European Union Fiscal Union

Debate between Richard Shepherd and William Cash

Wednesday 14th September 2011 Westminster Hall

[Mr Cash]

I very much agree with that. I put that same point to the Prime Minister in the Liaison Committee last week. I asked him whether he seriously believed that Germany was going to be able to bail out the other member states. The money is simply not there. To imagine that Germany could carry the weight of the Spanish debt is, as Camilla Cavendish has said, complete cloud cuckoo land. We can see the Italian position getting increasingly out of control, while the Greek situation is beyond critical. Greece should exit the euro—that is perfectly clear—but there are desperate attempts to prevent it happening, although that is literally trying to do something impossible. One might as well believe, as Alice said in Wonderland,

“six impossible things before breakfast”,

and the truth is that one of them is the idea that Germany will be able to sustain the whole of the European Union or, indeed, that its own people will allow that. All the evidence is that there is a very serious concern that they simply cannot afford to do it and that they do not want to do it. I will not give all the instances, because they are so well reported in the newspapers and other media.

[Mr Richard Shepherd (Aldridge-Brownhills) (Con)]

One of the reasons that things have worked quite well for Germany is that, without the southern countries, the exchange rate of the euro would have been even higher. They therefore helped suppress the exchange rate in the free markets, to some extent, which has been of benefit to Germany.

[Mr Cash]

Absolutely right. Germany has gained much, but now the chickens are coming home to roost. The system is not working because the Germans have made investments in other countries. If we look at the Greek sovereign debt situation, an enormous amount of investment—by far the greatest amount—is from Germany, followed by France. So the sovereign debt question is now part of the overall problem of Europe as a whole, and the mess created, which many of us predicted, is now with us. Any sovereign debt default will become all the more serious the longer that the European Union attempts to sustain the euro. Economists such as Tim Congdon and others have made that case, but it is absolutely clear that the situation will get worse the longer that the European Union tries to put sticking plaster over what is a clear case for complete renegotiation of the treaties to get some sanity back into the situation.

The idea that those of us who are eurorealists and who have argued this case for so long would take any satisfaction from the fact that the situation might implode is complete rubbish. Of course we do not want it to implode; we want to get stability back, to reduce our deficit and to increase growth, but none of those things can happen if we have over-regulation, too much integration and too much governance from European institutions, which prevent oxygen reaching our small and medium-sized businesses. That is an issue not only for this country, but for other countries, which all face greater and greater unemployment. I therefore strongly urge the Prime Minister to sort this out at the next summit.

We cannot create growth unless the money to pay for the public sector comes from reasonable taxation on private enterprise. It must be reasonable taxation, because growth must come from the development of small and medium-sized businesses. There is no way we will reduce the deficit if we continue trading as we are with a Europe that is bankrupt, with the exception of Germany. Incidentally, while we had a £53 billion trade deficit with the EU in 2010—that went up by £40 billion in one year—we had a trade surplus with the rest of the world of £7 billion, and it could be much more if we made the big strategic change that I am proposing. That, too, underpins my resistance to the idea of fiscal union.

Fiscal union will lead to greater implosion, greater sovereign debt, more defaults and more trouble. It might also—I say this cautiously—lead to the rise of the far right, because that is the consequence of implosion in democracies and of their being forced into situations where their people start saying, “We’re not going to put up with this any more.” One has to be careful about what is done. That is the dangerous crossroads we are at, and the Prime Minister must make the right call.

Fixed-term Parliaments Bill

Debate between Richard Shepherd and William Cash

Wednesday 13th July 2011 Commons Chamber

[Mr Charles Walker]

Fixed-term Parliaments: constitutional vandalism.

[Mr Cash]

This was not in our manifesto. The people who voted for us certainly did not vote for fixed-term Parliaments.

In 1940, as I have said, the Government won the vote in May, but the public would not countenance that Government remaining in power for another day. That was what got rid of Neville Chamberlain, and Leo Amery said:

“In the name of God, go.”—[Official Report, 7 May 1940; Vol. 360, c. 1150.]

