Europe

Debate between Michael Connarty and William Cash
Wednesday 30th January 2013

(11 years, 9 months ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
William Cash Portrait Mr Cash
- Hansard - - - Excerpts

I absolutely agree with my right hon. Friend, and I will add another point. The recent analysis by VoteWatch Europe, which has been through every decision taken by the Council of Ministers in the past three years, demonstrates that in 91.7% of votes taken in that forum, the UK Government—under the aegis of UKRep and through the Council of Ministers itself—have voted in favour of the proposals in question. That is effectively a forced consensus, because we have only 8% of the votes in the Council of Ministers. When I hear Ministers and others talking about the degree of influence that we exercise in relation to qualified majority voting, I say yes, we have to have alliances, but we know that if others are not going to be in alliance with us, we will not get the kind of result that the British people deserve.

Ultimately, this is about one fundamental question. It is not just about the word “democracy”; it is about democracy in action and its impact on the daily lives of the people of this country. The reality is that someone goes into the ballot station, votes in secret and casts his or her vote based on a manifesto in which they are told what the party in question is offering them in a general election; that is what democracy is all about. When they cast their vote, they expect the legislation to follow what they have been promised. The reality is that, under this system, the whole of Europe is becoming increasingly dysfunctional, with riots, unemployment and the rise of the far right. Let us face it: we have to get real. The fact is that it is not working. That is why our debate is so important.

Michael Connarty Portrait Michael Connarty
- Hansard - -

I am grateful to the Chair of the European Scrutiny Committee. I have always wanted to ask him this question, so that he can put his answer on the record rather than provide it in a private conversation with me. Is he likely to campaign to come out of the European Union and, if so, on what terms? I want to know, and I think the Foreign Secretary wants to know, on what basis the hon. Gentleman will campaign and vote to come out of the European Union.

William Cash Portrait Mr Cash
- Hansard - - - Excerpts

I am grateful for that intervention for a very good reason. One of the reasons why I believe it is right for the Prime Minister to insist on the “in or out” question is that now, after all the agonising over all these years—including the Maastricht rebellion, for example, which I was able to participate in and lead at the time—all these things have culminated in this referendum. We have fought for a referendum. Precisely because the question is “in or out?”, it raises the question of the European Communities Act 1972 and whether the British people, having voted in the ballot box, should be expected to receive legislation that comes automatically into law when they might not in fact agree with it. That is the problem: that is why I believe we must have the right question, but it must also be at the right time. As far as I am concerned, if that democratic principle is not upheld, I will vote to come out, because the democratic principle is the fundamental issue for the British people, many of whom fought and died for this country.

I heard my hon. Friend the Member for Croydon South (Richard Ottaway) refer to the fact that he was born in May 1945. I was born on 10 May 1940. That was the day on which Churchill became Prime Minister, and it was over the question of whether or not Britain would be able to govern itself—and much more besides. I follow the line Churchill took about being “associated but not absorbed” with Europe. That is the fundamental question.

In addition, on the economic front, let me make this point. My hon. Friend the Member for Harwich and North Essex (Mr Jenkin) and I wrote a pamphlet about a positive way forward for the single market. We believe that there is a positive way forward for Europe, but that what is happening at the moment is that Europe is creating instability by this concentration on a compression chamber when there are all these diverse countries. As my hon. Friend the Member for Croydon South said, “one size fits all” does not work. We must have an association of nation states. I appreciate that that challenges the centralisation that has gone on for so long in Europe, and I appreciate that it challenges the democratic deficit. I appreciate, too, if I may say so, that this would increase trade, increase opportunities and help to liberalise the rest of the world in the global marketplace. All these things have to be examined, as we move forward in the debate that has now started.

Given the dysfunctionality of the European Union, the determination to repudiate the idea that we should have a referendum is astonishing. The French had two referendums—I took part in both of them in France—and we did incredibly well in Denmark, too, where there were several referendums. There was a referendum in Ireland and in Holland. Who on earth are these people to turn round to us in this country and say, “We can have referendums, but you can’t”? It is beyond belief.

