European Union (Notification of Withdrawal) Bill

Debate between William Cash and John Redwood

3rd reading: House of Commons & Committee: 3rd sitting: House of Commons & Report stage: House of Commons
Wednesday 8th February 2017 Commons Chamber

[John Redwood]

Like my hon. Friend, I think that there are some great English, Welsh, Scottish and Northern Irish agricultural products, and that with the right tariff system with the rest of the world we could do considerably better with our quality products.

[Sir William Cash (Stone) (Con)]

I congratulate my right hon. Friend on his great speech, but I want to ask him one question that goes to the merits of the new clause. It says that the Prime Minister “shall give an undertaking”, which is clearly a mandatory requirement under statute, and which itself calls for judicial review if somebody decides to do that. However, in all my time in this place, I have never seen a clause proposing the preserving of peace in Northern Ireland as a matter of public interest and of judicial review. It is unbelievably unworkable and completely contrary to all the assumptions that one might rely on for a decent provision.

[John Redwood]

I am grateful to my hon. Friend for drawing me back to my central point. He kindly said that I have made a good speech, but I have just responded to everybody else making their own speeches and riding their own hobby horses. I hope they have enjoyed giving those hobby horses a good ride.

To summarise my brief case, the aims of the new clause are fine. They happen to be agreed by the Government. However, it is disappointing that the Opposition have left out some important aims that matter to the British people: taking back control of our borders and laws, and dealing with the problem of the Court immediately spring to mind, but there are many others. They leave out, as they always do, the huge opportunities to have so many policies in areas such fishing and farming that would be better for the industry and for consumers. They have now revealed a fundamental contradiction in wanting completely tariff-free trade in Europe, but massive tariff barriers everywhere else, and do not really seem to think through the logic.

My conclusion is that there is nothing wrong with the aims. We need the extra aims that the Government have rightly spelled out. It would be quite silly to incorporate negotiating aims in legislation. I believe in the Government’s good faith. We are mercifully united in wanting tariff-free, barrier-free trade with the rest of Europe. It is not in the gift of this House, let alone the gift of Ministers, to deliver that, but if people on the continent are sensible they will want that because they get a lot more out of this trade than we do. They must understand that the most favoured nation tariffs are low or non-existent on the things we sell to them, but can be quite penal on the things they have been particularly successful at selling to us. The aims are a great idea, but it is silly to put them into law.

European Union (Notification of Withdrawal) Bill

Debate between William Cash and John Redwood

Committee: 2nd sitting: House of Commons
Tuesday 7th February 2017 Commons Chamber

[Sir William Cash (Stone) (Con)]

rose—

[John Redwood]

rose—

Section 5 of the European Communities (Amendment) Act 1993

Debate between William Cash and John Redwood

Wednesday 23rd March 2016 Commons Chamber

[John Redwood]

Does my hon. Friend agree that £12 billion of the £58 billion deficit with the European Union is the money that we have to send to it and that we do not get back? It is payment in order to buy its imports. One does not normally have to make a contribution to a country in order to import things from it.

[Sir William Cash]

It has been said in the past that the House of Commons is the only lunatic asylum that is run by the inmates, but I think we pale into insignificance compared with the European Union. This just does not work. I ask the Minister to make a note on the piece of paper in front of him to remember to answer my question relating to that deficit and surplus issue, because every time I raise it I get no answer. Although I agree that we will continue to trade and to co-operate with Europe—we want to do so and they want to do it with us—when it comes to this question of the need to stay in the single market, it simply does not stack up. This document is put forward for approval by Parliament, so we are entitled to an answer to that question.

Section 5 of the European Communities (Amendment) Act 1993

Debate between William Cash and John Redwood

Wednesday 23rd March 2016 Commons Chamber

[Sir William Cash (Stone) (Con)]

I have already made my point about the inaccuracy embedded in the report and need not repeat any of that; I am sure that the Minister heard what I said. In a way, it is an impossible situation for him, but that does not remedy the inaccuracy, and I need to hear what the Government propose to do. It may be inconvenient or fortuitous, but the reality is that it is there. The approval by Parliament of these documents for the purposes of onward submission to the European Commission simply cannot be conducted on the basis of the documents under consideration. I will now park the issue, but I am inclined to vote against the Government this evening on account of the inaccuracy, because it just does not make sense. I will be glad if the Minister tries to put things right in some manner, even if only orally, but he may be unable to do so. It is perhaps just as well if I leave things as I have just stated.

What I really want to refer to is the question of national debt, which I mentioned in an intervention. The problem is that the stability and growth pact, the convergence criteria and the 3% are important because they are the basis upon which countries decide whether to run their economies in line with European law or to be cavalier, and there are massive problems in the European Union relating to all that. My right hon. Friend the Member for Wokingham (John Redwood) mentioned that we are just about on the cusp of 3% at the moment, but that is simply not the case in other countries, which raises an important question. For example, the Italians are in dire trouble and are in an enormous battle to try to get some wiggle room into the stability and growth pact, which has led to extremely bad relations with Germany.

In 2003-04, however, nobody blinked an eye when it suited Germany to play around with the pact and not comply with its provisions. Italy is in difficulties and Greece remains in monumental difficulties, infringing the rule of law in Europe as expressed in the stability and growth pact and the convergence criteria, but Germany insists that everybody else obeys the rules until it does not suit it to do so. I find that difficult to accept. In fact, I do not accept it; I reject it. Either there is a rule of law or there is not. The bottom line is that there is a great deal of talk in the European Union about the rule of law, but unfortunately Germany does pretty much what it wants

[John Redwood]

I remind my hon. Friend that, even today, when Germany would say that she is very virtuous in having no budget deficit, she still has a much bigger proportion of debt to GDP than the 60% criterion and no obvious means of getting back down there.

[Sir William Cash]

My right hon. Friend is, of course, right about that, as he really understands all these things. There are massive problems with the whole of this European project, not only because of the inconsistencies but because of the laying down of requirements and obligations that are, in effect, disregarded when it suits certain countries but not when it suits others. The performance required under section 5 relates not only to the accuracy of the figures, to which I have already referred, but to social, economic and environmental goals, as set out in article 2 of the treaty, and a range of submissions in respect of article 103, which deals with economic growth, industrial investment, employment and the balance of trade.

I am happy to agree that the Conservative Government have managed to retrieve the appalling situation that faced us before 2010, but that does not alter the fact that we are talking about a debt level of £1.5 trillion when it is actually very much more than that. I have suggested that if we include the pension liabilities, it could be as much as £3 trillion to £4 trillion. One really has to take that on board, because if someone running a company conveniently parked an element of required debt, the auditors would never give them a clean bill of health. I do not see how pension liabilities can legitimately be off balance sheet, given the scale of this debt and the fact that all those public pensions have to be paid.

