European Union (Approvals) Bill

Michael Tomlinson Excerpts

2nd reading: House of Commons
Tuesday 4th July 2017 Commons Chamber

[Michael Tomlinson (Mid Dorset and North Poole) (Con)]

The Minister is being generous with her time. She indicated one other country that has yet to ratify or vote on this—namely, Germany. Does she have, or has she been given, an indication as to when support may come from Germany?

[Margot James]

Any such comment from me would be speculation, which I intend to avoid, but I point out that Germany, like the United Kingdom, needs the consent of its national Parliament before its Ministers can vote on such draft decisions.

As I said, all member states apart from Germany and ourselves have agreed the Fundamental Rights Agency decisions, and we do not believe that any of the draft decisions are contentious. The Government are committed to being constructive in the UK’s ongoing engagement with the EU. Holding up progress on business that is simple and uncontroversial would undermine that approach and the principle of sincere co-operation that lies behind it. It is therefore clearly in the UK’s interests to approve these draft decisions. Delaying the decisions could have a negative impact on the UK’s exit negotiations with the EU, including discussion on any future framework. There will, of course, be further opportunities to examine more fundamental aspects of the work of the EU in other debates. However, I am sure hon. Members will recognise that, whatever their views on EU exit, it is in the UK’s interests to approve these draft decisions.

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[Bill Esterson]

Of course the hon. Gentleman is absolutely right, which was why it was right for the Bill to be in the Queen’s Speech. I was merely questioning why it had been given such prominence. Given that it consists of only two lines, why was something weightier not presented first?

I have mentioned the pay cap, the turmoil in the Conservative party, and the agonising over whether public servants should be given a pay rise. There is also the debate about tuition fees, the debate about whether there should be more police and firefighters—

[Michael Tomlinson]

rose—

[Bill Esterson]

I will give way again.

[Michael Tomlinson]

I am grateful to the hon. Gentleman for giving way, but I fear that he may be being a little bit churlish. He has the opportunity now to set out the Labour party’s position in relation to the Bill. He is, of course entitled to go on speculating about what might or could not or should have been debated at this time—as long as you allow him to do so, Mr Speaker—but he has the opportunity to debate this subject now. What does he have to say about it?

[Mr Speaker]

Order. I am grateful to the hon. Gentleman for his inquiry. I could not know what the hon. Member for Sefton Central (Bill Esterson) would say until he had said it, but now that he has said it, I can tell him that he should not have said it.

It would be advisable now for the hon. Gentleman to return to the subject of the European Union (Approvals) Bill. I very gently remind the hon. Gentleman, who is quite a seasoned parliamentarian, that it consists of two clauses, of which—and I say this not least for the benefit of those who are attending to our proceedings elsewhere—the second is “Extent, commencement and short title”. The only substantive clause is clause 1. The question of the pay cap is a matter of enormous interest, but it is wholly irrelevant to the question of clause 1 and consideration of the Republic of Albania, the Republic of Serbia, the European Union Agency for Fundamental Rights, and the relationship between the European Union and the Government of Canada in respect of competition law.

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[Bill Esterson]

I think we are in danger of wandering away from the subject—[Interruption.] I have no idea why Conservative Members find that funny, but there we are. Obviously, the hon. Gentleman and the Democratic Unionist party are particularly exercised by that matter, among others, but I dare say that this is something that the Minister can pick up on, perhaps on another day.

Competition delivers benefits to consumers, to businesses and to society as a whole. Competition policy therefore contributes to boosting jobs, growth and investment. The Commission pursues this objective by enforcing competition rules, sanctioning breaches and promoting a competition culture internationally. The proposed agreement will improve the administrative co-operation between the European Commission and the Canadian Competition Bureau. Ultimately, consumers in the European Union and in Canada benefit from competition policy and from the sanctions that contribute to a stronger deterrence of anti-competitive behaviour. More effective competition enforcement results in more open and competitive markets in which companies can compete more freely, enabling them to generate wealth and to create jobs. It also gives consumers a better choice of products at lower prices.

This new agreement is substantively the same as the existing one, which has been in place since June 1999. This agreement just adds new provisions on the exchange of information. Even after we have left the European Union, UK companies operating in the EU will still be subject to the jurisdiction of the European Commission in anti-trust and merger investigations, as all non-EU countries are. Information on UK companies will still be transferable after Brexit. After Brexit, the European Commission will still share information about UK companies with Canada but will not be bound to share the information about the UK it receives from Canada with the UK. I would like the Minister to address that point.

This agreement relates to administrative co-operation between the European Commission and the Canadian Competition Bureau, so public consultation and an impact assessment were not considered necessary by the Government, and, as the Minister has now said on a number of occasions, she does not think that there will be financial implications. The Government have noted in the explanatory memorandum that this new agreement will have no impact on UK law and no financial implications.

