Trading Relationships with Europe

Matt Hancock Excerpts

Tuesday 10th March 2015 Commons Chamber

[The Minister for Business and Enterprise (Matthew Hancock)]

It falls to me to respond for the Government on this historic occasion of what might be the last speech in the House of the right hon. Member for Kirkcaldy and Cowdenbeath (Mr Brown). Before I respond in detail to his case, it is only right that the House acknowledges that moment. Since the right hon. Gentleman entered the House in 1983, he has been a warrior for social justice, a master at the Dispatch Box, a Chancellor who dominated both the Treasury and this House, and a Prime Minister who never gave less than his all in the service of his nation.

The right hon. Gentleman has been a brilliant debater, besting Nigel Lawson in his prime and humbling a long series of opponents throughout his career. This House exists to ensure that the great issues of our time are debated, that progress is secured and reforms are made through the vigorous exchange of views and a vote to settle matters. That is why it seems so odd for him to make the case today against vigorous debate, open argument and a vote to settle matters.

The right hon. Gentleman was a champion of the referendum to give Scotland its Parliament, and he spoke movingly and from the heart during the referendum to keep Scotland in the United Kingdom, but he stands steadfast against giving the people of the United Kingdom a debate and a vote on our membership of the European Union. I agree vigorously with him that such votes are won with a fight for hearts and not just heads and bank accounts, but for his party to deny the British people a say in a debate of such central importance to this country is surely to make exactly that mistake. We need that debate and that vote, because no one can be happy with the status quo. We want the whole of Europe to work better, and we want to resolve once and for all our relationship with it.

We must see a more dynamic, entrepreneurial and innovative Europe, with more jobs, investment and growth. The right hon. Gentleman made that case and it is something of an irony that now, towards the end of his long and distinguished time in this House, he makes the impassioned plea to stay in Europe when he was first elected in 1983 on a party platform to leave it. In this age of global competition—what the right hon. Gentleman coined as the new global economy—we need reform of Europe in order to compete with an increasingly open, connected and competitive world.

These past five years have seen Britain transformed from a country lacking in confidence that suffered the greatest banking collapse in history and in which youth unemployment and our deficit were rising even before the great recession. That was the Britain we found five years ago and it has been the task of this Government to reverse that inheritance with all our energy and all our means and with difficult reforms, which we stuck to even while others told us to turn back.

Now we can see a record number in work—including 6,500 more in work in the right hon. Gentleman’s constituency, where unemployment is also down by a third—as well as 2 million more apprenticeships, 750,000 more businesses, rising living standards and the fastest growth in the G7. We on the Government Benches want to see the whole of Europe reformed for the better prospects and opportunities of people across that continent.

[Richard Graham]

My right hon. Friend is making a series of extremely valid points about our role in Europe today. Does he not think it symbolic that, just at the moment when this country will have created more jobs than all the rest of Europe put together, the right hon. Member for Kirkcaldy and Cowdenbeath believes that, somehow, ours is the party that advocates leaving Europe and is no longer at the level of competing with Europe? Surely we are in a position to lead it forward into a much better era of growth.

[Matthew Hancock]

Our country has been and is being turned around, but it will prosper whatever the institutional arrangements of our relationship with Europe. We are a brilliant country with the most enterprising and innovative people in the world, and it ill behoves anyone, least of all the right hon. Member for Kirkcaldy and Cowdenbeath, to compare Britain’s future to a brutal dictatorship such as North Korea. For him to compare Britain to North Korea shows a perverted sense of reality. Indeed, he loses heads and hearts when he makes such a comparison

There is nothing God-given about the prosperity of our nation or our continent, but with the right policies there is nothing to stop us becoming the most successful major nation upon earth. That cannot be done, however, without reform.

Those who argue against a referendum make the following case. They speak of the risk to investment, which the right hon. Gentleman has mentioned. However, since my right hon. Friend the Prime Minister announced our policy of a referendum before the end of 2017, investment to the UK has increased by 14%. We have attracted the most inward investment since records began in the 1980s and business investment has risen by 6.8%.

They speak of the dangers of uncertainty, but this referendum does not bring uncertainty. That uncertainty already exists, because we live in a democracy with an unhappy relationship between the British people and the European institutions. Many of us have never even had the chance to vote on the question. The uncertainty is there because in the past politicians repeatedly signed over yet more powers to the EU and repeatedly refused to ask the British people for their consent.

Just as we were left in 2010 on the verge of bankruptcy, so our credit with the British people on the issue of Europe had run out; and just as we on this side of the House are turning around our nation’s economy, so we plan by this renegotiation and referendum to restore trust in our relationship with Europe by putting the final decision to the British public, whom we are here to serve. The referendum does not create uncertainty; it will resolve it and give the British people the say that they have been for so long denied.

The right hon. Gentleman speaks of jobs, but there are record numbers of jobs, and unemployment has been coming down at a record pace. He speaks of British influence in Europe, but our influence is strengthened, not weakened, by taking a clear-eyed view of the British national interest. I ask this: where was the influence in Europe in the past when red lines were printed in such faint ink that they were stepped over again and again, when rebates were surrendered and powers handed over with so little in return?

[Mr Michael McCann (East Kilbride, Strathaven and Lesmahagow) (Lab)]

The Minister speaks of red lines. Is he in a position to outline tonight the Government’s red lines in the European renegotiation?

[Matthew Hancock]

I will tell the hon. Gentleman what we do with red lines. Shortly after his election in 2010, the current Prime Minister threatened to veto a proposal that would have damaged Britain, and our European partners were so used to those threats being made and then abandoned by previous Prime Ministers that they did not believe he was serious. But he was serious and he vetoed the proposal. Now when Britain speaks about the need for reform, we are listened to. That is leadership in Europe: no longer on the hook for eurozone bailouts; no longer increasing the regulatory burden but reducing it; and the European budget no longer rising but being cut. That is our policy.

Let me be clear about our policy in the next Parliament: it is not the narrow vision that sees Europe as the centre of the universe at a time when we export more to the rest of the world than to the EU for the first time in my lifetime, but a patriotic, outward-looking vision of reform and a referendum.

[Mr Graham Stuart (Beverley and Holderness) (Con)]

My right hon. Friend will note that this country has turned its back on the policies left behind by the right hon. Member for Kirkcaldy and Cowdenbeath (Mr Brown), just as he has now turned his back on a Minister answering a debate that he himself brought to the House, which is no way to behave—and it was no way to leave the country when he left office.

[Matthew Hancock]

I am grateful to my hon. Friend. It makes clear, does it not, the choice for the British people for the first time in a generation. We on the Government side reject the pessimism that says we can have influence in Europe only by subordinating our goals. Instead, we have influence through the steadfast pursuit of our national interest. We must drive those reforms that are in Britain’s national interest, and in the interests of every member state; a long-term plan for Europe, with free enterprise at its heart, so that the whole continent can rise, compete and thrive in the 21st century. We will stand up for businesses on red tape, for exporters on free trade and for industry on the free movement of capital, and we will restore fairness to the free movement of people, for work rather than benefits. Before the end of 2017 we will put that reformed Europe to the British people in a referendum so that they may decide our future. That is the policy our country needs: reform, vigorous debate and then a vote to settle the matter, putting our trust in the decision of the British people.

As the right hon. Gentleman bows out from this House, and with the best wishes of the House to him and his family, it is that better future that we must surely follow the path to, so that Britain once again can be among the most prosperous nations upon earth.

Question put and agreed to.