Debate on the Address

Debate between William Cash and Peter Bottomley

Wednesday 21st June 2017 Commons Chamber

[Sir William Cash]

That is a terrific question to which I shall return emphatically in a few minutes. The basis of my hon. Friend’s argument is completely wrong, as I shall explain in a moment.

The reckless spending alternative—the false alchemy of the Labour manifesto—would, in contrast with the Government’s economic success, simply bankrupt us and wipe out our success, as the Institute for Fiscal Studies made clear the other day. The Chancellor was right to say that stronger growth is the means by which reasonable taxation can be raised to deliver better public services and better living standards. We need sound money to go with that growth.

The Chancellor mentioned the European Investment Bank, in which we have a massive 16% shareholding, worth more than €10.2 billion. He and others should bear in mind very carefully indeed the fact that the EIB was set up under articles 307 and 308 of the European Union treaty, along with article 28 of protocol 5 on the statute of the EIB. That demonstrates that, as far as I can judge, the EIB is within the jurisdiction of the European Court. I am convinced that that is the case. We should find an answer to the question without surrendering our commitment to insisting on our own Westminster jurisdiction and not that of the European Court. We are going to have to think through this matter very carefully.

The Chancellor discussed the importance of free trade and how the Prime Minister’s Lancaster House speech made clear we would seek a comprehensive free trade agreement. He also confirmed—I repeat: confirmed —that we were leaving the customs union, for which there is a good and fundamental reason. I shall now address the point raised by my hon. Friend the Member for Mid Norfolk (George Freeman). When we leave the EU, our independent trade policy will be made by our Government, elected at Westminster, not by the unelected European Commission and by majority vote, which, as with all decisions taken under the European Communities Act 1972—as the European Scrutiny Committee made clear in its report in May last year—is made by consensus behind closed doors, with nobody knowing how the decision is arrived at. There is no public record, as we have in Westminster. It is all far removed from the democratic, transparent accountability of our procedures, our Hansard and our parliamentary system, in which people know who is deciding what. Furthermore, most EU business is done through the aegis of covert decision making in unsmoke-filled rooms. The EU is intrinsically undemocratic, as the recent Malta declaration of the 27 clearly indicated. I note that the Chancellor stated that as regards our trading policy he believes that we must negotiate

“mutually beneficial transitional arrangements to avoid unnecessary disruption and dangerous cliff edges.”

This mirrors, I think, what has been said by the CBI, the Society of Motor Manufacturers and Traders, the manufacturers’ group EEF and a number of other trade bodies, some apparently and some actually seeking to keep us in the single market and the customs union for up to five years, as my right hon. and learned Friend the Member for Rushcliffe indicated and with which I disagree.

The Chancellor also emphasised that we need an implementation period and frictionless customs arrangements, albeit, he said, outside the customs union. That poses a serious problem. Against this background, we need to understand where we are with the customs union and the single market and why it is important we leave both on leaving the EU, on which the Labour party is completely confused.

I want to draw attention to our trading within the single market, and ask our friends who are still at heart remainers to please take note of what I am saying. The Office for National Statistics and the House of Commons Library tell us that last year we ran a trade deficit with the 27 member states of £71.8 billion, up £9 billion in that year alone. In the same year, Germany ran a trade surplus with EU countries of £98.9 billion, up £16 billion in that year. Yet we enjoy a trade surplus with the rest of the world of £34.4 billion, which is accelerating rapidly. Yes, 44% of our trade is with the EU, and our trade with it will continue if we leave the single market and the customs union, but our global trade is where our successful economic future lies as soon as we leave the European Union and we have to get real about that.

Furthermore, although many describe leaving the customs union as a cliff edge, if done wisely it will be a launch pad for new and greater opportunities for growth and prosperity, providing trade deals with other countries, improving our regulatory environment, achieving a free trade agreement with the EU with zero-for-zero tariff deals, dealing with rules of origin, mutual recognition of goods, including agricultural products, and allowing expedited customs arrangements based on new technologies.

[Sir Peter Bottomley]

My hon. Friend might find it easier to speak less fast once this intervention has given him a few more seconds.

[Sir William Cash]

I am most grateful to my hon. Friend; I am determined to get through what I have here.

In the context of the City and financial services, there is so much for us to learn from the experience of the European Free Trade Association and its jurisdictional relationships with the European Court of Justice. These provide guidelines and lessons to be learned in achieving mutual respect while retaining our sovereignty and unshackling ourselves from the European Commission’s exclusive jurisdiction over external trade policy, which does not work for us even though it does specifically for Germany.

We are fortunate to have Mr Crawford Falconer as our chief trade negotiation adviser and a strong team to deliver a first-class trade policy with major countries such as the USA, Canada and Australia. A few days ago, the Secretary of State for International Trade had an extremely good meeting with the US Commerce Secretary, Wilbur Ross. We have had similar reactions from the other countries I have mentioned. These provide the launch pad for us to enable the growth that will accelerate us towards a global prosperity zone for the United Kingdom. This is a massive new opportunity for the United Kingdom to resume its 300-year-old role in international trade in goods and services, in which we have always delivered throughout our commercial history.

To give some flavour of that, the House of Commons Library tells us that in the last year alone we had a trade surplus of £39.6 billion with the USA, of £1.3 billion with Canada, and in 2015, the most recent year for which data are available, a trade surplus of £3.7 billion with Australia. They have already said that they want to trade bilaterally with us, and we would be crazy not to do it. Out of the customs union, we will build on this—inside it we cannot—and our economic growth and prosperity will expand exponentially, and there will be the means of providing security and stability, and, with that, the provision of good and effective public services mentioned by the right hon. Member for Enfield North (Joan Ryan).

