Commission Work Programme 2014

Debate between William Cash and William Bain

Wednesday 22nd January 2014 Commons Chamber

[Mr Bain]

I am grateful for that intervention, but I remember that major employers such as Hitachi established themselves in the north of England precisely because we are in the EU and have access to the single market as a result. Many investors have said that if we were no longer part of the single market, many jobs in this country would be put at risk. I simply ask my hon. Friend to reflect on that point.

[Mr Cash]

If the hon. Gentleman were to read not only The Guardian but also The Daily Telegraph today, he would see references to what the chairman of Unilever said. His comments were much more in line with the arguments made from the Government Benches because he was saying that reform was needed and that far more concern was being expressed about that reform than was necessary.

[Mr Bain]

I am conscious that other Members wish to speak and I do not want to do a survey of all of today’s British newspapers, but I simply say to the hon. Gentleman that the main story on the front page of the Financial Times this morning was headlined “City warns UK over loss of EU influence”, so I think we are hearing precisely the voices of business, who want to promote job creation and who are expressing the view that isolating ourselves in the way that the Government are trying to do, in a vain attempt to placate the hon. Gentleman, is simply not going to work in our long-term interests.

There are several points I want to develop in the remainder of my remarks. First, on economic and monetary union, yesterday the International Monetary Fund’s world economic outlook predicted growth in the eurozone for this year at a mere 1% and for next year at an only slightly higher 1.4%. At the same time, there are 26.5 million people out of work across the EU28, and 5.6 million of them are under the age of 25. That is a youth unemployment rate of nearly 24%. That should shame all of us. It should represent a call to action for every politician who has influence to shape the EU’s priorities to focus on job creation for the next few years.

Over the year to last November our trade deficit with the EU rose to £3.2 billion and the continued low growth in the eurozone area was one of the main contributory factors to dampened demand for our manufacturing exports. By contrast, our trade in services, including financial services, is in surplus. So it is in the interests of business and workers here in the UK to see the fault-lines in economic and monetary union repaired by putting in place a strong set of common institutions such as a single resolution mechanism and processes to allow for the resolution of distressed banks in the eurozone area. The question of whether there should be a common deposit insurance guarantee, or commonly issued debt, is certainly a more divisive issue among the eurozone members, but now that a new coalition is in place in Berlin, we should at least begin to have greater certainty about Germany’s intentions on both those fronts.

We should also welcome the fact that, contrary to many expectations—not least from Members on the Opposition Benches—the eurozone has not broken up. Indeed, Latvia became its 18th member this month. Nevertheless, in this work programme the Commission has acted on the widespread sense among peoples in Spain, Portugal, Greece, Cyprus and Ireland that monetary union lacked a sufficiently social or democratic dimension, with little regard being given to the effects on inequality, wages and, most devastatingly of all, youth unemployment in some of the programmes imposed upon those member states in the name of deficit reduction. It is interesting to note that the Commission’s work programme refers to the further priority for work in this area in the coming 12 months.

As Commissioner Andor’s report today makes clear—this certainly was covered in The Daily Telegraph, to which the hon. Member for Stone (Mr Cash) referred earlier—eurozone members should not be left with the only options being internal devaluations or wage cuts as the means of escape from any future downturns. The price for that would simply be paid by ordinary working people with substantially lower living standards. A eurozone with a strong fiscal union component will help to avoid that possibility in the future.

When Government Members visited Brussels in October last year we heard from the office of President Van Rompuy that eurozone member states now recognise that sharing a currency and a common interest rate was not enough to avoid the effects produced by the economic shock of the great recession. So plans are now being developed to establish limited pooled resources that could help share out or equalise economic demand when some states suffer a severe dent in their output. We should welcome that. It has also been proposed that a revision of some of the terms of the fiscal pact could allow eurozone states greater flexibility to boost demand through fiscal policy in times of economic trouble. We should also welcome those proposals.