--- Later in debate ---
Michael Connarty Portrait Michael Connarty (Linlithgow and East Falkirk) (Lab)
- Hansard - -

Having listened to the right hon. Member for Wokingham (Mr Redwood), I have to say that I must have heard a different speech by the Prime Minister. I did not hear that rallying cry in the Prime Minister’s speech on Europe or in the Foreign Secretary’s speech today. It is a dream. It may be a good dream, and I am sure that it is one that the right hon. Member for Wokingham will take into his dotage, but it will never be realised on the basis of what is being offered by his Government. If he really believes that by speaking in that way he can change the route that his Government are taking, he is deluding himself.

The key question for me on the whole issue of Europe is whether, if the policies and procedures that currently exist in the UK’s relationship with the EU remain unamended, it is likely that the Foreign Secretary, given his speech today and his many contributions over his period in office, or the Prime Minister—or, indeed, the shadow Foreign Secretary or the Leader of the Opposition—would campaign for the UK to withdraw from membership of the EU. The answer is clearly no. I believe that that is the case for the majority of Conservative and Liberal Democrat Members and for the vast majority of Opposition Members. If there were no changes, I do not think that those people would go out and campaign for our withdrawal from the EU. I think that the people of the UK would reject that.

I ask the same question as I asked in the Scottish referendum debate: is the current relationship between the UK and the EU damaging or malevolent? I do not find it malevolent. I find it irritating, troublesome and tedious in its mechanistic way of working. I have seen that as a member of the European Scrutiny Committee since 1998. However, it is not malevolent and it is certainly not damaging to the UK. Every statistic shows that the UK benefits remarkably from its membership of the EU.

There is an issue with competence creep. There is no doubt about that. That is what gets me about this Government who put themselves forward as being reforming. I watch Ministers come forward every week, again and again, with explanatory memorandums saying that they have decided to go for a political agreement or a compromise that gives away power to the European Commission. I have always said that since Lisbon that has been much more difficult to resist. But it is not even resisted. That is not about the EU; it is about the failure of our Governments over a long period to stand up to the Commission when they could have done, to build the alliances that Opposition colleagues and some Government Members have talked about, and to deliver for the UK.

William Cash Portrait Mr Cash
- Hansard - - - Excerpts

To respond to the question that the hon. Gentleman put to me earlier, would he be good enough to tell me whether it is more important to implement the laws made by consensus in the European Council of Ministers or the laws that his constituents support through the ballot box?

Michael Connarty Portrait Michael Connarty
- Hansard - -

In 20 years in this place, I have never found it inconsistent to support the European Union. I supported it when I voted in the first referendum, and I supported it when I was the chairman of the Mid Scotland and Fife European parliamentary constituency and convinced a Eurosceptic MEP to see the benefits of Europe. There is no inconsistency between my job as a Member of Parliament and my support for the EU.

The big questions that we should be discussing—the ones that were touched on by the shadow Foreign Secretary—are all included in the Irish presidency agenda. The budget, the next financial perspective, the multi-annual framework and the need to deal with debt in the eurozone are all on the agenda and are being discussed on a daily basis by the 27 countries and Ministers. We should be discussing low participation in the labour market, unemployment levels and the massive problem of youth unemployment. The only comment that was made by the UK Government on the proposal for a youth, education and sport initiative—interestingly, I am the chair of the Council of Europe’s sub-committee on education, youth and sport—was that it should not be called the youth, education and sport initiative because that spelled “YES”. That was the one contribution from a UK Minister about what is on the Irish presidency agenda on youth employment. The Government have rejected the proposal for a guaranteed job or training place for every youth in Europe after four months of unemployment because they did not want that to interfere with what they call apprenticeships. In fact, apprenticeships in this country are not apprenticeships, but merely in-work training.

European Union (Croatian Accession and Irish Protocol) Bill

Debate between Michael Connarty and William Cash
Tuesday 6th November 2012

(12 years ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Michael Connarty Portrait Michael Connarty
- Hansard - -

I repeat: I understand that people who have been supportive of the EU process over many years are now expressing great concerns. Those concerns have been expressed in the European Parliament, and they are certainly expressed at great length in the Parliamentary Assembly of the Council of Europe, on the basis of human rights, as some of the issues in Hungary are a challenge in that respect. The question for us today is not what the EU should do about Hungary, however, but what we should do in relation to Croatia’s application to join the European Union.

