Emerging Economies

Simon Hughes Excerpts

Monday 14th June 2010 Commons Chamber

[Mr Browne]

I do not want this debate to be just about aid, because the emerging economies are important in many different ways, not only as recipients of our largesse. Let me proceed with some of the points I was going to make, not least those relevant to the comments of the hon. Member for Hartlepool (Mr Wright). If I do not cover them to the satisfaction of the hon. Member for South West Wiltshire (Dr Murrison) and others, perhaps we can return to them later.

There has been a truly transformational shift in economic and political power. That is a change that will have enormous consequences for Britain and about which we cannot be complacent. Although it is a challenge that may, in some ways, pose difficulties for us, it is also a great opportunity. It is worth saying—this is relevant to the point about aid—that about half a billion more people have been taken out of poverty as a result of these changes taking place around the globe: a figure that could not possibly ever have been achieved through international aid and generous donations from our country. It is a phenomenon that has transformed the life chances and opportunities of millions of people who previously lived in a state of destitution.

The World Bank has estimated that the global middle class is likely to grow from 430 million people in 1999 to more than 1 billion people in 2030, and most of that growth will be in the emerging market countries. That increase in middle class consumers is equal to the total population of the European Union, in the course of just three decades. If we are to see Britain’s economy growing strongly again, which must happen if we are to tackle the UK’s deficit and raise the prosperity of our own citizens, we must tap into these vast new markets.

We have huge economic advantages in this country. Britain is home to many of the leading global companies in the energy, retail, financial and communications spheres. We are an outward-looking and open country ranked by The Economist as the best place in Europe to do business. London is a global city and Britain is increasingly a global hub. Ours is a multicultural nation with connections across the world. We will use those connections to build and intensify our commercial, cultural and educational links. The English language is the most widely spoken in the world. It is the common language not only of international business but of science, academic research and the digital world. There are today more English language students in China than there are people in the United Kingdom, and English is the common tongue for business in India. This can only be good news for British businesses wanting to tap into these giant markets.

[Simon Hughes (Bermondsey and Old Southwark) (LD)]

Following the intervention by the hon. Member for Hartlepool (Mr Wright), will the Minister join me in paying tribute to people from these countries—not only those from India, who have historically been very proactive, but those from the Chinese public and private sector, and from Brazil and elsewhere—who are working hard in this country to ensure that we understand not only the opportunities for them, but the opportunities for us in their countries, in a way that they were not even beginning to do 10 years ago?

[Mr Browne]

I strongly agree with my hon. Friend. It is notable that, in many international companies and other organisations in which the management and the work force are drawn from right around the world, talent has become a global phenomenon. Many talented Chinese, Indian, Brazilian and other people work in London and throughout the United Kingdom and contribute to companies with British leadership and to the prosperity of our country.

UK Policy on the Middle East

Simon Hughes Excerpts

Monday 14th June 2010 Commons Chamber

[Mr Lewis]

I shall come to that, but I believe that this country and the international community should give that plan every support. Prime Minister Fayyad, and indeed President Abbas, have done a remarkable job in the west bank on security and economic development, so we should give as much support as we can to the Fayyad plan.

[Simon Hughes (Bermondsey and Old Southwark) (LD)]

I pay tribute to the hon. Gentleman for the work he did as a Minister and for his clear statements this afternoon. Does he agree that it is vital that all parties understand that we need a secure middle east not just for Muslims and Jews, but for Christians and for people of other faiths and none across the region, and that the growing pressure for conflict prevention and resolution in the Parliaments and Assemblies of the middle east is one way forward? If we engage people on the ground on conflict prevention, we could do as much good as getting the world’s superpowers to try to solve the problem from afar.

[Mr Lewis]

I agree entirely with the hon. Gentleman. One lesson we should have learned from a long history of conflicts all over the world is that preventive work, both at a political and a people level, is far more effective than intervening when things go wrong.

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[Mrs Louise Ellman (Liverpool, Riverside) (Lab/Co-op)]

I, too, congratulate you on your very well deserved position, Mr Deputy Speaker.

The death of nine people on the Mavi Marmara on 31 May has brought widespread outrage. It is the latest incident to highlight the tragic conflict between Jewish and Palestinian nationalism, which will be resolved only by a negotiated, comprehensive peace settlement that establishes two states—Israel and Palestine—living side by side in peace and security. I am very pleased that inquiries into the incident have now been set up. We will have to await the results of those inquiries to get the full picture, but this afternoon I want to refer to some of the facts that are already known—indeed, they are clearly evident.

