European Union (Approvals) Bill [Lords]

Wayne David Excerpts

Monday 4th February 2013 Commons Chamber

[Wayne David (Caerphilly) (Lab)]

In the order of things, many hon. Members might think that this Bill is not particularly contentious. I can understand that; however, the Bill is important, in terms of policy content and its constitutional significance to our relationship with the European Union.

As we have heard, there are three elements to the Bill. The first gives legislative approval to the electronic version of the European Union’s Official Journal. A draft decision was arrived at by the Justice and Home Affairs Council last March. Parliament is now being asked to approve that decision. The second issue concerns another decision of the Justice and Home Affairs Council, about the European Union’s Fundamental Rights Agency. The European Union is required to make a decision to establish the thematic areas of the FRA’s work for the next five years. Political agreement was secured at the Council meeting in January last year. Now Parliament has to approve or reject that agreement.

Thirdly, there is the draft European Council decision on the number of European commissioners. The Lisbon treaty states that there will be one commissioner per member state until 1 November 2014, when the number of commissioners would be reduced to a number corresponding to two thirds of the member states. However, a concession was made to assuage Irish sentiments during the Irish referendum on the Lisbon treaty. The concession was that each member state would continue to have one commissioner. To enable that commitment to come into effect, it is necessary to have the conclusion of the European Council agreed by this Parliament.

The three draft decisions are the first such decisions to be brought before this House under the European Union Act 2011. I would like to make a few remarks about that legislation. We welcome the fact that the agreement of Parliament is being sought on these decisions. Although we had reservations during the passage of the 2011 Act about the possibility of referendums being held on a multiplicity of relatively small issues, we strongly supported referendums being held on issues of constitutional significance. We also strongly supported a bigger role for Parliament, both in scrutinising European legislation and actual decision making. That is why we did not oppose the European Union Bill or divide the House on it.

In a constitutional sense, the decisions before us are important because two of the three were made at European level under article 352 of the treaty on the functioning of the European Union—the so-called flexibility clause—which allows the EU to act on a subject for which there is no specific treaty base. The clause has understandably been a cause for concern among parliamentarians across the political spectrum, not only in this country. Indeed, I recall that, when I was a member of the European Scrutiny Committee, a great deal of time was spent deliberating on the issue, and a good report was produced on it.

Given that the Government support the two decisions made under article 352, I am pleased that we are having a full discussion on the Floor of the House and that parliamentary approval is being sought for a parliamentary Bill. I am especially pleased that such approval is being sought on the decision to extend the work of the Fundamental Rights Agency over the next five years. I say that because, as the hon. Member for North East Somerset (Jacob Rees-Mogg) has pointed out, the former Lord Chancellor, the right hon. and learned Member for Rushcliffe (Mr Clarke), initially took the view that there was no need for an Act of Parliament as the European decisions satisfied the exemption requirements of the 2011 EU Act. I am pleased to note that the Government changed their mind on that after the European Scrutiny Committee and its indomitable Chairman, the hon. Member for Stone (Mr Cash), pointed out the error of their ways.

I shall comment briefly on each of the draft decisions covered by the Bill. The first decision relates to the Official Journal of the European Union. The EU has produced the OJ in printed form since 1958, and it has been available in its electronic format since 1998. The journal is made up of two series and one supplement. It contains information about the treaties and about the judgments of the European Court of Justice. Crucially, its “S series” supplement also provides invitations to tender for contracts and is therefore an important part of the mechanism that enables the single market to function and develop. As we all know, the single market is vital to the British economy.

We also need to take into account a relatively recent court ruling to ensure that online electronic versions of the Official Journal of the European Union have parity with the paper versions. I refer Members to case C-161/06, which involved a company called Skoma-Lux in the Czech Republic. After being fined for infringing customs legislation, the company, which operated in the fine wine import sector, brought an action for the cancellation of the fine before the regional court in Ostrava. I am sure that Members will be fascinated to hear that the claimant was an importer of the red dessert wine, Kagor VK, into the Czech Republic. The wine was made from grape juice, with added sugar and corn spirit —[Interruption.] You have obviously not tried that delicacy yet, Mr Deputy Speaker, but I am sure that there is time to do so.

After the deliberations in the regional court, the matter was referred to the European Court of Justice, particularly in relation to the interpretation of article 58 of the 2003 Act of Accession, regarding whether that provision allowed the enforcement of a Community regulation that had not been published in the Official Journal of the European Union in the language of a member state. The Court went on to state that publication on the internet did not equate to proper publication. That is why we need clarification of that point today. In case there is concern about digitalisation, I am assured that it will be covered under heading 5 of a multi-annual financial framework budget allocation and that, as the Minister said, there will be no extra cost.

