Oral Answers to Questions

John Baron Excerpts

Tuesday 12th July 2016 Commons Chamber

[Mr Hammond]

No, not at this stage, but what I can tell the hon. Gentleman is that in the circumstances in which we find ourselves, facing the opportunities we now do, recruitment of trade specialists, whatever that costs us, is likely to be an investment very well worth making.

[Mr John Baron (Basildon and Billericay) (Con)]

Is the Foreign Secretary heartened by the fact that since we voted to leave the EU a number of key countries and economies, including India, China and Australia, have approached the UK regarding furthering trade, and how well that compares with the stalled trade talks that have taken many years between the EU and such countries as the US and Canada?

[Mr Hammond]

Yes, it is a source of some optimism that a number of significant economies around the world have indicated that they would be open to the idea of trade agreements with the UK, and my hon. Friend makes a point that is very obvious but none the less important: that negotiating a trade deal between two countries is always going to be much easier than negotiating a trade deal between one country and 28 countries.

Europe, Human Rights and Keeping People Safe at Home and Abroad

John Baron Excerpts

Tuesday 24th May 2016 Commons Chamber

[The Secretary of State for Foreign and Commonwealth Affairs (Mr Philip Hammond)]

I am delighted to open this debate, and congratulate the Opposition on selecting this subject. The security of Britain and the British people, our relations with Europe and the promotion of Britain’s values, including human rights, around the world are at the heart of our foreign policy. One year into this Parliament, the challenges we face to our security, prosperity and values have not diminished—if anything, they are growing.

The threat posed by Daesh and its affiliates continues and has now manifested itself in attacks in European cities. The wider instability in the middle east persists, and the Israel-Palestine question is no nearer to a solution. North Korea has demonstrated its determination to flout international law by developing nuclear weapons and ballistic missiles to deliver them. Russia demonstrates the same determination through its continued destabilisation of Ukraine and its illegal occupation of Crimea. Tensions are rising in the South China sea. The migration crisis in the eastern and central Mediterranean is presenting new challenges to our near neighbours in Europe. As we approach the referendum in just over four weeks’ time, even the theoretical possibility that Britain might vote to leave the European Union is having a chilling effect on economic growth, and on business and consumer confidence. Wherever we look, our world is becoming more dangerous and uncertain.

Against that hazardous global backdrop, some have argued for retrenchment and withdrawal from a global role as the safest option. But we cannot turn our backs. As a trading nation, with one of the largest and most open economies in the world, our security and prosperity depend upon global stability and order. Some 5 million British nationals live overseas, and millions more travel every year. Our trade depends on the sea lanes and airways that are the arteries of global commerce. International engagement and influence are therefore fundamental to maintaining Britain’s security and prosperity.

[Mr John Baron (Basildon and Billericay) (Con)]

My right hon. Friend paints a picture of those of us who want to leave the European Union as wanting to retrench. That could not be further from the truth, and I suggest that “Project Fear” is once again going down a very negative path. In leaving, we would have greater freedom to trade and form trade deals with the rest of the world. At the moment we are barred from doing that; as a member of the EU, we cannot form individual international trading agreements.

[Mr Hammond]

Never mind “Project Fear”, what about project paranoia? I was not in any way referring to the exit campaigners, but simply observing that some people have suggested retrenchment. As my hon. Friend has taken me in that direction, I will answer his question. We enjoy free trade with 53 nations by virtue of free trade agreements negotiated by the European Union. Those campaigning for exit tell me that if we were to leave the EU we would rapidly negotiate new free trade agreements, with the EU itself and then with the 53 countries with which that Union has free trade agreements. Our experience in the real world is that these agreements take a lot of time to negotiate—the EU-Canada free trade agreement has been seven years in the negotiating and is still not ratified.

Another small problem that my hon. Friend should think about is that we do not actually have any trade negotiators. We would be seeking to negotiate those 53 plus one trade agreements from scratch, because for the past 40 years, for better or worse, the European Union has negotiated all our trade agreements on our behalf. We do not have civil servants experienced in this field of activity.

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[Hilary Benn]

I hope the hon. Gentleman will acknowledge that I am making a positive case. However, I can see that the charge that I just levelled at the leave campaigners has wounded precisely because that is what they argue: that somehow Britain cannot cope with being in the European Union—that we cannot manage the place that we have in the institution.

I also say to the hon. Gentleman that it is a fallacy to suggest that somehow, in this referendum, we are faced with a choice between the one and the other. We hear that in the debate about trade. People say that we should be trading with other parts of the world, but our trade with China has doubled since 2010. Have we been prevented from increasing our trade with China because we are part of the European Union? Of course we have not. We can do both. Indeed, Britain’s tradition suggests that not only are we capable of doing both, but we will benefit from doing both.

[Mr Baron]

I cannot help observing that, actually, Aunt Sallies are being created here. The leave camp is not suggesting that we are being kicked around; that is a negative view that the right hon. Gentleman puts to the leave camp. What we are suggesting is that there is a much brighter future outside the EU. There is a fundamental difference.

Of course we can stand up for ourselves: we are the fifth largest economy in the world. We have the world’s most prominent language, and so forth. But the fact that we have a brighter future outside is illustrated by the fact that we are currently forbidden to negotiate trade deals with countries unless they are routed through the EU. If we were to come out of the EU, we could do that, and it would lead to greater prosperity.

[Hilary Benn]

Let me say first that damaging our economy and people’s job prospects is not my idea of a brighter future, and secondly that I hope the hon. Gentleman will forgive me if I do not follow him down the Canadian road. We know that it has taken Canada seven years so far to negotiate its own trade deal with the European Union.