I believe that leaving the EU while achieving acceptable jurisdictional answers to our financial services and other regulatory arrangements, which are currently with the EU, is eminently achievable. An overly narrow view of the potential jurisdictional difficulties is wrongly pessimistic, particularly as regards our potential trading relationships with the rest of the world and our recognition that the single market does not deliver for us.

I was glad that the Chancellor did not refer to the words “soft” and “hard” Brexit in his speech. The words “soft” and “hard” Brexit, so favoured by the BBC and others in the media, are an exercise in casuistry, a weapon of propaganda intended to create a fog when we need above all else clear lines and meanings. This applies equally to the expression “transitional arrangements”. Where do we draw the lines? What does it mean? Under what jurisdiction?

Leaving the EU is in the national interest and it is our duty, which we are obliged to deliver. I refer now simply to the exchange between Humpty Dumpty and Alice in “Through the Looking Glass”:

“‘When I use a word,’ Humpty Dumpty said in rather a scornful tone, ‘it means just what I choose it to mean—neither more nor less.’ ‘The question is,’ said Alice, ‘whether you can make words mean so many different things.’ ‘The question is,’ said Humpty Dumpty, ‘which is to be master—that’s all.’”

No longer will our master be the European Union and its political puppet masters. They sought to absorb us into a political union, now on the cards as Angela Merkel has demonstrated this week as regards the new financial arrangements—

Data Protection in the Areas of Police and Criminal Justice (EU Directive)

Debate between William Cash and Peter Bottomley

Tuesday 24th April 2012 Commons Chamber

[Mr William Cash (Stone) (Con)]

The issue here is one of process as well as substance. I am sorry that the Lord Chancellor has just left the Chamber. I was glad to note that he was here before I rose, but he seemed to depart rapidly. I can only assume it was because some of the remarks that I am about to make may not be entirely to his liking or that of the Under-Secretary.

This is a Lidington debate, and the significance of such debates is that Parliament has an opportunity to debate, and vote on, motions that clearly set out the Government’s recommended approach—that they wish to exercise their right either to opt into a title V proposal or to opt out of a Schengen-building title V measure.

I pay tribute to my hon. Friend the Member for Camborne and Redruth (George Eustice) for his remarks on the substance of the matter, but there is a very important question to be asked about scrutiny. I speak as Chairman of the European Scrutiny Committee, having just this afternoon come back from duties in relation to the Danish presidency.

I say to the Minister that the way in which this matter is being handled is a disgrace. I will of course refer to the Committee this quite blatant breach of the spirit of the proposals that we have agreed in the past, and I intend to ask the Committee whether it wants to bring him in front of us to explain himself and how this has been handled. It is that serious.

No mention of the Schengen protocol or offer of an opt-in debate was made in the Government’s explanatory memorandum of 13 February, as it should have been, nor was any formal correspondence to that end received by the European Scrutiny Committee. I also mention that the Schengen protocol gives the United Kingdom and Ireland three months to opt out of legislation that builds on the Schengen acquis. The Government’s omission is very significant and has meant that the Committee has not had the opportunity either to scrutinise the opt-in/opt-out decision or report to the House on it prior to a debate taking place.

It may be a matter of some interest to the House that there is no report before the House on the matter. Members can go to the Vote Office and get the Committee’s previous paperwork on the provision, based on our consideration of the explanatory memorandum of 13 February. In that document, we stated:

“It is regrettable that the Minister’s Explanatory Memorandum did not mention any of”

certain opt-in considerations, in blatant breach of Baroness Ashton’s undertaking to Parliament of 9 June 2008. We continued:

“We ask the Minister to keep us informed of progress in negotiations on the points of concern for the Government…We assume, therefore, that the negotiations are unlikely to be completed under the Danish Presidency, and would be grateful to be informed if and as soon as this assumption appears to be incorrect.”

On every single element of what I have just described, the Minister is completely in breach of undertakings and of the requirement to refer matters to the Committee appropriately.

The manner in which the decision has been explained is a disgrace. There has been no attempt to explain it, or its implications, to the House properly. I have to go further and say that Members will need an explanation for the Government’s omission, and I hope the Minister will find an opportunity to provide one before we conclude these proceedings. It must have been obvious to the Government that the draft directive was a Schengen-building measure, because several of the recitals state explicitly that it is and because the framework decision that it replaces was stated to be a Schengen-building measure. Recital 43 states that the UK is

“taking part in this Framework Decision, in accordance with Article 5 of the Protocol integrating the Schengen acquis into the framework of the European Union.”

In order to have a meaningful and informed debate on the Floor of the House under the Lidington arrangements, the Committee should have had reasonable notice of the Government’s recommended approach. A mere 24 hours is clearly inadequate.

I could refer to many other matters, but the question on which I shall conclude is simply this: what negotiating strategy will the Government adopt to mitigate the negative impact of the proposal as drafted, and what is the Minister’s estimation of the likelihood that the Government’s strategy will succeed?

This is a very sorry day in the scrutiny of European legislation. I am only sorry the Lord Chancellor is not here, because if he were, I would invite him to go to the Dispatch Box instead of the Minister, who has let us down so woefully.

[Sir Peter Bottomley]

Were there to be a meeting of Ministers of European Union countries during the next few days, and were there to be either a satisfactory or an unsatisfactory outcome, how could it be reported to the House and how could we take a decision that supports or negates any decision that is taken this evening?

[Mr Cash]

I find it extraordinary that my hon. Friend should seek to defend the Government’s breach of a series of requirements as prescribed in the spirit of the orders before the House, but in addition, it is perfectly clear—to me at any rate—that these proceedings are happening because of the timetable of Prorogation.