning argument for the Bill was the behaviour of the last Government, who opposed a referendum on the EU constitution, then promised one, then refused to hold one on its substantially similar reincarnation as the Lisbon treaty. The Bill will prevent Governments from being so deceptive and double-dealing when it comes to giving voters a say.

[Mr Tobias Ellwood (Bournemouth East) (Con)]

I congratulate my right hon. Friend on introducing this important Bill, which will ensure that parties do not make a proposal on one side of an election only to conduct a U-turn on the other. Has he had any discussions with the Labour party on its position on the Bill, or will it be walking into the next election supporting a case in which the British electorate will again be denied the opportunity to conduct affairs on Europe?

[Mr Hague]

That is something for the Opposition to consider and they will have some time to do so before the next election. The position set out in their amendment appears to be at best uncertain in that they agree with the principle of doing such a thing but not with doing it in practice. That is rather like the position they often occupied in government of being in favour of referendums but never actually holding one on any European matter for which they were responsible.

[Ms Gisela Stuart (Birmingham, Edgbaston) (Lab)]

rose—

[Mr William Cash (Stone) (Con)]

rose—

[Mr Hague]

I shall take an intervention from the Opposition before I give way to my hon. Friend. The hon. Member for Birmingham, Edgbaston (Ms Stuart) did, of course, favour a referendum on the Lisbon treaty.

[Ms Gisela Stuart]

How would the Secretary of State describe a party that promised a referendum and then, in order to avoid one, simply changed the question, as the Members who are now in coalition with his party did in the last election?

[Mr Hague]

I am not here to answer for the party policies of other members of the coalition but for the coalition Government as a whole. The hon. Lady can rest assured that both parties in the coalition join strongly in their support for the Bill. It is sponsored by the Deputy Prime Minister and the Prime Minister, and it is therefore easy for people in a third party to join us in supporting it, as the hon. Lady will no doubt want to consider doing.

[Mr Cash]

Given that we stood united as a party in opposing the Lisbon treaty and supporting a referendum, and given that we voted for that, will my right hon. Friend explain why we have done a U-turn on that within the coalition Government? Will he also explain why he was not prepared to come to my European Scrutiny Committee to explain the circumstances behind the Bill?

[Mr Hague]

On the first point, I do not think the coalition Government have done a U-turn, as the Bill implements part of the coalition agreement that was set out in the few days after the general election. It is true that the Conservative party, when the Lisbon treaty was ratified last year, said that in those circumstances we could no longer hold a referendum on the treaty. That, of course, was made clear before the general election. My hon. Friend is being a little unfair to both parties in the coalition.

On the second point, I understand that my hon. Friend the Minister for Europe gave a splendid exposition of the Government’s position to the European Scrutiny Committee. As the Minister who was most involved in drafting the Bill, he was best equipped to go before the Committee. I look forward to discussing these issues with my hon. Friend the Member for Stone (Mr Cash) on many occasions. Let there be no fear about that.

[Mr Bernard Jenkin (Harwich and North Essex) (Con)]

In our manifesto we promised to amend the European Communities Act 1972, and the coalition agreement states:

“We will amend the 1972 European Communities Act so that any proposed future treaty that transferred areas of power, or competences, would be subject to a referendum on that treaty—a ‘referendum lock’.”

But the Bill does not amend that Act.

--- Later in debate ---

[Mr Hague]

My hon. Friend may have worked out that the Bill has exactly the same effect as amending the Act and that it therefore absolutely honours the commitment in the coalition agreement. We additionally agreed, in the coalition agreement, that we would not agree to any transfer of powers from Westminster to Brussels for the duration of this Parliament. In addition, if Parliament approves the Bill, any future treaty change that transfers powers from Britain to the EU could be agreed only subject to the consent of the British people. That will provide a referendum lock to which the British people hold the key. The Bill makes a very important and radical change to how decisions on the EU are made in this country. It is the most important change since we joined what was then called the European Economic Community. It marks a fundamental shift in power from Ministers of the Crown to Parliament and the voters themselves on the most important decisions of all: who gets to decide what.

It has been said that because the Bill will place a high democratic test before any Government can agree to participation in deeper political integration in the EU, it will marginalise Britain, but I believe that that argument is dangerously mistaken in its assumption of what progress in the EU means. The yardstick for progress in the European Union is not the depth of political integration. The lost opportunities of the past decade of institutional navel-gazing have made that plain. Progress for the European Union means its institutions’ ability and willingness to help its member states meet the challenges of today, and for us today that means our international economic competitiveness, sustainable low-carbon growth and the use of our collective weight in the world to advance our shared values and interests.

