Commission Work Programme 2013

Edward Leigh Excerpts

Monday 7th January 2013 Commons Chamber

[Kelvin Hopkins]

I thank the hon. Gentleman for intervening. The document talks about solving external crises, but what about solving the internal crises? The European Commission has not shown much ability to do that. The problem is that it has inflicted supply-side measures—most of these are supply-side measures to try to deal with the economic problems—whereas the real difficulty is a serious lack of economic demand. That is the deficiency and macro-economic policy is the problem, as it is failing and is, in most cases, completely misguided. Item 1 in the document refers to an “Annual Growth Survey”—perhaps that ought to be re-titled the “Annual Contraction Survey”.

Item 6 makes the only reference in the whole list to the

“importance of a sound macroeconomic framework”.

I absolutely agree with the importance of that, but there is no sign of such a framework as yet. Indeed, we have the opposite: co-ordinated deflation driving the EU towards deeper recession. Thank goodness this country is somewhat to the side of that. We will of course lose if—[Interruption.] My hon. Friend the Member for Preston (Mark Hendrick) is intervening from a sedentary position, but I cannot quite hear what he is saying. The euro is the primary problem; Greece, Italy, Spain and a number of other countries ought to be able to recreate their own currencies, to depreciate and to reflate behind that.

[Mr Edward Leigh (Gainsborough) (Con)]

The hon. Gentleman is a notable voice of reason on the Labour Benches on these issues. Does he think he will be able to persuade his colleagues to join us in arguing for a referendum on our relationship with the European Union—on whether we should stay in or not?

[Kelvin Hopkins]

I certainly think we should have a referendum, and I am actively involved in an organisation promoting the idea of one. More than that, we want to get some sensible economic policies adopted, both in Britain and across Europe. We also want to return to some of the common sense that emerged from Bretton Woods in 1944 and led the post-war world to such success, with full employment, rising living standards, growing equality and so on.

Items 9 and 10 refer to state aid. Lecturing those countries in desperate crisis about not indulging in state aids would be completely unacceptable. If they have to use state aids to regenerate their economies, they should be able to do so. Indeed, state aids in the UK should be decided by this Parliament and not by the European Commission. Some may be against state aids in principle and others may think them a very good idea, but we should decide on that, not the European Commission.

Item 13 refers to:

“Reforming the internal market for industrial products”.

That does indeed need dealing with. One of the great problems—the great problem, in a sense—in the European Union is the massive trade imbalances within it. Germany has a gigantic trade surplus with the other members of the EU, including with this country. If we went back to the principles of Bretton Woods, we would expect, in normal circumstances, that Germany would let its currency appreciate—the Americans were rather against that idea of John Maynard Keynes, but it was a sensible one—and that those with trade deficits should be able to depreciate their currencies. That is one of the measures used to get an economy working again.

I come now to some detailed points. No reference to railways is made in the section dealing with transport, although they are a major force for the future in the transport sector. Surprisingly, after 200 years or so, they have turned out to be the mode of transport for the future rather than the past. I have a great interest in railways, but no reference is made to them in this document.

On cigarette smuggling, we lose billions in government revenues every year because nobody pays taxes on imported cigarettes. They are brought in by the billion, I guess, and if we had proper taxes and duties paid on every cigarette smoked, we would gain billions in revenues—enough to pay many times over for free long-term care for all. Cigarette smuggling is a major problem, which we ought to be addressing as a nation rather than simply through the European Union.

Most of the measures in the list could be undertaken by member state Governments on an individual basis, as they felt they were appropriate. If we wanted to indulge in international agreements, we could do that through bilateral and multinational negotiation. The democratic decisions should be taken in this House, by this Parliament, and by member state Governments in general. We have shown that we can co-operate bilaterally and multilaterally and we do not need a European Commission to determine all these things. I am strongly in favour of democracy, which means democracy at a member state level.

[Jacob Rees-Mogg (North East Somerset) (Con)]

It is a great pleasure to follow the hon. Member for Luton North (Kelvin Hopkins), who is the voice of reason on these matters, but it was the speech of the hon. Member for Birmingham, Edgbaston (Ms Stuart) that made me think about the forms and substance of power in this nation. When Her Majesty’s Government introduce the Queen’s Speech—their legislative programme—there is a great sense of funfair and fête. The House has trumpeters; the imperial state crown comes in its own carriage. Rather splendidly, Black Rod comes and the door is slammed in his face to show the independence of the House of Commons from the Executive.

When the European Union sets out its legislative programme, what do we get? When real power is being exercised, what do we see? A dusty, dry and bureaucratically written text is sent up to a Committee Room for a few people to consider and, if they feel like it, they grant an hour and a half—90 minutes—of debate on the Floor of this Chamber. There is no ability for witty speeches to be made by old and young Back Benchers alike or for jokes to be made by the Leader of the Opposition and the Prime Minister. We do not have three or four days of debate to clear maiden speeches out of the way or delve into the thin gruel that now comes from the Queen’s speech—we know where power really lies.

[Mr Leigh]

We get a speech from my hon. Friend, however, who is himself an ornament of the constitution.

[Jacob Rees-Mogg]

I am very flattered by that promotion. Perhaps that is the one ornament I can provide to a debate on the European Union’s legislative programme, as it is more thoroughgoing and more powerful than the Queen’s Speech and becomes law more easily and with less scrutiny than anything contained in it.