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[Alex Salmond]

Thank you, Mr Deputy Speaker.

The hon. Member for Ilford South (Mike Gapes) should read today’s pamphlet, “The EU and You”, released by the Scottish Government, which explains in a considered and proper way why European Union membership is of benefit to Scotland. Not even the most rabid of the leave campaign could describe that pamphlet as anything resembling “Project Fear”. It makes a considered case for why EU membership benefits Scotland.

If the hon. Gentleman looks at the ICM poll for the UK today, he will see that the two sides are level in an online poll. In the ICM poll in Scotland, the margin is nearly 2:1 for remain. Given that even the hon. Gentleman will have noticed the diminishing fortunes of his party in Scotland and the rising fortunes of the SNP, does that not suggest that the campaign that we are conducting in Scotland is rather more successful in winning hearts and minds to the European cause than the campaign that is being conducted across the rest of the country?

A case in point is the release of the Treasury statistics on the economy yesterday—the expectations analysis. An expectations model is the ultimate GIGO model—garbage in, garbage out. The result is manufactured from the input to the model. The Treasury analysis suggests a 6% wipe-out of GDP from a Euro exit. No other credible forecaster is suggesting anything like that effect. Oxford Economics suggests 1.3% and the Hongkong and Shanghai Banking Corporation suggests 1.5%. The National Institute of Economic and Social Research, which uses the Treasury model, is suggesting 2.3%.

[Mr Baron]

I agree with the point that the right hon. Gentleman is making about “Project Fear”. It is terribly counterproductive. However, we should always remember that those who are peddling “Project Fear” are broadly the same group of people who predicted doom and gloom if we did not join the euro, so they have form. There is one ray of hope. Lord Rose, leader of the remain campaign, has said that if we were to leave the EU, there would be better control of immigration for the sake of public services—

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. No. Now we have to be serious with the House because Members want to get in. I have just mentioned the need for short interventions. Please do not abuse the Chair, because what you are doing is abusing colleagues on both sides and that is not good for anybody. I want to get as many people into the debate as possible and, ideally, I want to get everybody in.

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[Mr John Baron (Basildon and Billericay) (Con)]

As one of those who helped to secure the EU referendum in the last Parliament, in opposition at the time to the leaderships of political parties across the House, I very much welcome the EU referendum. It represents a seminal moment in our history. It allows us the opportunity to lance the boil of our strained relationship with the EU. If we vote to remain, we need to roll up our sleeves and make the EU work better for us all. If we vote to leave, I suggest that we need to maximise the potential of what is before us.

It is also a seminal point in another respect: the result will tell us much about how we see ourselves and our place in the world. Do we have the confidence to seek a better future outside the EU? I take issue with the view of Opposition Front Benchers that we see ourselves as lacking in confidence—a 7-stone weakling being kicked about on the beach. I take quite the opposite view: we are a confident nation. I happen to believe that we could do so much better if we left the EU. That contradicts, in many respects, the view of the remain camp.

[Mr MacNeil]

The Eurosceptic side really fear a federal Europe, whereas from our perspective, a federal Britain would be a massive step forward. That shows the disparity between the British Union and the European Union, certainly from an SNP perspective.

[Mr Baron]

The one thing I share with the SNP is the view that “Project Fear” was the wrong approach at the last referendum. We should have painted a much more positive view of the Union. That is my point here. I think that we can paint a very positive picture of what would happen if we left the EU.

I suggest that it is remaining in the EU—an organisation mired in uncompetitiveness, low growth and high unemployment, with youth unemployment reaching 50% in some countries—that presents the greater danger. The EU’s vaunting project of monetary union has proved to be a disaster. It has forced austerity on countries that really should not have been in that position. Furthermore, its pursuit of fiscal union in defence of the euro bodes ill for the future. Voting in is not a static option.

We have heard the merchants of doom and gloom before. Some may remember that it was broadly the same group of people who predicted absolute disaster if we did not join the euro. The same people are now predicting the very same if we leave. One can go back to those forecasts. The last time the Bank of England predicted a negative economic shock prior to the latest estimate of “Project Fear” was when we were considering leaving the exchange rate mechanism. It transpired that we had a very long period of economic growth following our exit from the ERM. That goes to show that forecasts from the establishment and from great and good bodies are not always up to the mark.

The criticism that is often levelled against us is that we cannot paint a picture of what it would be like if we left the EU. We are told that we have no idea. Of course there will be an element of uncertainty if we leave an organisation like the EU, but we must remember that we are a key player in global diplomacy and security. Britain is a member of more international organisations, including having a permanent seat at the United Nations, than any other country. This is not retrenchment; it is embracing a faster growing world when the EU is becoming increasingly stuck in the global economic slow lane.

In the two minutes that remain, let me paint very briefly the picture that I see of what would happen if we were to leave. We would be able to negotiate trade treaties for ourselves, which we cannot do at the moment. Our hands are tied by the EU, which has to accommodate the special interests of 28 members. That means that British firms and workers are missing out on the benefits of potential trade deals with faster growing parts of the world. There are myriad trade opportunities for Britain in the wider world, especially with the faster growing economies outside the EU. Leaving the EU would allow us to take advantage of them.

There is concern that there would be a fall-off in trade if we were to leave. Again, that does not stack up. We run a massive trade deficit with the EU. It is in its interest to pursue trade with us. Trade will continue, as it always has. We trade with Europe, not with the EU. Even if the EU did try to cut up rough, the World Trade Organisation, which has teeth, would not allow tariffs above most favoured nation status tariffs. In other words, the 3% tariff with the US would prevail—and we could lose that in a week or less in a currency swing.

