European Union Bill

Priti Patel Excerpts

Tuesday 1st February 2011 Commons Chamber

[Mr David]

In response to the Minister’s last remark, I would say simply that we have belief in the parliamentary process, and although the Bill may pass through this House, we are sure that Members of the other place will have enough wisdom and common sense not just to give it a mauling but to reject it.

Question put and agreed to.

Clause 21 accordingly ordered to stand part of the Bill.

Clause 22 ordered to stand part of the Bill.

New Clause 7

Annual report on Part 1 of the Act

‘(1) The Prime Minister shall prepare and lay before the House each year a report on the operation of Part 1 of this Act.

(2) The report shall identify—

(a) any statements made in the previous 12 months under section 5, indicating specifically where Ministers have indicated an opinion under section 5(3) as to whether a treaty or Article 48(6) decision falls within section 4 of this Act, and any opinion given under section 5(4) of the Act on the significance of the relevant provision in relation to the United Kingdom;

(b) any powers and competences transferred under the terms of the TEU or TFEU from the United Kingdom to the European Union within the previous 12 months which—

(i) have, and

(ii) have not

required specific authorisation under any provisions of Part 1 of this Act;

(c) any powers and competences arising under any of the provisions of the TEU or TFEU referred to in Part 1 of this Act which have been repatriated to the United Kingdom from the European Union over the previous 12 months; and

(d) any such powers and competences which the Prime Minister seeks to repatriate to the United Kingdom from the European Union.

(3) The report shall also include—

(a) an assessment of the likelihood of further transfer of such powers and competences in the succeeding 12 months;

(b) a cost benefit analysis of the impact on the United Kingdom of any decisions made in the past 12 months under any of the provisions of the TEU or TFEU powers referred to in Part 1 of this Act.’.—(Priti Patel.)

Brought up, and read the First time.

[Priti Patel (Witham) (Con)]

I beg to move, That the clause be read a Second time.

This is a straightforward probing amendment, designed to provide greater openness and transparency in connection with the Bill, and particularly the transfer of powers. It would give the public and Parliament an annual opportunity to review, in one comprehensive report, the powers transferred to the EU under part 1—for example, by providing a cost-benefit analysis of the impact on the UK of those transfers of powers—details of the powers that are likely to be transferred to the EU over the 12-month period and an indication of the powers that the UK seeks to repatriate from the EU.

Since coming to office, the Government have been at the forefront of pioneering the transparency agenda across all our politics. The new clause builds on those efforts, as the EU should not be exempt from robust parliamentary and—especially—public scrutiny. I believe it is essential that we keep a close eye on the powers that are being transferred to the EU, whether through referendum, Act of Parliament or ministerial decisions, for three reasons.

First, there is the matter of keeping a track record of the cost to this country of the EU’s having more powers, and letting people know who is governing Britain. Secondly, there is the matter of democracy and the public’s being able to hold the EU, the Government and Parliament to account for the decisions they take and the powers they ultimately exercise. Thirdly, there needs to be scrutiny of the powers handed over that are not deemed to be significant. After a single transfer, they may appear to be innocuous, but a series of such transfers over time may constitute naturally something more significant.

The Minister will be aware that the Government publish some of the details on the transfer of powers, such as the report on EU justice and home affairs matters that details the use of the opt-in protocol. More information of that nature across the Government should be published, and the new clause would facilitate an opportunity for the Prime Minister to present it to the House.

[Graham Stringer]

This is a particularly imaginative new clause. Does the hon. Lady imagine that there would be votes on such reports, or would they just be for information?

[Priti Patel]

I would not rule out anything, to be honest. As I started by saying, the new clause is designed to generate more openness and transparency in the transfer of powers and, ultimately, the amount of say that the EU has over us in this country. Right hon. and hon. Members, as well as the public, could therefore review the report, audit the EU and further hold decision makers to account, so I would welcome the opportunity not only to discuss but to vote and to have full-blown transparency.

