Commission Work Programme 2014

Wayne David Excerpts

Wednesday 22nd January 2014 Commons Chamber

[Mr Lidington]

This is an important study, which makes a large number of recommendations. The recommendations in my hon. Friend’s report have a bearing on business, which is the responsibility of pretty much every Government Department. The discussions that we are having at both official and ministerial level reflect the breadth of the areas of policy covered by my hon. Friend’s Committee.

The Committee noted, in its report recommending today’s debate, that—

[Wayne David (Caerphilly) (Lab)]

rose—

[Mr Lidington]

One second.

The Committee recommended that the debate on the work programme should provide a useful starting point in the upstream scrutiny of EU proposals, and should help Parliament to make an early assessment of those dossiers in which parliamentarians are likely to take particular interest.

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[Wayne David]

I thank the Minister for giving way. I wanted to intervene immediately after the hon. Member for Stone (Mr Cash), because we read in the press that the Prime Minister had received a letter signed by 95 Conservative MPs supporting what the European Scrutiny Committee had said. Has the Prime Minister in fact received that letter, and do we know who those 95 people are?

[Mr Lidington]

I am afraid that I do not inspect the Prime Minister’s correspondence on a daily basis. If the hon. Gentleman wants to find out more about that letter he could go and talk to my hon. Friend the Member for Stone (Mr Cash), who chairs the European Scrutiny Committee, or my hon. Friend the Member for Harwich and North Essex (Mr Jenkin), or others who helped to draft that letter.

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[Mr Lidington]

There will indeed be measures in the REFIT package, as in other Commission proposals, with which we disagree. We have made it clear that we will continue to resist both the proposals to which my hon. Friend alludes.

It is also fair to say, though, that at a time when the Government are urging the Commission to act on the recommendations of the Prime Minister’s EU business taskforce, the Commission has already introduced some measures that implement what this Government, either off their own bat or by means of the business taskforce report, have been recommending. We have seen practical and proportionate rules on country of origin labelling for food and a member state agreement to a streamlined approach to the clinical trials regulation, with formal agreement due later this year. In addition, the Commission has committed itself to withdrawing the access to justice in environmental matters directive, as the business taskforce explicitly called on it to do.

We now want further action on the 30 specific recommendations in the business taskforce’s report, including on the REACH—registration, evaluation and authorisation of chemicals—directive to lessen its burden on small and medium-sized enterprises, in particular. Such radical, business-friendly reform is in the interests of job creation and business growth not just here in the United Kingdom but throughout the continent as a whole. We welcome the Commission’s commitment not to table new health and safety rules for hairdressers or to introduce new rules on ergonomics, and its commitment to withdraw a number of other proposals that we have long opposed on the grounds that they would impose unnecessary costs on business.

However, with regard to the REFIT package, it is disappointing that the majority of the repeals and withdrawals in the work programme relate to obsolete measures. We think that future withdrawals should focus on EU measures that impose the biggest burdens on businesses and do not deliver significant and commensurate benefits. We will not only continue to press this with the Commission but look for every opportunity to build alliances with other EU member states and, for that matter, with enlightened and supportive members in the European Parliament such as our colleague Mr Malcolm Harbour, to ensure that the efforts to drive down business costs and increase the competiveness of European businesses are maintained.

[Wayne David]

rose—

[Mr Lidington]

I will give way to the hon. Gentleman and then I am going to make progress because I have been speaking for quite a long time.

[Wayne David]

When the Minister says that aspects of the EU work programme are disappointing, does he not really mean that the Government have failed to influence the Commission successfully?

[Mr Lidington]

No. I do not think that any member state would be able to say that it unreservedly welcomes and endorses, absolutely everything in the Commission’s work programme. Of the measures described in the work programme, there are some that we positively welcome, others where we think the proposal seems okay at first sight but we very much want to examine the detail of the promised measure before we come to a final conclusion, and others where we are quite open in saying that we think the Commission’s suggestion is mistaken. As I said to my right hon. Friend the Member for Berwick-upon-Tweed (Sir Alan Beith), we have already expressed considerable concerns about the data protection package, and we will continue to negotiate to try to ensure that it does not over-burden business while providing adequate protection for personal data.

Nor can we welcome the draft regulation to establish a European public prosecutor’s office. We believe that the Commission’s evidence for this proposal is weak, and we will continue to challenge it on its unacceptable, rather summary response to the yellow card that national Parliaments raised about it.

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[Mr Thomas]

It is interesting that a series of Norwegian politicians have confirmed their lack of influence over EU regulation, and have pointedly suggested that we do not go down the route—I know the hon. Gentleman is an enthusiastic supporter of this route—of denying ourselves the opportunity to have influence over the detail of the single market.

[Wayne David]

My hon. Friend paints a pessimistic picture of the Conservative party becoming increasingly Eurosceptic, but does he take heart from the strong rumour going around Brussels that the Conservative party might be reconsidering its decision to leave the European People’s party group and might apply to join it once again?