That is why, from their first day, the Government have been active and activist in European policy. That is why we have played a strong and positive role in the EU which in six months has delivered significant results—agreement on EU sanctions against the Iranian Government that are already having a material effect, and agreement on measures that will substantially aid Pakistan’s economic recovery in the aftermath of the floods. We have pushed hard at EU level on measures to further free trade, in particular with Pakistan and South Korea, thus far with success.

The UK has not taken part in every aspect of the EU’s development. The euro was created, and the decision to retain our own currency has, for example, been vindicated. Staying out of the euro and maintaining our own border controls has not weakened our influence, either. The previous Government’s successful championing of enlargement to the east, to which I pay tribute, is proof of that. In the single market—for example, on patent reform—the UK should be ready to move forward in the national interest with other like-minded partners.

As in all matters, the Government’s policy on European issues should be based on the pursuit of our enlightened national interest. Our ability to advance our goals by working with European partners is crucial to that. Ensuring that our role is based on democratic consent is equally necessary, and that is what the Bill is about.

[Mr John Redwood (Wokingham) (Con)]

Will the Foreign Secretary explain why, when the Government are giving away powers to regulate the City, powers over criminal justice, powers in two regulations and a directive that will affect our economic governance, and big new powers for an expanded External Action Service, none of those qualifies for a referendum under the Bill? People want a referendum now on the powers that the current Government are giving away.

[Mr Hague]

That is simply because we are not giving away those powers. The European External Action Service was agreed, established and given its role by the Lisbon treaty. My right hon. Friend may regret that, and I may regret that, but it was given by the Lisbon treaty. On the City, the European Union has long had the power to legislate in this area, which has equally long been subject to qualified majority voting and co-decision with the European Parliament. On economic governance, it is clear—for instance, in the Van Rompuy report on economic governance—that the proposed sanctions do not apply to the United Kingdom and that the proposed changes will not affect the United Kingdom. I reject my right hon. Friend’s basic thesis.

[Mr Edward Leigh (Gainsborough) (Con)]

Is not the argument between my right hon. Friends precisely the problem? Surely Parliament must be sovereign because the people must be sovereign. What will happen in future if there is some row about whether a referendum should take place or not once the Bill becomes law? Will not our affairs then become justiciable? Is that not an attack on the sovereignty of Parliament, which we must believe in?

[Mr Hague]

I shall come to that point. It requires clarity in the Bill, as far as possible, on the circumstances in which a referendum would or would not be held. That is the safeguard against what my right hon. Friend the Member for Wokingham (Mr Redwood) is complaining about in relation to rights that have been given away in the past. It would have been good to have a referendum on those. The Bill is about the future—let us be clear about that—and we have to make it as clear as possible.

[Several hon. Members]

rose—

[Mr Hague]

I will give way two more times and then make some progress, to be fair to the House

[Kate Hoey (Vauxhall) (Lab)]

The Secretary of State has mentioned the Lisbon treaty a number of times, saying that because of it we cannot do certain things. Surely the public will think that no Government should be committed to previous Governments’ decisions, and that it would be perfectly possible—there would be huge support for it—for the coalition Government to say, “Now we are in government, we want a referendum on the Lisbon treaty.” That would sort out the whole situation, because clearly the public would vote against it.

[Mr Hague]

As the hon. Lady knows, since the Lisbon treaty was ratified it has been built into the treaties of the EU. It does not have a separate existence once it is ratified. A referendum on that would be the same as a referendum on taking part in all the EU’s institutions—in other words, being in the EU at all.

[Kate Hoey]

Yes.

--- Later in debate ---

[Mr Hague]

The hon. Lady may be in favour of a referendum on that, but that is not what the Bill is about. This Bill concerns any Government proposing to give away powers in the future. Let us be clear about that.

[Mr James Clappison (Hertsmere) (Con)]

My right hon. Friend the Member for Wokingham (Mr Redwood) mentioned criminal justice powers, and the last Conservative manifesto saw fit to promise to work to bring back key powers over legal rights and criminal justice. Is my right hon. Friend aware that the Government have not just not sought to repatriate these powers, but have actually given additional powers to the European Union, as they did just last Friday when they chose to opt in to a criminal justice directive over which there was an opt-out, not only without a referendum but without even a vote in this House of Commons? Will he give serious consideration to requiring a vote of the House of Commons and the House of Lords before there are any further opt-ins to significant pieces of criminal justice legislation from the EU that will give the European Court of Justice jurisdiction over our courts?