The blockade of Gaza came about because Gaza has been run by the Islamist Hamas after Israel dismantled its settlements, ended the occupation of Gaza and withdrew 8,000 settlers and its soldiers. Instead of that being followed by an attempt to build a peaceful society, it was followed by Hamas overthrowing Fatah and establishing a regime set on eliminating Israel. Hamas’s ideology is very clear—it is set out in its charter and by the continuing statements of its leaders. Hamas sees it as a religious duty to destroy the state of Israel and it promotes the death cult. It says:

“The Day of Judgement will not come about until Muslims fight the Jews (killing the Jews)”.

That is in article 7 of its charter. It also invokes the protocols of the elders of Zion—the false allegations that there is a Jewish conspiracy to run the world.

Hamas’s position is not just to do with ideology and rhetoric; it is to do with action as well. It has fired about 11,000 rockets and missiles—directed at Israeli civilians—and now it is receiving weapons from Iran that Israelis fear could reach Tel Aviv. It was only last November that a shipment of more than 500 tonnes of Iranian weapons coming to Gaza was intercepted off the coast of Cyprus. So Israel has every reason to be concerned about the Hamas regime continuing to attack Israeli civilians and working continually with Iran, its backer, which is dedicated to the absolute destruction and annihilation of the state of Israel and its people. Israel has every reason to be concerned about that.

There is also every reason to be concerned about what is happening to civilians and citizens in Gaza, many of whom are not involved with Hamas. That can and has to be addressed in the long term by a proper peace agreement, but in the short term it could and should be addressed by the European Union, Egypt and the Palestinian Authority taking their part in ensuring that goods that do and should come into Gaza do not include weapons of destruction. That responsibility had been taken up in the past, but has now ceased to be exercised. It should be resumed, and I hope that today’s announcement will facilitate the easing of that blockade and will allow the needs of the people of Gaza to be met without threatening the citizens of Israel.

I want to ask several questions about the incident with the flotilla to Gaza. Six vessels set out to take humanitarian aid to Gaza, from five of which aid was landed at Ashdod as the Israelis requested. Most unfortunately, Hamas then refused to allow that aid to be taken into Gaza. The incident and the regrettable deaths happened on the sixth vessel, so what was different about it? Who was on it? Were the peace activists who most certainly were on the other vessels infiltrated by others with sinister motives? What was the role of the IHH—the Turkish-Islamic organisation that is linked, through the Union of Good, to Hamas and jihadists and even to al-Qaeda—which was involved in promoting the flotilla? When the Israelis asked that No. 6 vessel dock in Ashdod to unload its humanitarian load, a reply came back, which was recorded, “Go back to Auschwitz.” What was going on on that specific vessel?

The Turkish press have been making a number of interesting reports in the past few days, including interviews with the families of some of the people in the flotilla who died. Those families have spoken about their partners wanting to be martyrs. We saw Hamas flags draped over the coffins of the dead and we have seen videos of the Israeli paratroopers on those ships being attacked with metal pipes and knives and being dragged downstairs in attempts to lynch them. Reuters has issued an apology for clipping from photographs scenes showing weapons being held by activists on that ship. Were they all peace activists? I have no doubt that most of the people who set out for Gaza genuinely want peace, but there was something else going on on that No. 6 vessel—something that we need to know a lot more about.

[Simon Hughes]

Will the hon. Lady give way?

[Mrs Ellman]

I am sorry, but there is very little time left.

Ismail Haniya, the leader of Hamas in Gaza, said on 4 June that the

“Zionist project on our land is reaching its final stage. The incident marks the beginning of the delegitimisation of the Zionist project in our country.”

Clearly, there is something more to this than the giving of humanitarian aid. I hope that those inquiries will show just exactly what that is.

There is something to be hopeful for in the middle east, and that is the resumed negotiations, although they are only indirect, with Fatah in a genuine attempt to find a two-state solution to this very tragic conflict. I hope the work of Senator Mitchell and his team is successful. The only solution to the conflict is mutual recognition by two peoples, justifiably seeking to retain or achieve national statehood and living in peace. The ideology of Hamas, followed by its actions to deny Jewish statehood, is absolutely unacceptable and is the obstacle to peace.

