European Union (Amendment) Act 2008

Lord Lilley Excerpts

Wednesday 16th March 2011 Commons Chamber

[Mr David]

I am glad that for once there is unanimity on the Conservative Benches.

I have two concerns that I should like to dwell upon related to the broader situation in which we find ourselves. The first is the fact that the countries of the eurozone have apparently established a new decision-making structure. The reasons they have done that are perfectly understandable, but it is worrying that the Government do not acknowledge that decisions taken by the eurozone countries could have profound implications for the UK. Take, for example, the issue of the single market. The development and completion of the market is of critical importance to Britain, but we have to be aware that there could be a temptation for the eurozone countries to see the single market in eurozone terms only.

In fairness, the conclusions of the Heads of State and Government of the euro area summit last week state that the new pact for competitiveness and convergence will respect the integrity of the single market in the euro area and the EU as a whole, and the involvement of the European Commission in the work of the euro area group should be a safeguard.

[Mr Peter Lilley (Hitchin and Harpenden) (Con)]

Is the hon. Gentleman suggesting that eurozone members propose to break up the single market, which is established by treaty of all member states, and to impose borders, restrictions or differences between the rules that apply in eurozone countries and those that apply in the rest of the single market? If he is not, his point falls.

[Mr David]

I am not making that point at all, and with respect, the right hon. Gentleman has not listened carefully to what I said. The statement issued by eurozone countries makes it clear that they will acknowledge, respect and uphold the integrity of the single market. I am simply making the point that the development of the single European market is a key issue. It should be one of Britain’s priorities—it would be, if we had a proactive Government—to ensure that the single market continues to develop. My concern is that in future the eurozone countries, which are perhaps more tight-knit than the rest of the EU, could be tempted to extend the single market provision among themselves rather than applying it to other member states.

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[Mr Peter Lilley (Hitchin and Harpenden) (Con)]

I am grateful for the opportunity to speak in this debate. I had not intended to do so, but I wish to set the Minister’s mind at rest. I can assure him that few, if any, Members who have reservations about this wish to block the treaty amendment incorporated in this motion. He rightly said that it is in our national interests that the eurozone should seek the maximum stability and be empowered to do so. He went on to say that we must therefore not impose any conditions in giving Europe permission to go ahead with this treaty change. That is a non sequitur. As long as we suggest reasonable and moderate conditions and concessions by way of repatriation of powers, there is surely no conceivable likelihood that Europe will forgo something of first order importance to it in order to prevent our having something that is of very minor importance to it. Would Europe seriously forgo establishing a stability mechanism for the euro in order to prevent our getting back powers over the working time directive? This is of second order importance to us, but of first order importance to Europe, so it provides an opportunity for us to seek concessions, and we should take that opportunity.

The second reassurance I want to give the Minister is that we on the Government Benches want the coalition agreement to be implemented. We see in the measure an opportunity to carry forward that agreement, which commits the coalition to a review of all the powers and competences that have been given to the European Community. The only purpose of doing so is to see which of them should be returned to this country. Many suppose that the Liberal Democrats do not really want that to happen. I am sure that some do not, but one of the joys of coalition for me has been getting to know more Liberal Democrats, and I know that many of them are quite pragmatic about this. One very senior member of the coalition Government has told me that he believes that 30 or 40 of the measures that were transferred in the Lisbon treaty and others should be returned. The whole coalition Government, not least the Liberal Democrats, are committed to the principle of localism. They want to see government in this country when it is not appropriate for it to be transferred, or if it has been wrongly transferred to Brussels in the past. This is an opportunity to secure the return of those powers and I urge the House to take that opportunity.

Question put.

The Deputy Speaker’s opinion as to the decision of the Question being challenged, the Division was deferred until Wednesday 23 March (Standing Order No. 41A).