[Mr Hague]

My hon. Friend raises a very important subject—a rather large subject, unfortunately, for those watching the length of speeches today, because I want to answer his question properly. Let us be clear that in the context of the Bill, it is any proposal to give up our freedom not to participate in justice and home affairs decisions that would be subject to a referendum. That would be from where we are starting—the extension of the power of the EU. But it is also important to be clear that the justice and home affairs ratchet clauses, as I call them, covered in the Bill amend the treaties by allowing for an expansion of what can be done within existing areas of EU competence. They are clearly passerelle clauses. We said in the coalition programme for government—that is our reference document here—that the use of any passerelle clause would require primary legislation, so that is also the case.

The opt-ins, which are a different category, are a very important subject, but they are not for this Bill. Given that there are strict time limits applying to the UK’s decision to exercise an opt-in, which is within three months of the receipt of a proposal—

[Henry Smith (Crawley) (Con)]

Will my right hon. Friend give way?

[Mr Hague]

I am answering my hon. Friend the Member for Hertsmere (Mr Clappison), so I had better complete the answer before I give way again.

The fact that there are also 30 to 40 proposals per annum means that it is not possible to place a primary legislative lock or parliamentary resolution requirement on the exercise of the opt-in. Therefore, it is important to be clear about the distinction of these different categories of decisions on justice and home affairs.

[Several hon. Members]

rose—

[Mr Hague]

I had better make some progress, because I will return to all those subjects in the course of my speech.

The nature of how our society relates to its politics, and the expectation of the British people’s involvement in decisions that affect them, has changed. In the years since 1997, we have had referendums in Scotland, Wales, Greater London and the north-east of England on proposals for devolution of power; in Northern Ireland we have had a referendum on the Belfast agreement; and legislation is before Parliament now to hold a referendum on a change to the parliamentary voting system. Changes that affect the powers exercised on behalf of the people by Parliament have been considered to be important enough to require the endorsement of the people in a referendum.

At the same time, there is a widespread perception that the really important decisions about the EU have been taken without real consideration for the wishes of the people, and much of that is reflected in my hon. Friends’ comments. Many in the House, including me, think that the ratification of the Lisbon treaty, without the promised referendum, was wrong, and it did a great deal of damage. That perception reinforces public alienation from the EU and decisions taken on the EU by Governments, and that is what we now have to put right. Therefore, we in the coalition Government have resolved that we need to rebuild trust and reconnect people and enhance parliamentary control over EU decisions, so, as with our proposals for elected police commissioners, our plans to enable parent groups to establish free schools in their communities and our proposals to hold a referendum on the voting system, we are giving more power from the centre to the citizens of this country.

[Mark Reckless (Rochester and Strood) (Con)]

The Foreign Secretary speaks of public alienation, but does he recall saying:

“If you believe in an independent Britain, then come with me, and I will give you back your country”?

Does he understand the disappointment felt by so many Members on the Government Benches and in the country about the European journey he has since taken?

[Mr Hague]

I remember well saying that. It was a very good speech, and it is recommended reading for all those who have trouble sleeping. It is even in a book somewhere, so I am grateful to my hon. Friend for quoting it. He can rest assured that I would have held a referendum on many things that have happened since then, including on the Lisbon treaty. Indeed, I asked for a referendum on other European treaties that were introduced during that time. However, it is our misfortune when we start in government, whenever we start, to start from where we are, and we start from here—in a coalition Government, meeting the commitments in our coalition agreement. That is what we now have to take on.

As hon. Members who were present for the Lisbon treaty debates might remember, there are now essentially two ways in which treaty change can be agreed by the Governments of member states: the ordinary revision procedure, under which any amendment to the treaties must be agreed unanimously by member states, and, following the Lisbon treaty, the simplified revision procedure, under which the European Council can decide to amend those parts of EU treaties devoted to internal policies, such as the single market and justice and home affairs.

Under our current law, any change under the simplified procedure, defined in this Bill as an “Article 48(6) decision”, would require only a Minister of the Crown to move a motion in both Houses and for both Houses to vote positively to approve the change. It is easy now, and it was easy in 2008 when that provision was debated, to see how that level of parliamentary control for a formal treaty change is grossly inadequate. The Bill therefore ensures that any future amendment to the treaty on the European Union or to the treaty on the functioning of the European Union, under either revision procedure that I have just outlined, will require parliamentary approval by Act of Parliament before the United Kingdom is able to ratify the change.

That is a significant addition to the powers of Parliament to hold Ministers to account for the decisions they take in Brussels. It was an addition that I championed in opposition and one that this Government will now put into statute to ensure that parliamentary control is enhanced further. That is the first thing that the Bill achieves.

[Henry Smith]

I welcome the Bill, but if it becomes law a future Parliament will be able to repeal it, so ultimately, do we not, like other European countries such as Germany, need to codify the sovereignty of this Parliament in a written constitution?

