European Union Referendum Bill
Debate between Mark Hendrick and John Redwood(9 years, 5 months ago)
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Mr Mark Hendrick (Preston) (Lab/Co-op)
Does the right hon. Gentleman accept that in what is now the European Union, it is quite usual for member states to pool sovereignty? Like the democratic process that he talks about, Members of the European Parliament are democratically accountable to their electors and can make decisions on behalf of their constituents in exactly the same way.
John Redwood
States cannot pool sovereignty. They are either sovereign or they have given their power away. The British people do not think the European Parliament exercises control or power over the Brussels machine in the way that this Parliament at its best exercises power over the British government machine. That can be seen from the way that the British electors do not turn out on anything like the same scale in a European election, because they do not believe in that Parliament and they understand that that Parliament has very limited influence over the unelected bureaucratic government in Brussels.
Now that we are in the EEC and it has evolved into the European Union, the fundamental condition that one Parliament cannot bind its successors has been removed. That has completely undermined one of the basic pillars of our democracy. We had the rule that any new Parliament can amend or repeal any law of a previous Parliament. It can reverse or change any decision relating to the future about the expenditure of moneys or the development of policy. The British people now do not have that full sovereignty. If they elect a new Parliament, the new Parliament discovers, as this one is doing, that there are a large number of areas where we cannot change things to reflect the will of the British people because it would be illegal under European law to do so. We find that, because so many vetoes have been removed, we can no longer prevent things happening from the European government that we do not want. Worse still, because there is a whole body of agreed European law and treaty that we inherit as a new Parliament and a new Government, there are very large areas where we cannot fulfil the will of the British people and we therefore cannot please them.
Fortunately, Britain still has a fairly powerful Parliament because we stayed out of the euro. Those countries that went into the euro are discovering that they now have puppet Parliaments. We see the terrible tragedy in Greece, where the Greek people have understandably said that they want a complete change of economic policy. They want to get away from unemployment and recession and austerity from the European Union and have a pro-growth policy at home, and they are told that they cannot do that because it is against European rules.
Europe
Debate between Mark Hendrick and John Redwood(11 years, 9 months ago)
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Mark Hendrick
In the unlikely event of the Conservatives winning the next general election, it is not clear that they would succeed in getting any of their shopping list of demands. They will want change in much of the social legislation. The working time directive has been mentioned, as have holiday pay and health and safety at work, and they might also wish to focus on measures such as the European arrest warrant and some justice and home affairs issues. There will be a long shopping list to placate Tory Back Benchers, therefore, but if, by some chance, the Tories win the next election, there will be huge disappointment. The situation will be the same as the Labour party faced under Harold Wilson in the 1970s: there will be a huge split in the Conservative party, leading to its being out of office for a long time—after all, it took Labour 18 years to be re-elected to office following that split in our party.
Mr Redwood
Does the hon. Gentleman think it was more damaging to run out of money and go to the International Monetary Fund or to offer people a referendum, as that Labour 1970s Government did?
Mark Hendrick
The right hon. Gentleman knows that none of the money offered by the IMF was used by that Labour Government. It was there as a back-up.
The Conservatives do not want a social Europe, with working time protection, holiday rights and health and safety regulation. The single market is about the free movement of goods, capital, services and labour. The right of workers to move around freely in the European Union is as important as the rights of capital, goods and services to do so. I have always supported the free movement of people whose countries are members of the EU. With the imminent accession of Romania and Bulgaria, we should seek to extend full rights to workers and not object to their having equal freedoms to other Europeans. Some 50% of the Polish people who originally moved to the UK following their country’s accession have now returned, because of the economic condition of our country under the current Government. The rest are making a valuable contribution to the British economy.
We know that every country’s economic fortunes are cyclical. Our economy is bad at present, in part because of the irresponsible policies of the current Government, but it will get better at some time in the future. Therefore, it is important that we continue to take workers from other countries; after all, 2 million Britons work elsewhere in the EU.
Mr John Redwood (Wokingham) (Con)
Who governs? That is the fundamental question before us in this mighty debate today. At what point does a self-governing country have to say it is no longer self-governing because the body of European law and the wide-ranging body of European decisions are so fundamental that Ministers and this Parliament can no longer effectively govern the country?
Too many of us have watched as Governments have given away mighty powers of self-government from these islands and from this once great Parliament to the European institutions, and we have worried greatly. This has been done in the name of the British people, but it has not been done with the consent of the British people. There has always been an excuse not to trouble the British people, and so often outside this House political parties have misled the British people.