The new clause is necessary because the monitoring of EU policies and the transfer of powers is not as effective as it should be. I pay tribute to the European Scrutiny Committee for its tremendous work. Unfortunately, the Chair of that Committee is not here this afternoon. It should be of concern to the legislature that such information is not always readily available and that important qualitative and quantitative data on the EU are not easily accessible.

[Martin Horwood (Cheltenham) (LD)]

I am slightly surprised. Given the evidence of the past three weeks, is my hon. Friend really suggesting that even the slightest scintilla of power moving from this country to the European level will not be noticed by the hon. Member for Stone (Mr Cash) or the hon. Member for Wellingborough (Mr Bone) or all her other hon. Friends? They seem to be on to these things like terriers most of the time.

[Priti Patel]

And quite rightly so. Of course, we have a House full of assiduous Members and the European Scrutiny Committee has been very effective, but I am talking about an annual report and more openness and transparency.

By asking a range of parliamentary questions of 10 Departments, I received information stating that at least 79 current EU directives were pending transposition into UK law at a total cost in excess of £20 billion, and that is just one example. Of course, assiduous Members will ask many other questions and do a lot more fact finding to identify and uncover other transfers, too.

There is no reason why such information should not be published regularly, and Ministers must endeavour in future to be more transparent and accountable. It is therefore important in going forward with the Bill that information on the costs, benefits and powers exercised by the EU is available and accessible, as that greater transparency and opportunity to hold Government policy to account over the EU would, in my view, be most welcomed by the British public.

The new clause would go somewhat further than just making more transparent the EU, the Government’s policies on the EU and transfers of power, because it effectively asks the Government in their annual report to publish details of plans to repatriate the powers and competences from the EU that they believe should be held by this country. As drafted, the Bill will establish a referendum lock and safeguards against further significant transfers of power, which I have consistently supported and welcome, but it does not cover the approach that should be taken to repatriate powers to this country that the EU currently holds that are not in our national interests and on which the public expect us to act.

We have heard about many opinion polls in these Committee proceedings, but I shall refer to another one. An opinion poll conducted four years ago, before the previous Government handed over even more power under the Lisbon treaty, found that 58% of the British people believed that the EU should have less power and that more decisions should—surprise, surprise—be taken nationally and locally, and that 68% of people thought, quite frankly, that the EU did not represent ordinary people in our country.

Across a diverse range of policies, the public and parliamentarians of all parties can point to powers that the EU should not have, and that the British people believe should be brought back to our country, for a range of democratic reasons as well as on cost grounds. They include policies on access to our territorial waters, which we debated last week when discussing fisheries, as well as on justice and home affairs.

[Mr David]

I am following the hon. Lady’s argument with a great deal of interest. I know that she used to be a member of the Referendum party. Have any of her views changed since she joined the Conservative party?

[Priti Patel]

Absolutely not! I believe that the Conservative party has very much embraced the views of the party that I represented back then. I have been campaigning for a referendum for more than 15 years, and the Conservative Government are now proposing it.

I was talking about the powers that have been handed over to the European Union. The European arrest warrant has been the subject of a great deal of debate in the House, and social and employment policies have cost the UK more than £38 billion. We have heard mention of the working time directive, as well as of waste in regional policies, economic controls and financial services, not to mention the endless regulations that burden our businesses, the £1 billion that the EU is seeking to fine the UK and the £50 billion, which I mentioned during questions today, that the UK is set to hand over as a net contribution over the next few years to 2016.

[Martin Horwood]

Many of us think that the European arrest warrant is a useful and positive counter-terrorism measure. Would it not be better to take what would presumably be an annual debate on the hon. Lady’s proposed report and broaden it out into a debate on the work of the European Union or the Commission’s work programme as a whole? That would subject the whole programme of the European Union to scrutiny in this place, and allow those of us who have a more positive view of the EU to put our case as well.

[Priti Patel]

I suggest that timetabling the required number of hours and days for such a debate could be quite challenging, because it would have to cover a vast number of issues.