[Mr Hague]

That is a wider debate, and there is a legitimate argument for that. I hope that the Bill becomes part of the accepted constitutional framework of this country, for which, over time, it will have to receive widespread public support and the acceptance of parties from all parts of the House. The Opposition, as we have said, will have some time to think about it. Indeed, they might have a very long time before they return to government—I certainly hope so. I hope that the Bill becomes part of our permanent constitutional framework, but the argument for a written constitution ranges much wider than the scope of the Bill.

[Chris Bryant (Rhondda) (Lab)]

Will the right hon. Gentleman give way?

[Mr Hague]

Yes, I give way to the hon. Gentleman, one of those who would not hold a referendum on the Lisbon treaty.

[Chris Bryant]

The right hon. Gentleman knows well that I have long opposed referendums on almost everything. I am not a fan of referendums; I believe in parliamentary democracy, but that is a different debate from today’s.

The hon. Member for Crawley (Henry Smith) makes a good point—that the Bill does not really introduce a referendum lock. It closes the door for a while, until such time as a Government of any colour, whether Conservative, Liberal Democrat—well, that is fairly unlikely—or Labour, choose, if they want to, to derogate from the Bill in any provisions that they introduce. Is that not the danger—that the Bill might just seem like no more than political posturing?

[Mr Hague]

As I go through the description of what the Bill entails, the hon. Gentleman will understand that it is a lot more than that. It means a great deal for what happens in this Parliament. It means that not only do we have our commitment not to transfer more powers from this country to the European Union, but that in a vast range of circumstances we would have to hold a referendum if we contemplated doing so.

It will be very difficult for future Governments to go back on those commitments, but we will see; that is something for the Labour party to contemplate. In future elections, it can choose whether to say that it will weaken democratic accountability in this country or whether to accept the changes for the long term. That is a choice it will have to face, and there is no sign in its reasoned amendment today that it is yet making that choice. However, it will have to make that choice, and the hon. Member for Rhondda (Chris Bryant) will have to make it.

[Charlie Elphicke (Dover) (Con)]

Will my right hon. Friend give way?

[Mr Hague]

I shall try to space out the interventions, but I will come to my hon. Friend.

Clause 4 sets out the criteria that the Government of the day would have to apply to determine whether a transfer of competence or power would occur under a future treaty change. The Act of Parliament seeking parliamentary approval for the treaty change would also make provision for the holding of the referendum, if a referendum were required. Following the entry into force of the Lisbon treaty, the different types of EU competence—a European legal term that really means the power to act in an area of policy—and the extent of each type of competence has been set out explicitly in the treaties. Under this legislation, any extension of competence would trigger a referendum. That would also include any extension or creation of a new objective for the European Union. That is all clear in the Bill.

Power, on the other hand, is not so clearly defined, so I want to establish here what we mean by a transfer of power as set out in clause 4. First, it means the giving up of a UK veto in a significant area of policy because that would mean that the UK would lose the ability to block a future measure made under that treaty article. There is a large number of vetoes in the treaties, and many of them are in areas that hon. Members on both sides of the House consider important and sensitive—for example, foreign policy, tax, justice and home affairs. It is right that any treaty change that would transfer from unanimity to qualified majority voting the way in which decisions were taken over those key areas of policy should require the consent of the British people before a Government agree to such a change.

We do not propose to hold a referendum over the giving up of the veto over more minor or technical measures such as any future agreement to change the numbers of Advocates-General in the Court of Justice of the European Union. In my view, giving up such a veto would be a mistake and should require primary legislation in the House, but I do not think that the British public would understand it if such a narrow and relatively minor measure were to require a national referendum.

[Mr Denis MacShane (Rotherham) (Lab)]

If the right hon. Gentleman has the power of veto, he can stop anything that he does not like. Why does he then need a referendum?

--- Later in debate ---

[Mr Hague]

We need a clear framework for referendums because Governments such as the right hon. Gentleman’s promised the people a referendum and then reneged on that commitment, and because the level of public trust has dramatically declined. This is a new framework of law for this country and I believe that it will enjoy growing support over the years. It already enjoys the strong support of two political parties in this country. That in itself is an enormous advance on where we were starting from in the last Parliament, as the right hon. Gentleman well knows.

[Charlie Elphicke]

Does my right hon. Friend agree that the central point of the Bill is that if a future Government came along and attempted to cheat the British people out of a referendum, as the previous Government did—as the hon. Member for Rhondda (Chris Bryant) well knows—they would not be able to do it without explicitly repealing and amending the Act? They could not hide behind word games and semantics.