[Mr Shepherd]

Quoting Cromwell.

[Mr Cash]

There was a similar example in the Cromwellian period. There are great events taking place in the world today, and the whole question of the sustainability of government ultimately depends on the continuing will of the people as a whole. The idea of fixed-term Parliaments is intrinsically wrong, because it defies the gravity of the views of the public at large. If the public were to turn against fixed-term Parliaments, under the Bill they could not succeed because fixed-term Parliaments would have been entrenched by statute, which would be upheld by the judiciary. That is fundamentally an attack on our sovereignty and the sovereignty of the people of this country. That is why I object so strongly to the whole idea of fixed-term Parliaments, whether of five years or four. It is unconstitutional, wrong and prevents the people from being able to demand a general election irrespective of the views of a Prime Minister or a coalition that is cobbled together despite the views expressed in the respective manifestos.

Question put, That this House disagrees with Lords amendment 1.

European Union Bill

Debate between Richard Shepherd and William Cash

Tuesday 8th March 2011 Commons Chamber

[Mr Shepherd]

I have just heard another inaccuracy from the right hon. Gentleman, just as previously he was corrected on a matter of fact regarding the invitation of those not in the eurozone to be present at meetings affecting what are profound matters. I shall therefore take with slight caution some of the arguments that he has advanced.

I should declare an interest: I am a parliamentary vice-chairman of the Campaign for Freedom of Information. What is noticeable is that Europe is notoriously remiss in this area. It is proclaimed that work is being done on freedom of information, yet in many ways the bureaucracy in Europe is one of the most secretive organisations of them all.

[Mr Cash]

The very paper that led to the urgent question that divulged what was going on with European economic governance was described as a “non-paper”. In other words, it was a paper that no one was supposed to know anything about.

[Mr Shepherd]

This is the record on Europe that most of us will recall; it is not the fantasy of some, who see Europe as an object of almost theological insistence.

--- Later in debate ---

[Mr Shepherd]

As I understand it, the European Union purports to be a country now. That change of title happened following Maastricht. We became citizens of the Union, also under Maastricht. Those issues were fiercely fought over. The question of whether Her Majesty the Queen was a citizen of Europe arose on the Front Benches here. We asked those questions and they were debated. The Bill was passed, but it was, as Labour Members will recall, a damned close-run thing—on one amendment in particular.

[Mr Cash]

The very amendment paper that my hon. Friend is holding in his hand demonstrates the amendments that have been tabled and that are available to everyone who cares to look at them. On the basis that the Council of Ministers is a legislative body, does he not agree that, if we have to receive its legislation and are then allowed to table amendments to it, we should be entitled to see the amendments that have been tabled during the preceding process?

[Mr Shepherd]

That is the argument, and I am glad that it was so briskly conveyed. On that note, I urge the House to support the new clause.

European Union Bill

Debate between Richard Shepherd and William Cash

Wednesday 26th January 2011 Commons Chamber

[Mr Cash]

I accept that. That complexity does exist, and part of the difficulty with the whole issue of human rights, whether in relation to accession, the charter or the jurisdiction of the Courts, is shown in the comments of the Lord Chief Justice in his Judicial Studies Board lecture. He said to the entire judiciary, “Brothers and sisters”, referring to the other judges—[Interruption.] Well, that is their language. He said, “Brother and sister judges, will you please take note that our first obligation is to have regard to the manner in which we come to our decisions in the light of common law precedent?” He warned them against adopting Strasbourg’s precedents as a means of arriving at decisions in our own courts. He actually used the words, “We must beware”. I therefore entirely agree with the hon. Lady and with my hon. and learned Friend the Member for Sleaford and North Hykeham, and with the views expressed in the European Scrutiny Committee’s report that has come out only this afternoon.

[Mr Richard Shepherd (Aldridge-Brownhills) (Con)]

There is indeed a conflict of courts, which has been a matter of considerable concern for a number of years. It is the oldest question of all—who is the master? Where there is a conflict between a constitutional court—the European Court—and a human rights court, who prevails? That is the lack of clarity that exists and the worrying aspect for many people. It has been much talked about in the European Parliament in recent years.