I suggest there would be greater prosperity. Small and medium-sized enterprises are bound to apply EU regulations, but only 5% of businesses actually export to the EU. How many more people could they employ if they were freed from the dead weight of irrelevant EU regulations?

On immigration, we pursue a discriminatory policy at the moment: we say no to the rest of the world, but yes to the EU. That is not fair. The Australians have a points system. Let us treat everybody fairly, and let us benefit from the skills around the world. However, we cannot do that at the moment.

Then there is the £10 billion that we could spend if we left the EU—that is, the difference between the £19 billion we send to the EU and the £9 billion that comes back by way of various grants. We would be £10 billion up. What could we spend that on? Many things.

This also comes down to sovereignty. However, to conclude, I would say that we put a mirror up to ourselves when we vote on 23 June. Let us get out.

Anglo-Russian Relations

John Baron Excerpts

Wednesday 4th May 2016 Westminster Hall

[Daniel Kawczynski (Shrewsbury and Atcham) (Con)]

I beg to move,

That this House has considered Anglo-Russian relations.

It is, as always, a pleasure to serve under your chairmanship, Mr Davies. I called this debate because I am very concerned about the growing anti-Russian sentiment in the House of Commons. Even for having called for the debate, a senior member of the Government today called me “Comrade Kawczynski”. I have been accused of being an apologist for President Putin and criticised for even daring to raise this subject, so I have prepared a personal statement, which I hope you will allow me to make, Mr Davies.

Of all the Members of this House, I have deep and personal reasons to dislike and distrust Russia and its actions. As many hon. Members know, I am of Polish heritage. Poland suffered terribly at the hands of the former Soviet Union, and like so many Polish families, mine was no exception in experiencing that suffering. My grandfather was a successful landowner and farmer whose life was ruined by the interference of the Soviet system, which was often brutally unfair, corrupt and flawed. It would be easy to cling to prejudice and allow it to colour my view of the world today, yet as a British citizen and a proud Member of this House it is my job and my duty to argue strongly in favour of what I believe will best serve Britain’s long-term security, stability and prosperity, even if that means encouraging détente and dialogue with a country that was born out of the remnants of the oppressive regime that so crippled my grandfather in Poland.

I could not go back to Poland to begin with, because of martial law in the Soviet-imposed regime and what was happening in Poland, but when I first went back in 1983 and met my grandfather, he spoke to me at great length about what it was like living under communism. He spoke about the oppression during the second world war from the Soviets and the Russians. He died in 1986—just three years before the fall of communism—but before he died, he said to me, “I will never see the end of communism, but you will.” He knew that the financially illiterate and politically Orwellian system that the Soviets had imposed on us was completely incompatible with the human spirit and soul.

When I think of the period in which my grandfather died, during those early years of détente, I think of the extraordinary lengths Reagan went to to meet Andrei Gromyko in 1984; I think of how Margaret Thatcher met Gorbachev for the first time in December 1984, despite all the difficulties that we had at that time with the Soviet Union—it was still in Afghanistan and was posing a huge threat to our country. It saddens me that today there does not appear to be the same level of good will and determination among our Government Ministers to engage in the same way with the Russian Administration.

There is a one-sided debate, and it is all negative towards Russia. My experience over the past 11 years—you and I have been in the House for the same amount of time, Mr Davies—is that when we do not have proper debates in this House, that is when tactical and strategic errors are made. That is why it is so important that we debate this issue.

[Mr John Baron (Basildon and Billericay) (Con)]

I congratulate my hon. Friend on securing this important debate. May I suggest another reason why we do not understand Russia well enough? It is that the Foreign and Commonwealth Office needs greater resources to better understand events on the ground generally. It is a known fact, now widely recognised, that there were, for example, no Crimea experts in the FCO at the time of the Russian intervention in Crimea. Since the end of the cold war, the FCO has continuously wound down its Russian coverage. Does he agree that that needs to be put right, so that we understand events on the ground better, including the complexity that is Russia?

[Daniel Kawczynski]

I absolutely agree with my hon. Friend. It is a privilege to serve with him on the Select Committee on Foreign Affairs. I very much hope that the report that we are starting on Anglo-Russian relations will delve deeper into some of the shortcomings and lack of resources available to the Foreign Office to understand Russia and our engagement with it better.

Libya

John Baron Excerpts

Tuesday 19th April 2016 Commons Chamber

[Mr Hammond]

It is very easy to sit on the Opposition Benches hurling stones, but I am afraid that the world is not a neat and tidy place, and we have to deal with the situations that present themselves. The hon. Gentleman talks about the humanitarian work, but I remind him that, when we intervened in Libya in 2011, it was to prevent an imminent genocide in Benghazi and that that successful intervention saved countless thousands of lives. Libya is a rich country, and we should not forget that—$70-odd billion-worth of Libyan assets outside the country are currently frozen by a UN Security Council resolution. This is about getting the Government in place and then releasing those assets so that the Government can function. Libya is not a country that needs humanitarian assistance in the conventional sense. It needs technical support with good governance, and help to get into a position where we can release its assets to it to enable it to function.

The hon. Gentleman mentioned the British ambassador. I join him in paying tribute to the work of our ambassador, who is currently based in Tunis. He came with me yesterday to Tripoli and it is his fervent desire, as it is mine and Prime Minister Sarraj’s, to reopen the British embassy in Tripoli as soon as we are able to do so. Unfortunately, the location of our current buildings in Tripoli is in a rather less secure part of town, so I cannot promise that that will be imminent, but we will keep the matter under constant review and do it as soon as we can.