[Mr Hague]

My hon. Friend is absolutely right. Of course, the Labour party will be asked before future general elections what its approach would be. It will be asked to give the commitment to maintain the referendum lock; otherwise people will know that it would propose in office to do exactly what it has done before—give away the rights and powers of the British people without the consent of the British people. If the Labour party wants to go into a general election on that basis, let it do so, but it would be wiser for it to adopt this framework for the future.

[Mark Hendrick (Preston) (Lab/Co-op)]

rose—

[Graham Stringer (Blackley and Broughton) (Lab)]

rose—

[Mr Hague]

I will give way, but I want to make some more progress and get through my speech, as well as taking interventions.

The second way in which power will be transferred from Britain to Brussels, as defined for the purposes of the Bill, will be by granting an EU institution or body, through treaty change, a new ability to impose further obligations or sanctions on the United Kingdom or on individuals and organisations within the United Kingdom.

That point has been the subject of some debate, although some of that has been based on scant acquaintance with the content of the Bill. It has wrongly been claimed that Ministers will be able to use a significance test on any future treaty change. That is not true. The Bill places an absolute and unqualified referendum requirement on the transfer of competence, the creation of new competence, or the removal of limits to existing competences and upon a whole raft of vetoes. The Bill also provides that the consent of the British people will be required if the Government wish to agree to certain other specific decisions—for example, joining the euro, joining a common European army, or joining the group of countries that have shared border controls.

If the only reason for a proposed treaty amendment being caught by the referendum lock is that it would, while not transferring or extending competence, confer upon the EU the ability to impose new obligations or sanctions on this country, we need to be able to distinguish between important and minor changes. We are providing a workable, sustainable solution to prevent referendums being held on matters that we could not justify to the public as having the significance to merit a referendum.

[Mark Hendrick]

The right hon. Gentleman is making it plain in his remarks that the Bill is not aimed at the current Government; it is aimed at a possible future Labour Government. He says that he would not trust a future Labour Government, but does he trust his current partners? He has described the Liberal Democrats as wanting to go all the way towards a united states of Europe, so what is his position? Does he trust them, or does he trust us?

[Mr Hague]

The Bill is aimed at all Governments, including our own, any future Governments and any combinations of Government. Yes, we have new partners in government and, on the basis of the past seven months, I trust them a great deal more than I would trust the Government we had before the election. Let the hon. Gentleman be absolutely clear about that.

On how the Bill works and ministerial accountability for decisions on whether to hold a referendum, a Minister of the Crown will be required to make a statement within two months of a treaty change being agreed by member state Governments. That ministerial statement will have to give reasons why the treaty change does or does not require a referendum, and those reasons will have to refer to the criteria set out in clause 4.

[Mr Douglas Carswell (Clacton) (Con)]

Will the Foreign Secretary give way?

[Mr Hague]

I will in a moment, yes. Like any ministerial decision, it will be open to any member of the public—yes, any member of the public—who is entitled to vote in a referendum to challenge the Minister’s judgment through judicial review. The reasoned statement set out in clause 5 makes any such ministerial decision as amenable to judicial review as is possible. That provides a powerful reason for Ministers to stick to both the letter and spirit of the law, and not to seek to sidestep the requirement for a referendum. We have ensured that we are as precise as possible about what would require a referendum.

[Mr Cash]

Will the Foreign Secretary give way?

[Mr Hague]

I will give way again in a moment, but I shall give way to my hon. Friend the Member for Clacton (Mr Carswell) next.

We have also provided further clarity on the scope of the referendum lock by setting out certain categories of treaty change that would not require a referendum: first, the accession of a new country to the EU—the hon. Member for Birmingham, Edgbaston looks surprised—would not require a referendum, although each accession treaty would still require approval by an Act of Parliament; secondly, a treaty change that, while it would have to be agreed and ratified by all member states, would not apply to this country; and, thirdly, a treaty change that merely sought to codify EU practice in relation to the previous exercise of an existing competence. The Bill does not cover any use of the EU’s existing competences as defined in the treaties, because those competences have already been transferred and the extent of the competences is set out in European law.

[Mr Carswell]

The Foreign Secretary has spoken of a referendum lock. Given that this Parliament cannot bind the next, that a future referendum would rest on a ministerial decision in the way that he describes, and that a new law would be required for such a referendum to be held, in what sense is it a referendum lock? It is a piece of legislative PR, perhaps, but not really a lock.

[Mr Hague]

My hon. Friend, perhaps deliberately, understates its importance by overstating the scope for ministerial decision and the significance test. The Bill is very clear that, on 44 specific treaty articles, the removal of the veto requires a referendum, and that the substantive use of 12 treaty articles requires a referendum. There is no scope for Ministers to decide that those things do not require a referendum. There is no scope for Ministers to decide that a decision to join the euro, to subscribe to a European army, to give up our veto on the financial framework, to give up our veto on foreign policy or to give up control of our borders does not require a referendum. Let us be absolutely clear about that.