In common with weak lending to small and medium enterprises in this country, the Commission should also focus in much greater depth on how the European Investment Bank increases lending to businesses in the coming months, so that Europe’s growth rate can be expanded. In that sense, there are real parallels between the debate on the flaws of monetary union in the eurozone and the debate that will take place in my constituency and the 58 other constituencies in Scotland on the future of the economic, political and fiscal union that is the United Kingdom, which will have its resolution this September. There is a strong recognition that a properly functioning currency union requires both fiscal and political union too.

Secondly, on markets for trade and future growth, the work programme refers to the potential for a second Single European Act to complete the free movement of goods and services in areas such as energy and telecommunications. This is vital so that the EU can establish a proper digital single market.

North Africa and the Middle East

Debate between William Cash and William Bain

Thursday 17th March 2011 Commons Chamber

[Mr Bain]

The hon. Gentleman makes an important point, and one I will refer to later in my remarks.

We ought to follow the lead of the opposition national council and the EU and take the steps required to protect against future and further atrocities by the regime. There are important contrasts with the more complex no-fly zone that operated in Iraq between 1991 and 2003, which required on average 34,000 sorties a year, at an annual cost of nearly $1.5 billion. Shashank Joshi said recently:

“In Libya, by contrast, NATO might only need to cover Tripoli, its transport corridors, and… urban areas threatened by Qadhafi loyalists.”

As he also pointed out this week, arming the opposition would cause a serious risk. Portable anti-aircraft missiles could slip out of responsible hands and be used against western targets, and small arms proliferation is already a blight in that part of the world.

[Mr Cash]

Does the hon. Gentleman realise what he has just said? I think that he said that we should not arm the resistance movement. Does he realise that Richard Dannatt and many others who have great experience are calling for these people to be properly armed? Otherwise, there will be a massacre. Does he really appreciate what he is saying?

[Mr Bain]

There is a range of views on this, and we should proceed very carefully and in full recognisance of all the arguments before taking steps over the next few days, particularly on arms.

It is clear that any no-fly zone would require a sound legal mandate invoking chapter VII of the UN charter where possible. There are also practical difficulties in enforcing a no-fly zone against helicopters, as a breach of it might require attacks against ground targets.

The humanitarian situation in Libya and its neighbouring states has worsened over the past few weeks, with the UN High Commissioner for Refugees reporting that more than 280,000 people have fled Libya and crossed the borders into Tunisia and Egypt. This week, the UNHCR reported that people seeking to flee combat areas in search of refuge are unable to do so or are being prevented from doing so, with a particularly critical situation affecting trapped refugees and asylum seekers who have been detained. We should support UNICEF in its efforts to make an immediate response to alleviate the humanitarian crisis as soon as it can safely enter the country.

The key point is that the international community cannot abandon the Libyan people in this time of need. This must not be another situation like 1992 where, having supported the Shi’a community in Iraq, we then abandoned them when Saddam began to attack them and gave little other than moral support thereafter.

In the few moments remaining I will turn to some of the other states in the neighbouring areas. In Bahrain, movement towards a genuine constitutional monarchy seems to me to be the most likely step to bring about reconciliation and progress. Other middle east Governments must respond to the movements for political and economic reform, such as those in Saudi Arabia and Yemen. As many Members have said, we need to revive the Israeli-Palestinian peace process and secure a viable Palestinian state, cohabiting alongside an Israeli state, in order to begin the process of providing a better future for people in the region.

I saw some very interesting data from the Pew global attitudes project last year, which found a decline in support in the Muslim world for radicalism and terrorist attacks. I think that that shows the genuine beliefs of the people in the middle east. They want peace and security and, above all, economic development and reform. As Secretary of State Clinton set out in her speech in Doha on 13 January, there are many signs of the potential for a new and innovative middle east, but there are also huge problems, such as mass youth unemployment, which is approaching 20%, a stagnant political order and depleted resources. We in the west can play our part by securing a completion of the WTO Doha round to liberalise trade and to encourage growth in poorer states, and by building links between the EU and the middle east and north Africa.

Developing civil society, helping to reform the economy and helping the peoples of the middle east and north Africa to increase their human rights and freedoms will be vital to their future and to the security of the region, and in an interconnected world it will be increasingly important for our security here at home in Britain, too.