I want to move away from that issue, and I would be interested if the Minister would be good enough to refer to one these points in his reply, if he has time. I want to refer now to another aspect of this paper being presented to Parliament for its approval. Page 19 is headed: “Economic opportunities and risks linked to the UK’s membership of the European Union”. What follows on the whole of the page is a litany of reasons why we should stay in the EU. All the arguments of those who say, as I do, that we should leave are dismissed, and I find it tendentious. I have already criticised the three White Papers on the grounds that they lack accuracy and impartiality, which I was promised by the Minister for Europe when I put the point to him during a ping-pong between the Lords and the Commons on the duty to provide information under sections 6 and 7 of the European Referendum Act 2015. Yet, here we are, confronted with exactly the same problem. It is not just that there is inaccuracy embedded in this document, which I am bound to say I do not think the Government can get out of, but there is inaccuracy that conflicts with the provisions of those sections. There is a real list of problems here.

I should also mention the reference on page 19 to the virtues of the single market. I voted for the Single European Act in 1986 but I did table an amendment to say, in effect, that nothing in the Act shall derogate from the sovereignty of the United Kingdom Parliament. Things have moved on enormously since those difficult days, because if I table an amendment now to preserve the sovereignty of the UK Parliament, you, Mr Speaker, will allow it to be debated, and the Clerks of the House of Commons will not raise the difficulties that I was faced with then. In a nutshell, I was told by the then Speaker, and indeed by the Clerk of Public Bills, that I was not allowed to move such an amendment—it was as bad as that. Mr Enoch Powell came up to me in the Lobby and said, “I see that you have put down this amendment, and I agree with you.” As in so many other matters relating to economics, he was not exactly wrong.

The reference to the single market has to be weighed against whether it has achieved its objectives. Page 19 says that the single market is full of virtue and is entirely necessary for the United Kingdom.

Referendums

Debate between William Cash and John Redwood

Monday 29th February 2016 Commons Chamber

[Sir William Cash]

The sentiments my hon. Friend expresses are very relevant to the question of voter trust. In the debate on 25 February, and when the Foreign Secretary gave evidence to the European Scrutiny Committee, which has considered these matters in great depth, I said that the Government are effectively—in fact, I will go further and say definitely—cheating the voters. This cannot be said to be legally binding and irreversible. In the debate on 25 February, I pointed out that the Council conclusions—I ask that hon. Members look at the Council conclusions—refer to the words “legally binding” and there is a common accord with respect to the international law agreement. What they cannot do is say that it would be irreversible. Furthermore, although Mr Tusk, the Prime Minister and the Foreign Secretary have been saying “irreversible”, they cannot prove that that is the case. I will explain why in one second.

On 23 June, a most momentous and historic decision will be taken by all the people in the United Kingdom who can vote. They have a right to know whether the question they are going to be asked, on whether to remain or to leave, can be answered. It is the basis of my proposition that it is impossible for them to know whether it is going to be irreversible for a simple reason. Under the international agreement where the European Court may or may not take into account the question that has been posed by the White Paper, certainly there is no guarantee of a treaty change and certainly there is no guarantee that the mechanics of the international law decision will produce a definite result that the European Court can decide on. Nobody can say that the European Court will or will not accept any treaty change. As a matter of fact, with respect to the question of referendums, there is no guarantee that there will not be referendums.

There are currently at least four Governments of the 28 in the EU, in the great stitch-up in the political decision-making process I referred to, who barely have control over their government at all. There are massive problems in Portugal and Spain, and now in Ireland as well, and there are massive problems in Greece. There is absolutely no reason why anybody should guarantee either that there will be treaty change or that it will be irreversible.

I happened to take part in the referendums that produced “no” votes in other countries, including France and Denmark. To say as a matter of absolute certainty in this disgraceful White Paper that it is irreversible when it is impossible as a matter of fact, let alone of law, for anyone to say that they know what the European Court will do or indeed that there will not be a referendum and what the outcome of that would be, is simply unacceptable.

[John Redwood]

Is it not also the case that if we read the language of this political agreement after rather difficult negotiations and if we take the example of something crucial such as the protection of our interests against the wishes of the euro, that language says that we can be overridden in certain circumstances, so we will have gained absolutely nothing?

[Sir William Cash]

Absolutely nothing at all. I think that the British people, who are a great people, are waking up to this. As I said in last Thursday’s debate, Churchill said that we should tell the truth to the British people and they will follow, but they are not being told the truth—that is the real truth, and nothing but the truth.

A comprehensive poll was published in the Evening Standard on Friday on the question of whether the voters trust the outcome of this negotiation. The result is simple to describe: 53% said that they did not trust it at all; only 22% said that they did; as for the balance, the pollsters said that half of those who were undecided tended not to trust it. I know that a poll is a poll, but I also say that on the question of trust, the outcome is either to be trusted or not to be trusted. This whole negotiated package, whether it be looked at from a political or a legal point of view, is not to be trusted.

I say that to the House of Commons because this is where the real issues have to be resolved, but we have quite rightly handed this over to the voters—and they do not trust it. I do not think that anything they will have heard today from the Minister for the Cabinet Office and Paymaster General, or anything they will hear tomorrow from the Cabinet Secretary, or indeed any of the matters discussed in relation to the component parts of this package, either in aggregate or individually, will provide any reason for anybody to trust this deal.

The question before us today about the date of 23 June must be weighed against the background of whether that date is appropriate. I want to listen to what SNP Members say, as I have a great interest in that. They are elected to stand up for their own views and for their own part of the United Kingdom. I may disagree with what they say, but I saw what happened with the Scottish referendum, particularly regarding the date and the length of time allowed for debate. We will hear from SNP Members how they were stitched up by the BBC and all the rest of it. What I am saying is that this entire question of the date is dependent on the extent to which proper information is given to the voter. As I said in the urgent question earlier, the crucial issue is what reliance the voters can have on the fact that the information they are being given is transparent and honest, and additionally impartial and accurate, which is what the Minister for Europe told me on the Floor of the House it would be.

--- Later in debate ---

[John Redwood (Wokingham) (Con)]

I welcome a fairly early date for the referendum. I do not know about you, Mr Speaker, but there is only so much that I can take of all the stories of the pestilence, famine and plague that are going to be visited upon us by the very European Union countries that the Government say we love and work well with. The Government have this strange vision that those countries would suddenly change and become extremely unpleasant were we to want a relationship based on friendship and trade rather than on the current treaties. I personally think that 16 weeks would be quite enough to do the job that I would love the Government to do, which is to win it for the leave campaign by using this highly inappropriate tone and by constantly slanging off our European partners by telling us just how unpleasant they would be. I would have thought that a Government wishing to encourage us to stay in the European Union would want to be rather more obliging about our European partners and to paint a picture of how things might be better were we to stay in, rather than concentrating only on ascribing false futures to the leave campaign.