[Mr Thomas]

It is not for me to comment on the Conservative party’s membership, or not, of the EPP. We will no doubt hear more if there is any truth in the rumour.

The Commission’s work programme quite rightly cites deepening the single market as a key priority. It is the biggest such market in the world: a consumer market of 500 million people that generates £11 trillion in economic activity. It remains a deep concern of many in business that the Conservative party is willing to put at risk Britain’s membership of such a huge market for British goods and services. The Prime Minister also appears to be willing to risk our participation in bilateral free trade agreements, not least the hugely important potential EU-US trade agreement.

We on this side of the House recognise that to help Britain compete in the global market and uphold British living standards, the UK needs to advance, together with others in Europe, a reform agenda that promotes economic growth across the EU and, as a result, helps to tackle unemployment, particularly youth unemployment. That includes, as the work programme sets out, the need to extend and complete the single market—I agree with the Minister’s comments on the digital market—so that British companies can benefit from the opportunities of trade with our nearest allies. The operation of the single market in existing sectors must be protected in the face of potential closer integration between eurozone states.

The work programme outlines the continuing work of the Commission on economic governance and the banking union. Clearly, the stability of the eurozone, and sorting out the problems faced by banks in eurozone countries, is not just of great importance to countries in the single currency—it has a significant impact on the UK, too. Why it takes the European Union to clamp down on bankers’ bonuses, when the Government should be doing it, is a question we are still waiting to get a sensible answer on from Ministers. In this country, we still need real reform of competition in our banking sector to help small businesses get the support they need to grow, employ more people at decent wages and help Britain earn its way to better living standards.

Another important theme of the work programme is European co-operation on justice and security. The Commission is currently negotiating with the UK on the justice and security measures that we can opt back into. Our police and security forces are rightly working ever closer with their counterparts across Europe, co-operating on issues such as international terrorism, organised crime and human trafficking. For example, we would not have seen the arrest of one of the terrorists responsible for the 7/7 attacks in London without help from our European colleagues. More than 4,000 suspected criminals have been sent back to other EU countries to face justice, more than 90% of whom were foreign citizens, and while not perfect, the European arrest warrant has helped to tackle the so-called Costa del Crime, with 49 of the 65 top UK fugitives hiding in southern Spain having been returned to face justice. In short, we depend on our European partners for intelligence and operational support in order to protect the British public and the freedoms they enjoy. To ensure that those goals continue to be realised, the Opposition want to see the EU’s collective effectiveness further improved.

As I mentioned, the Government have triggered the justice and home affairs opt-out. Indeed, the Home Secretary and the Justice Secretary told the House that the block opt-out was first and foremost about bringing powers back home, yet the European Scrutiny Committee, chaired by the hon. Member for Stone (Mr Cash), having reviewed the significance of the justice and home affairs opt-out, said,

“we see little evidence of a genuine and significant repatriation of powers.”

Whom should the House believe when making that judgment—our European Scrutiny Committee or the Home Secretary?

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[Wayne David (Caerphilly) (Lab)]

I welcome this debate, but, like the shadow Europe Minister, I think that it would have been more appropriate to hold it some months ago, before the start of the year in which the programme applies. I have read the work programme and the Government’s response, and, like the Government, I agree with much of what is in the work programme. For example, it is difficult for anybody seriously to oppose the assertion at the beginning of the “Commission Work Programme” document:

“Promoting growth and jobs will remain at the heart of the European Commission’s work programme for 2014. These priorities will drive both the Commission’s analysis of the reforms required at national level…and the initiatives proposed at European level to support economic recovery and job creation and tackle social consequences of the crisis.”

That important statement makes it very clear what the Commission’s priorities are. It is also worth noting that the Commission goes on to say:

“But our challenges also go beyond the economy. EU action is needed to protect values and promote citizen’s rights; from consumer protection to labour rights”.

The report then specifically refers to external action, which is particularly important. I want to place it on the record that this House should acknowledge the excellent work being done by the high commissioner, Cathy Ashton. She has done a superb job. She had a difficult time for long periods, but she is now showing how effective she is.

I want to see far more emphasis in the work programme on the EU-US trade agreement. It is of great importance and I want to see more than just a passing reference to it. As far as the Balkans are concerned, reference is made to the agreements that have been struck between Serbia and Kosovo, in which Cathy Ashton has played an important role. It is a great shame that the Commission does not look a little further and make specific reference to the situation in Bosnia, because there we have something of a frozen conflict. There is scope for the international community, and the EU in particular, to make real progress. Realistically, we can look to a time in the not-too-distant future when Serbia will be joining the European Union, behind Croatia. We should also consider the possibility of Bosnia being in a position to make a valid application, but the truth is that we are a long way from that. The western Balkans have a black hole in the middle, which is Bosnia. We should be aware of that and address it.