The hon. Gentleman asked whether any training mission to Libya would take place on Libyan soil, and I have to say to him, yet again, that there is no training mission, there is no putative training mission and there has been no request for a training mission. I speak as a former Defence Secretary when I say that, if there is a request for such a mission, the military will clearly want to ensure that it is undertaken with the minimum risk possible to UK personnel. Therefore, their first preference would be to do it here, their next preference would be to do it somewhere in the region and their third preference would be to do it in Libya, if it is safe to do so. I assure him that we will spare no effort in trying to ensure that any support we do give to the Libyans will be delivered in a way that represents the least possible risk to the British forces delivering it.

[Mr John Baron (Basildon and Billericay) (Con)]

There can be no doubt that our intervention in Libya in 2011 has, as some in this House have suggested, been an unmitigated disaster resulting in many thousands of casualties, the establishment of Daesh and a vicious civil war. Looking forward, given that this country is at a tipping point of its involvement with Libya, given developments on the ground, what lessons can we learn?

[Mr Hammond]

My hon. Friend, as so often, asserts as fact that there “can be no doubt” on something that is deeply contentious, and I very much take issue with him. The situation in Libya is very difficult and the situation post-2011 was very messy, but countries in many parts of the world do not function as Britain or Switzerland do, and we have to deal with the real situation on the ground. We should look to the future. We should be positive about this potentially affluent country regaining stability and being able, once again, to function as an effective state, allowing the Libyan people to get on with their business. There is a weariness after five years and a growing sense that, if a properly devolved form of government can be established that co-opts the various militias and regional groupings, this can work.

Oral Answers to Questions

John Baron Excerpts

Tuesday 12th April 2016 Commons Chamber

[Mr Lidington]

Both Chancellor Merkel and President Hollande have made it clear that they believe the United Kingdom contributes a huge amount to the political and economic weight of the EU in the world, and they want to see us vote to stay within the EU. They are also clear that this is a decision for the British electorate to take, and they respect that fact.

[Mr John Baron (Basildon and Billericay) (Con)]

In answer to the Minister’s question, our vision of the UK outside the EU is very simply that we would be like most other free trading nations around the world: trading as we see fit. I suggest the Government are playing with fire, because the more they wade in in favour of remaining during this referendum debate, the more the referendum will be seen as being unfair, and that could create further uncertainty, particularly if the vote is narrowly for staying.

[Mr Lidington]

The Government are not going to be silent or neutral on an issue that we believe is central to the future prosperity and security of the United Kingdom. I am glad that my hon. Friend seems to believe, on leaving, we should continue to be part of the European single market, but he is yet to say how that would involve not having to accept freedom of movement, agreement to all European rules although we would have no say or vote on them, and contributing to the EU budget. That is the situation Norway and Switzerland are in today.

EU-Turkey Agreement

John Baron Excerpts

Wednesday 9th March 2016 Commons Chamber

[Mr Lidington]

Yes. That is why the statement issued after Monday’s summit said explicitly that the agreement we were seeking had to comply with international law.

[Mr John Baron (Basildon and Billericay) (Con)]

This agreement relates to a wider issue of underfunding of refugee camps across the middle east by the international community. What are the Government going to do to reinforce the message from the United Nations that many of our international partners—not the UK; we have done our fair share—are not stepping up to the plate when it comes to the funding of these refugee camps, and that includes many countries within the EU?

[Mr Lidington]

My hon. Friend makes a very fair point. I think we can trace the surge from Turkey into Europe last summer in large part to the decision that the United Nations had to make to cut food rations and restrict educational opportunities inside the camps, which led more people to feel that they had no option but to place themselves in hands of people traffickers. As I think my hon. Friend will know, the United Kingdom co-hosted a Syria donors conference in London a few weeks ago, which produced pledges from the international community of more than $10 billion. That is a welcome step forward, but I would be the first to say that we must now ensure that those pledges are turned into real money to help the people who are in desperate need.

Syria

John Baron Excerpts

Tuesday 1st March 2016 Commons Chamber

[Mr Ellwood]

I partly agree with the hon. Gentleman. He makes very clear, as I have, the atrocities that Assad has inflicted. That is why we believe there is no long-term place for his involvement. What has happened is the recognition that there needs to be a very clear transition process. We should not just be talking about Assad. Assad and his cohorts—his family and so forth—have a firm grip on the top of the regime. It is simply not possible to remove the individual man and then assume that life can move on; it is far more complex than that, as I am sure the hon. Gentleman is aware.

We should also recognise—though this is no excuse for Russia’s behaviour—that Russia has had a long-term interest in the country since 1946, when it started to train the new Syrian army after Syria gained its independence. Syria backed the Soviets during the cold war. Assad’s father trained as a MiG pilot in Russia. There is a bond between the country that we cannot ignore, and that is why Russia is there, but we need it to use its influence in a positive way. We need Russia to recognise the damage Assad has done and the fact that the people of Syria deserve better than this. When I say “the people of Syria”, I mean all of Syria, not just one particular grouping or sectarian area.

[Mr John Baron (Basildon and Billericay) (Con)]

The Government have placed great importance on the need for the 70,000 moderates they estimate are taking on Assad to swing round and take the ground battle to Daesh, given that we all accept that airstrikes alone will not succeed against Daesh and it is becoming increasingly evident that there are already too many aircraft chasing too few targets. What progress is being made with those plans, and are the Government still convinced that there are 70,000 moderates left?