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[Mr Andy Slaughter (Hammersmith) (Lab)]

I, too, congratulate you, Mr. Deputy Speaker, and welcome you to the Chair. Before making my brief remarks, I mention, by way of declaration and pending the publication of the register, that my constituency party has received donations from individuals and organisations supporting the rights of Palestinians, and I made several visits to Palestine, Gaza and the west bank in the last Parliament.

I wish that there were more time to debate this issue today. There is a debate in Westminster Hall tomorrow, secured by my hon. Friend the Member for Westminster North (Ms Buck), which may give more opportunity to address the issue of Gaza. We have heard very powerful speeches about that from my right hon. Friend the Member for Manchester, Gorton (Sir Gerald Kaufman) and the hon. Member for Bristol West (Stephen Williams) which will help me to confine my remarks. I wish that I had more time to deal with some other issues. I would like to comment on Yemen, Syria and Iraq, but the time simply does not allow that, save for one point, which is topical and relevant to my constituents.

In opening the debate the Minister mentioned in an impassioned way the contribution that this country had made to security in Iraq. I do not in any way denigrate the efforts that have been made by our forces there, but Iraq remains very insecure. The UN High Commissioner for Refugees has commented on the forcible removal of people from this country to central and southern Iraq in conditions that put their safety at risk, and I ask the Government to look at that matter. A longer, all-day debate on the issue in the Chamber would be helpful in order to test the Government’s emerging policies on the middle east. I am lucky enough to have in my new constituency the Iraqi Association UK, which I know is particularly concerned about deportations that continue from this and other European countries.

My hon. Friend the Member for Bury South (Mr Lewis) said that he wished there could be more of a meeting of minds between interests representing the Palestinian and Israeli sides. I echo that. It does occur, but perhaps not frequently enough. I am afraid that in the debate today we have seen people taking entrenched positions again, and I will try not to do that in my remarks. I have noticed an unprecedented co-operation between the groups representing the interests of Palestinians and in the three main parties, which now meet on a relatively regular basis. That is to be welcomed, but I think it is a response to the appalling situation that the attack on the Gaza flotilla has brought to light.

Following my several trips to Gaza, I would highlight three points that have come home to me and, I think, other hon. Members who have also made that journey in the last two to three years. First, there is a desire for justice. Yes, there is a desire for cement and security, but there is an overwhelming desire for justice among the Palestinian people. They believe that they are not getting that and that the balance of force is set very much against them, whether in the region or in the world. The hope given by the Goldstone report has so far been dashed, and now the prospect of an independent inquiry into the attack on the Gaza flotilla appears also to have receded.

Why is an independent inquiry important? The Prime Minister of Israel, in announcing the inquiry, said that it is to investigate

“whether Israel’s Gaza blockade and the flotilla’s interception conformed with international law”.

With respect to the right hon. Member for North East Hampshire (Mr Arbuthnot), he may need to brush up on his international law a little if he is going to practise again, because every opinion that I have read from respected international lawyers is very clear that there is no right to attack a ship bearing the flag of another country in the high seas to enforce a blockade, even were it a legal blockade. On that and many other grounds, this is an action of little more than piracy, and it will not much trouble the inquiry, if it is an impartial inquiry, to investigate that.

The other reason for the inquiry, according to Mr Netanyahu, is to

“investigate the actions taken by the convoy’s organisers and participants.”

In other words the victims—those who were killed and the many who were injured—are to be put on trial. Thanks to the way the Israeli media typically manipulate publicity—we have heard some examples repeated verbatim in the House tonight—there is very little chance of the inquiry being impartial and of the world being presented with what actually happened.

I took the opportunity to attend press conferences held by British citizens from the flotilla immediately on their return from Istanbul, where they were flown from Tel Aviv, and to hear their first-hand accounts. I may be able to say a little more about that in the debate tomorrow. Suffice it to say that it gives a totally different picture from most of what has been reported even in the British media and certainly in the international media about what happened during that unprecedented attack, in the middle of the night, in international waters, by armed troops, in a way that was deliberately provocative and ended with the entirely predictable result that many people were killed.