The British people were told that they were joining a common market. It was very clear from the treaty of Rome onwards that they were joining a political, economic and monetary union in the making. They were told that they just belonged to a single market, needed to guarantee jobs in certain export industries. There were two misleading things there. First, we do not need to belong to the EU to export to the EU. Many other countries outside it export much more successfully than we have done from inside it. Secondly, it was always a far bigger and more noble venture in the eyes of its architects, its fathers and mothers, than a mere single market or internal market.
I ask Members of this Parliament to look around and see what has been done in their names—to see how difficult it is now for Ministers of the coalition, future Ministers and Conservative or Labour Administrations to do many of the things they would like to do or their electors wish them to do, because so many powers have been given away. The bigger the corpus of European law becomes, the more constrained are not just our Ministers, but this once-great Parliament.
Mark Hendrick
Does not the right hon. Gentleman accept that the cars exported from the UK to mainland Europe today are a result of foreign direct investment to the UK because the UK is within the European Union, not outside the European Union?
Mr Redwood
No. That is a trivial point compared with the issues that I am raising, and it is entirely wrong, because there are many countries outside the EU that attract as much as or more inward investment than we do. I want, as does the hon. Gentleman, to keep those jobs, and we will continue to attract and support that inward investment as long as we have a satisfactory enterprise economy here and a decent market. We have a very large market of our own. That is why those investments come here.
The hon. Gentleman needs to look around and see how many powers have been taken away. We can no longer have an agricultural policy of any kind unless it is the approved one from Brussels. Our fishing grounds are completely controlled and regulated from Brussels. Our energy policy is greatly circumscribed by a large amount of European legislation, regulation and price control, and many more decisions coming along on climate change and energy, which means that it is very difficult to have an enterprise-oriented energy policy in this country.
We find that we do not control our own borders. We have no say over who comes here from the continent of Europe, and they have come in very large numbers in recent years. Many of them are welcome, but a sovereign country has the right to decide who comes and on what terms. We were always assured by Governments that we kept control of our welfare policy—that that was a matter for domestic consideration. We now find that the EU presumes to instruct us to whom we give benefits and what benefits we give them.
Section 5 of the European Communities (Amendment) Act 1993
Debate between Mark Hendrick and John Redwood(12 years, 7 months ago)
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Mr John Redwood (Wokingham) (Con)
I have some sympathy with the Minister in this debate, which is about colossal issues, such as the future of economic prosperity throughout the European Union and its impact on our own economy, yet it is also a rather absurd debate. Successive Governments have felt that they have to table documentation and figures to the European Union, but they are embarrassed by that fact because they know that many of us feel that it is this Parliament, which answers to the British people, that should debate and settle these issues, and that what we are doing is none of the EU’s business. If we do a good job, we will stay in office; if we do a bad job, we will be thrown out of office, and the British people will rightly choose another group of people as they decided to do in 2010 as this crisis developed. We think that that is the right approach.
I must tell my hon. Friend the Minister that if the Opposition had tabled a motion suggesting that the House should tell Brussels that we would no longer send it these documents, I would probably vote with the Opposition, because I would consider that a sensible way of trying to send an obvious message to Brussels. However, we are being invited to spend more time debating the crucial topic of what kind of economic policy would best promote growth and stability in our own country, and what contribution wider economic policies can make to stability and growth in the European Union as a whole.
The description of the pact that we are debating as a stability and growth pact is a grotesque bad-taste joke at the expense of the European peoples. It is clear from the way in which it now operates in the euroland countries that it is actually an instability and recession pact. It is a pact for mutually assured deflation. It is intended to do more damage at the very point in an economic cycle when an economy is performing very badly, to withdraw spending power from both the private and the public sector in an economy with too little demand, and to take jobs away in an economy with a problem of mass youth unemployment.
Mark Hendrick
I accept that the policies of many euro area member states are deflationary, but it is ridiculous to deride them simply because those countries are members of the eurozone when our own Government’s policies are equally deflationary.
Mr Redwood
As I shall make clear shortly, our policies are rather different. For one thing, the coalition Government decided to increase current public spending, which is running at £64 billion a year more this year than in the last year of Labour government. The Red Book shows that real current public spending has risen in each of the two years of the coalition Government, although not by very much. The Government are clearly not trying to deflate the economy by introducing massive current spending cuts, given that overall current spending has been rising.