In my view, the British people deserve to know what their Government are planning to do, not only about the powers that the EU seeks to exercise but about those that it currently uses and—dare I say it—abuses, according to some in this House. Like all Conservative Members, I stood on a manifesto that clearly stated:

“The steady and unaccountable intrusion of the European Union into almost every aspect of our lives has gone too far.”

Following the ratification of the Lisbon treaty, we made a commitment not to let matters rest, and to negotiate the return to Britain of criminal justice powers and the opt-outs of the charter of fundamental rights and of social and employment legislation. The new clause would give the Government and the Prime Minister an annual opportunity to update the House on the actions being taken to deliver that, and to bring genuine openness and transparency to these proceedings.

Forty years ago, when we entered what was then known as the European Economic Community, few could have predicted with any accuracy how deeply integrated and ingrained the EU has now become. Had we known that at the time, I am sure that this Bill would have been even more robust than it is.

[Emma Reynolds]

Does the hon. Lady acknowledge that it was a Conservative Government, with the Single European Act in the 1980s and the Maastricht treaty in the early ’90s, who gave away the largest transfer of powers from this Parliament to Brussels?

[Priti Patel]

That is genuinely a matter of record now. We have now seen how far the EU has gone, and that is the reason for my probing new clause. We need to look to the future and be more vigilant. This is not just about the past; it is about what is coming in the future.

[Kate Hoey (Vauxhall) (Lab)]

The hon. Lady is probably aware that the vast majority of the public do not care which Government gave away our powers. They are fed up with the fact that more and more powers have gone to Europe and they want those powers back. Does she agree that until this country faces up to the fact that for far too long the public have had no say in whether we want to stay in Europe or not, and that until we get a referendum on that, we will never clear the air and be able to go forward in Europe as progressive Europeans, or go out of Europe and go forward as progressive UK citizens?

[Priti Patel]

I thank the hon. Lady for her contribution. I entirely agree. The air needs to be cleared, and the British public naturally feel upset and uneasy about that. The issue is a sensitive one, hence the need for greater openness and transparency.

I ask the Minister to consider the points that I have made—fundamentally, the issue of openness and transparency. We have handed away far too many powers. The Bill is about the future, and I would welcome the Minister’s views.

[Mr Lidington]

The new clause moved by my hon. Friend the Member for Witham (Priti Patel) raises important issues, and it is right that we should devote some time and attention to her arguments today. I share a large number of the concerns that she expressed, and I welcome her wish to see much more transparency and clarity in the way in which the European Union operates. Having said that, I shall argue that the method proposed by my hon. Friend in her probing amendment is not necessarily the best one to secure those objectives. I shall deal with the main components of the new clause in turn and explain why, although I share many of her concerns, I do not think that the proposal as drafted is the best vehicle to deliver those goals.

Let us look first at how to police the boundaries of European competence. I share the anxiety expressed by my hon. Friend, and I believe that this is the mischief that subsection (2)(b) of new clause 7 is intended to address. That subsection requires that a list of any powers or competences transferred from the UK to the EU under the terms of the treaties in the previous 12 months, which have or have not received specific authorisation under any provisions of part 1 of the Bill, be included in the annual report.

The treaty position is clear. A competence should be transferred from the UK to the EU only if there is a treaty or treaty amendment unanimously agreed by all member states using the ordinary revision procedure, whereby we have a continuing power of veto. Power, as defined in the Bill, is changing the treaty to give an EU institution or body the power to impose a requirement or obligation on the UK, to impose sanctions on the UK, or to abolish what are defined in the Bill as significant vetoes.

Given that those changes to competence or power are covered by the referendum lock as set out in the Bill, there ought to be no possibility of the need for any entries at all in the report under subsection (2)(b) because competence cannot lawfully be transferred by any other means. What lies behind my hon. Friend’s argument, I think, is a concern that competence may be extended in ways other than formal treaty change.