I am interjecting in this debate because I am worried that 16 weeks might not be long enough for the Government to carry out all the tasks necessary to fulfil the requirements of the legislation. In particular, I have been moved to that view by listening to my hon. Friend the Member for Stone (Sir William Cash), who is often absolutely right about these points and their salience. The Government have an important duty to provide impartial information to the public as part of the task of preparing them for the referendum. Having seen their work so far, I am afraid to say that it fails by all standards. It is not impartial, it is not well researched and it is often exceedingly misleading. I am using parliamentary language, Mr Speaker; I might use richer language were I not inside the House. It seems to me that the Government are going to need a lot more time to work with their ever-willing officials to come up with balanced, mature and sensible information about what the future might look like under either scenario.

One thing that the Government have clearly had no time to prepare so far—this is a particularly worrying lacuna—is information on what the future might look like if we stay in. We have had no response from the Government on how they would respond to “The Five Presidents’ Report: Completing Europe’s Economic and Monetary Union” or on how they would handle demands for capital markets union, banking union, full economic and monetary union and political union. Would such a situation immediately trigger a requirement for us to veto the next treaty, would we seek a comprehensive opt-out from it, or would the Government want to work with their partners and agree to some modest treaty changes that would affect the United Kingdom, in the spirit of “The Five Presidents’ Report”? Any such changes would be triggered after about 2017, so probably within this Parliament. Could we then look forward to a second referendum if we stayed in the European Union? Under the European Union Referendum Act 2015, there would need to be a referendum on any treaty changes made as a consequence of “The Five Presidents’ Report” and the clear desire of our partners to go along the route to political union.

[Sir William Cash]

Has my right hon. Friend had the opportunity to see not only the White Paper that was produced a few days ago but the latest jewel in the crown from the Government, which is entitled “The process for withdrawing from the European Union”? It contains page after page of tendentious remarks, assertions and assumptions that cannot be substantiated. I can see the Minister for Europe wriggling around a bit on the Front Bench, because the bottom line is that he will not be able to answer these questions, but they will be tested before 23 June.

[John Redwood]

That is why, in my amiable way, I was suggesting that the Government might like to rethink their position on the timing of the referendum. Having seen that piece of work, I agree with my hon. Friend. I was frankly ashamed that such a document could come from the United Kingdom Government. It bore no relation to what the leave campaigns are saying about how we would like the Government to handle the British people’s decision if they decided to leave. It did not give any credence to the idea that we would be negotiating with friends and allies who would have as much interest in a successful British exit as we would, should that be the will of the British people.

Ministers never seem to understand that the rest of Europe has far more exports to us at risk than we have to the rest of the European Union, because we are in massive deficit with those countries. I have had personal assurances from representatives of the German Government, for example, that they have no wish to see tariffs or barriers being placed in the way of their extremely profitable and successful trade with the United Kingdom. To issue a document implying that all sorts of obstacles would be put in the way of such trade over a 10-year period simply beggars belief.

[Sir William Cash]

May I give my right hon. Friend an example? These documents contain scarcely any serious objective analysis from bodies such as the Office for National Statistics or the House of Commons Library, and their arguments are tendentious. I am sure he will remember, because this is at the forefront of his mind, that in current account transactions relating to imports, exports, goods and services, we run a deficit with the other 27 member states of about £58 billion a year, and that Germany runs a surplus in those same goods, services, imports and exports. If that is a single market, I’m a Dutchman.

[John Redwood]

I am sure that my hon. Friend is many fine things, but a Dutchman is clearly not one of them. He has, however, revealed an important fact, and it is the kind of fact that we would expect to see in a balanced document setting out the position on trade. I hope that the Minister will leave enough time in his urgent timetable to ensure that those sorts of important facts—

[Sir William Cash]

With references.

[John Redwood]

With references and proper statistical bases. Those important facts should be put before the British people. Indeed, the Minister would be wise to do that from his own point of view—perhaps I should not help him as much as I am apparently trying to do. The Government have been rumbled on this. The press and a lot of the public are saying that they want factual, mature and sensible information setting out the risks of staying in, the risks of leaving and what it would look like in either case, but that is not what we are getting.

We have had another example in the past few days. We have been witnessing a long-term decline of the pound against the dollar for many months, because we are living through a period of dollar strength. In the past few days, when Brexit was in the news, we were told that the pound was going down because of fears about Brexit, whereas that was clearly not the case on other days when the pound had been going down. However, on those same days, the Government bond market had been going up. The prices of bonds had been rising and our creditworthiness was assessed as being better, but I did not hear the Government saying that the idea of Brexit was raising Britain’s credit standing. We could make that case just as easily as we could make the case that the fear of Brexit was leading to a fall in the pound.

That is the kind of tendentious information that I hope the Minister will reconsider if he wishes to keep up the normally high standards of Government documentation and use impartial civil service advice in the right tradition, which we in the House of Commons would like to see. I can see that a few colleagues are not entirely persuaded that those high standards are always met, but I shall give the Government the benefit of the doubt. I have certainly seen many Government documents that achieve higher standards than the ones on this matter.

I again urge the Minister to make sure that he leaves enough time in the action-packed timetable to produce high-quality, balanced information that includes the risks of staying in and the wild ride to political union that others have in mind, as well as what he sees as the risks of leaving. For instance, the Government should point out that if we stop paying the £10 billion of net contributions—money we do not get back—that will immediately improve the balance of payments by one fifth next year. Would that not be a marvellous advantage? I do not see it being pointed out in any of the current material in order to show some kind of balance.

Relocation of Migrants in need of International Protection (Opt-in Decision)

Debate between William Cash and John Redwood

Monday 14th December 2015 Commons Chamber

[John Redwood (Wokingham) (Con)]

I support the Government’s decision to exercise the opt-out. I am pleased that the Government and the official Opposition agree that the United Kingdom should not be part of the Schengen system and that they both wanted to exercise the opt-out.

As an island nation with a neighbour in the Republic of Ireland and with the three countries on our principal island entirely surrounded by water with no land frontier, it clearly makes sense for the United Kingdom to have her own border arrangements. Indeed, it is fundamental to a sovereign people and a sovereign Parliament that one of the decisions that we should be able to make for ourselves is who we invite in and on what terms we invite them in to become citizens of our country. It is a great privilege to be a citizen of our country. It brings all sorts of benefits, as well as responsibilities. Surely that is a decision that this Parliament should wish to make, with the Government offering guidance and leadership, to show that we are in control on this fundamental point.

As the Minister indicated in response to interventions, even though we have opted out of this proposal for allocating refugees and other recent arrivals in the European Union under a quota system, what the Schengen countries do at their common external frontier still matters to the United Kingdom. While we remain under the current European Union treaties, we have to accept the freedom of movement rules. That means that if any other country or part of the European Union accepts people in, they may well be eligible, in due course, to move to the United Kingdom. We are therefore interested directly in how those countries conduct themselves and what they wish to do by way of inviting people into the general European Union area.