As hon. Members know, I work on behalf of this Parliament as a member of the Labour delegation in the Parliamentary Assembly of the Council of Europe. In fact, I work in the committee on culture, science, education and media, which is chaired by Mr Gvozden—I believe that is the correct pronunciation—Flego, who is a professor from Croatia. He is very dedicated to human rights; in fact, a number of his colleagues are leading the way in challenging their Government to come up to the standards we require in the European Union and to support the application. The problem—the hon. Member for North East Somerset (Jacob Rees-Mogg) alluded to this—is that this treaty is one of the ones that, when the Government introduced the European Union Act 2011 and said that they would renegotiate the terms and relationship with the EU in this Parliament, was listed as not requiring a referendum because it is an accession treaty. That is a great pity, because the accession treaty not only allows Croatia to enter, but allows protocols to be added to the Lisbon treaty—that is, to amend it.

It is a great regret for many people in this country that we did not take the Lisbon treaty to a referendum, as we would have had to do if it were a constitutional treaty. Hon. Members will recall that when I chaired the European Scrutiny Committee and we reported on this matter, we came to the conclusion that the Lisbon treaty was not much different from the constitution, apart from a few flags, bunting and anthems. Really, it maybe should have been decided then whether a referendum was required. It will always be a great point of contention with the British people—and, I think people in this Chamber—that we did not get that clarified at the time.

William Cash Portrait Mr Cash
- Hansard - - - Excerpts

I should remind the hon. Gentleman that the Conservative party voted en masse for a referendum on that treaty.

Treaty on Stability, Co-ordination and Governance

Debate between Michael Connarty and William Cash
Wednesday 29th February 2012

(12 years, 8 months ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
William Cash Portrait Mr Cash
- Hansard - - - Excerpts

The hon. Gentleman is rather missing the point. The question before the House is that we should have a proper debate about legality. There will not be a vote, as far as I am concerned, because we need to have an open discussion among Members of Parliament, not only in the European Scrutiny Committee, as has been the case so far. We have heard evidence from many distinguished lawyers and economists, and from the Minister for Europe, although sadly, and deeply regrettably, not from the Foreign Secretary, who has twice declined to come before us. He did say that he would come on 27 March, but that is far too late for the purposes of our proceedings. The most important thing is that we have an open and transparent debate about questions that otherwise would not get across to Members of Parliament, let alone to the people at large.

I have just spent two days in Brussels as Chairman of the Committee, with my hon. Friend the Member for Hertsmere (Mr Clappison). We had an extremely constructive dialogue with members from the national Parliaments and Members of the European Parliament. The only remedy that is provided in this time of economic and, I submit, political crisis in Europe is more Europe, not less. That completely misses the point.

As I discovered only a few months ago at the multi-annual surveillance framework meeting, some people want further European institutional change towards greater political union. In effect, they say that the solution to the problem is the European Parliament, rather than the national Parliaments, although they do want us to be involved so that we can sign our own suicide note. On economic matters and the multi-annual surveillance framework, they want more money to be spent, irrespective of the failure of the European economic systems that they have put in place. The Minister for Europe, who was at that meeting, will recall that he, I and others who were being realistic about this matter were simply astonished by the continuing stream of determination to seek more and more money for the European Union, through the financial transaction tax, by increasing its resources and through the common commercial tax base.

Michael Connarty Portrait Michael Connarty (Linlithgow and East Falkirk) (Lab)
- Hansard - -

No one can beat the Chairman of the European Scrutiny Committee for diligence. However, I will not be staying to take part in this debate for one reason: I am disappointed at his timing. The Committee has yet to hear from the Financial Secretary to the Treasury, we have not yet finished our evidence sessions and we have not yet presented our report. I know that the Government are desperate for something to fill the gap in this debating hall, which has frankly turned into a disappointing—