Mr Redwood
I am afraid that the hon. Gentleman has not read the Red Book intelligently. The 80:20 statistic on which Members seem to rely relates to changes compared with much bigger growth in public spending that was in inherited programmes. It is not the reality. The reality of the Government’s strategy is a massive increase in taxes over the planned five years of the present Parliament to pay for rather modest increases in current public spending over the life of the Parliament, and to get the deficit down. The 2010 strategy suggested that tax revenues would be £171 billion a year more in year 5 than they had been in the last Labour year. The Government have now had to reduce that figure a bit because—as other Members have pointed out—the expected growth has not been forthcoming, for a variety of reasons.
We need to promote growth vigorously and actively, which is common ground between the Government, coalition Back Benchers and many Opposition Members. The argument, surely, concerns what measures are most likely to bring that about. It appears that over the last four years both Governments have operated policies involving actively increasing public spending, with the exception of capital spend—certainly overall spending has risen—and actively promoting massive borrowing, while at the same time the economy has bombed very badly. I am not suggesting that that is causal, but it should lead Opposition Members to ask why that fiscal injection—massive borrowing and an increase in current public spending—has not done the job. There seems to be some disconnection between the remedy that they recommend and the reality of what is happening.
When we look at the way in which other countries have pulled out of crises of this kind, and, indeed, the way in which Britain has pulled out of similar but, perhaps, less aggressively damaging crises than the one that we inherited, we see that there is nearly always a period during which public spending must be reduced or controlled quite strongly to make room for a private sector recovery, and that a series of measures to promote that recovery will then be necessary. As I have explained at length in the past, banking reform and competitive banking are crucial. The Government’s theory favours a tight fiscal policy and a loose monetary policy. They want to allow more money to circulate through the private sector through credit and through the banking system, and they want to lower the deficit gradually in the public sector so that the fiscal policy becomes a bit tighter.
Mark Hendrick
The right hon. Gentleman makes great play of tax revenues. We all know where they come from—they come from those who can least afford to provide them—but given that only one private sector job is coming along to replace every 10 jobs that are being lost in the economy, where will they come from in future?
Mr Redwood
So far the strategy has generated quite a lot of new private sector jobs, which is very welcome, but it is obvious that it needs to generate many, many more over the next three years if it is to secure the savings on welfare benefits that I am sure all Members wish to see.
It is nonsensical for Opposition Members to say that the poor will be paying the taxes. We have just seen a big increase in thresholds which takes many people out of income tax altogether at the lower end of the income scale. Moreover, if the hon. Gentleman looks at the Red Book, he will see that there will be a sharp acceleration in self-assessment income tax—the income tax that is paid mainly by the rich—once we get the rate down. I know that Opposition Members do not like reading the figures in the Red Book, but it provides a much better case than Ministers ever provide for why we need to get back closer to Labour’s rates of income tax.
One of the things that I most admired about the former Prime Minister and last Chancellor of the Exchequer but one was his insistence that 40% was the highest rate of income tax that could be charged to optimise the amount of money obtained from the rich. He stuck to that view throughout his time as Chancellor and most of his time as Prime Minister. We all know that he only put it in as a political trap at the end of his period in office when he could see the writing on the wall, but it is obvious from the Red Book figures that he was right: 40% is about as high as we can go to optimise the revenue.
According to the forecast in the Red Book, the revenue will stream in after the rate falls to 45p. If Opposition Members look at the Red Book, they will see that last year, under the 50p regime, self-assessment income tax fell by an amazing 9%. That was because rich people who have a lot of freedom and ability to decide how much to pay themselves—I know that Opposition Members do not like that, but it happens to be the state of play—decided to pay themselves a great deal less. Both the outgoing and the incoming Governments had said that the tax was temporary, so they decided that they would hold back their income. It was obvious that they would do that.
European Union Economic Governance
Debate between Mark Hendrick and John Redwood(14 years ago)
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Mr Hoban
I should like to make a bit more progress on this point.
It is right that we should co-operate with this process, but our co-operation should be consistent with the fiscal sovereignty of the UK. The information that we provide to assist with the surveillance will always be information that has been made available to this House before it is passed to the Commission. Everything that the Commission gets will have been in the public domain, to the extent that a member of the public will have been able to unearth the same data using Google, albeit with less efficiency.