We are also interested in the policy of the Schengen countries, which we have opted out of, because the British Government have none the less agreed to spend money and offer resource to police the common external frontier of the Schengen area. In particular, we have committed resources to tackling some part of the desperate problems that the EU migration policy has caused in the Mediterranean, where all too many people commit themselves to hazardous and expensive journeys and then need to be rescued by the Royal Navy and other naval contingents.

[Sir William Cash]

Does my right hon. Friend have any idea of the extent of our share of the costs to which he has just referred? Perhaps he might ask the Minister to consider that. As I understand it, it could be as much as £150 million, but, because the cost of providing for Schengen relocations will, by its nature, be ever-increasing, presumably that amount will go up.

[John Redwood]

That is an important issue and the Chairman of the European Scrutiny Committee is right to raise it.

I have some sympathy for what the SNP has said. It is a disgrace that our rich and relatively successful continent is facing this huge crisis, with many refugees and economic migrants arriving, and the system is unable to cope with them. We have to ask why that is. Given that we do not wish to see people undertaking such hazardous journeys and that we do not feel that the way in which European Union policy is impacting on those people is decent, we need to influence our partners in the European Union to do something better.

Again, I find myself in complete agreement with the Government. They are right that the correct thing to do for refugees is to work with the United Nations and our other partners to make sure that there is a safe place of refuge near to the place they fled from, and be there to talk to them and to consider who would like to come to countries in Europe and elsewhere and decide on what basis we will admit people from those camps. That is surely the humane way to approach the issue, and it obviates the need for people to undertake extremely hazardous, and often very expensive, journeys. Only the richest and fittest among those groups can undertake such journeys, only then to discover that the hazards are too great and that they may lose their lives or need rescuing from the Mediterranean. Surely the money that we are spending on picking people out of the Mediterranean could be better spent on an orderly system closer to the place from which people are fleeing, and on helping them to get legal transport to come to the country of their choice once they have been offered that facility.

Such a system would also mean that we could make clearer and better distinctions between economic migrants and genuine refugees. There are, of course, a lot of genuine refugees from a country such as Syria, but different considerations should apply in the way that we respond to a lot of economic migrants who come along at the same time from a range of countries in the middle east and Africa.

European Union Referendum Bill

Debate between William Cash and John Redwood

Tuesday 8th December 2015 Commons Chamber

[John Redwood]

I put my name to the amendments tabled by my hon. Friend the Member for Stone (Sir William Cash) because I thought that Lords amendments 5 and 6 were ill considered and unwise, and that we needed to debate them for that reason.

Lords amendment 5 is easy to deal with and I have no particular problem with it, because it states the obvious—namely that, when the negotiations have been completed, the British Government should share their view of the outcome of those negotiations with Parliament and the people. Well, of course they will: it will happen naturally. There will be a statement, and I dare say there will be a written text as well. I therefore think that the amendment is an unnecessary addition to what was a simpler Bill before their lordships got hold of it.

Lords amendment 6 is far more worrying, because it is so sloppily drafted and because it leads to all sorts of arguments that are properly arguments for a referendum campaign rather than for good legislation to set up the referendum. The first part of the amendment says that the Government must publish information about the

“rights, and obligations, that arise under European Union law”

from our current membership. As has already been remarked, if that were done properly it would result in a very long book, given that we are now subject to so many legal restrictions and obligations as a result of an extremely voluminous consolidated treaty and thousands of directives. I think that to fulfil that remit properly, the Government would have to set out all the directives, and explain to the British people why there are now very large areas of law and public practice that we in the House of Commons are not free to determine as we see fit and as the people wish. While that might be a useful thing to do, I fear that the Government might fall short because they might not wish to give a comprehensive list of our obligations, and it is not good law to invite people to do things that they do not really intend to do.

I look forward to hearing the Minister clarify whether he will be publishing a full list of the thousands of legal restraints that now operate on this Parliament in preventing us from carrying out the wish of the British people, and also on the British people, who must obey these laws as they are translated into British law, or else obey the directly acting laws. Of course, all these laws, and our own laws, can be construed by European justice through the European Court of Justice, which, rather than this court of Parliament, is now the true sovereign in our country because we have submitted ourselves to the ultimate judgment of the European Court.

[Sir William Cash]

Does my right hon. Friend attach the importance that I attach—and the Electoral Commission itself has attached—to the fact that the reports proposed by Lords amendments 5 and 6 should be produced on the basis of both impartiality and accuracy? We remember the review of competences: it was a whitewash. If these reports were anything like that, we would be significantly misleading the public, would we not?

[John Redwood]

Indeed. That is why I share my hon. Friend’s concern about Lords amendment 6, and fear that the Government might fall short of the full remit. Will they spell it out to people that we cannot control our own borders, our own welfare system, our own energy system and energy pricing, our own market regulations, our own corporation tax or our own value added tax, because all those matters have been transferred to the superior power of the European Union? That should be the very substance of the referendum debate about whether we wish to restore the full sovereignty of Parliament for the British people, or whether we wish to continue on the wild ride to political union that the EU has in mind, which will mean that even more powers are taken away.

The second part of Lords amendment 6 states that the Government must set out

“examples of countries that do not have membership of the European Union but do have other arrangements with the European Union (describing, in the case of each country given as an example, those arrangements).”

I have not read or heard anything so woolly for a long time. The amendment refers to all the countries that are not in the European Union but have some kind of arrangement with the European Union without even specifying a trade arrangement, although the Opposition seem to think that it relates to trade.

The Opposition try to perpetuate the myth that our businesses and people would be able to trade with the rest of the European Union only if we resubmitted ourselves to some of the powers of that Union through some kind of arrangement like those entered into by Norway and Switzerland. Have they not heard that America is a mighty trading partner of the European Union that does not have one of these special trading arrangements, and certainly does not pay a contribution to the European Union in order to sell goods and services to it—nor does China, nor does India, nor does Canada, and nor does Australia—and have they not heard that some individual countries have free trade agreements with the European Union which are arguably better than the arrangement that we have as members of the EU, because they do not have to pay anything like the very large levies and contributions that we must pay for the privilege of trading from within the internal market?

European Union Referendum Bill

Debate between William Cash and John Redwood

Monday 7th September 2015 Commons Chamber

[John Redwood]

I rise to speak on the issues of the independence of broadcasting and campaign funding covered by two of the new clauses. It is most important that we should have a fair referendum and I think that the House has made a wise decision this evening to further that aim. I hope that the nation’s leading broadcaster, the BBC, will enter into the spirit of wanting that fair campaign and will study and understand where those who wish to stay in and those who wish to leave are coming from. It needs to learn that in the run-up to the referendum campaign proper as well as in the campaign itself. My hon. Friend the Member for Stone (Sir William Cash) has tabled a suitable new clause to try to ensure that that happens and I hope that the Minister will share our wishes and might have something to say on this point.