--- Later in debate ---
William Cash Portrait Mr Cash
- Hansard - - - Excerpts

That was not really a point worthy of comment, but I will certainly reply to the hon. Member for Linlithgow and East Falkirk (Michael Connarty), who is my colleague on the European Scrutiny Committee. The question of legality has already been canvassed. The Government have demonstrated that in the letter written by Sir Jon Cunliffe, on their instruction, to the secretary-general of the European Council, which expresses severe reservations about and, in effect, disputes the advice of the legal adviser to the European Council. Without wishing to prejudice what the European Scrutiny Committee may conclude in our report, the fact is that there is already sufficient notice of the concerns over legality for the matter to be considered by the whole House, rather than just in the Committee, as important as that is. There is one simple reason for that: silence or acquiescence can be assumed to be consent. I will explain that point in a moment.

While the question of legality is allowed to continue without challenge, and while it is decided whether the European Court of Justice should be called upon to make a judgment about this matter, which will itself take time, we are depending on the action, legal or otherwise, of the Prime Minister, who is going to the Council tomorrow. It is therefore important for us to at least indicate our view in this debate, in amplification of what the European Scrutiny Committee is considering and what it may yet conclude. I cannot make any assumptions about what its conclusion will be. We have certainly had the most powerful evidence from the likes of Professor Paul Craig, who is by no means unknown in European Union circles as a person of immense stature.

Michael Connarty Portrait Michael Connarty
- Hansard - -

I am about to leave the Chamber, because I believe that this is not the right time to debate something that we are considering in the European Scrutiny Committee. I am used to all-party Back-Bench Committees being run as the fiefdom of the Chair. However, as a former Chair of the European Scrutiny Committee, I think that it is extremely discourteous, when we have not finished our inquiry or published our report, to have a debate on something that the Chair of the Committee sees as a matter of interest. It is wrong to do that and I think that it should be discussed in the Committee. I am now going to read my papers for the Committee sitting at 2 o’clock so that we can have some debate.

William Cash Portrait Mr Cash
- Hansard - - - Excerpts

I will reply to that point simply by saying that it is important that we, as a House, consider matters as they are going on concurrently. There should be no presumption that other Members of the House necessarily know the detail of the matters that we are discussing.

European Union

Debate between Michael Connarty and William Cash
Tuesday 13th December 2011

(12 years, 11 months ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
William Cash Portrait Mr Cash
- Hansard - - - Excerpts

I will give way one more time, to the hon. Member for Linlithgow and East Falkirk (Michael Connarty) who is a member of the European Scrutiny Committee.

Michael Connarty Portrait Michael Connarty
- Hansard - -

I am very grateful to the hon. Gentleman but I think he is perhaps getting carried away by his own conclusions before using logic. Clearly, the crisis that faces all the countries in Europe, and most other developed countries, comes from the profligate madness of the casino-based banking system that all the countries joined in with. The eurozone might be under greater pressure, but it is not in as bad a condition, in reality, as the US economy at this moment. It is just that, unlike the US, it is not united enough to deal with the crisis as one country.

William Cash Portrait Mr Cash
- Hansard - - - Excerpts

I understand what the hon. Gentleman is saying, but with about 47% youth unemployment in Spain and in Greece, for example, and 30% in Italy, and so on, youth unemployment is a really serious problem, and there is not the same problem in some of the other countries to which the hon. Gentleman referred.

I am afraid that both the Opposition and the Liberal Democrats are completely out of their depth on this subject. For the Deputy Prime Minister to say that this historic vote, which will change the whole future of the European Union and our relationship with it, is bad for Britain is simply absurd. I do not want to go further than that, but I want to get on the record the fact that it is irresponsible of the Deputy Prime Minister to make such a statement. To claim that influence can be retained in a room when you know in advance not only that everyone will vote against you but that they all have the power to continue to do so involves living in a fantasy world not unlike that of “Alice in Wonderland”.

Let me turn briefly to the question of this attempt, this device, this spurious method that people are trying to stitch together to give the measure some degree of authority despite all the realities of the crisis in the eurozone and in the European Union as a whole. There is an attempt to give the European Court of Justice and the European Commission some jurisdiction over this so-called separate treaty. I am not at all sure that it will be a treaty—at best it will only be an agreement—but people are calling it a treaty. I am very worried about the looseness of the language; I want just to make that point on its own.