[Simon Hughes]

I hope that the hon. Gentleman agrees that although we understand the careful wording of what our Government said today, people such as his constituents and mine, who have come back with their stories, having been on the flotilla, particularly if they are of Palestinian origin, as the person whom I saw was, would be reassured only by an independent inquiry, rather than a partial one. We cannot expect people to trust an inquiry carried out by one of the parties to the event. It has to have international credibility.

[Mr Slaughter]

I am grateful for that intervention. Those who heard the response of the Israeli Prime Minister’s official spokesman, both during the Gaza invasion and more recently, will realise the deep cynicism that underlies most of what Israel says and does to justify what has happened.

We have heard a lot said about Hamas today, and I have again heard the same points trotted out. I do not in any way defend what Hamas has done or said in the past, but let us look at the inequality in arms, and at the violence done and the deaths caused in the region over the past few years. There have been 1,400 people killed—mainly civilians, including many children—in the invasion, and nine people on the flotilla were killed. Just this year, six Palestinians have been killed, and 18 injured, on the west bank; 31 were killed and 116 injured in Gaza. Of course we must condemn rocket attacks, and the now relatively isolated attacks on Israeli civilians and on the Israeli military, but the question of proportionality must enter into the matter. My hon. Friend the Member for Birmingham, Northfield (Richard Burden) and my right hon. Friend the Member for Manchester, Gorton mentioned the lockdown on the west bank and the repression that, every day, in a thousand ways, crushes the spirit of the Palestinian people there.

I end by putting a further question to those on the Government Benches: does an end to the blockade mean an end to the blockade? In The Guardian last Thursday, the Under-Secretary of State for Foreign and Commonwealth Affairs, the hon. Member for North East Bedfordshire (Alistair Burt), was quoted as saying that that was not necessarily the case, and that we could not expect an end to the blockade immediately. I believe that we need an end to the blockade, and I would like to hear the Government say today that that is what they intend. I echo what was said by the right hon. Member for Tonbridge and Malling (Sir John Stanley): there should be entry of supplies not only for UN purposes, but for general purposes so that the population of Gaza, who simply wish to live ordinary lives, can succeed and thrive—to trade, to eat, and to behave in a way that we in this country would think normal. The blockade is a form of collective punishment, not a way of controlling terrorism. It would be helpful to hear the Government say that in terms today.

European Affairs

Simon Hughes Excerpts

Thursday 3rd June 2010 Commons Chamber

[Mr Hague]

I am grateful to the hon. Lady for reminding me of our wager. Without giving too much away, I should say that I am looking forward to drinking with her the proceeds that she owes me. The wager was made on the understanding that I would join her so that we could consume the proceeds together. I am looking forward to doing that. [Interruption.] No, it is not beer on this occasion; it is something that we will drink together.

She asked how we would arrive at the decision. Well, that is exactly what the new European Affairs Committee of the Cabinet is there to do, supported by officials from both the Foreign Office and the Cabinet Office. There will be greater Foreign Office involvement and co-ordination of European affairs than has been the case for a long time. That is part of the more central role in government for the Foreign Office that I have always envisaged and am trying to bring about. That Committee will examine such issues, including the one to which the hon. Lady referred.

[Simon Hughes (Bermondsey and Old Southwark) (LD)]

I warmly welcome the Foreign Secretary to his new job, and I am encouraged by what he has said about the new European Affairs Cabinet Committee. Can he assure me that the Committee will pull together issues of climate change and climate crisis across the whole of Government, because those matters are relevant to the Ministry of Defence, for example, and clearly to business, too? If Britain can be seen to be leading the new green agenda in Europe, there is a real chance that we can influence the world. To put it bluntly, if Europe does not lead, the Americans, the Chinese and others are not likely to follow.

[Mr Hague]

I very much take that point. The hon. Gentleman can see how seriously we take the matter from the fact that his right hon. Friend the Secretary of State for Energy and Climate Change is the deputy chair of the Committee. I shall talk about climate change during my speech. It was noticeable in the final stages of the Copenhagen meeting that the European Union was not at the final table—in the final discussions—and we have to put that right for the future. That will be part of the approach that we are trying to put together in the European Affairs Cabinet Committee.