I notice that in recent months it has been absolutely statutory for practically every business person being interviewed on business subjects and subjects of great interest to consumers and taxpayers to be asked for their view of whether their business would be ruined if we left the European Union. The question is always a leading question and they are treated as somewhat guilty or suspect if they do not immediately say yes, of course, their business would be ruined if we were to leave the European Union.

[Sir William Cash]

Does my right hon. Friend sometimes wonder how these people come to be asked to go on the programme?

[John Redwood]

It would be far too dangerous for me to speculate on that without more factual information at my disposal. My hon. Friend is being slightly mischievous. I could not possibly agree with him and call into question how people are invited to BBC interviews. However, it is interesting that the one argument that the campaign to stay in the EU seems to have—that leaving the EU would be bad for business and jobs would be lost—has become a constant refrain in all BBC interviews.

The BBC seems devastatingly disappointed when a lot of businesses take the opposite view. It was fascinating to hear the wonderful interview with Nissan last week. The whole House will welcome the great news that Nissan has a very big investment programme for the United Kingdom’s biggest car plant, which will carry it through the next five years and beyond with a new model. When the BBC tried to threaten that investment by asking, “Wouldn’t you cancel it if the British people voted to come out of the EU?”, Nissan said, “No, of course we wouldn’t.” It is about the excellence of the workforce, the excellence of the product and access to an extremely good market here. It is in no way conditional upon how people in Britain exercise their democratic rights.

It is that spirit—the spirit of Nissan—that I hope the BBC will wish to adopt when contemplating such interviews in future. I hope that it will understand that most business interviews over the next few months should not be about the politics of the EU; they should be about whether the company is doing well—creating jobs, making profits and investing them wisely. If the business is misbehaving, then by all means the interview should be about the allegations.

--- Later in debate ---

[John Redwood]

That is a good point. The other constitutional point I would make about businesses is that in an entrepreneurial business where the entrepreneur-owner-manager owns 51% or more of the shares, of course they speak for business, so if they say, “I want to stay in,” or, “I want us to pull out,” that is not only their view but the view of the whole business. I can understand that and it is very interesting, but quite often the people being interviewed are executives with very few shares in very large companies, who have not cleared their view through a shareholder meeting or some other constitutional process. The BBC wishes to give the impression that that is the view of all the members of the company, whereas in fact it is just the opinion of an executive. It is interesting, and the executive may be quite powerful, but he does not necessarily speak for the company, and that is never stressed in the exchanges.

[Sir William Cash]

Does my right hon. Friend accept that, quite often, what is interesting is which questions are not asked, as well as those that are asked and the people who are put on? For example, some of us have for a long time been making the argument, based on House of Commons Library statistics, that we run a deficit with the other 27 member states of about £62 billion, whereas the Germans run a surplus with the other 27 member states of about the same amount or more. Why does that sort of argument never get aired or heard?

[John Redwood]

I am being tempted into byways on the substance of the debate in the forthcoming referendum, but my hon. Friend is absolutely right. We would like to hear more questioning of our deficit and a reminder that we are the customers more than the producers; it is the other way round for the Germans. It is unusual for the customers to be in a weak position and the producers in a strong position.

--- Later in debate ---

[Sir William Cash]

There is a case, which my right hon. Friend the Member for Wokingham (John Redwood) touched on earlier, relating to the business news. In its report, our Committee referred to the business section which comes on at about six o’clock in the morning, and to what I hope will not continue to be a stream of people putting forward the pro-EU case. Given that the charter itself is under review and a consultation period is in operation, we look to the Secretary of State to ensure that the opportunity is taken to address this question as part of the review, and that includes addressing the question of public purposes.

The basis on which a chartered body operates is by reference to the objects of the charter, and those public purposes do not specifically include the impartial delivery of commentaries and news. The question of the charter is linked to the guidelines, and the guidelines are rather like a statutory instrument: they must have regard to what the charter says. On the other hand, the charter itself should specifically ensure that in its wording impartiality is an absolute.

[John Redwood]

Has my hon. Friend ever heard a BBC journalist ask someone how they would like to spend all the extra money we would have if we did not make a contribution to the EU, or is it just my bad luck that I have never been around when they asked that?

[Sir William Cash]

There have been suggestions, of course, that the BBC has been in receipt of money from the EU. My hon. Friend the Member for North East Somerset (Mr Rees-Mogg), who is not in his seat at the moment—he usually is—put that question to Mr Harding, and we were hoping we would get further information on the matter. We have, however, invited Lord Hall to return and he will be coming back to see the Committee quite soon. He has accepted the invitation this time—he has not been required to appear—and we are looking forward to getting an answer to that question, and many others.

Euro Area

Debate between William Cash and John Redwood

Tuesday 21st July 2015 Westminster Hall

[John Redwood]

Indeed. After I secured the debate, no less a figure than the President of the French Republic made an important speech saying that the recommendations of the five presidents of the European Union do not go far enough. I thought theirs was a blockbuster recipe for pretty comprehensive union, but the President of France has said that he would like them to go further and faster. He would like to supplant the current European Parliament, or put alongside it a euro area parliament, to provide some democratic accountability to the increasingly large and important decisions that the Eurogroup makes.

[Sir William Cash (Stone) (Con)]

Will my right hon. Friend also note that, according to the press release I have here, President Hollande said that the eurozone needed a specific budget as well as its own government and parliament? In other words, they are going for political union or bust in the eurozone.

[John Redwood]

My hon. Friend is exactly right. The President of France has gone even further than the five presidents. I will briefly highlight what is in the rather lengthy and important report, because it has escaped most comment and attention in the United Kingdom. The five presidents say:

“For all economies to be permanently better off inside the euro area, they also need to be able to share the impact of shocks through risk-sharing within the EMU. In the short term, this risk-sharing can be achieved through integrated financial and capital markets”.

That is pretty comprehensive union, which they call “private risk-sharing”. Those markets would be

“combined with the necessary common backstops, i.e. a last-resort financial safety net”—

presumably that is public finance. They continue:

“In the medium term, as economic structures converge…public risk-sharing should be enhanced through a mechanism of fiscal stabilisation for the euro area as a whole.”

That is rather wordy and slightly opaque, but I think the meaning is clear. The five presidents have recognised that to have a successful single currency, taxpayer money needs to be standing behind the financial institutions—the banks and others—and the states involved in that financial union. That is exactly the issue that the tragedy of Greece has highlighted.

Euro banknotes have no symbols of French or German taxpayers in the way that our banknotes have the Queen as a representation of the full power of the sovereign in Parliament and the revenues going into the Treasury. Euro banknotes do not have that, for the good reason that the symbols could not be agreed and there was a bit of reluctance to put the full power of taxpayers behind the banknote. They have a misleading symbol on them: the European Union flag. One has to ask why that is, when the United Kingdom—the largest country in the “outs”—has made clear that we have no wish to put any taxpayer money or finance behind the euro, because it is not our project and we are not part of it. That illustrates a much bigger problem that the eurozone is grappling with: who stands behind its banks? Who stands behind the member states when they get into financial difficulties? That problem has come out in the Greek struggle.