The main objection to reinforcing the eurozone by means of an intergovernmental agreement is that the rules agreed under the European Union treaties—by which I mean EU primary legislation—by the 27 member states for the operation of the eurozone are to be modified by a separate agreement that does not have primacy over EU treaty law, and so cannot modify or be in conflict with EU treaty law, and that has not been agreed to by all 27 member states. It is vital to stick to that principle, which is at the heart of how the European Union functions. I might be critical of how the European Union has developed under the existing treaties, but those who are against us cannot have it both ways.

As for the objective, the hope seems to be that the provisions of an international agreement can be incorporated

“into the treaties of the Union as soon as possible.”

That is in the statement on the agreement. In other words, the objective of getting the arrangement stitched up into the new treaty has already been set. I must advise the Government that it will not be in their interests to give effect to the proposal through a stitch-up or a device. The European Scrutiny Committee, of course, will be considering all those questions. In addition, the EU treaties require unanimity, so in order to make such a change unanimity would be required—unanimity that would have to include the United Kingdom. That would lead to a great deal of trouble for the Government if they were to attempt to achieve a stitch-up.

European Union Bill

Debate between Michael Connarty and William Cash
Tuesday 8th March 2011

(13 years, 8 months ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Michael Connarty Portrait Michael Connarty
- Hansard - -

My hon. Friend’s point is correct, but that is not what we are talking about. He describes a situation in which this or any Government decided to challenge the original decision. A law could be passed that would continue to run contrary to European Union law; I believe that that is happening in many countries. We and the Norwegians are the most obsessed with trying to get everything right in terms of fitting in with European directives. A challenge could be made, however, and we would then have to decide whether it was right for us to negotiate a change in the relationship or to abandon our law and accept the ruling of the European Union. At the moment, that does not happen.

My main point is that we in this democratically elected Chamber can overturn these decisions at any time if we have the will to do so. We are not bound by them for ever. Like any other law, we will be able to challenge this legislation in this Chamber, which is why I do not believe that we have to go through the rather tortuous, although eloquently described, process of applying an amendment to the Parliament Act 1911.

On the ability of the Lords to protect us from changes to our democracy, they have not protected us from this shabby coalition, which is proposing a law that would guarantee that the coalition would run for five years—a proposal that I spoke against in the first debate in this place after the election—unless the shabby minority part of that shabby coalition, the Liberal Democrats, decide to pull it down, because no other person in this place could do that. If the Lords could protect us from that, I might have more confidence in the 1911 Act.

William Cash Portrait Mr Cash
- Hansard - - - Excerpts

I should like to endorse the general thrust of the new clause tabled by my hon. Friend the Member for North East Somerset (Jacob Rees-Mogg), although I must qualify that slightly by saying that I do not take the view that there is a difference between different types of statute. However, that does not make a material difference to the thrust of his argument, which is that we must at all costs preserve the right of this House ultimately to make the decisions. Indeed, in the 1870s—it might have been earlier—the statesman John Bright put forward the proposition that led to the Parliament Act 1911, some 30 years before it was implemented, precisely because he did not believe in privilege, in aristocracy or in the House of Lords as it was then constituted.

The reality is that we can achieve the objectives by adopting the new clause without necessarily accepting that the House of Lords could not become an elected body if that were the view of this House in due course. I do not accept the proposition put forward by my hon. Friend the Member for Dover (Charlie Elphicke) because so long as we have a second Chamber, the House of Lords will be the House of Lords—irrespective of whether it is elected.

The question of constitutional statutes has been introduced as a notion, but it is not intrinsic to the argument. What is essential is to ensure that we do not allow the Supreme Court to adjudicate over and above the decisions taken by our Parliament. That is the key issue. Some futile commentators—and, if I may say so, some Members of this House—mislead themselves from time to time by suggesting that sovereignty is not such an important issue. The reason for its importance is very simple: we Members are elected to make decisions, and all the other issues, such as dealing with burdens on business and so forth, stem from that. That explains my view of the European Union, which is that, where necessary, the sovereign Parliament should override through the “notwithstanding” formula to which my hon. Friend the Member for North East Somerset rightly referred and which I have employed on a number of occasions when I have been supported by Conservative Front-Bench Members—for example, when we were in opposition and with respect to the Legislative and Regulatory Reform Act 2006, and on other occasions.

