Europe

Mike Gapes Excerpts

Wednesday 30th January 2013 Commons Chamber

[Mr Hague]

I am going to make a bit of progress, because I have not yet exhausted the list of the coalition’s achievements.

First, on banking union, we understood from the start the case for a single supervisory mechanism for the eurozone. We were clear that that we would not participate in it—and we are not participating. We suggested that the European Central Bank would be the best institution to take on this role—and it is taking it on. Crucially, we said we wanted safeguards for the single market—and we got them. The outcome of those negotiations was of fundamental importance, and it is proof that fair arrangements between eurozone and non-eurozone members can be achieved. That is a good precedent for the future, and it is something of a contrast with previous negotiations when the previous Government gave up £7 billion of our rebate for nothing in return.

On the multi-annual financial framework, we approached the November European Council open to reaching agreement. The deal on the table was not good enough, and that is why we could not accept it. We were not alone: the Dutch, the Swedes, the Danes, the Finns and the Germans were all in the same position. We have established a group of 12 like-minded member states to push for urgent action on EU growth, and we have expanded that alliance, which advocates completion of the single market and less regulation. We have secured the first ever exemption of the smallest businesses from new EU proposals from 1 January this year, and we have persuaded the European Commission to review the body of EU legislation to identify existing obligations from which those businesses could be exempted.

As the Prime Minister said last week in Davos, we want Europe to succeed not just as an economic force but as an association of countries with the political will, the values and the voice to make a difference in the world. When that political will is there—

[Mike Gapes (Ilford South) (Lab/Co-op)]

Will the Foreign Secretary give way?

[Mr Hague]

In a few minutes, given that I have taken a lot of interventions already.

When that political will is there, we can make a decisive difference. That is clear in foreign policy. We have led the way with France on EU policy on Syria, and with France and Germany on sanctions on Iran. The flagship EU anti-piracy operation is hosted not at an EU operational headquarters—something that I have always opposed—but at the UK’s Permanent Joint Headquarters in Northwood.

Those are some of things we have achieved so far. Looking briefly at the months ahead, a number of important issues are on the agenda. The multi-annual financial framework will be discussed again at next month’s Council. We are working closely with all our European partners—

[Andrea Leadsom (South Northamptonshire) (Con)]

Will my right hon. Friend give way?

[Mike Gapes]

rose—

[Mr Hague]

I will give away again in a few minutes.

We are working closely with all our European partners—those who are like-minded and those who are less so—to achieve a deal that is right for the UK and right for the EU. Our objective for EU spending within that framework remains clear: we want to see spending reduced and we will insist on at worst a real-terms freeze and at best a cut. The UK abatement is not up for negotiation, unlike under the previous Government.

--- Later in debate ---

[Mr Hague]

I will give way again in a moment, but the hon. Gentleman is a bit far down the queue.

On competitiveness, Britain has great advantages: one of the most competitive corporate tax rates in the world, Europe’s largest venture capital community, tax breaks for early-stage investment, and entrepreneur visas so that the brightest can come to the UK. We want the EU to help its members to succeed in the global race.

[Mike Gapes]

In his long list of achievements, the Foreign Secretary referred to like-minded partners. Will he take this opportunity to welcome the election of the new Czech President, Milos Zeman, who is a strong, fervent pro-European, which means that the Czech Republic now has a pro-European President and that the Government have lost one of their few allies in the former President of the Czech Republic, Mr Klaus?

[Mr Hague]

Of course I congratulate, and the Prime Minister will be congratulating, the new President of the Czech Republic. However, the Prime Minister of the Czech Republic said last week:

“The scepticism of the British public is understandable...British voters’ feeling of remoteness from EU elites in Brussels is right. EU competitiveness is a Czech priority as well.”

So it is interesting to hear from the Czech Republic.

--- Later in debate ---

[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.

[Mike Gapes]

My hon. Friend mentioned people returning to Poland. In part, that is because, as a consequence of Poland’s membership of the EU, its economy has been growing much faster than ours.

[Mark Hendrick]

That is right. Many Poles are returning to Poland with money in their pockets and are growing businesses there. The Poles will be customers for many goods and services produced in this country, so these events are mutually beneficial; there is not one-way traffic in respect of who benefits.

The European Union is not simply a one-way transfer of sovereign powers; it is about pooling sovereignty, so the sovereignty that resides centrally is worth more than the sum of the constituent parts. That gives the European Union power in what is a global economy, so we can ensure that we get the best deals in trade and can project our influence in a world increasingly dominated by economic powerhouses such as the United States and China.

As 50% of our trade is with the EU, exiting the single market would have devastating consequences for our economy. In other areas, such as justice and home affairs, we have had great success; the European arrest warrant is one example of that. When the current Government or a future Government set out their shopping list for renegotiating competences and our relationship with Europe, Labour Members need to put our case for a social Europe and a Europe of security, where justice and home affairs measures play a crucial role in ensuring international co-operation to fight common enemies, such as drug trafficking and terrorism.