The second draft decision relates to the Fundamental Rights Agency. The previous multi-annual framework for the FRA expired at the end of last year. After consultation, the European Council proposed extending and developing the FRA’s work in a number of thematic areas. In May last year, the Justice and Home Affairs Council reached political agreement for there to be nine areas of work. These included access to justice, victims of crime and compensation for crime victims, children’s rights, racism, xenophobia and related intolerance. Opposition Members believe that the agency is extremely useful in assessing the impact of legislation not only in current EU member states, but in applicant countries. We therefore support the draft decision.

The third decision relates to the number of EU commissioners. This is perhaps the most significant of the proposals in the Bill. As I indicated a few moments ago, this draft decision maintains the number of commissioners at one per member state. I of course welcome the fact that the people of Ireland voted yes in 2009, and I am pleased that they felt able to do so. This change will, it has to be said, ensure that all member states will feel that they are fully represented in all the EU’s principal institutions, which can only be a good thing.

It would be wrong to give the impression, however, that there is no need to change the way in which the Commission functions. There is a need and a case for examining whether there should be a degree of seniority within the college of commissioners, and a case can be made for examining the allocation of portfolios within the Commission. As the shadow Foreign Secretary has argued, there needs to be a commissioner with the specific responsibility for stimulating growth and job creation.

Finally, in recent debates on the European Union, Members have referred to the need for national Parliaments to have a stronger voice and a stronger involvement. Despite its shortcomings, the European Union Act 2011 does to some extent address this issue, but let us not forget that one of the most positive aspects of the Lisbon treaty, which Labour secured, was the introduction of a so-called yellow card procedure. This needs to be strengthened so that this Parliament, along with other national Parliaments, really does fulfil a central role in EU decision making. Subsidiarity means that decisions ought to be taken at the most appropriate level—as close to the people as possible. That is a sound democratic principle, and it ought to be the cornerstone of how we approach the European Union. To make that vision a reality, it will be necessary to ensure that national Parliaments—and this Parliament in particular—play a central role in determining what should be decided and at what level of government.

This Bill, small though it is, has our support because it modestly points us in the right direction. Unfortunately, the same cannot be said of other more important aspects of the Government’s policy towards the European Union.

--- Later in debate ---

[Martin Horwood]

Only yesterday the hon. Gentleman was declaring on Radio 4 that he was taking his lead from the Catholic hierarchy. Now he tells the House that he is taking a lead from the German Parliament. At this rate he might get a reputation for being a Europhile, which might not do his reputation within the Conservative party too much good.

[Wayne David]

Does the hon. Gentleman think the generous allocation of time by the Government has anything to do with the lack of any other Government business?

[Martin Horwood]

It is above my pay grade to judge, but I am sure that is not true.

The substance of the Bill relates to three measures, two of which are completely uncontentious—the e-publication of the Journal and the business plan, effectively, of the Fundamental Rights Agency. Other hon. Members are right that the third measure is worth more substantial debate, as it adjusts a mechanism that was supposed to limit the size and endless growth of the Commission. There are a number of issues that that growth has raised. It was not simply the practicality of having an ever-increasing number of commissioners. Without being unkind to some of the smaller member states, we know that there is a bit of a capacity issue in terms of their ability to produce candidates of sufficient calibre for a portfolio that affects the entire continent. Moreover, in terms of public perception, it slightly muddies the whole idea of the Commission. The Commission should be, in essence, the equivalent of our civil service. It should be the servant of the Council of Ministers, the various European ministerial councils and the European Parliament, and not pretend to be a representative body.

--- Later in debate ---

[Mark Simmonds]

Had the hon. Gentleman been here for the whole debate, he would have heard about that. I am happy to give way to hon. Members who have participated in this debate rather than to those who have just wandered into the Chamber.

It is because of increased parliamentary control that we are debating the elements in the Bill. It gives the House an opportunity to consider several technical measures designed to make the EU more efficient and accessible. The Bill will give parliamentary approval for the Government to agree with three EU decisions. The European Union Act 2011 requires us to seek that approval before the Government can vote in favour of them at EU level.

As the House has heard, the first decision will give legal effect to the electronic version of the Official Journal of the European Union, which will make access to EU law faster and more economical. The second decision will agree the work of the EU Fundamental Rights Agency for the next five years, which will ensure that the Council directs the work of the agency into areas considered to be a priority by member states. The third decision will maintain the current arrangement of having one EU commissioner per member state, which will fulfil a commitment to the Irish and will guarantee that the UK retains its commissioner and is in a stronger position to influence the make-up of the next Commission.

I am grateful to the hon. Member for Caerphilly (Wayne David) for his support for the Bill. He rightly welcomed parliamentary scrutiny, but it was slightly perplexing that he also welcomed referendums, given his party’s position on not allowing the British people the right to decide on what relationship they wish to have with the EU. He also made an important point about the fundamental rights issue, to which I shall return in a minute.