What we need to insist on above all—it cropped up in the previous debate—is that this House on behalf of the electorate represents the democratic process whereby we are voted in to make decisions. We must insist on that at the expense of judicial supremacy. Even though I am the first to say that it is for the courts to interpret legislation, it is not for them to make it. That is the fundamental point. I thoroughly endorse both the sentiments and the wording of the new clause.

--- Later in debate ---
Michael Connarty Portrait Michael Connarty
- Hansard - -

I want to speak briefly in support of new clauses 3, 4 and 5. They get to the meat of the discussion we should have been having with the Government before they introduced this silly Bill. It is silly because it is never likely to be used, as there are so many ways that a Government Minister of any political complexion who wishes to continue with the European project can get measures through Parliament, such as by saying that they are insignificant or that it is not necessary to have an Act of Parliament. Therefore, I do not think that the Bill’s measures will be used a great deal. It is based on the premise that the Government want to put in place the measures they introduce, and presumably a Government of any complexion will know that they need a majority in the House in order to introduce any measure that they might decide is significant enough to be dealt with by a referendum or an Act of Parliament.

In reality, therefore, the Bill is a bit of a public relations exercise. But the new clauses are not. They would address the things that are wrong at the moment with the process of dealing with the emergency brake. It should be in place and it should be used properly in a way that gives a Government a chance to speak on behalf of their Parliament and their people in the Council in a fundamental way. New clauses 3 and 4 are very attractive, because would give teeth and meat—a bit of beef—to a Bill that lacks that completely. The Bill is a list of things which might be on the mind of the body politic and perhaps the anti-European press, but it does not have any substance. The new clauses have substance, as they lay out clearly how the brake should be used.

There is absolutely no doubt that new clause 5 is necessary. It deals with a tax and we should have had a similar clause, somewhere along the line, on the giving away of our social security rights. It is clear that people who come to this country to work see social security as an extra payment that does not come out of the pocket of their employer. When someone leaves their family back in Poland, where they still have their house, to come to this country to work, they get all the benefits required under our social security legislation—tax credits, child tax credits and so on—which they often send back home. They also often end up with a council house, because they then bring their family to this country and live in overcrowded conditions, and they leave their house back there being paid for by the British taxpayer. All those things might have been examined seriously if we had had a provision such as new clause 5 to deal with how social security would transfer.

Clearly the own resources arrangement is a tax and will be about creating a European tax as a substitute for VAT. I have been at conferences and seminars called by the Commission in other countries to press that point heavily, and thank goodness Treasury officials were there to argue hard against such an arrangement. We might say that it was one of the three red lines, because we said that tax was a red line that would not be crossed. However, the own resources debate will clearly be pressed again and again by the Commission, which will try to convince us that the proposed arrangement is not a breach of one of those red lines. New clause 5 would put up a nice barrier that we would have to cross purposefully and decisively if we wanted to move away from that red line. I commend the hon. Member for Daventry (Chris Heaton-Harris) for his tenacity, even at this late stage, in tabling well thought-out new clauses. I do not think that they come from a Eurosceptic, anti-European view; they would just be common sense and make good legislation.

William Cash Portrait Mr Cash
- Hansard - - - Excerpts

I wish to speak about my amendment 1, because it is important not only in principle, but in practice as we move forward on the negotiations taking place on two main issues. The first is European economic governance as a whole and the other is the, as yet, unformulated competitiveness package, which is coming up in the lift and being promoted vigorously in some other parts of the European Union.

The issue turns on the Bill’s proposal for the circumstances in which a treaty or an article 48(6) decision attracts a referendum. Under clause 4(4)(b), we would not have a referendum where

“the making of any provision that applies only to member States other than the United Kingdom”

came into play. It might sound obvious that we would not want to have a referendum if it did not affect us but, unfortunately, that rather innocuous wording raises a substantial and profound problem.