The main issue before the forthcoming European Council is, of course, the current economic situation. A number of member states face severe fiscal difficulties, and growth across Europe is anaemic. The priority for all of us is to rectify our budgetary problems and deal with the fundamental underlying problem of weak economic growth. The Government have made it clear that we will stay out of the euro, but at the same time, we must acknowledge that the EU is our single biggest trading partner. Problems in one member state affect us all, whether we are single currency members or not. Recent developments in the eurozone have exemplified the need for fiscal consolidation, which is the No. 1 priority across Europe. We have made an urgent start on dealing with the deficit, and those actions will be crucial for the stability of our public finances, after those who are now on the Opposition Front Bench bequeathed the country the worst peacetime deficit in modern times.

The major issue dominating discussion of European affairs is the difficulty facing the eurozone. A strong and healthy eurozone is, of course, in this country’s interests. That is a view held even by those of us who have always opposed Britain joining the euro. Much of our prosperity depends on our neighbours’ prosperity: 49% of our exports go to the eurozone.

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[Mr Hague]

They will certainly demand a lot of examination in the House. In the coalition agreement, we have committed to approaching further criminal justice legislation on a case-by-case basis. The UK has the right to decide whether to participate in new EU justice and home affairs measures, so we will give careful consideration to whether to opt-in to new measures in those areas while at the same time ensuring that the UK’s security is maintained and our civil liberties are protected, and that the integrity of our criminal justice system is preserved.

We recognise the importance of Parliament having adequate time to scrutinise those opt-in decisions. In all but the most exceptional cases, that means that we will not opt-in to any new measure in the first eight weeks following its publication, to give Parliament time to give a considered opinion. The hon. Gentleman will know that we are looking at how to improve parliamentary scrutiny of decision-making in Europe, and the positions that this Government or any future Government take at European councils. Indeed, we would welcome his views, as a distinguished former Chairman of the European Scrutiny Committee, on how those procedures can be improved. I know that my right hon. Friend the Leader of the House would welcome hearing from the hon. Gentleman.

[Simon Hughes]

It is important that what the Foreign Secretary has just said is given maximum publicity. One of the aspects of the disempowerment felt by the British public is the perception that European legislation has been forced on them. We should have a real debate about the merits of issues such as the working time directive, and what he has just said will be warmly welcomed not only by his party, but by mine.

[Mr Hague]

That is further evidence—to the deep disappointment of Opposition Members—of how well coalition government is now proceeding.

I will attend the Foreign Affairs Council on 14 June in Luxembourg. As I have long said, it is strongly my view that the nations of Europe should do more to use their collective weight in the world to advance shared values and interests. The problems have not been institutional, but political, including a lack of will and consistency. That is the spirit in which we will approach these matters.

I mentioned last week in the debate on the Queen’s Speech that this Government will give greater weight to elevating our relationships with emerging powers across the world, and that policy will, I hope, be complemented by other European nations doing the same. Indeed, some of them are further ahead than us in doing this, and it will form part of our collective work in the EU. The Council’s agenda will include Iran and the western Balkans. It will also be important to discuss recent developments in Gaza, how the European Union can give fresh momentum to the middle east peace process and what role we can play in helping to address the crisis in Gaza.

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[David Miliband]

I want to put on record the fact that my hon. Friend did cover herself with glory in respect of the consistency of the positions she took on European issues and—[Interruption.] I have to say to the Foreign Secretary that we have been working on that through separate channels. My hon. Friend achieved a remarkable result in the general election and her result was testimony to what independent-minded and strong constituency MPs can achieve in this country. I am very pleased that she will be applying her independent mind not only to everything that I say, but to everything that the Government say on European issues as well, pointing out the inconsistencies as they develop.

Many of our European partners will be looking forward to the appearance of the Prime Minister at the new European Council. They will be scratching their heads about some of the policies that the new Government will develop. It is not that they find coalition Governments alien—there are, of course, coalition Governments all over Europe—but they often assume that members of the Government will agree with each other on key foreign policy issues. The other leaders will know that the Conservative party has spent a large part of the last decade campaigning to “save the pound”, as they would put it, and that the Liberal Democrats have been campaigning for the last 10 years to ditch the pound. That is why the Foreign Secretary said that there was no more “fanatically federalist party” in Britain than the Liberal Democrats. That was before his new-found enthusiasm for their support on the Government Benches.

[Simon Hughes]

rose—

[David Miliband]

No, I have taken enough interventions. [Interruption.] The hon. Gentleman can make a speech later rather than intervene on mine.