[Mr Ellwood]

The point about the 70,000 moderates has been raised before. The figure is an estimate. We should understand that this is a very divided group of people who have been standing up to Assad since the Arab spring. They are the pockets of resistance that had a choice, when Assad started to bomb and kill his own people, either to go extremist—to go fundamentalist—or to say, “No, I want something different. I do not want to be part of the Ba’ath party in the future; I want the freedoms that I am seeing develop in other parts of the Arab world.” They are disparate. They are in Aleppo in the north, through to Idlib, through to parts of Damascus, and down to Daraa in the south. Those pockets of people have stood up, and they have now come together by participating in the Geneva talks that are taking place thanks to the leadership of Saudi Arabia. So yes, they are not united in the sense that we would like them to be, but we are moving forward, and they now need to be part of the process that works out what the country looks like post-Assad.

The FCO and the Spending Review 2015

John Baron Excerpts

Tuesday 1st March 2016 Commons Chamber

[Crispin Blunt]

The hon. Gentleman is absolutely right. I have made that point before and will make it again in respect of the inquiry we are conducting into the intervention in Libya. Just how deep was the knowledge on the basis of which we decided to intervene? It is the depth of knowledge that has been lost.

Another price that is being paid is that locally engaged staff do not really understand the UK context. It has been put to me that the quality of the reports that are coming through is not quite what it was because they are not addressed to the needs of the Ministers at whom they are aimed. The difficulty is that very overstretched UK-based staff in a post are, in addition, having to oversee the work of the locally engaged employees.

Returning to the issue of Tunisia, I accept that the security of our citizens must be a Government priority and that they cannot commend travel unless they have confidence that our citizens will be reasonably safe, but this decision had serious consequences for Tunisia’s stability and the security of the region. We must therefore be completely confident that we can make informed decisions, rather than simply defensive decisions because of an absence of capability.

Reports are, of course, the standard mechanism by which Select Committees express their views. I believe that Committees can miss opportunities by not getting inside the decision making cycle, or by devoting our energies to conducting retrospective analyses after policy has been formed and executed. The Government should welcome input at an early stage from an informed, cross-party Committee that could make practical, forward-looking suggestions, rather than just telling the Government where they went wrong.

We published our report on the Budget in October last year, almost exactly a month before the spending review, and we made just one recommendation:

“We recommend that the Treasury protect the FCO budget for the period covered by the 2015 Spending Review, with a view to increasing rather than cutting the funds available to support the diplomatic work on which the country’s security and prosperity depend.”

I am delighted that our recommendations were accepted, and that the settlement reflected our central recommendation.

We spent much of our first few evidence sessions looking at how the Foreign Office was preparing for the spending review, and at what scope there was for it to absorb further cuts of the scale already imposed over the previous four years. The Foreign Secretary gave oral evidence twice, and we tried to get a sense of his priorities and what he would seek to preserve. We then took evidence from Sir Simon McDonald, the new permanent under-secretary, and his senior management team, to try to understand the grit and detail of what might be achieved and how if—God forbid—savings of 25% or even 40% were required. That gloomy environment perhaps reflected our rather defensive recommendation, which was obviously designed to hold the current position, but the Committee clearly believes that more resources are needed to support our diplomacy.

[Mr John Baron (Basildon and Billericay) (Con)]

As a member of the previous Foreign Affairs Committee, may I suggest that trying to make unnecessary savings can prove to be a false economy in the longer term? If we do not invest in expertise and analytical skills, we could end up making errors that can cost a lot more than if we had a proper view of things in the first place. The extreme example of that is avoiding conflict, which is much cheaper than conflict itself.

[Crispin Blunt]

My hon. Friend makes an entirely valid point. He sat on the Committee in the last Parliament and in this one, and he will know about the diminution of our expertise, for example on Russia. When he and I were soldiers back in the 1980s there was a wealth of expertise about the Soviet Union, but that has simply been stripped away. When faced with a crisis in Crimea and Ukraine, the level and depth of our knowledge were certainly a handicap.

When looking at future Committee reports and how we might influence future events, I hope that we will be able to report with authority and fulfil a much requested public need about Brexit. The Committee is conducting an inquiry into the costs and benefits of European Union membership for Britain’s role in the world—whether we stay in the EU or whether we leave. Hon. Members will already have found that people are asking where they can turn for independent analysis and who will give them the facts. Unhappily, the Government have placed themselves in a position where they are unable to give an independent view, since the entire institution is placed firmly on one side of the campaign. Happily, however, I preside over a Committee of 11, and the publicly expressed views of my Committee are balanced at five each on either side of the question.

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[Mr John Baron (Basildon and Billericay) (Con)]

There is an old Army adage, which has served the British Army well, that says time spent on reconnaissance is seldom wasted. I suggest that it could serve the Government well going forward when it comes to expenditure on the Foreign and Commonwealth Office.

Cuts to the Office by previous Governments on both sides of the House have led to staff shortages, which have contributed to a series of errors that have cost us dear. On the one hand, I congratulate the Government on protecting the budget in real terms; that is a backstop we have not had hitherto and is very much to be welcomed. At the same time, I urge the Government to look to increase the budget in real terms, as my hon. Friend the Member for Reigate (Crispin Blunt) has eloquently suggested. If the Government seriously think that cost savings in this area work, I would suggest that all the evidence shows that to be a false economy indeed, and for a variety of reasons.