The five presidents go on to say:

“Progress must happen on four fronts: first, towards a genuine Economic Union…Second, towards a Financial Union that guarantees the integrity of our currency across the Monetary Union and increases risk-sharing…This means completing the Banking Union and accelerating the Capital Markets Union. Third, towards a Fiscal Union that delivers both fiscal sustainability and fiscal stabilisation”—

that means sharing tax revenues, basically—and

“finally, towards a Political Union that provides the foundation for all of the above through genuine democratic accountability”.

They go on to say that there will have to be a lot more common decision making or shared sovereignty, although I would call that the gift of sovereignty to a higher body. They say that

“this would require Member States to accept increasingly joint decision-making on elements of their respective national budgets and economic policies. Upon completion of a successful process of economic convergence and financial integration, this would pave the way for some degree of public risk sharing”—

that is, countries using other people’s taxes to sort out their own problems—

“which would at the same time have to be accompanied by stronger democratic participation”.

[John Redwood]

I hope that it would be the United States of Euroland, but my hon. Friend is right. I hope that the Minister will say that we will not be part of it and that a plan exists to negotiate a new relationship for the United Kingdom. We will clearly need such a relationship, because no party in this House wants the UK to risk-share on that basis, putting in British taxpayer money to help Greece, Portugal or whoever is in trouble due to the euro.

The five presidents want a euro area system of competitiveness authorities that will try and create commonality of policy and outturn across the Union. They claim to have largely achieved the goal of bank supervision with the setting up of the single supervisory mechanism, but the single resolution mechanism is not fully implemented, and they want to complete a financial union, launching a common deposit insurance scheme and a full capital markets union. They want to get on with those immediately and not await treaty change, which they will need for some of their other proposals.

The five presidents ultimately want a single European capital markets supervisor, which would have great implications for the City of London and the conduct of our markets and our regulatory system were we to take part. They say that

“regulation creates incentives to risk-pooling and risk-sharing and ensures that all financial institutions have sufficient risk management structures in place and remain prudentially sound.”

Even more importantly, they go on to say, referring to the capital markets union:

“Taxation can also play an important role in terms of providing a neutral treatment for different but comparable activities and investments across jurisdictions.”

Will the United Kingdom be able to opt out of this capital markets union? If we sign up to it, does that mean that we would have to accept common European taxation on this rather important business interest for the UK?

Last, but by no means least, the report contains a heading referring to a euro-area treasury, under which it states:

“The Stability and Growth Pact remains the anchor for fiscal stability and confidence in the respect of our fiscal rules. In addition, a genuine Fiscal Union will require more joint decision-making on fiscal policy”—

in other words, a euro-area treasury.

[Sir William Cash]

My right hon. Friend knows this, but there is benefit in getting it on the record. The Germans and the French broke the stability and growth pact three years in succession with impunity when it suited them. On the question of how far our Government would go in accepting the proposals, does he agree that the creation of a eurozone is only a de facto organisation and not a legal one? We are caught up in this. When the fiscal compact was proposed, our Prime Minister, having listened to us, decided that he would veto. Would we not want him to veto all this as well and to make it clear that that is the case now?

[John Redwood]

My hon. Friend is right to draw attention to the legal complexities that the euro area and the EU face. He is right that there is no formal, treaty-backed legal entity of the euro in full. There is the relatively informal euro-group of Ministers, who meet monthly just before the full economic affairs council, to settle euro business.

The process has gone a bit further, because of course there is a separate legal entity called the European stability mechanism, which is a formal entity for bailing out or offering loans to euro states in need of additional money. It is currently the object of the entreaties of the Greek state as the Hellenic Republic seeks a long-term loan to replace the short-term loan that the European financial stabilisation mechanism has just provided to see it through July. Greece is currently in negotiation over €86 billion—Germany would like it to be less—of possible money from the ESM. There is a legal structure to do some of the financing but, as my hon. Friend rightly says, they probably need treaty modification and a firm legal basis for the euro. In recognition of that, the five presidents suggest that they may need to move towards having an elected-President of the eurozone, which I imagine would have full legal authority and would therefore give personality to the zone as a legal entity and which would make things easier from their point of view.

I am conscious that several colleagues have turned up to join in this debate and, with your permission Sir David, I would like to see whether they can be accommodated, so I will move rapidly on to my questions to the Minister. It seems that much of what the five presidents want is perfectly reasonable in the context of people who have set up a currency that does not yet have a country to love it or back it. They desperately need to make a lot of progress to create a political union, to create a flow of tax revenues and to provide the financial solidity that a main currency usually has, so I can see their agenda. We have already heard the French President say this week, “Let’s go further and faster”, so we know the direction of travel.

Will my hon. Friend reassure us that the UK could not conceivably travel that route? Having made the crucial decision not to join the euro, the British people and Parliament are not going to want to go down the route of political union. Will he also say where the British Government will now stand on the challenge or opportunity of full banking and capital markets union? There would be great hazards in the UK signing up to the full banking and capital markets union, because that would, by implication, drag us into the financing of the euro area and involve us in decisions that it would properly want to make for itself, as we are not a full member. I would be grateful to hear the latest Government thinking on how we can have our own independent markets but co-operate with and work alongside the euro area as it creates its capital markets union.

It seems to me that there will definitely have to be treaty change. The five presidents are suggesting that they can get by without treaty change until 2017, after which they will need it. From the UK’s point of view, that is an inconvenient date, because we would like treaty change as a result of our renegotiations. As the gap between the likely date of our referendum and the date for the euro area considering treaty changes is quite narrow, might one part of our renegotiation be to say to our partners in Europe, “As you need treaty changes quite soon and we would like them now, let’s bring the thing together”? Is it not the case that the treaty changes we need relate not only to the fact that the EU already has more power then we would like over aspects of our lives, but to the fact that it is about to take a lot more power to consolidate the euro? That is a step that we could not conceivably take.

The detailed issues under all that relate to who is responsible for recapitalising failing banks—for example, who is going to recapitalise the Greek banks? Are we fully insulated from all that? Are we now happy that the formulation from the European financial stabilisation mechanism is watertight so that there is no recourse to British taxpayers in the temporary loan to Greece? Can we ensure that all future bailout loans and other advances to euro states come entirely from euro funding and not from EU legal structures, which have added complications? Can we urge the euro area to ensure that it completes its banking arrangements as quickly as possible? It would be much to the convenience of not merely the Greeks but everyone else who needs to deal with Greece that its banks do not shut down for several weeks and can reopen, as they have done partially today, with a full service, so that they can be a proper part of the European market and the world economy.