We say to the Foreign Secretary that the one person he should listen to is the former Member for Bath and commissioner, Lord Patten, who was both a mentor to the current Prime Minister and also, I think, an employer of the current Deputy Prime Minister when he was a commissioner. Lord Patten said recently that the sensible thing would be for the Conservative party to move back to centre where big players sit around the table and make the big decisions affecting Europe. We do not want the British Prime Minister going to the European Council to represent the whole of the UK and be sitting in the corridor while the European Peoples party and the Progressive Alliance of Socialists and Democrats Heads of Government make the real decisions and invite him—the only Head of Government not to attend either of those meetings—along afterwards only for a toast. There are big decisions to be made in Europe: they need leadership and good judgment. That is the basis on which we will hold the Government to account.

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[Simon Hughes (Bermondsey and Old Southwark) (LD)]

It is a pleasure to follow the hon. Member for Newcastle upon Tyne North (Catherine McKinnell), who made a very feisty and savvy contribution. She was clear on the importance of Newcastle and the support that the north-east and its great capital city need.

I made a mistake in the last year. I thought that my colleagues were talking about amending regional development agencies, but I had had clear instructions for months that One NorthEast should continue. I heard from my right hon. Friend the Business, Innovation and Skills Secretary today that One NorthEast will continue, and I hope the hon. Lady will be reassured by that—[Interruption.] RDAs may be different in structure, but the message is clear. My right hon. Friend the Member for Berwick-upon-Tweed (Sir Alan Beith) has also been very clear on that. Through the pages of the Newcastle Journal or otherwise, I hope there can be collaboration on ensuring that Newcastle continues to do well. I know that my colleagues who run the council are equally determined to ensure that every possible opportunity is given to the hon. Lady’s great city, and I will give it my support. I have been there often and love it much, even though those of us who ended up in the south have to put more clothes on all year round than people in Newcastle.

I also congratulate the hon. Member for Wirral South (Alison McGovern). We have two things in common. As she knows, we were both born in Cheshire—

[Alison McGovern]

indicated dissent.

[Simon Hughes]

Well, the Wirral is in Cheshire.

[Alison McGovern]

indicated dissent.

[Simon Hughes]

Well, it was in Cheshire, and some of us think it always has been and always will be. We may disagree on that, but we both come from that part of the world, and we both ended up being politicians in Southwark. I pay tribute to her for the four years she served on Southwark council for the Brunswick Park ward and for being deputy leader of her group in that period. We are glad to see her here, whatever our party differences.

I welcome the new Minister for Europe, the Foreign and Commonwealth Office Minister, my hon. Friend the Member for Taunton Deane (Mr. Browne), and the Foreign Secretary to their briefs. We hope that they do well in their representation of us in the European Union and more widely in Europe, but we also hope that Baroness Ashton continues to have the support and good wishes of Ministers and the Government. We wish her well in her responsibilities.

I started my intervention on the Foreign Secretary by making it clear that one of the great reasons why the European Union and wider international organisations are needed is that many issues do not stop at boundaries—and the threat to our climate is one of those. I hope that the Minister for Europe and his colleagues will be forward-looking and robust on the challenges of the international climate crisis to which Europe can positively respond. If we are really clear about the science, we should seek to limit the temperature rise to 1.7° Celsius, not 2°. We should also ensure that the European Union—as per the agenda for the European Council this month—moves to a 30% reduction in emissions as our target. I regret that that was not achieved in Copenhagen. If we are to be really robust in our leadership, we will also ensure that we have strategies not just for European economic recovery and dealing with the world economic crisis as it affects our continent, but for the environmental crisis.

We should do better at promoting the fact the European Union has as its agenda the things that matter most to this continent. The main item on the agenda later this month will be the strategy for jobs and growth, and how we come out of the recession stronger and better, in spite of the huge difficulties. Other agenda items include preparing for the G20 summit, ensuring that we focus much more on achieving our millennium development goals, and dealing with the climate threat. We have heard some excellent contributions on the interrelated economic issues. It is clear that, as a continent, we need strategies for addressing the financial and banking sectors. Although any levy raised may be spent nationally, we must have a more effective Europe-wide strategy to ensure that bankers do not play with people’s money and take the profits.