First and foremost, the false economy does not reflect the importance of how we make foreign policy in this country. That is in contrast to the United States, where foreign policy making is much more of a diffuse process, with academics, career diplomats, think-tanks and politicians all much more widely involved. In this country, on the other hand, the pyramid is much narrower and policy making is structured and put into place by a smaller number of people and organisations—primarily senior people at the top of the FCO, senior people at No. 10 and perhaps a few others. It is therefore terribly important that all the components of our foreign policy making are firing on all cylinders, because if a particular part is not working, given the smaller number of components in the process, that can have a disproportionate effect on overall policy and its consequences.

There is no shortage of examples showing that we have not done as well as we should have in responding to international crises and other incidents that have perhaps left us floundering. With the Arab spring, for example, there were so few Arabists in the FCO that we had to call them out of retirement. When it came to Russia’s annexation of the Crimea, for another example, I think I am right in saying—my right hon. Friend the Minister for Europe will correct me if he so wishes—that we did not have one Kremlinologist in the FCO, which perhaps contributed to the somewhat unconvincing response. I suggest to the Government that our interventions over the last 12 years or so have suffered from a lack of analytical skill and expertise, which has been very costly to this country.

[Stephen Gethins]

The hon. Gentleman has a long track record on these issues, and I am particularly grateful for his work in the Foreign Affairs Committee. He will probably be more gentle on the Government than I will. If we look at Libya, Afghanistan and Iraq, among other places, the lack of proper interrogation of the facts has been a disaster.

[Mr Baron]

I made the mistake of not finishing my sentence; next time I will finish it. I was about to say that my examples included Iraq, Afghanistan, Libya and, I would suggest, Syria. In Iraq, there can be no doubt that we went to war on a false premise: there were no WMD. We were all deceived; the job of Chilcot is to determine whether No. 10 intentionally deceived us.

On Afghanistan, I supported the initial deployment in 2001 to rid the country of al-Qaeda, and there is strong evidence to suggest that we succeeded in that objective in the very early years. Where it went disastrously wrong—this takes us back to the fact that we did not fully understand events on the ground—was when we allowed the mission to morph into nation-building. We went into Helmand without fully realising what it involved, and we certainly under-resourced our operations, which was a bad mistake.

In Libya, we knocked down the door—that was the relatively easy bit—but the country has turned out to be a complete and utter shambles, in part because we failed to understand that the opposition to Gaddafi would splinter into 100-plus groups with different objectives. Law and order has been non-existent in Libya ever since, which has led to more bloodshed and a vicious civil war.

[Daniel Kawczynski]

At this juncture, with my hon. Friend referring to Libya, I must interject that he was the only Conservative Member of Parliament to speak out against that British military involvement at the time. If I recall correctly from his speeches from that time, he put some prescient and important questions to the Government, in respect of which hindsight has proved him to have been correct.

My hon. Friend referred to the small number of people who make foreign policy in this country. Does he agree that in advance of British military intervention overseas, as in the case of Libya, there might need to be in future a greater period of engagement and deliberation for those such as my hon. Friend who do not fully support such actions, so that these problems can be avoided?

[Mr Baron]

I thank my hon. Friend and fellow Select Committee member for his kind words. I agree: there does need to be more time for reflection on these issues. I would also suggest that we need greater investment in the FCO. We need greater expertise and analytical skills because we need to make sure that we have analysed a situation correctly. Our system of government performs better when we have a well-informed Executive being questioned by the legislature.

What we have seen is a series of errors through which it has become increasingly evident that the Executive do not have that expertise to hand. That is one reason why the legislature has raised the bar on military intervention—because it has lacked the trust in the Executive to make their case, analyse a situation correctly and make sound recommendations. Once that trust is lost, the legislature will raise the bar when it comes to military intervention, as we have seen.

Let me return to some of the other errors that we have made. I suggest that there were errors in Syria. The Government line that we did not intervene early enough on behalf of the rebels, which accounts for the mess that is evident there now, is simply not correct. The Government’s intention was to arm the rebels in the hope that they could keep the weapons confined to the “good” rebels and not allow them to spread to the “bad” rebels—in other words, to track and trace the weapons. Anybody who knows anything about the region, or who has visited the country or travelled through it, should know that everything is tradeable in the bazaar. Also, given that the situation was so fast moving, the idea that we could have stopped the rebels from falling into the hands of al-Qaeda, al-Nusra or other extremists was pure make-believe.

Then, within a couple of years, the Government, having been stopped by the House from intervening in a key vote in 2013, again proposed to intervene—but against the rebels. I would not be so unkind as to suggest that we swapped sides in a civil war within two years, but to the general public, it damn well nearly looks like that. It well illustrates how we have failed to analyse the situation correctly.

In the brief time left to me, I would argue that in many respects our interventions have been a distraction. I, for one—like many Members on both sides; some are in their places today—have long advocated the need to spend more on defence. The military interventions in Iraq, Afghanistan, Libya and indeed Syria have perhaps distracted us from the greater threat of nation states, not necessarily friendly to the west, re-arming and reasserting their power and influence. One thinks immediately of Russia and China, but there are others as well.

To those who suggest that the straits of Hormuz or the South China seas are far away and of little significance to us, I say that a country based to such an extent on maritime trade—about 90% of our trade comes by sea—would certainly know about it if those straits or seas were ever blocked. My suggestion is that we have been distracted and that that is partly a function of the fact that we are not investing enough in what I call our ears and eyes—in other words, our ability to understand what is happening out there.