[Mr Cash]

Indeed, and I add that my hon. Friend, who is a member of the Joint Committee on Human Rights, has been manfully seeking to contain the tsunami of opinions expressed in that Committee about the continuing onward movement towards accession of the type that we are discussing here and about the human rights culture and all that goes with it.

[Mr Shepherd]

I am not a lawyer, as is evident, but the great difficulty is that we have a common-law tradition, and the European tradition is civil law. Those are totally different ways of looking the world. It is the case law that I am worried about.

Fixed-term Parliaments Bill

Debate between Richard Shepherd and William Cash

Wednesday 24th November 2010 Commons Chamber

[Mr Cash]

I will now move on to the very question that is being discussed, which is motions of no confidence and what they really mean. There are various permutations, which are well described in the Library note, but the issue for me is basically this. In my belief—and according to the House’s tradition and its conventions, which are now to be overtaken by statute—a majority of one should remain. However, in that 14-day period, with shenanigans worthy of Lord Voldemort and the servants of the Dark Lord, an attempt would be made to keep in power a Government who had lost the confidence of the House of Commons—that is, the representatives of the electorate. That attempt would keep the Government on their feet, while the public would be left watching the spectacle of streams of members of the Cabinet and prospective members of the Cabinet from the Opposition parties striding up and down Whitehall, in and out of offices, all under the baleful influence of the Cabinet Secretary, as they tried to hatch yet another coalition agreement, no doubt based on very different principles from those for which the electorate had voted, in accordance with the parties’ respective manifestos or—dare I use the words?—their promises.

As to the question of what confidence motions actually are, they are various. In 1945 it was Churchill versus Attlee, and the Government won. Then there was Attlee against Churchill in 1952, and Gaitskell against Eden in 1956, when the Government won again. There was also Wilson against Heath in 1972, on the European Communities Act, when there was thought to be quite a lot of manoeuvring on the question of whether there had been a free vote or not. I will not go down that route now, but examples of where the Government have lost confidence motions include the Liberal Government of 1895, the Baldwin minority Conservative Government —note: minority Conservative Government—in 1924, the MacDonald Government in 1924, when there was again a Dissolution, and, of course, the famous Callaghan defeat by Thatcher, by 311 votes to 310.

[Mr Shepherd]

I am getting increasingly impatient in one sense, but on the distinction between what is a confidence motion and what is not, I put this proposition to the Committee. If the Government lose the Budget, that is it. My understanding of our constitution is that that would be the end of the Government.

--- Later in debate ---

[Mr Shepherd]

Well, Governments have resigned on the loss of such votes. Therefore, what constitutes a motion that arrives at that result? What my hon. Friend has been quoting were dates, not motions.

[Mr Cash]

It is very rare that I say this, but I do not agree with my hon. Friend about that, because although those are dates, they are also about matters of huge political significance to the country at the time.

[Mr Shepherd]

That applies to the Budget.

[Mr Cash]

Indeed, and my hon. Friend is right on that point, because it is not just about the business; in my judgment, it is about the sense of feeling in the country and the outrage in the House about the policies that are being pursued.

--- Later in debate ---

[Mr Cash]

Indeed, but that was about the sense of outrage over what had been done. That could apply to a Budget, as my hon. Friend the Member for Aldridge-Brownhills (Mr Shepherd) said, or to any other situation. It could have applied to Suez or, for example, the Iraq war. For all those reasons, the confidence motion, in whatever terms it is expressed, is just that: do those voting in the House of Commons at the time, by a majority of one, have a sufficient degree of confidence in the behaviour and policies of the Government?

[Mr Shepherd]

I am grateful for my hon. Friend’s tolerance in giving way again, but the outcome of the vote in 1940 was the resignation of the Prime Minister, not the Government as a whole. Although the Government went with him, they reformed themselves, so what happened was not an electoral matter; it was the outcome of a confidence motion in the individual who headed the Government.