This is a great opportunity for the UK from which the Prime Minister should take heart. I admire the honesty of the five presidents coming out with all this now, despite the Greek crisis and the knowledge that the UK wishes to negotiate a new relationship. I think it makes things much easier for us, and we should share that fact with the British public, which is what I am trying to do in my modest way today. We must say that there is a big plot afoot—a wild ride to political union that is not something to which the UK can sign up. We should not get in their way, but the price of our happy consent to their new arrangements must be a new set of arrangements for us to get back powers that insulate us from all this. We need to try to find a way to work alongside the euro without being part of it.

--- Later in debate ---

[Sir William Cash (Stone) (Con)]

It is a great pleasure to serve under your chairmanship, Sir David. Perhaps I should put on the record the fact that this morning I was re-elected as Chairman of the European Scrutiny Committee.

In a nutshell, everything that my right hon. Friend the Member for Wokingham (John Redwood) said is completely true. The current situation represents both a massive challenge and an opportunity for the Government. On a number of occasions, when the Prime Minister has been confronted with such difficult, challenging questions, he has decided to do the right thing. This debate, however, demonstrates that there is another new opportunity because of the disarray in the European Union.

The question of the relationship between the eurozone and the rest of the EU provides us with an opportunity, in particular given what President Hollande has said about wanting a eurozone budget, Government and Parliament, as I said in my intervention. That is completely inconceivable for the United Kingdom, the Government and our Parliament. We would be driven inexorably into all the nooks and crannies of those arrangements, because we are bound to be affected by them, as we already have been in the crisis that has engulfed Europe for the past five or six years and that I believe has been apparent since the Maastricht treaty in 1990.

The question of what President Hollande said a few days ago is important. In my judgment, what is significant is that he has a real problem with Germany—I will come on to Germany—because the question for France is one of sovereignty and the question for Germany is one of sharing the risk. That will present a significant problem between France and Germany, which is why Angela Merkel and President Hollande clearly had severe differences of opinion. This is a moment when it is imperative for the British Government to make their position clear. With France and Germany at loggerheads over the question of sovereignty and sharing economic risk, we have a classic Waterloo moment, when we should simply go straight through with our cavalry and say through the Financial Secretary to the Treasury and the Prime Minister what we will not have, that we want clarity and that this is not the time for fudge. This is the time for decisive action and to make it clear what we cannot possibly accept.

Other matters to be looked at include the purposes that lie behind what Wolfgang Schäuble has been edging and pushing, nudging and driving, during the Greek crisis. My right hon. Friend the Member for Wokingham and I each wrote essays in a recent book called “Visions of Europe II”, following on from “Visions of Europe”, which came out in 1993 and in which I quoted myself. I said, I hope not immodestly, that

“the answer to the German question lies primarily in Germany itself”,

but to

“hand her the key to the legal structure of Europe with a majority voting system gravitating around alliances dependent on Germany simply hands to”

Germany

“legitimate power on a plate.”

We can say that that is exactly what has happened since I wrote those words in 1990.

Furthermore, because I wanted to be positive, I wrote:

“Britain wants to work together with Germany in a fair and balanced relationship, based on free trade, co-operation and democratic principles. She does not want to be forced into a legal structure dominated by Germany. Plans for a united Europe stray into the darkest political territory, and must be firmly rejected.”

That was in 1990, and here we are now.

I added that

“if Germany needs to be contained, the Germans must do it themselves…now is the time for the Germans to prove themselves”—

I am afraid that they have. Given the treatment of Greece, irrespective of whether there was culpability on the part of the Greeks, the really big landscape—the manner in which the whole European project has been driven forward since Maastricht—the really big landscape—the manner in which the whole European project has been driven forward since Maastricht—is that the Germans are now in control of the eurozone. No one doubts that. I have a whole stack of cuttings here, from Germany, including from Bild, and from French newspapers. I do not have time to go through them all, but every single newspaper throughout the whole of Europe—rather curiously, there was a fairly muted response from the British press—has made the assumption that it is now effectively a German eurozone, if not a German Europe.

It is not in our interests to allow that, or to allow ourselves to be affected by this situation. We will be driven into the second tier of a two-tier Europe. The eurozone is part of the over-arching legal framework of the EU as a whole, of which we are a part. That is what is driving us towards the exit of the European Union.

[John Redwood]

I wonder, Sir David, whether, if my hon. Friend agrees, it might be helpful to know how many colleagues would like to speak, so they can all have a fair amount of time.

European Union Referendum Bill

Debate between William Cash and John Redwood

Tuesday 16th June 2015 Commons Chamber

[Sir William Cash]

Very simply, any suggestion that the European Commission or the EU should be involved in this process is the subject of another amendment I have tabled, and nor should they be allowed to make any provision by way of financing. We can debate that later.

On whether contradiction might be created in respect of the position of Government Ministers in this country, my flow has been slightly diverted by my hon. Friend’s perfectly understandable intervention, but the fact is that Ministers and the civil service are in a position under the purdah rules such that they would not be able to use the machinery of government. In relation to the EU, which I know a little bit about, the machinery of government is extensive, but there are methods that could be applied, with a sensible degree of amendment, to ensure that the restrictions on the matters to which I have referred are complied with, because this is what we are talking about; it is not some generalised assumption that Ministers are going to wander on to completely different paths.

Section 125 lists the material I have already referred to—

“general information about a referendum…any of the issues raised by any question…any arguments for or against any particular answer to any such question”

and questions

“designed to designed to encourage voting”,—

and it states that none of that material

“shall be published during the relevant period by or on behalf of—

(a) any Minister of the Crown, government department or local authority”.

It could not be clearer; it could not be more sensible, more sound or more comprehensive.

[John Redwood (Wokingham) (Con)]

Would my hon. Friend like to confirm that it is a principle of fairness in all British elections and referendums that individuals—Ministers as well—participate on whichever side they wish under a single campaign, for yes or for no, which has proper controls over expenditure and publications? Does he also acknowledge that there cannot be a third category of intervention by the Government, because that would break the normal rules of campaign funding and control?

--- Later in debate ---

[John Redwood]

Indeed. I am speaking to amendment 10 tabled by my hon. Friend the Member for Stone (Sir William Cash), who seeks to clarify this point and prevent the use or abuse of EU money. I hope that the Minister will respond and that he will have his own proposals on Report. The Electoral Commission has given exceedingly good advice across the board on this referendum. It seemed to suggest that it would not be right for the EU to give money for the campaign, and it would be nice to have a reassurance that the Government share that view and accept the advice of that august body, which is there to guide us.

There is an additional issue with EU money, to which some colleagues have referred. What do we do about the EU money that is routed to bodies or organisations within the UK that choose to make a donation to a referendum campaign? That is another difficulty. As I understand it, such a donation would be perfectly legal because the organisation giving the money would be able to say that it had other sources of money and it was not a direct gift of EU money to the referendum campaign. Such a body may be swayed by the fact that it had had generous access to EU moneys in the past. While one would hope that none of them were donating for that reason, people would suspect that a body in receipt of substantial EU moneys in the normal course of business that saw fit to give money to the campaign to stay in would hope that the EU would be better disposed to it when it put in its next application for money.

