Parliamentary Sovereignty and EU Renegotiations

Philip Hollobone Excerpts

Thursday 4th February 2016 Commons Chamber

[Mr Baron]

I completely agree and that is very well put. It is terribly important that there is an element of democratic accountability. If there is not, we will alienate sections of society and issues such as unemployment will not be properly addressed. How are people going to voice their opinion without moving to the extremes of the political divide, and feeding that extremism because they do not feel they can be democratically represented within the existing structures?

[Mr Philip Hollobone (Kettering) (Con)]

Does my hon. Friend agree there is a practical side to the issue of sovereignty, too? As a member of the EU, we have lost our sovereign ability to negotiate friendly or free trade agreements with major economies around the world. It would be in this country’s interests to have a friendly trading agreement with the big economies, such as America, China and Japan. We cannot do that, however, because we have lost our seat at the World Trade Organisation and our membership of the EU forbids us from making such negotiations.

[Mr Baron]

That is absolutely right. It is a question of sovereignty, at the end of the day. If we cannot take our seat at the WTO and negotiate our own trade deals, indirectly that is a loss of sovereignty. There is no doubt about that. I am conscious that time is ticking on, so I will make some progress if colleagues will forgive me.

The Prime Minister misses the importance of parliamentary sovereignty in the EU debate. That is a mistake No. 10 is in danger of making when it focuses too heavily on Project Fear issues, such as immigration and jobs. We all know it is the loss of parliamentary sovereignty that really lies at the heart of our uneasy relationship with the EU, and which has rankled since we first joined in the 1970s. Over the course of the referendum campaign, I do not believe Project Fear will bite. Ever-increasing numbers of big businesses, including the likes of JCB, Toyota, and Unilever, make it clear that they will not pull out in the event of a Brexit. Indeed, a recent Barclays report suggested a Brexit would be beneficial to the UK. Jobs are linked to our trade with Europe, not to our membership of the EU. Given that our vast trade deficit is in the EU’s favour, it would want to sign a trade agreement in the event of a Brexit.

Furthermore, even if the EU wanted to get awkward, it could not. Falling global tariffs since the 1970s mean that both the UK and EU are bound by the WTO’s “most favoured nation” tariffs—the USA’s average being under 3%. One can easily lose 3% in a currency swing in a week. Many smaller countries outside the EU easily trade with it. Does the “in” camp think the public believe we could not do likewise?

What excites voters’ imagination is the ability to restore sovereignty to our ancient Parliament. I rather suspect the Prime Minister knows this, and that consequently he is holding something in reserve—we are hearing something about a sovereignty Bill, for example—but details are scant. If it is true, however, does it not acknowledge that the “washed-out lottery ticket” and the EU “backseat driver brake” are not fit for purpose? Will the Minister supply the House with more details?

In conclusion, there has never been a better time to renegotiate our relationship with the EU, and nor are we ever likely to be in a stronger position to win meaningful concessions. I therefore urge the Prime Minister, at this critical stage, to return to the renegotiations and seek nothing less than a true restoration of parliamentary sovereignty. Let us step back for one brief moment. If the EU did not exist today, would we really invent it? I cannot understand why this and other Governments have acquiesced in this charade. I can only surmise it is because it is easier not to correct it and to do nothing, than to put it right and take action. But inaction is costing this country dear, not just by way of our £10 billion a year net contribution, but in terms of our sovereignty and responsibility to the people of this country.