[Mr Cash]

I agree with my hon. Friend on that, but there was also the sense of outrage that was being expressed. As that occasion has been raised three times already, let me mention in passing that, as it happens, it took place on the day that I was born, but there we are.

What does such innovation say about the coalition? It certainly demonstrates its determination to stack the cards firmly in favour of the coalition and the Whips. There may well be one third whom the coalition cannot take for granted or persuade, but I fear that that attitude is taking power away from Parliament—which, after all, is made up of the representatives of the people—and not giving it back. If the same principle were followed for any other motion, Parliament would simply not be able to carry out its business. I fear that what is proposed is not modernising, but is a reactionary measure. It is not progress, but a step backwards, along the primrose path, undermining the constitutional principles that have governed our conventions and been tested over many centuries. The proposal has been conjured out of thin air, for the ruthless purpose of maintaining power irrespective of the consequences. In my opinion, it is a great shame that it has been put forward on the proposition that—as was said in the general election and at the conference that took place recently—we are supposed to be “Working together in the national interest”. I fear that on this Bill, on this matter, we are working together against the national interest.

Fixed-term Parliaments Bill

Debate between Richard Shepherd and William Cash

Tuesday 16th November 2010 Commons Chamber

[Mr Shepherd]

The proposal suits the Government for their own purposes, and that is why the nation at large is cautious, as are many Members on both sides of this Chamber.

[Mr William Cash (Stone) (Con)]

Does my hon. Friend appreciate that many of us may well be cautious, because although we are concentrating on the question of a fixed-term Parliament, when we move on we will be examining the question of an early general election and questions of confidence—confidence in whom and for what? We will also deal with whether such questions should be decided by a simple majority or one of two thirds. These hugely important questions go straight to the heart of the future of this Parliament.

[Mr Shepherd]

My hon. Friend is, of course, right. This is a hugely important constitutional Bill and we should not doubt that. Every commentator of any serious worth has noted that this is an enormously important constitutional issue and we will try to tickle out its ramifications, including for parliamentary privilege, within our very tight timetable. What he says is true and just, and we should listen to it.

Parliamentary Voting System and Constituencies Bill (Programme) (No. 2)

Debate between Richard Shepherd and William Cash

Tuesday 12th October 2010 Commons Chamber

[Mr Richard Shepherd (Aldridge-Brownhills) (Con)]

It is a bit rich that the hon. Gentleman should repeat the same arguments as those that he listened to and swept aside when he was in a position to affect the outcome of such a debate.

I am going to reflect on an irony. Along with every other Member, I participated in the last general election. The Deputy Prime Minister—who at the time was leader of the Liberal Democrats—repeatedly made a point about the “same old politics”. That became a mantra, and I remember that his poll rating went up when he referred to it. Yet here we are having the same old politics announced from the Front Bench under his direction; this is his Bill. This is a constitutional measure, which we all understand is of considerable importance. It affects the constituencies, their nature and the nature of representation, and the way in which a Member is elected to this place. I can think of nothing as constitutionally profound as this—leaving aside European legislation—in all the time that I have been here. In addition, it is intended not to be unwound if it is won—that is the point behind it—so why are we looking at the same old politics?

This motion is a guillotine: that is what it is, straight and simple. We need not waste time debating whether it is half an hour short here or two hours short there, or whether we lose part of the debate because of the importance of various clauses. This should have been allowed to roll in this House for as long as it took. That was the constitutional rule almost—

[Mr William Cash (Stone) (Con)]

Convention.

[Mr Shepherd]

Yes, it was the convention, but conventions have been swept away. Again, that was largely done by the Labour Front-Bench teams of the past 13 years, and one does not now hear the word “convention” used in the House. We have no cause, urgency or reason to accept a guillotine such as this. I must tell the Deputy Prime Minister, through my hon. Friend the Member for Forest of Dean (Mr Harper), who is a very respected member of the Conservative party, that I shall not hesitate to vote against the Deputy Prime Minister’s guillotine motion.