On the issue of international external action, there is reference to Syria. Given the terrible things that are happening there as we speak, and the fact that there is only a glimmer of hope in Geneva, there should be far more emphasis in the Commission’s work programme on supporting humanitarian efforts and doing whatever is possible to support external measures so that there is not only an improvement in the lives of ordinary people but, we hope, an end to an appalling conflict.

[Mr Nigel Dodds (Belfast North) (DUP)]

I totally agree with what the hon. Gentleman said about Syria and the need for greater emphasis on humanitarian aid. Does he share my disappointment, and that of many, that while the United Kingdom has been in the lead in terms of humanitarian aid, providing almost half a billion pounds, the material support of many EU member states has been woefully lacking?

[Wayne David]

Some EU member states have been more generous than others but we must also consider the fact that many have taken in displaced people, whereas the United Kingdom has not yet done that.

The Commission’s work programme places emphasis on the REFIT programme, which should be welcomed, but we must be realistic and recognise the modest series of references in the programme. I want a far bigger emphasis in the work programme on subsidiarity, which I do not think is mentioned as a term. That should be part of our agenda for the European Union’s development in the future. For example, I want us to reopen the debate on the future of EU regional policy, whether the member states should be more involved and whether repatriation should happen. There is also scope for us to reopen the debate on the future free movement of people, especially given the domestic debate. Unfortunately, those issues are not touched on in the work programme.

Those are some ambitions but others relate to the development of the single European market. The programme acknowledges that the internal market in services and the digital economy needs to be developed, but there is no reference to the need to develop an internal market in energy. Although there are good things in the European Commission’s work programme, it does not reflect the priorities that the Government claim, which shows the diminishing influence—in my view, because of the internal politics of the Conservative party—of the British Government on the EU agenda. As we have heard today, the Conservative party is becoming more and more Eurosceptic and as a consequence it is losing allies and supporters in the EU and is less able to negotiate things that are in our national interest. That is the reality.

Linked to that, we are also seeing a diminution of British influence on the ground in the EU institutions. My hon. Friend the Member for Glasgow North East (Mr Bain) referred earlier to a story, which I hope all Members will read, on the front page of the Financial Times, headlined, “City warns UK over loss of EU influence”. One point made by people in the City is that that diminishing influence is resulting in fewer Britons working inside the European Union institutions in Brussels: the British Bankers Association says that there has been a 24% decline over the past seven years. At the moment, Britain accounts for 4.6% of the total number of people employed in the institutions whereas France can claim 9.7% of them. In simple terms, that means that we have fewer people on the ground making the case for Britain’s national interest. That is bad for us.

[Mr Carswell]

Does the hon. Gentleman always judge the national interest by whether there are enough jobs for technocrats and officials? Surely the national interest is a little broader than that.

[Wayne David]

That is a very disappointing and narrow comment. We are looking at opportunities for British people to work abroad and make a real contribution to Britain’s agenda inside the EU. That is in our national interest and the hon. Gentleman ought to recognise that.

[Mike Gapes (Ilford South) (Lab/Co-op)]

Will my hon. Friend give way?

[Wayne David]

Yes.

[Mr Speaker]

Order. Before the hon. Gentleman takes the intervention, I am sure that he is only momentarily being forgetful and that he wants to hear from the hon. Members for Cheltenham (Martin Horwood) and for North East Somerset (Jacob Rees-Mogg).

[Wayne David]

Yes.

[Mr Speaker]

Indeed, but they need to have time to make their speeches as well. I am just gently hinting.

[Mike Gapes]

I just want to confirm what my hon. Friend the Member for Caerphilly (Wayne David) is saying. The Select Committee on Foreign Affairs produced a unanimous cross-party report on the issue he is talking about and the Government, in their response, recognised that there is a serious problem. Although some are clearly pleased that British people are not getting jobs in international institutions, that is clearly not the position of the Government or the Foreign Affairs Committee.

[Wayne David]

I thank my hon. Friend for his intervention. It is nice that there are some people who are enlightened.

To conclude, the report in the Financial Times observed that it is in Britain’s national interest to be fully engaged in the European Union. We have seen a reduction of our influence because of the internal machinations and disputes in the Conservative party. We must look carefully at what bankers are saying. Citigroup, for example, is cited in the FT article. I had a meeting yesterday with the Chemical Industries Association, which made it abundantly clear that it is in its members’ interest for Britain to be fully engaged in influencing and changing the agenda in the EU. A similar thing can be said for Unilever, Nissan, Ford, Toyota, the Swift Technology Group and easyJet—the list goes on.

Over the next few months more and more companies are likely to realise that exit from the European Union is a real threat to the interests of the people of this country. That is why it is important that we have an agenda based on reform, not withdrawal; an agenda that is constructive, not destructive; an agenda that reflects the interests and needs of this country, not the wayward drift of the Conservative party.