[Sir William Cash]

I do not know whether my right hon. Friend was here when we were debating part of this, but the Electoral Commission’s position is that a central principle of the regulatory regime that it supervises is that foreign sources of funding should not have undue influence on our democratic process. It has come to the conclusion that the European Commission does not fall within the list of bodies that can register as a campaigner. Does my right hon. Friend agree that we have to get to the bottom of that? It is highly arguable that the European constitutional arrangements are effectively embedded in our own constitutional arrangements by virtue of sections 2 and 3 of the European Communities Act 1972. We need to get this right.

[John Redwood]

I was present to hear my hon. Friend speak to his amendment, and I am aware of the legal minefield that the provision could represent. That is why I worded my remarks cautiously—I said that I thought it was the view of the Electoral Commission that it would not be appropriate for the EU to spend money on the campaign. As he reminds us, it has made a clear statement about being a principal donor to the campaign, but there are other ways in which it could help, and it might argue that it was a domestic institution for these purposes. It might say that the EU’s writ runs within the UK. There is an office of the EU in London; it might try and route it through the London office. We need to say that that would be unwise. The Minister may think that it is illegal or that it should be impeded in some way. We need clear guidance from the Minister.

I return to the issue of indirect funding of the campaign by grant-in-aid to organisations that are helped or partially funded by the EU. Of course, it is a matter for the referendum campaign to argue over the rights and wrongs of EU funding. I am sure the no campaign will want to say that the money we send to Brussels and which it gives back to our organisations could be given to them directly by the United Kingdom Government if Brussels were not in the way. It could be pointed out that the £11 billion we send to Brussels in tax revenue is spent outside the UK, so, were we to leave, that money would be available for either tax cuts or extra spending in the United Kingdom.

That would be a matter of debate in the referendum, but an issue for the Bill relates to the legality, morality and political wisdom and judgment regarding the point at which an organisation becomes so dependent on EU funding that it has a very strong interest in it. Restrictions or limitations—or at least a declaration of interest—might need to be made if such a body decides to become involved in the referendum campaign. It would be wise to let people know of such a clear financial interest if the body played an important part in the yes campaign.

[Sir William Cash]

Does my right hon. Friend think it would be possible to have a register of interests? Then, when companies go on the BBC and say, “We don’t want the United Kingdom to leave the EU,” we would know where their money comes from, what their actual policy is and the extent to which they are dominated by the EU system.

Debate on the Address

Debate between William Cash and John Redwood

Wednesday 27th May 2015 Commons Chamber

[John Redwood]

Of course there will be a debate, and the SNP can use all the parliamentary procedures, which some of its Members know well, to make sure that the issue is properly scrutinised and debated, but we do not need a great piece of legislation. We just need an agreement on who votes on what. It is not that complicated, it is extremely popular outside this House, and it was clearly offered to the British people by the Conservative party. It was one of several policies in our manifesto which were about twice as popular as the Conservative party itself, and we were the most popular party when people did not really like any of the parties in the election very much. They backed us, but they backed some of our policies rather more.

[Sir William Cash (Stone) (Con)]

I rise to support my right hon. Friend’s extremely relevant comments. The legislation has of course already been passed, in the form of the devolution Act in 1998. That is what devolved the functions. That is why it is necessary and fair to make sure that, through our Standing Orders, the English people know that they get exclusive rights over their own legislation.

[John Redwood]

I am grateful to my hon. Friend. To those who say we have not thought through this issue I would point out that we wrote many papers on it in opposition and that we thought it through over a 15-year period—it was in the 2001 Conservative manifesto—so the proposals should come as no surprise to anyone who is interested in the subject or who has been following the debates.

The third point I strongly support in the Gracious Speech is that at last we will get a referendum on our relationship with the European Union. Any honest Government picking up the task today should say to the British people that we need a new relationship because now the euro is driving so many of the changes in the EU. Those in the euro need much closer and stronger centralised government; they need to stand behind each other rather more. They are going to need common benefit systems and common cash transfer systems, and they are going to need to send support from the richer to the poorer areas, just as we do within our Union of the United Kingdom—if one part falls on hard times, the other parts pay more tax and send it the money. There is a mutual insurance or solidarity system which should appeal to all those of a socialist mind; it even appeals to me, because I think when some are down on their luck within such a union, they should be supported by others in the union. The United Kingdom has very clearly, and quite rightly, never elected a party that wanted to join the euro. The public have no appetite to join it; they have no wish to start raising more taxes in Britain in order to send financial assistance to Greece, Portugal or Spain, although those countries desperately need it.

Of course we need to define a new relationship with the emerging, closely centralised political union of which our colleagues in the EU now speak all too often, and I am pleased that my right hon. Friend the Prime Minister is taking on this difficult and tricky task. There will be a range of views within and among the parties on this issue, so a referendum would be a good way of making the final decision. I urge my right hon. Friend to bear in mind that what the British people, and many in this Parliament, want is to restore the British people’s right to make up their mind and their MPs’ right to ensure that the British people’s views are reflected in what happens here. At the moment, it is all about borders, immigration and welfare systems, and at the general election the British people expressed a strong wish for change on those matters. We need Ministers who can deliver those changes, but some of them are neither legal nor possible under our current EU arrangements.

In the future, the British people might want to see changes in other areas. They might want cheaper energy, for example, but they would discover that their politicians were not entirely able to deliver it because energy is hedged by many European rules, laws and requirements. Britain therefore needs some way of dealing with a situation in which, because of European rules, elected Ministers are unable to act on a matter of consummate importance to the British people. We might be able to do certain things, because we can get a special deal through not being in the euro—that relates to how much centralised government the countries in the eurozone, which we must keep out of, are going to take to themselves. Adopting that more widely might help with their other problems, because at the moment we are seeing a series of collisions between the will of the people following the elections in countries such as Greece and perhaps Spain, and what the European establishment is dishing out by way of policy.

If Opposition Members dislike austerity, they should study what has happened in Greece. It has seen very large public expenditure cuts, of a kind that I would not have supported, at a time when its economy was imploding and its banking system was broken, and its GDP has fallen by 25% since 2008. Let us imagine how we would feel if that had been inflicted on us by policies from Brussels. Thank heavens that those of us who made the case against the euro persuaded others to keep us out, because there but for the grace of God would have gone Britain into a euro-scheme that can deliver untold damage and austerity. Who would want 50% youth unemployment? That is what they have in several parts of southern Europe now, thanks to the devastating austerity machine that is the euro. I urge my right hon. Friend the Prime Minister to take advantage of our non-membership of the euro to negotiate a democratic settlement for us, so that if we need something for our prosperity, this House will be able to deliver it.