My hon. Friend said that we cannot bind our successors in this respect, but of course that could be said about so many of the laws that we propose, and are proposed under future Governments, which we intend to have long-term effect. If we took that attitude on everything, there would be no point in doing anything or ever getting up in the morning to come to Parliament at all. We are trying to create a long-term and enduring framework, and I believe that we have a very good chance of doing so.

[Graham Stringer]

When the right hon. Gentleman was in opposition, I enjoyed his speeches on Europe: they were magnificent; leonine. I voted with him on the Lisbon treaty—not just on the basis of his speech, but because it was in our manifesto to vote for the Lisbon treaty. However, I wish that he was using now the arguments that he used then. The public are not interested in the details in this Bill—they think that too much money is spent on the European Union and that it has too much power. Are not the Conservative party and the Foreign Secretary going to give the people of this country an opportunity to have their say on that?

[Mr Hague]

The public are right, and my arguments are the same as they were on the Lisbon treaty—[Interruption.] They may not sound like it; I have to explain an 18-clause Bill, so they may not sound quite as dramatic. The hon. Gentleman may be right that the public are not interested in the details of the Bill, but Parliament needs to go through those details. My argument is exactly the same as the one that I made on the Lisbon treaty—that where a Government propose to hand over the powers of this country, there should be a referendum. There should have been a referendum on the Lisbon treaty. If there is any future treaty change of the kind that I have described, there should be a referendum. It is exactly the same argument. I am grateful to him for voting with me then, and I trust that on the same basis he will be voting with me today.

I will now give way to someone else—

[David Miliband (South Shields) (Lab)]

rose—

[Mr Hague]

Since the right hon. Gentleman has reappeared in the House, I will give way to him.

[David Miliband]

I, too, very much enjoyed the right hon. Gentleman’s speeches when he spoke for the Opposition, and it is nice to be able to ask him some questions now.

Schedule 1 of the Bill is entitled,

“Treaty provisions where amendment removing a need for unanimity, consensus or common accord would attract referendum”,

and it lists things such as the appointment of judges and advocates-general of the European Court of Justice. Is the right hon. Gentleman really saying that we are going to have a referendum in this country if his Government, or any future Government, decide that they want to transfer competence on that issue?

[Mr Hague]

We welcome the right hon. Gentleman back to the House. It is traditional in these circumstances to sit on the Front Bench below the Gangway in a menacing posture towards his own party, and we notice that he has gone to sit in that particular position. There is some political significance in that.

I thank the right hon. Gentleman for stressing the detail into which the Bill goes and the extent to which we are insisting that a referendum should be held, because that should be of enormous reassurance to some of my hon. Friends. On the specific subject of the advocates-general, one of the matters that I said would not be subject to a referendum is the loss of our veto on the number of advocates-general.

[Mr Cash]

rose—

[Mr Hague]

That will no doubt have been of some reassurance to my hon. Friend, to whom I give way.

[Mr Cash]

I am extremely grateful again to my right hon. Friend. Does he recall that in the evidence that was given to my Committee and in the conclusions of the report that it produced last night, there was an assertion and a conclusion that the Bill invites litigation in the courts? He has just confirmed, with regard to the circumstances of a referendum, that he too would invite litigation. Does he not think that the time has come when this House, as the ultimate authority of the law of this land, should decide such matters, and not just buck them over to the courts?

[Mr Hague]

The Bill is about many matters being decided in this place or by the people. The hon. Gentleman’s point is distinct from the one that was raised in the European Scrutiny Committee report about clause 18. I made the point that an executive ministerial decision is subject to judicial review, which is always the case. The decision of the right hon. Member for South Shields (David Miliband) on the Lisbon treaty was taken to judicial review by Mr Stuart Wheeler, albeit unsuccessfully. Ministerial decisions are subject to judicial review and that is not changed by the Bill.

The right hon. Member for South Shields is still looking puzzled about the position of the advocates-general. The loss of the veto in the appointment of advocates-general and European Commissioners would be a significant loss of national—

[David Miliband]

indicated dissent.

--- Later in debate ---

[Mr Hague]

The right hon. Gentleman may roll his eyes about that, but it would be an important loss of national power. I thank him for illustrating the comprehensive nature of the Bill. I will give way one more time before I resume my argument.

[Ms Gisela Stuart]

Accession treaties are exempt from the referendum requirement. Will the Foreign Secretary explain how the accession of Turkey, which by that stage would probably have a larger population than Germany, would not amount to a considerable loss of influence for the United Kingdom, given the system of qualified majority voting? Why is it therefore exempt from a referendum? I just do not get it.