We must have a margin of safety or comfort as regards our capability, because no one can confidently predict where the next trouble spot is going to be. History is littered with examples of our facing the wrong way. I suggest that without that margin of comfort, that margin of safety, in our analytical capability, we may well be caught short again if we have not made the necessary investment. I suggest that, without that investment, we make expensive mistakes—indeed, we have made them—and that it is therefore a false economy to talk about savings, particularly when the budget is so small relative to Government expenditure generally. If I may take the point to the extreme, avoiding unnecessary conflict is vastly cheaper than committing ourselves to conflict that is costly in terms of both lives and treasure.

We often talk about hard power in the House, but perhaps we do not talk enough about soft power, which is increasingly important. In the present information age, those who win the argument will be just as important as those who win the conflict. This is about a battle of ideas, a battle of ideologies. It is about persuading others to want what we want, rather than just rattling the sabre, which—as we have seen so many times in our recent history—can often be counterproductive. We do not attach enough importance to soft power in this country, certainly not when it comes to the making of foreign policy.

There are clear examples of our putting our soft power capability at risk. Past cuts to the BBC World Service have hindered our ability to reach out to people; the World Service budget has been transferred from the FCO’s ambit, but that was one example before the transfer.

An example that currently sits in the FCO is the British Council. That venerable organisation is doing tremendous work in spreading the word, encouraging people to want what we want, providing an educational service, and trying to bring peoples together to improve understanding for the benefit of all concerned, but what are we doing? We are making cuts there. What is the British Council having to do as a result? It is having to become even more commercial in trying to make up for those cuts.

Members may think that a 10% cut is very little, but given that 10% is sometimes the profit margin, the British Council must achieve a 100% increase in its revenue when engaging in commercial activities to make up for that cut. We, as a country, must think again about short-sightedness of that kind, because it is not serving us well—and, I would argue, not serving the international community well.

We need to ensure that our ears and eyes are working, because when they are not, we tend to make expensive mistakes in the world. The fact that we have not properly funded our analytical skills and our capabilities, and have not been as well-sighted as we should have been, has certainly contributed—although it has not been the only reason—to a series of errors that have proved exceedingly costly in lives first and foremost, but also in terms of treasure. That brings me back to the point about false economies. It is a false economy to make cuts in our ears and eyes—our Foreign and Commonwealth Office capabilities—if, as a result, we then blunder into interventions that cost us dearly in lives and treasure.

I am pleased to see that my right hon. Friend the Minister for Europe is present. Through him, I urge the Government to increase expenditure on the FCO in real terms. We will be better sighted for it, and will make fewer costly errors.

[Ms Tasmina Ahmed-Sheikh (Ochil and South Perthshire) (SNP)]

It is a pleasure to follow the hon. Member for Basildon and Billericay (Mr Baron). He made a very detailed, perceptive and interesting speech, which l thoroughly enjoyed.

The cut in funding for the Foreign Office, on top of the 10% budget cut since 2010, is directly contrary to the United Kingdom’s key strategic interests, and might prevent the Department from effectively addressing serious organisational issues of its own. We cannot properly address the threats to our security from Daesh solely by dropping bombs in Syria, Libya or Iraq, and threats to our economy from events in China and in the eurozone cannot simply be washed away by the Treasury. We need to equip the FCO not just to meet the challenges of today, but to rise to the unknown challenges of tomorrow. There must be a renewed focus on aid and diplomacy in all that it does.

A recent Foreign Affairs Committee report, “The FCO and the 2015 Spending Review, stated:

“In an increasingly unstable world, the Government relies on the FCO to have the necessary infrastructure in place so that it can make critical decisions at a moment’s notice. Over the last Parliament the country was found to be lacking in expertise, analytical capability and language skills to manage the fallout from the Arab Spring and the crisis in Ukraine. In 2010 it might have been thought that expertise on Benghazi, Donetsk, or Raqqa was surplus to requirement. These have become vital areas for our national security, evidencing the real dangers of an under-funded Foreign and Commonwealth Office”.

[Mr Baron]

The hon. Lady is making some excellent points, and I would love to remain in the Chamber to listen to the rest of her speech. I promise that I will pursue it in Hansard afterwards. However, my Whips have very thoughtfully put me on to a Statutory Instrument Committee, so would she forgive me if I left her at this point?

[Ms Ahmed-Sheikh]

I thank the hon. Gentleman for what he has said. On this occasion, I shall forgive him.

The FCO must have the capacity to be able to extend further than the issues with which it currently deals from day to day. In a speech to the Institute for Government last year, the outgoing permanent under-secretary at the FCO, Sir Simon Fraser, supported the protection of UK aid spending and the 2% commitment to defence spending, but lamented the fact that the FCO’s relatively small budget would be unprotected in the coming spending review. He described the FCO as

“the glue that holds everything together”.

He said that the FCO’s budget arguably deserved protection similar to that given to the larger budgets of the Department for International Development and the Ministry of Defence, whose operations overseas would only stand to benefit from a strong FCO. That being said, the FCO clearly needs to reform its overseas network to stem spiralling costs, particularly in the current climate, when cuts are hitting so many people so hard. At such times, the focus must be on efficiency and efficacy.

I hope that, when the Minister winds up the debate, he will be kind enough to answer the following questions. What changes will be made to the implementation of Government policy outside the United Kingdom when it spans a range of Departments? Who decides which Department is best placed to co-ordinate joint action between Departments, and how will funding to support that be secured? Will the cuts mean a diminution of the role of the FCO within the Government, and what impact will they have on its continued strategic role in that capacity? Is it not worrying that the United Kingdom’s international role will become further stratified and unbalanced, as Departments such as the MOD and DFID, which have protected budgets, will have a stronger role without the balancing mechanism that the FCO can bring to that work?