For the avoidance of doubt, although my party has said that there may be a time when it is right to join the euro, I have never campaigned for us to join. Nor has my party, and we are clear that the time is not right. I am therefore happy to sign up to the agreement, as part of the coalition, that the pound should remain for the whole of the coalition agreement for this Parliament, and that no attempt will be made to change that position. I am also clear, however, that we need to revisit some decisions, such as the working time directive, where the European Union made mistakes. My great enthusiasm for the European Union and better collaboration across Europe does not make me blind to those things that have not gone well or where we need to do better. Overly prescriptive regulation, such as the working time directive, is one such example.

[Mr Cash]

I am greatly encouraged by the line that the hon. Gentleman is taking on this issue. In the spirit of good fellowship, does he agree that in negotiations to change the working time directive—or any of the other massive burdens on business that Lord Mandelson suggested were costing 4% of GDP—we would need to be able to repatriate those powers? Otherwise we would end up with a European Union that did not work because we would not be able to trade effectively.

[Simon Hughes]

That opens some big questions. I do not oppose considering the repatriation of some powers—it depends on the power. I do not take the view that we should only ever have one-way traffic of power from member states to the European Union, but we have to be careful that we make the right judgment. Some things clearly need European responsibility—aviation, for example, which cannot be dealt with on a purely national basis as the boundaries do not permit that. Environmental issues are another example. There are many issues on which the European Union is a better sized organisation to compete in the world. It is better that we have a common market when it comes to taking on China, India and the US. So there are advantages to the European Union, but I am not against the repatriation of individual issues and subject areas. I hope that we can consider that sensibly and with as little partisanship as possible.

The one big point of difference between us and the Tories during the election campaign, Europe, has been resolved in the coalition agreement, which is testimony to intelligent draftsmanship and savvy political work. In passing, I pay tribute to my right hon. Friend the Member for Yeovil (Mr Laws), who was one of the authors of the agreement, and whose service to our party and—already—Government I hope will be continued before too long, following his recent difficulties. The Liberal Democrats made it clear that we need Europe to ensure that we deal with criminals better, and the European arrest warrant and other mechanisms are important parts of a wider European collaboration.

There are organisational matters to deal with too. We must keep on the agenda the fact that it is a nonsense for the European Parliament to meet sometimes in Brussels and sometimes in Strasbourg. That has to be sorted. I understand why we are where we are, but it is right that it should be on the agenda, and it is also right that we continue to look at the EU budget. It is unacceptable that it has never been adequately audited, and we need to ensure that the rules are complied with. There is also a continuing issue about agricultural subsidies, but that does not stop us being proactive and helpful to rural communities that need us to support people moving on to the land and being able to inherit tenancies.

I am clear, too, that we now have a clear, popular and reasonable position on future referendums: we will not have one if, for example, Croatia wants to join, but we will have one if there is a major political change. I welcome the fact that both coalition parties have said that they believe in the expansion of the EU, but expansion should come with a transition period for every country, as in the agreement, in relation to the right to move freely around the EU—the Bulgaria and Romania example. I have always been suspicious, privately and publicly, about whether we should have opened the doors immediately to all the previous accession states, at the time that Poland was given free access. The right hon. Member for Sheffield, Brightside and Hillsborough (Mr Blunkett), the then Home Secretary, argued for immediate access, and on the basis of the figures projected, we went along with that, but I was clear that it was a risk. A phased admission of people from new countries would be a much better process and reduce the fears about immigration and migration that the public naturally express.

I would like to raise a few issues about individual countries. It would be helpful if the Minister could tell us the latest news on the conversations with Iceland, which is now an applicant country, and with Turkey. I welcome very much the fact that Turkey should be seen to be an important part of the EU. I ask him to give our condolences, concern and support to the Government and people of Poland after their terrible national tragedy of the air crash only a few weeks ago. I also encourage him to do what his predecessor as Minister for Europe did: understand that sorting out the Cyprus problem is a big priority. It is a nonsense that the EU has not yet been able to resolve that issue.

I ask the Minister publicly, as I have done in private, to pay attention to Russia and the Russian issues that have been raised on the Floor of the House. The relationship with Russia is important, but so too is that with Ukraine, which is an important European country that has not fulfilled its potential. There are economic issues, as well as human rights issues, in relation to both. Finally, the wider European concerns must be that the EU is proactive in the world in leading on conflict prevention; in dealing with the situation in the middle east, which is a crisis and a tragedy; in continuing to sort out the legacy of the civil war in Sri Lanka; and in promoting human rights in Africa, Iran and China. I welcome this debate and wish Ministers well.