The European Scrutiny Committee did not at first clear the proposal. The Chair of the Committee, the hon. Member for Stone (Sir William Cash), who I dare say will make a contribution to the debate, requested further information about whether and in what way the United Kingdom could participate in the agreement following withdrawal. The Minister responded to the Committee on 24 October, stating that

“the Government will ensure that the UK is in the strongest possible position to cooperate on competition matters with our international partners...There are a number of options for securing the means for international cooperation…As the form of any cooperation agreement will depend on our negotiation with the EU and negotiations with other countries such as Canada it is too early to say what exact form international cooperation will take.”

That raises a number of questions about transitional arrangements in the longer term. In response to that letter, the Committee subsequently cleared the documents.

That brings us to the question of what arrangements will exist after we leave the EU. The Minister referred in her letter to seeking to extend the current arrangements. For how long does she think that will be necessary? What guarantee is there that it would be possible to extend them? UK companies operating in the EU will still be covered by this agreement. The difference will be that, while the European Commission will continue to share information with Canada about UK companies, that information will not be shared with the UK unless a further agreement is reached. She said in her letter that any co-operation agreement would depend on negotiation. How long does she think those negotiations are likely to take? What will she be seeking to achieve in them? We have now reached the point at which Ministers need to start answering the questions about transitional and longer-term arrangements for these and many other matters.

There is no doubt that competition is vital to our economy, to the success of our businesses and to the prosperity of the people of our country. Encouraging healthy competition is vital. The role of national Governments, and of international co-operation, is to create a fair market, not just a free market. It is also to avoid anti-competitive practices, including the creation of cartels through mergers and acquisitions which distort the market; the undercutting and exploitation of workers and smaller businesses; the use of zero-hours contracts where workers have little choice; the treatment of smaller businesses by banks that will only fund those with liquid assets; and the delays in the payment of invoices by larger firms. Those are all examples of anti-competitive and exploitative practices in which Governments—nationally and internationally—should find ways of intervening to set a level playing field. Governments should be a partner to business and to the workforce. They should encourage those wishing to start and grow a business. They should be investing, and they should have the right strategy for infrastructure and skills. They should have an industrial strategy. Underpinning all that should be the right approach to competition, which is what this part of the Bill is all about.

We need answers to the questions about what happens after we leave the EU and about what transitional arrangements will be in place. The nature of the Minister’s comments in her letter to the European Scrutiny Committee show just how complex these questions are, and it is time we started to get some answers.

[Michael Tomlinson]

I am following the shadow Minister’s speech closely. He has mentioned the European Scrutiny Committee several times. Will he join me in calling for the Committee to be reconstituted as soon as possible? His speech has demonstrated the important work it does, and it needs to get going straight away.

[Bill Esterson]

I do not know whether the hon. Gentleman was in the Chamber before this debate started, when my hon. Friend the Member for Bootle (Peter Dowd) made an impassioned plea to you, Mr Speaker, for the Select Committees to be reconstituted as soon as possible. Of course I agree with the hon. Gentleman.

Labour accepts the referendum result and recognises that Britain is leaving the European Union, but we need to negotiate for strong transitional arrangements to ensure that there is no cliff edge for the economy. We also need to give much greater priority to retaining the benefits of the single market and the customs union than we have seen from the Government so far. We should not accept any watering down of workers’ rights and environmental standards as a result of Brexit. We will seek significant improvements to the repeal Bill to ensure that there is proper oversight of the use of new powers and no drop in EU rights and protections.

In that context, the discussions that we are having this afternoon are really important. We on the Labour Benches will seek—as, I believe, will the Minister—a strong, collaborative new relationship with the EU, not as a member but as a partner. We will seek to remain a member of common European agencies that benefit the UK, such as Europol, Eurojust and the Erasmus scheme. Perhaps the arrangements we are discussing today can be added to that list. We have to get this right, but we are not in a strong position as we enter the negotiations. I want to see the Prime Minister change her approach. She must drop the idea that “no deal” is a viable option. She must also put a much stronger emphasis on jobs, on the economy and on retaining the benefits of the single market and the customs union, and she must bring Parliament back into the Brexit process, as we have seen happening today. The fact that we are debating this Bill shows that we must retain the benefits of the co-operation and relationships that we currently have with the EU.

I said at the start that this was a Bill with only four draft decisions, but it is indicative of what is to come as we address the challenges of Brexit. As far as this Bill goes, the Minister really does need to answer the questions about transitional arrangements and negotiations so that we can continue to share information to the benefit of our economy and of the people of this country.

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[Michael Tomlinson]

I declare an interest as someone who served on that Committee in the previous Parliament. Has my hon. Friend received any assurances about when the Committee will be reconstituted? Does he agree that that is a matter of urgency?

[Sir William Cash]

I am glad to respond, because I have been very much engaged on that subject. In fact, one of the last things I did on the day of Dissolution was to write to the Chief Whip asking him to ensure that our Committee was reconstituted immediately after the election, because in 2015 the whole process went on until November, by which time we had a monument of documents. In the meantime, many things are being decided in the European institutions, many of which are directly relevant to the Brexit negotiations. It is therefore incredibly important that this House has an opportunity to assess the sorts of things that are being decided, subject to the Committee clearing the documents.