[Mr Hague]

That is a different argument about referendums on accession treaties. Such treaties do not extend the powers and competences of the European Union, and so are not within the terms of the Bill. If the hon. Lady wants to advocate a referendum on the accession of Turkey, there will, sadly, be time for her to do so because the process will take a while. However, that is a separate argument from the extension of powers and competences.

[Mr Andrew Turner (Isle of Wight) (Con)]

rose—

[Mr Hague]

No, I must make a bit of progress.

The Bill will give Parliament more control over whether the Government can agree to a number of other important EU decisions, sometimes referred to as the self-amending provisions of the Lisbon treaty. Those decisions, which are known as passerelles or ratchet clauses, contain built-in mechanisms that allow modifications to EU treaties or the exercise of one-way options, without recourse to either of the formal methods of treaty change.

The Government have identified three types of ratchet clause, although I hesitate to go into detail after the comments of the hon. Member for Blackley and Broughton (Graham Stringer). However, it is important to be clear on this matter. There are clauses that allow for a change of legislative procedure, clauses that allow for changes in voting procedure and clauses that allow for the expansion of the scope of an article allowing the European Union to act.

Given the lack of a universal definition and the Government’s aim of ensuring that our proposals are as clear as possible to Parliament and the public, we have set out explicitly which treaty articles require additional levels of control. As with future treaty changes, passerelles or ratchet clauses that entail a transfer of power or competence will require the consent of the British people in a referendum. There will be a referendum requirement on any methods in the treaties for giving up vetoes that we have deemed to be significant. Clause 6 covers the simplified revision procedure and six provisions in the treaties that allow for vetoes to be given up without formal treaty change.

Clauses 8 and 9 provide for parliamentary controls over two types of decision: the use of article 352 of the treaty on the functioning of the EU—the so-called broad enabling clause—and the use of three ratchet clauses in the field of justice and home affairs. Some additional proposals that require a vote in both Houses, rather than a Bill, are listed in clause 10. They are mostly articles that modify the composition, rules of procedure or statutes of existing EU institutions or bodies.

The coalition stated in its programme for government that it would examine the case for a United Kingdom sovereignty Bill. I announced in October that, following that examination, we had decided to include a provision in this Bill to place on a statutory footing the existing common law principle of parliamentary sovereignty. The doctrine that EU law has effect here for one reason only, namely that authority has been conferred upon it by Acts of Parliament and subsists only for as long as Parliament so decides, has been upheld consistently by the courts. However, we can see considerable merit in placing that position beyond speculation on a statutory footing. That will guard against any risk that in future, common law jurisprudence might drift towards accepting a different argument. In other words, we have included a clause that underlines the fact that what a sovereign Parliament can do, a sovereign Parliament can undo.

[Mr Cash]

rose—

[Mr Hague]

I give way to my hon. Friend for the last time.

[Mr Cash]

I wish to put on record the fact that, in the conclusions to the European Scrutiny Committee’s report issued last night, we unequivocally rejected the notion of a common law principle, because it would offer the courts a gateway to take over jurisdiction in areas that we regard as unacceptable in UK constitutional law.

[Mr Hague]

Yes, I have read the report, of course, and I note the concerns about the references to the common law in the explanatory notes. However, those references are meant simply as a contradistinction to statute, given that the principle of parliamentary sovereignty is defined nowhere in statute. They are not meant to be determinative of the origin of the principle, which is an issue that goes far beyond the scope of the Bill.

As I set out a few moments ago, under current law any proposal to amend the EU treaties using the ordinary revision procedure can be ratified by the United Kingdom only once parliamentary approval has been obtained by Act of Parliament. We have therefore made provision in the Bill for Parliament’s approval of the transitional protocol on MEPs. That will allow 18 MEPs from 12 member states, including one from the UK, to take up their seats without having to wait until the next scheduled elections in 2014. As that protocol does not transfer any power or competence from the UK to the EU, a referendum is clearly not required. As it is a treaty change, however, all member states are required to ratify it. The Bill also makes the necessary provisions to elect our new MEP, who will, based on the recommendation made by the Electoral Commission in its report last month, represent the West Midlands.

[Chris Bryant]

Will the Foreign Secretary give way?

[Mr Hague]

I think I should try to conclude my speech and give others a chance, but on that point, I give way one last time.

[Chris Bryant]

Is the Foreign Secretary satisfied that the process that the French and Italians are using to change their representation is sufficiently democratic?

--- Later in debate ---

[Mr Hague]

I am satisfied that it does not affect the rights or powers of the United Kingdom and therefore does not require a referendum in this country.