I remember Chancellor Kohl talking in the 1990s about the need to move forward with a two-tier Europe and he used the analogy of a convoy. The Minister for Europe is doubtless aware of what is coming up in the lift, but he should also be very worried about it because it is one of the greatest and most serious problems that we face. Many people, including distinguished commentators from the Financial Times and other newspapers, take an interest in these matters and get to the root of what is going on in Europe at the moment. Rather than merely having a convoy of ships travelling at different speeds with the slowest eventually being required to catch up—that was Chancellor Kohl’s analogy—these proposals on European economic governance are the equivalent of having an aircraft carrier of the eurozone and a rowing boat of the other member states that are left behind.

I do not believe for one minute that we should be in any way trapped or lured—to use the Prime Minister’s words—into engaging in the kind of European economic governance proposals that apply to the eurozone or to the competitiveness package on their own merits. Given the record of the European Union, neither has worked, is likely to work or will work. But there is a danger in our acquiescing in allowing the other member states to go ahead by participating in the given procedure, be it the ordinary legislative procedure, the special procedure, the special purposes vehicle or something that arises by virtue of a treaty. The key test is whether it

“substantially affects all or any of the political, economic, fiscal, social or constitutional relationship between the United Kingdom and other Member States of the European Union.”

That is how my amendment 1 puts it.

If something falls into that category, as I firmly believe these proposals do, it clearly affects our fundamental relationship with the European Union in such a way as to require a referendum. We went through the arguments about the constitutional treaty and all that followed from it, and we went through the subsequent arguments about the Lisbon treaty and insisted on a referendum on it, because these things affected this fundamental relationship. I am talking about the Conservative party, rather than the coalition, which is quite a different thing. The basis on which we presented our argument for a referendum was that the treaty was creating a fundamental difference in the relationship between the United Kingdom and the European Union.

I cannot think of anything more likely to demonstrate that fundamental difference than the implementation of these procedures, irrespective of the legal niceties of defining the transfer of powers or competences—I could argue that there is, but that is not the issue I am raising. I am saying that the key question is the substance of what is being done, not merely the choice of specific words employed—not in the Bill, but merely in the coalition agreement—about the transfer of powers or competences. I defy anybody to find the words in the Bill which say that wherever there is a transfer of power or competence there will be a referendum. That is not what the Bill says; it chooses a list of circumstances, specifically but not generically, where a referendum will be required. That is a fatal flaw in the Bill, but the real problem is the substance of what is being decided in a given treaty or article 48(6) arrangement. To my mind, the creation of a two-tier Europe, with the United Kingdom bound into it by acquiescence, puts us at risk because it creates the aircraft carrier of Europe and we are left in the rowing boat.

Draft EU Budget 2011

Debate between Michael Connarty and William Cash
Wednesday 13th October 2010

(14 years, 1 month ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
William Cash Portrait Mr Cash
- Hansard - - - Excerpts

I will give way to my predecessor on the European Scrutiny Committee.

Michael Connarty Portrait Michael Connarty
- Hansard - -

I am grateful to my ESC colleague, who is now Chair of the Committee. I do not disagree with his facts and many of his criticisms are fundamental to the approach of the European Commission compared with that of the UK Government and this Parliament, particularly on the proposal for a tax. However, on trying to achieve a blocking minority, would it not be better in fact to support the Government’s proposal than to take an absolutist approach such as the one he proposes in amendment (a) and, quite frankly, the one that is proposed in amendment (b)?

William Cash Portrait Mr Cash
- Hansard - - - Excerpts

Mine is not an absolutist position in the sense in which the hon. Gentleman puts it. My amendment (a) says that an increase is simply not justifiable. What is justifiable could also be described as what is fair and right. I have just described what I suspect will happen throughout Europe if people continue to increase the budget irrespective not only of our spending review, but of the crisis in Greece and of the situations in other member states, including very high levels of unemployment, the rise of nationalism that goes with that, and the populism that will emerge from those who want to agitate and create trouble. We want a stable Europe and a stable United Kingdom, which is precisely why I take the view that we need to act responsibly and ensure that the UK Government have every opportunity to achieve their objectives. I assure the House that nobody can accuse me of being in any way reluctant to speak my mind on matters relating to the EU, and I am sure that no one would presume to do so.