We then heard from my hon. Friend the Member for Daventry (Chris Heaton-Harris), who gave a typically knowledgeable and detailed contribution on the workings of the EU. He was right to highlight the importance of parliamentary scrutiny, the significant change that the Government made and how it was in the UK’s interest. I also welcome his support for these small, technical, but important, measures. He was correct to highlight the Lisbon treaty proposals and how they have since changed, particularly in how they relate to the Commission.

My hon. Friend will also be aware of the necessity, owing to the Irish position, of ensuring that each country has a commissioner, thus ensuring that the UK has a commissioner. He should be aware, however, that the draft decision states that that position should be reviewed when a new Commission is appointed in 2019 or when the number of EU member states exceeds 30, whichever is earliest. I reiterate to him that the Government are committed to having a leaner, less bureaucratic EU, to improving the efficiency of EU institutions, including the Commission, and to continuing to push for substantial reductions in the EU’s administration costs.

We then heard from the hon. Member for Luton North (Kelvin Hopkins), who forcefully argued for an EU commissioner for each country. Part of the Bill will ensure that the UK has the commissioner for the next Commission period. I reiterate to him what I said to my hon. Friend the Member for Daventry.

Then we heard from my hon. Friend the Member for Cheltenham (Martin Horwood). I am grateful to him for his support for the Bill. When he started speaking, I wondered where he was going on the lack of necessity for scrutiny of these important aspects emanating from the EU, but I think he came full circle and, in the end, supported scrutiny. He will no doubt intervene if I have misinterpreted his remarks. I was also slightly perplexed by his comments about the capacity of smaller EU countries to manage a commissioner. Many small EU countries’ commissioners have made a significant contribution to the EU, and I am sure they will do so in the next period.

We then heard a traditionally articulate and passionate speech from my hon. Friend the Member for North East Somerset (Jacob Rees-Mogg), who was absolutely right, yet again, to highlight the importance of scrutiny, to recognise the vital role of the European Scrutiny Committee—a theme to which I shall return in a moment —and to highlight the significance of article 352, under which any powers brought forward must be agreed unanimously by the Council and EU Parliament. For the UK to agree that at the Council, however, and therefore for the required unanimity to be secured, the UK Parliament must first give its approval. That is what the Government have put in place under the 2011 Act. My hon. Friend was right to suggest that section 8 of the Act stated that a

“Minister of the Crown may not vote in favour of or otherwise support an Article 352 decision unless”

it is approved by an Act of Parliament. That is why this level of detailed, forensic scrutiny is essential and in the UK’s interest. Without the agreement of Parliament, therefore, a proposal brought forward under this legal base cannot be adopted throughout the EU.

We then heard from my hon. Friend the Member for Stone (Mr Cash), who gave a traditionally detailed, analytical speech. I was pleased that he welcomed the Prime Minister’s announcement of the referendum, although I accept that perhaps he does not agree with the timing. I would also like to put on the record my congratulations to him on his chairmanship of the European Scrutiny Committee. He does a sterling job not only for the House, as was mentioned, but for the country.

[Wayne David]

Does the Minister think that the Prime Minister agrees with his glowing praise of the Chair of the European Scrutiny Committee, given that he did his utmost to prevent him from becoming its Chair?

[Mark Simmonds]

I am not sure I share that analysis, and I am quite sure that the Prime Minister thinks extremely highly of my hon. Friend the Member for Stone, who was right not only to underline the importance of scrutiny, as other Members did, but to point out that the Government reflected on his Committee’s suggestions —a good example of scrutiny working—and introduced proposals to pass primary legislation in the way that he and his Committee suggested.

We then heard from my hon. Friend the Member for Christchurch (Mr Chope), who detailed his thoughts and criticisms of how the FRA worked. I want to put on the record one or two facts in order to add to the debate that he will clearly have in Committee. The proposals do not expand the agency’s remit, but agree to a plan without which we would have much less control over its work. His example of wasting EU taxpayers’ money in the way he alluded to is sadly not the only example he could have given. This is not a new agency, and the funds flow from the EU budget, which, as he will know, is under intense scrutiny and pressure from my right hon. Friend the Prime Minister in order to ensure that UK taxpayers’ money is spent wisely and for the purposes for which it was intended—an ethos that I know he supports very strongly.

My hon. Friend also wanted to know whom the agency was accountable to. It is accountable to the Council of Ministers, which allocates the budgets. I know that he looks forward to delving in further detail into this matter in Committee.

Finally, we heard from the hon. Member for Wolverhampton North East (Emma Reynolds). Again, I reiterate our thanks for the Opposition’s support. She was right again to highlight the issue of commissioners, although I will not repeat what I said about the position being reviewed when a new Commission is appointed in 2019 or when the number of EU member states exceeds 30, whichever is soonest.