As hon. Members may know, if the European Scrutiny Committee imposes scrutiny reserve on a document because we think it is so important that it has to be debated, the Council of Ministers cannot conclude its consideration of those matters, and the Government cannot make a decision to carry the matter through, unless and until that debate has taken place. When we have a pile of documents—I understand there are some 200 documents in the pipeline—and a pile of explanatory memoranda explaining the Government’s position on them, the position the Government adopt on the documents in the negotiations will be highly interesting.

My hon. Friend the Member for Mid Dorset and North Poole rightly raises the question of getting on with the job, and I am given to understand, without committing anybody to anything, that the Government are taking steps to accelerate the process because it is so important. Of course, we will discuss the other Select Committees later this afternoon. Their schedules and the allocation of chairmanships to each party will be decided, and I understand that that has been discussed through the usual channels, so I do not expect it to be terribly controversial, but for all the reasons I have set out, it is important for the European Scrutiny Committee to get going.

I entirely endorse what the Minister said about the Canada agreement, which again was discussed by the European Scrutiny Committee. We agreed that we would let it go ahead, but the explanatory notes on the Bill indicate some implications for United Kingdom companies operating in the EU after Brexit, which is the bit we should be most concerned about at the moment:

“Following the UK’s exit from the European Union, UK companies operating in the EU will still be subject to the jurisdiction of the European Commission in antitrust investigations and, where the thresholds are met, in merger investigations in the same way as for other non-EU companies operating in the EU. Information relating to UK companies based in the EU would therefore still be transferable under the new Agreement.”

That is becoming a bit of a hot potato. I made a representation to the Prime Minister the other day on the question of citizens’ rights, and we hear a lot about the question of City regulation, and here it is coming up again.

Some people are making too much of it. An enormous amount is emerging from the commentariat and on programmes we sometimes find ourselves listening to but that we perhaps ought to switch off. They are trying to make out that, somehow or other, the real problem is that we have to stay in the European Court of Justice, which is complete rubbish. We do not have to stay in the European Court of Justice and, far more than that, we are not going to stay in the European Court of Justice, because we will be repealing sections 2 and 3 of the European Communities Act 1972. The Labour party has made it clear that we will not stay in the single market or the customs union, which raises some of the biggest issues relating to the ECJ. Frankly, as I told the House the other day, we have to come up with a sensible arrangement that does not prejudice the regaining of our judicial sovereignty. At the same time, we must agree some form of tribunal that enables us, through a parallel bilateral “source of law” agreement, to have a decision-making process that does not and cannot keep us in the European Court of Justice. That is not a matter of opinion or of wishful thinking; staying in the ECJ is fantasy land.

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[Michael Tomlinson (Mid Dorset and North Poole) (Con)]

It is a great pleasure to follow the hon. Member for North Antrim (Ian Paisley), who speaks, as ever, with eloquence and authority. I want to pick up on just one of the issues he raised at the beginning of his speech, but first, Mr Deputy Speaker, this is the first opportunity I have had to congratulate you on your election, and I do so. It is also the first opportunity I have had to say how delighted I am to be returned for Mid Dorset and North Poole—from Bere Regis to Bearwood, Wareham to Wimborne and all points in between—and I will do my utmost to repay the trust that my constituents have put in me.

I shall make a short contribution to the debate, not least because I see that colleagues also want to catch your eye, Mr Deputy Speaker. I stand here as someone who voted to leave the European Union and who has an optimistic vision of our country outside the European Union, but the irony is not lost on me that this afternoon we are debating two countries that want to accede to the European Union while we, the United Kingdom, are leaving. Be that as it may, it is an important debate and it is important that we get this right. As the Minister has said both at the Dispatch Box and in correspondence, it is important that while we are still a member of the European Union we fully engage, and that is what we are doing this afternoon.

The rather helpful explanatory note mentioned the European Scrutiny Committee, as did the hon. Member for Sefton Central (Bill Esterson) and other hon. Members, and it is clear that the works of that Committee permeate the Bill. Although that is not the purpose of the Bill, I am delighted to be given the opportunity to say what an important job the Committee does. I declare an interest, having served on it, and I want to reaffirm that it is essential that it gets up and running as quickly as possible. The former Chairman of the Committee—and, I hope, the next Chairman—my hon. Friend the Member for Stone (Sir William Cash), emphasised that documents were piling up even as we speak. I re-emphasise the urgency and importance of getting that Committee up and running, and I am disappointed that there is no reference to it on the Order Paper in relation to the debate later this afternoon.

Let me pick up on one point. On the first occasion, the European Scrutiny Committee did not clear this legislation from scrutiny, but required further clarification. I am delighted that the Minister provided that clarification, which enabled the Committee to clear the document and enable this process to happen. We must of course emphasise that we are leaving the European Union but, for as long as we remain members, we will play a full and sensible part in it. That is what we are doing this afternoon, and I am delighted to have played a small part in the debate.