It is important to try to distinguish the issues. There are cases where the EU has competence—we may argue about whether it ought to have such competence, but that competence has been granted by one or other of the previous treaties—but where the UK has particular views about how the European Union should legislate on the basis of that competence. We may believe that a particular measure is unjustified on grounds of subsidiarity, or that the costs of a particular measure are disproportionate to the benefits being claimed.

I offer the Committee an example. We do not dispute that the EU has competence to legislate on the terms and conditions for pregnant workers, but we have very strong views about the content of the particular proposal that is on the table, and we successfully built firm opposition in the Council to the European Parliament’s approach, which has effectively brought those negotiations to a standstill. At heart, that is not a matter of competence; it is a matter of policy. Those matters are debated carefully in the discussions about negotiating strategies that take place in the European Affairs Committee of the Cabinet, and they are also covered in the explanatory memorandums that we as a Government submit to Parliament.

There are other areas where there are concerns about whether a Commission proposal for new EU legislation or action oversteps the boundaries of existing EU competence. Again, the Government rigorously assess every proposal coming out of Brussels to ensure that it falls within the scope of competence and that the treaty base put forward by the Commission is justified. To give another example, we have been rigorous in asserting our position with regard to matters to do with the EU’s external competence.

Let us look at the External Action Service and consular work. We have firmly restated the treaty position that the EAS has no formal role in consular work, and should support it only by facilitating co-operation and the co-ordination of member states’ actions. The competence for consular functions remains with member states. We have made it clear to Baroness Ashton and to the Commission that we would oppose Commission proposals for the EAS to have a direct role in providing consular assistance or in any other way seek to expand the institutions’ role beyond the competences set out in the treaty.

As a further example, at the Cancun UN conference on climate change, we insisted on prior agreement on when the presidency and the Commission would be authorised to represent the position of the member states, and the forms of words that they would use when doing so. We did that in order to safeguard the position that competence remained with the member states and had not been given exclusively to the institutions of the European Union. In the last resort, if we considered that a proposal went beyond the competence of the EU, we would challenge it during the legislative process and, if necessary, at the European Court of Justice.

One of the reasons I hesitate to endorse an annual report is that I think what the Government should be doing is to make clear their views on competence as they affect particular measures whenever those measures are brought forward. If we adopted the proposed annual report, there would be a risk of Whitehall saying, “Let’s wait for the 12 months to elapse for the annual report.” My hon. Friend will probably have received some parliamentary answers; when I was a free spirit, I used to get parliamentary answers saying that the information would not be made available now, but if I wanted to hang on for six months, it would be made available in that Department’s annual report, or when a promised review was published. I would not like us to get into that situation with regard to these matters.

I have asked that every explanatory memorandum sent to Parliament should not simply state what legal base the Commission has given to it, but give some assessment of the suitability of that legal base.

We need to be much more forward-looking and smarter. Right across Whitehall, we must pay more attention to the Commission’s forward work programme, so that we can identify up front any potential issues of concern over competence creep at an early stage, preferably even before the publication of a proposed directive or other measure. That is the way forward for continuing work in government to scrutinise every proposal on competence grounds, and much more openness and activity in Parliament as well.

--- Later in debate ---

[Mr Lidington]

I do not regard as insignificant or risible giving the people of the United Kingdom a final say over treaty changes that transfer new powers and competences from this Parliament to Brussels. We would have much more public confidence in politics, and a much better chance of positively putting the case for British membership of the European Union, if the public did not feel so betrayed by the absence of any endorsement, by means of a referendum, of past treaty changes.

On new clause 7, which my hon. Friend the Member for Witham moved, my response to our hon. Friend the Member for Kettering (Mr Hollobone) indicates why some of what it seeks is not suitable. Subsection (2)(a), for example, would require a report on

“any statements in the previous 12 months under section 5”—

both the statement about whether such a treaty or decision transfers power or competence, and the statement on whether any transfer under Clause 4(1)(i) or (j) is significant.

It would not be onerous to include that requirement in an annual report, but there are unlikely to be so many treaties or decisions in any one year, so there would not be any real value in that information being collected and set out in an annual report. Under the Bill, there will be a minimum requirement for a written ministerial statement and an Act of Parliament before any such measures can be agreed, and that seems to represent sufficient transparency.

