Oral Answers to Questions

David Lidington Excerpts

Tuesday 17th January 2012 Commons Chamber

[Mr Mark Spencer (Sherwood) (Con)]

16. What assessment he has made of the implications for his Department of economic conditions in the EU.

[The Minister for Europe (Mr David Lidington)]

The crisis in the eurozone is having a chilling effect throughout Europe, which is why this Government are arguing vigorously within the European Union for action to promote growth by deepening the single market, boosting trade and cutting red tape.

[Anne Marie Morris]

I thank the Minister for his response. Does he agree that it is important that policies are enacted at EU level to encourage economic growth? Measures designed to help drive sustainable economic recovery, such as exempting micro-businesses from the burden of red tape, would have positive implications for all Government Departments across the 27 member states, including his own.

[Mr Lidington]

I agree completely with my hon. Friend, which is why the agreement at the December European Council for an exemption from European regulations for micro-business was particularly welcome, especially as that will apply not only to new European legislation but will prompt a review of the existing acquis in respect of micro-businesses.

[Mr Spencer]

Can the Minister assure the House that the principles of the Prime Minister’s veto will be followed through, and that any attempt by the EU to impose a tax on this country’s financial services will be vigorously resisted?

[Mr Lidington]

A financial transfer tax would require unanimous agreement by all 27 member states, which is something that the single market Commissioner, Monsieur Barnier, has confirmed to me. The Prime Minister has made it clear that we would not agree to the imposition of such a tax.

[Mr Ben Bradshaw (Exeter) (Lab)]

What assessment has the Minister made of the impact on the EU economy of the recent behaviour of the Hungarian Government? Has he reminded that Government that there is an expectation that all EU members adhere to normal democratic norms?

[Mr Lidington]

We are certainly concerned about any developments in other EU member states which might lead to even greater economic instability than we currently see. I have talked about the concerns expressed in a number of quarters with regard to Hungarian legislation with my Hungarian opposite number and with the Commission. As the right hon. Gentleman may know, the Commission is due to release the results of its assessment about now. The Hungarian Government have said that they will consider carefully and constructively the comments that the Commission makes, whatever they are, and I believe that that is the right way forward.

[Emma Reynolds (Wolverhampton North East) (Lab)]

It has been reported that the Foreign Secretary advised the Prime Minister before the European Union summit in December that if it is a choice between keeping the euro together or keeping the Conservative party together, it is in the national interest to keep the Conservative party together. Can the Minister confirm that the Foreign Secretary regards the unity of his party as more important to the national interest than the success or failure of our largest trading partner?

[Mr Lidington]

I really had hoped that the hon. Lady would have something a bit better to say than that. What the Government are determined to do is to support our allies and neighbours in the eurozone in their efforts to restore economic stability to their currency union, and also to press for the measures to promote job creation and economic growth which the whole of Europe desperately needs. We are not prepared to take lectures from the Labour party that signed away £7 billion of the British rebate and denied the people of this country the referendum on the Lisbon treaty, which it had promised.

[Mr John Redwood (Wokingham) (Con)]

Does the Minister agree that the gloom about the consequences of an early break-up of the euro has been greatly exaggerated, bearing in mind the very positive economic experience for eastern European countries from the break-up of the rouble zone—very similar to the euro—in the early 1990s?

[Mr Lidington]

I have to say that it is unusual to find my right hon. Friend looking to the example of the former Soviet Union for inspiration. We have looked across Government very carefully at what the consequences of a eurozone break-up might be, and one of the key differences between now and 20 years ago is that the economies and the financial systems of Europe are much more closely interlinked now than they were then. It is certainly our judgment that it would be damaging to the British national interest were a collapse of the eurozone or a prolonged recession in the eurozone to take place.

[Kelvin Hopkins (Luton North) (Lab)]

The credit ratings of a number of eurozone states have been downgraded this week. The bail-out fund is now considered to be far too small to do its job. Mario Monti, Italy’s unelected Prime Minister, said yesterday that there would be a backlash against austerity unless Germany provides more support to Italy. The crisis becomes deeper every day. Is it not the case that recovery for many of those countries can come only when they can recreate national currencies, devalue and start to grow again?

[Mr Lidington]

With respect to the hon. Gentleman—his views on the subject are utterly consistent and I respect them—that is a matter for the peoples and Governments of those sovereign countries. From our point of view, what is needed is for the eurozone countries to implement in full the deal that they agreed to in October last year, and for Europe collectively at 27 to move forward urgently with deepening the single market, boosting global trade and cutting red tape and regulation on our businesses. That is the way to growth and jobs.

--- Later in debate ---

[Mr Dominic Raab (Esher and Walton) (Con)]

9. What steps he plans to take in response to recent reports of human rights abuses by the Government of Russia.

[The Minister for Europe (Mr David Lidington)]

We will continue to raise concerns about human rights with Russia at ministerial and official levels. We shall sponsor a number of observers at the forthcoming Russian presidential election that is due in March.

[Mr Raab]

I thank the Minister for that answer. With the US Senate due to approve the bipartisan Magnitsky Bill, which will impose mandatory visa bans and asset freezes on those responsible for gross human rights abuses, and with similar proposals in the Netherlands and Canada, will he look at the case for bringing forward an equivalent Bill in this House?

[Mr Lidington]

As the Under-Secretary of State for Foreign and Commonwealth Affairs, my hon. Friend the Member for North West Norfolk (Mr Bellingham) said in response to my hon. Friend the Member for Esher and Walton (Mr Raab) in Westminster Hall the other day, if the American Bill, which I understand is at committee stage in the Senate, eventually becomes law, we will look closely to see whether there are lessons on which we might draw. My hon. Friend will know that we have powers in this country to ban any person from coming to the United Kingdom if there are grounds for concern about their character, conduct or associations.

[Tony Lloyd (Manchester Central) (Lab)]

When the Minister is making representations in Moscow about human rights in Russia, will he raise with the Russians, who have a pivotal role at the United Nations, the human rights abuses in Syria, because if Russia unblocked its present position at the United Nations, it would allow real pressure to be brought on the Syrian regime?

[Mr Lidington]

The hon. Gentleman makes a very good point. We obviously talk a great deal to Russia about the situation in Syria. My right hon. Friend the Foreign Secretary, within the past few weeks, has talked to Foreign Minister Lavrov about Syria, including to pass on our great concern about the systematic abuse of human rights in that country.

[Sir Malcolm Rifkind (Kensington) (Con)]

Although the respect for human rights in Russia may be considerably greater than in it was in the Soviet Union, does not the terrible treatment of Mr Magnitsky, his death in custody and the refusal of the Russian authorities to recognise responsibility for what happened suggest that my right hon. Friend the Minister should follow the advice of my hon. Friend the Member for Esher and Walton (Mr Raab) and not wait until the United States has reached its conclusion, but do everything in our power to follow a similar course of action?

[Mr Lidington]

As my right hon. and learned Friend knows, we have powers in existing law to ban people from coming to this country on the grounds that their presence would not be conducive to the public good. He also knows that successive Governments have followed a practice of not commenting on individual cases. His concerns about the abuse of human rights in Russia are, however, well made. That is why my right hon. Friend the Prime Minister and all Ministers, when they meet Russian counterparts, always make a point of raising human rights matters.

[Yvonne Fovargue (Makerfield) (Lab)]

10. What representations he has made to the President of Colombia on protection for trade unionists and human rights activists in that country.