My right hon. Friend the shadow Foreign Secretary says this is about arithmetic. That is true, but it is about much more than that. It is about geography, too—after all, Britain is in Europe—and it is about culture and history, because we are a European nation. Let us play our role in strengthening a united Europe for all the peoples of Europe.

--- Later in debate ---

[Mike Gapes (Ilford South) (Lab/Co-op)]

The Prime Minister’s speech last week was much delayed, much anticipated and over-hyped. It is already clear that the blip in the opinion polls is much less than he had hoped for. I therefore look forward to the internal debate in the Conservative party over the coming two years, and to the Prime Minister continuing to try to appease and assuage the egos of many Conservative Back Benchers.

I want to consider the so-called five principles and aspects of the Prime Minister’s speech. He said that

“we…need to address the sclerotic, ineffective decision making that is holding us back.”

Much of that sclerotic decision making in the EU happens because of unanimity rules. Can we therefore take it that the Prime Minister has called for more qualified majority voting? Conservative Back Benchers are shaking their heads, but Ministers cannot tell us the answer, because they do not know what the negotiating position will be.

Similarly, the Prime Minister questioned whether we can justify an ever-larger Commission, but the Commission gets larger because of EU enlargement and the accession of more member states. If the Prime Minister does not wish the Commission to become larger, the long-standing policy of successive Governments for further European enlargement has presumably been ditched. Alternatively, is the Prime Minister arguing that there should be a limit on the number of commissioners and saying that there might be future circumstances in which there is no British commissioner? We do not know the answer to that question because, again, the Government are unable to tell us.

[Mr Redwood]

Does the hon. Gentleman recollect that the Labour Government sold the pass on the number of commissioners by saying that not every state should have one? Perhaps that was one of the few sensible things they did to drive home the point that the Commission is a European government, not a representative government.

--- Later in debate ---

[Mike Gapes]

Why did the Prime Minister not give more information in his speech rather than putting up the straw man and attacking the EU for increasing the number of commissioners relentlessly, when that is in fact a consequence of our previous enlargement policies?

The Prime Minister said that the European treaty laid the foundations of ever-closer union among the peoples of Europe. It is interesting to note that he did not point out that British Conservative negotiators of the Maastricht treaty insisted on keeping the phrase “ever-closer union” because they deemed the words to be vague and therefore something they could live with.

The Prime Minister made a number of other criticisms, including an assertion referred to by the hon. Member for Mid Norfolk (George Freeman). The right hon. Gentleman said:

“Put simply, many ask ‘why can’t we just have what we voted to join – a common market?’”

I campaigned and voted no in 1975, in my misguided youth. At that time, the Wilson Government, like the previous Heath Government and pro and anti-European campaigners, said the vote was about more than a common market, namely political union and other aspirations for co-operation. Whatever position the hon. Member for Mid Norfolk took in 1975—I do not know whether he was old enough to vote at the time—it is not true that we had a referendum and joined an organisation that was just about trade. It was more than that. I could go on to comment on other aspects of the Prime Minister’s speech, but I will not because of limited time.

It is clear that instead of addressing the economic crisis that confronts the whole of this continent, and the wrong, misguided austerity economics that is creating tens of millions of unemployed people and the immiseration of millions in many European countries, we in this country are now going to have an obsession with the minutiae of a probably unrealisable renegotiation about unrealisable repatriation powers. We need Ministers to go to Brussels and argue, in all the forums of the European Union, for different economic policies. In the meantime, we need Ministers to bring in different domestic economic policies to again achieve growth, prosperity and jobs in this country.

The economic policies we are pursuing here are potentially leading, as we now know, to a triple-dip recession. We have a massive trade imbalance with the European Union, which is partly due to the failures of our domestic policy, but is being compounded by the wrong economic policies being pursued by the austerity programme within the eurozone. As a result, the Government’s British economic strategy—export-led growth to get us out of the situation we are in, presumably capitalising on the benefits of the devaluation of the pound that has been going on for some months—is not getting us the growth we need, partly due to domestic reasons and partly due to problems in the eurozone economy. There is a very good paper by Simon Tilford from the Centre for European Reform—I do not have time to quote it, but I recommend that hon. Members read it—about the problems confronting our country partly because of the wrong policies within the EU’s economies.

We need to have concerted economic plans for recovery in the next five years, not concerted plans to create economic uncertainty and damaging policies that will reduce the amount of inward investment into the UK economy. The Government have taken a dangerous leap in the dark, creating enormous uncertainty for anybody who wishes to plan to invest in this country. They are putting jobs and prosperity in Britain at risk, and in time they will come to regret it at the next general election.