EU-UK Relationship (Reform)

Debate between Peter Bone and Mark Simmonds

Tuesday 18th September 2012 Westminster Hall

[Mark Simmonds]

The hon. Lady makes an interesting point. It is vital in a globalising world to remain on the competitive side of the line. The reforms that this Government have put in place since the May 2010 election will make a significant contribution to that. They include making our tax system the most competitive in the G20, making the UK the best place in Europe to start, to finance and to develop a business, encouraging investment and exports as a route to balancing the economy after the shambolic economic mess that the Labour Government left to the coalition Government, and creating a more educated work force. Over time, those changes will deliver economic growth.

Aligned with that, the single market is a significant driving force for prosperity. That is why we will continue with an ambitious programme of deepening the single market while seeking to reduce unnecessary burdens. The single market supports UK jobs, prosperity and growth through increased trade and, vitally, helps the UK to attract inward investment from inside and outside Europe. We want the single market to continue to encourage competition and innovation throughout Europe, to help to increase productivity in the UK, and to bring down prices for consumers so that UK businesses can benefit from a single regulatory regime, simplifying regulation, liberalising services and developing a single digital market that will bring benefits to the UK.

Our national interests, our influence and our values are all advanced internationally through the co-operation of states. However, as many hon. Members have rightly said, there is no doubt that the EU requires reform, and we certainly do not agree with everything the EU does. It is absolutely clear that reform is required now more than ever. In our view, the UK should champion growth and the single market, and take the opportunity to shape Britain’s relationship with Europe in a way that advances our national interest in free trade, open markets and co-operation.

We have led the debate on reducing the burden of EU regulation on business, and securing agreement on a breakthrough step to exempt micro-businesses from new EU proposals, but clearly more needs to be done. We have secured agreement on a unitary patent after 23 years of EU negotiation. Amid all that change, my right hon. Friend the Foreign Secretary announced an analysis of the balance of competences between member states and the EU. That vital review will be an audit of what the EU does and how it affects us in the United Kingdom. It will look at where competences lie, how they are used, whether exclusive, shared or supporting, and what is important for our national interest. The process will begin in the autumn, and I urge all right hon. and hon. Members to participate.

[Mr Bone]

Can my hon. Friend answer the question that our hon. Friend the Member for Basildon and Billericay (Mr Baron) posed earlier? He and I delivered a letter to No. 10 Downing street with more than 100 signatures from Conservative Members requesting legislation in this Parliament for a referendum in the next Parliament on the balance of competences

[Mark Simmonds]

I am grateful to my hon. Friend for that intervention. I confirm that the Prime Minister met my hon. Friend the Member for Basildon and Billericay (Mr Baron) on 9 July to discuss the contents of the letter, and I understand that a formal reply will be sent to him shortly.

We have pressed for an open trading agenda that presents real opportunities and allows us to benefit from investment in the UK. Our commitment to free trade is why the UK is still the leading destination for foreign investment into Europe.