Europe: Renegotiation

Pat McFadden Excerpts

Tuesday 10th November 2015 Commons Chamber

[Mr Pat McFadden (Wolverhampton South East) (Lab)]

I thank the Minister for updating the House, and for giving me advance sight of his statement.

The decision on whether or not the United Kingdom will remain a member of the European Union is the biggest decision that the country will make for a generation. Labour Members are clear about the fact that Britain is a more powerful, prosperous and secure country as a result of its membership of the EU, and we want to see it play a full role in shaping a reformed and better Europe that deepens its single market in areas such as digital and services, offers more hope and jobs to its young people, uses its collective strength in trade with the rest of the world, and stands together to combat the urgent security problems that we face. We do not stand for the nationalism that says that we would be better off out, or for a Brexit that would see Britain weaker in power and influence, and diminished in the eyes of the world.

In his speech this morning and in the letter to the President of the European Council, the Prime Minister set out his negotiating agenda. As we have already heard in comments from his own Back Benchers, the problem that the Prime Minister faces—and, in fact, the reason he has been so reluctant to put his position down on paper until now—is that there is nothing he can renegotiate that will satisfy the large number of right hon. and hon. Members sitting behind him who want to take Britain out of the European Union at all costs. They are desperate to be disappointed, and they are here in the House today. Their only role in this debate is to push for demands that they know will not be met.

The agenda that was published today raises important issues including some that were in our own election manifesto, such as protection for the rights of non-eurozone countries and those of national Parliaments. It also includes other ideas which are already in train. May I now ask the Minister to respond to some specific questions?

It is right that we press for guarantees for non-eurozone members in the future. Our manifesto argued for that, and it is in our economic interests. Does the Minister agree, however, that it would be a mistake for Britain, in so doing, to volunteer or embrace some kind of second-class or associate membership of the EU, while still paying the full costs of membership? Would not such an outcome weaken Britain rather than strengthening our position?

Why is there so little in the agenda about jobs and growth for the future, given that the problem with which Europe has been struggling for some time has been low growth and high unemployment? The Minister has talked of reducing the burden on business. Can he guarantee that nothing in this agenda will reduce the hard-won employment rights that have been agreed at European level over the years, including rights to paid leave, rights for part-time workers, and fair pay for temporary and agency workers? Does he accept that it would be a huge mistake to try to build support for a reformed European Union on the back of a bonfire of workers’ rights?

We note the retreat from earlier statements and hints from the Prime Minister that he would seek an emergency brake or an end to the principle of free movement. Is the Prime Minister set on the four-year timescale for access to in-work benefits, or is that subject to negotiation at the European Council? Will the Minister also tell us specifically whether it would mean a change in EU legislation, or a change in the way in which the system works here in the UK?

Does the Minister agree that it is for those who wish to reject the agenda as too little—many of whom are sitting behind him, and who are determined to take Britain out of the EU—to state clearly to the British people what being out would mean for our jobs, for our trade, for our investment, for our employment rights, and for our national security?

Of course the European Union faces big challenges in recovering from the eurozone crisis, offering more hope for the future, and dealing with the urgent and immediate refugee crisis that it faces, but we believe that those challenges will be best met if Britain plays a leading role in the future of the European Union, and if we use our power and influence with others to overcome them.

There is a broader case that goes far beyond those four points about Britain’s place in the world and the EU, and that case has to be made. Our history is not the same as that of many other member states, and perhaps we will never look at these issues through precisely the same eyes, but that is not the same as wanting to leave. Reform is essential. It should be an ongoing process, not a single event, and Labour Members will keep arguing for a Britain that is engaged with the world, using its power and influence to the maximum and not walking away from a partnership that we have been members of for 40 years and which has brought many benefits to the people and the economy of this country.

[Mr Lidington]

The right hon. Gentleman asked four specific questions and I will deal with them in turn.

On relations between EU and non-EU members, we do need to have, as part of this negotiation, safeguards against any risk of caucusing by eurozone countries, who if they chose to act as a caucus could command an automatic qualified majority within Council of Ministers meetings. There are clearly going to be some issues that derive directly from a currency union where eurozone countries quite legitimately will want to talk among themselves, and it is going to be important that we have a deal that allows the eurozone to do the work of integration it is going to need to do, but which properly safeguards the integrity of the single market of 28 members and decision making across the board in terms of the EU responsibilities in respect of the 28.

The right hon. Gentleman teased me a little about the views of some of my right hon. and hon. Friends. I have to say that when I have appeared before some of the Committees of this House, I have encountered Opposition Members who are equally committed to British withdrawal from the EU. The truth is that this is a matter—[Interruption.] Indeed, I am reminded that the Labour party leader, the hon. Member for Islington North (Jeremy Corbyn), has not been renowned for his enthusiasm for British membership of the EU. This issue has legitimately cut across party divisions for as long as EU membership has been a concern in the UK. People within both parties hold honourable, principled views both for and against British membership, and I think that that is likely always to be the case.

The right hon. Gentleman asked about the challenge of low growth. I think that not only what the Government are saying in this renegotiation, but what they have led and helped to shape within the EU ever since 2010, demonstrates the seriousness with which we take this issue. I know the Prime Minister was personally involved in the negotiation that clinched the deal on an EU-Korea free trade agreement, something that is now proving of immense value to British industry. It is the British Government who have helped to energise the debate towards a digital single market across Europe, something that will give small and medium-sized enterprises, as well as large companies, increased opportunities.

No Conservative Member wants to make, in the right hon. Gentleman’s words, a bonfire of workers’ rights, but we also need to have in mind the reality that other countries that have chosen to go for a much more regulated approach to the employment market have often, tragically, suffered much higher levels of unemployment than we have in the UK. Keeping the UK’s opt-out from the working time directive, for example, is something we will fight very hard to make sure is entrenched by this renegotiation.

On freedom of movement, the Prime Minister made his view very clear: our objective is to better control migration from within the EU. There are obviously different ways in which we could achieve that. We think we can do that by reducing the incentives offered by our welfare system, which is why my right hon. Friend set out proposals in November and repeated them today. Others in the EU have concerns about this, and that is why we say to them, “If that’s what you think, put forward alternative proposals that deliver the same result.” It is the outcome of the measures—controlled, fair and properly managed migration—that is the end that we seek.

Finally, on the question of what is meant by “out”, the Prime Minister said again this morning that he did not think either the Swiss or Norwegian models would be right for the UK. The question of what “out” might mean will be a key element in the forthcoming referendum debate.