On repatriation, I listened to my hon. Friend the Member for Witham, who put her argument very powerfully and cogently. She knows that, under the coalition agreement, the Government are committed to examining the existing balance of competences and what they mean for Britain, and we continue to look at that issue.

The new clause raises some very important issues, and I welcome my hon. Friend’s aims of seeking much better value for money, more transparency and vigilance against competence creep within the European Union. Those matters are not for the Bill, however, which deals with treaty changes and ratchet clauses transferring powers or competences to the EU. We need to focus immediately on the individual issues to which she refers, measure by measure, as they arise in the Commission or as individual items of legislation, rather than taking up time preparing retrospective reports that I fear would be of largely historical interest.

What is relevant and important to the work of Ministers throughout Whitehall is for the Government to pursue with Parliament ways in which we can improve the scrutiny of EU issues and the opportunities for Parliament to hold Ministers to account for their stewardship of the United Kingdom’s interests in European discussions. I therefore urge my hon. Friend to withdraw her new clause.

[Priti Patel]

I thank the Minister for his response to my new clause. I shall say a few words, because a number of issues arose in his reply.

There is a range of issues that clearly must be aired and discussed—that was the purpose of my new clause—in relation to competence creep and the ever-increasing powers that have been sucked away to Europe over the years. The Minister has a valid point about the proposed report being more retrospective, and if nothing else his assurances about the role of this House and Parliament in the scrutiny not just of legislation but items as they arise, and about the forward-look in terms of the Commission’s work programme, are absolutely vital. As we heard in the earlier debate, a number of assiduous Members will continue to bring those issues to the Floor of the House, to pursue them and to persist with them.

I intend to withdraw my new clause, but my final point to the Minister is about cost-benefit analysis, which is fundamental. The Government could still do a lot more to assure the British public that their hard-earned money was being spent more effectively when it comes to EU matters. I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 11

Provision for further referendum

‘In order to meet the referendum condition referred to in section 2, section 3 and section 6 of this Act, the Act providing for the approval of—

(a) a treaty under the terms of section 2; or

(b) a decision under the terms of section 3; or

(c) a decision or draft decision under section 6

shall also provide for a further binding referendum to be held on continuing United Kingdom membership of the European Union, if the majority of those voting in a referendum held under the terms of the relevant section are opposed to the ratification of the treaty, decision or draft decision, as the case may be.’.—(Mr Bone.)

Brought up, and read the First time.

[Mr Bone]

I beg to move, That the clause be read a Second time.

It is a great pleasure to follow my hon. Friend the Member for Witham (Priti Patel), who made such a powerful speech. I hope that I am able to tempt her into joining us in the Division Lobby later tonight, given what she said about new clause 7. It would be wrong of me not to pay tribute to the Whips Office for allowing me this time tonight, and for arranging matters so that my amendment 48 was not debated last week, when there clearly was not enough time for it. Now, we have absolutely hours and hours to discuss new clause 11, and I congratulate the Whips on that.

The new clause, which stands in my name and those of other hon. Members, reads:

“In order to meet the referendum condition referred to in section 2, section 3 and section 6 of this Act, the Act providing for the approval of—

(a) a treaty under the terms of section 2; or

(b) a decision under the terms of section 3; or

(c) a decision or draft decision under section 6

shall also provide for a further binding referendum to be held on continuing United Kingdom membership of the European Union, if the majority of those voting in a referendum held under the terms of the relevant section are opposed to the ratification of the treaty, decision or draft decision, as the case may be.”

What does that actually mean? For the first time, this Parliament would have an option to debate whether we should have an in/out referendum on the European Union. In other words, there would have to be a binding in/out referendum on our membership of the European Union if the new clause were passed and two hurdles cleared: first, a referendum would have to be triggered under the European Union Bill, owing to a proposed transfer of competency; and secondly, the British people would have to vote against such a transfer of power.