The Bill will give the British people and Parliament powers that they have not previously enjoyed in decisions about engagement with the European Union. Some have criticised the Government’s proposals, saying that they will necessarily stymie further progress or put the UK in the slow lane of Europe. The Government do not subscribe to that argument, for three reasons.

First, it is wrong to accept continuous political integration as a definition of progress. Secondly, although other European nations have different constitutional frameworks, a number of countries require a referendum of their people to be held if a treaty change proposes a further shift of powers to Brussels. Some, most notably Germany, also have provisions in place to ensure effective parliamentary control over specific key decisions taken by their Governments. There is a growing trend across Europe to give citizens and Parliaments more control over the decisions taken by their Governments on EU matters, and it is right that we should be not just part of that trend but leading it from the front.

Thirdly, if a future Government can demonstrate a compelling case as to why a further transfer of power is in the national interest, they should be able to persuade the British people of its merits. If a future Government were to take a different view from ours, they would have to convince the British people. Whatever the outcome of such an argument, our democracy would be all the healthier for the decision lying in the hands of the British people as a whole. That fulfils an important part of the Conservative manifesto, but it also draws on a line of thinking that has found its place in recent Liberal Democrat manifestos. I hope that Opposition Front Benchers will in time support it too, because when the voters cast a party out of government, it must understand why. The previous Government’s high-handedness on EU matters is one reason why Labour is no longer in government, and it should now learn from that.

The Bill can receive support from those who like the EU just as it is, those who want it to do less, and those who want it to have more power but who are prepared to argue for that. The Bill does not determine the shape of our future place in the EU, but it ensures that our position will command the voters’ consent. It will give the British people the assurance, which they are entitled to expect, that the sovereignty of Parliament and the ultimate right of the people themselves to decide which powers are the subject of collective decisions within Europe are both properly safeguarded. Those safeguards will put our participation in the EU on a sturdier and more democratic footing. That is why we present the Bill to the House.

[Yvette Cooper (Normanton, Pontefract and Castleford) (Lab)]

I beg to move an amendment, to leave out from “That” to the end of the Question and add:

“this House declines to give a second reading to the European Union Bill on the grounds that, while the principle of referendums on significant constitutional and monetary changes is appropriate, the Bill is a flawed measure which would confuse the important issues at stake and make vital constitutional issues justiciable by the courts rather than resolved under the sovereignty of Parliament.”

The Foreign Secretary has been on a long and tortuous journey to get here today. The man who voted for the Maastricht treaty without a referendum and the former party leader who put Euroscepticism at the heart of his unsuccessful election campaign now finds himself in government with what he has described as

“the most fanatically federalist party in Britain.”

The Foreign Secretary’s diary engagement from last night rather sums things up for him, and I am sorry that he chose not to share it with the House. Last night, he went back to Smith square, to the old Conservative central office. From the windows where once Margaret Thatcher waved on election night now waves a blue flag with yellow stars. Where once sat Tory party researchers working on the Bruges speech, there are now French, German and Italian officials. He was invited for the opening and renaming of central office as Europe House. It cannot be easy for him. He is caught between the realities and the responsibilities of government and the rhetoric of Eurosceptic opposition. He is caught, as they say, between a rock and the hon. Member for Stone (Mr Cash).

[Mr Hague]

The record should also show that the room where I spoke last night was named the Churchill room by common agreement, and that I took the opportunity to remind all who were there of the need for EU institutions to bring down their budgetary aspirations just as the Government have had to do in this country.

[Yvette Cooper]

If only the Foreign Secretary’s willingness to open EU buildings extended to opening a proper debate on European issues in the House. Clause 10 purports to increase Parliament’s role before ministerial decisions are made, yet the truth is that the Government do the opposite. We have had no discussion of the European economy prior to the discussion between European Finance Ministers today, no discussion of practical measures to cut the European budget, such as reform of the common agricultural policy, and no discussion of working with Europe on human trafficking or the directive that the Government continue to opt out of.

This very morning, European Finance Ministers met to discuss the Irish support package and the European economy. In 10 days’ time, decisions will be made on the crisis resolution measures that will affect the entire European economy—not just the eurozone—for many years to come. National leaders will discuss a treaty change to introduce that package, yet when is the debate in the British Parliament? We have no idea what British Government Ministers are proposing or asking for.

We should hold pre-Council debates in this Chamber. The economic and political pressures that Europe faces are serious. European growth is slowing, unemployment has increased and markets are putting pressure on several eurozone countries, all of which matters immensely to Britain, yet we have had no pre-Council debates. At the end of this year, there will have been four European Councils, but no debate.