Sir Simon Fraser acknowledged that the issue of human rights was no longer a top priority, and it needs to be re-established as such.

Let me now say something about what the FCO looks like to the outside world. In the same speech, Sir Simon conceded that, in the past, the FCO’s culture had been

“too narrow, too white and too male”,

He argued that that culture had been improved on his watch, but acknowledged that there was still much more to be done to achieve more diversity, in the full sense of the word. Cuts in the Department may threaten progress in the vital area of equality and diversity. There were no women on the shortlist to replace Fraser as permanent under-secretary. He also noted that the FCO had yet to appoint a woman ambassador to its most prestigious posts, such as those in Washington and Paris, although he emphasised that women were now ambassadors in both Beijing and Kabul. He ascribed that to the “pipeline” of diversity in the organisation, pointing out that the FCO had started behind the rest of Whitehall, having been the last Department to abolish its marriage bar, as late as 1973. Fraser anticipated that there would be some competitive female candidates to replace his successor, both from within the FCO and from outside.

On the subject of wider diversity, although 12% of its total workforce is from a minority ethnic background, the FCO leadership at senior levels is almost exclusively white. Fraser said that there had been a cultural switch to understanding that diversity not only mattered but was good for the FCO, leading to better decisions and outcomes. That applies also to the wider workplace, wherever it might be, and indeed to this House itself.

So what impact will these proposed changes to the Department’s budget have on the work of the FCO to address this culture? What schemes and initiatives within the Department will be funded in the next year specifically to address these issues? An isolationist agenda in our international relations has already damaged the UK’s image. At the very least, let us make sure that this is not reflected in this country’s workforce diversity. This should be, and is indeed, our strength.

Parliamentary Sovereignty and EU Renegotiations

John Baron Excerpts

Thursday 4th February 2016 Commons Chamber

[Mr John Baron (Basildon and Billericay) (Con)]

As ever, you have been very generous, Mr Speaker.

I beg to move,

That this House believes in the importance of Parliamentary sovereignty; and calls for the Government’s EU renegotiations to encompass Parliament’s ability, by itself, to stop any unwanted legislation, taxes or regulation.

I thank the Backbench Business Committee for granting this debate, and Members on both sides of the House who supported the application for it.

There can be no greater issue for this Parliament to debate and defend than the country’s sovereignty, as that goes to the heart of everything we do. Without it, we cannot truly have the final say on a host of issues, including the primacy of our laws, the integrity of our borders and the extent of burdensome regulation. As our EU renegotiations proceed, however, it appears that little effort is being made to truly restore parliamentary sovereignty. It is not a priority, which I suggest is a great opportunity missed.

We have a golden opportunity to pitch for fundamental change in our relationship with the EU for the benefit of both parties, as the Prime Minister promised in his Bloomberg speech, but we are missing it while No. 10 tinkers at the edges. Without consulting his parliamentary party, in my view the Prime Minister is sidestepping the issue completely by arguing for temporary measures, and measures that require us to club together with other Parliaments, in the vain hope of stopping the EU. That is not restoring parliamentary sovereignty. If we as a Parliament and a country cannot on our own stop any unwanted EU taxes, directives or laws, then it is clear that if we vote to stay in, we vote to stay on the conveyor belt towards ever closer union, as laid out in the EU’s founding treaty. Parliament will become nothing more than just a council chamber of Europe.

To those who say that the UK already accepts a certain pooling or loss of sovereignty when joining other international organisations, I say that only the EU can force us to take in economic migrants despite the strain on our infrastructure, override our laws, and foist burdensome regulation on our companies, despite the vast majority not even trading with the EU.

[Kelvin Hopkins (Luton North) (Lab)]

I congratulate the hon. Gentleman on raising this important issue, and I agree with everything he has been saying. The great 19th-century constitutionalist, Walter Bagehot, divided politics into the “effective” and “decorative” parts of the constitution. Does the hon. Gentleman agree that this place must be the effective part of our constitution, not just a decoration?

[Mr Baron]

I completely agree, and that is why I suggest that the issue of sovereignty goes to the core of our relationship with the EU. If we do not take the opportunity to address it now, it could be lost for a generation.

[Sir Edward Leigh (Gainsborough) (Con)]

I wonder whether all those years ago Enoch Powell was right, and that we have been dodging this issue ever since 1972. The question he posed was that if we join the EU, this Chamber and democratically elected House loses its sovereignty. Now an historic moment is approaching, and the British people have to make that choice. Will they reclaim that sovereignty or not?

[Mr Baron]

I can only repeat what I said to the hon. Member for Luton North (Kelvin Hopkins)—I completely agree, and that is why this debate is important. It is not easy to say some of these words, but I regret that there has been a lack of consultation on the proposals in this renegotiation. Better engagement, certainly with the parliamentary party, and perhaps with Parliament generally, given that we are representatives, would have been useful.

[Peter Grant (Glenrothes) (SNP)]

Would the hon. Gentleman include in that statement of regret the complete failure to consult the national Parliaments of Scotland, Wales and Northern Ireland during the process?

[Mr Baron]

What I regret is the lack of wide consultation generally with regard to renegotiation. When many of us were campaigning in the last Parliament for a referendum in this one, it was in the hope that we would have a meaningful debate prior to the renegotiation, and then a meaningful debate afterwards as we headed towards a referendum.

[Several hon. Members rose—]

[Mr Baron]

Let me make a little progress, and then I will take further interventions. I am also conscious of the time.

Let us be clear about the so-called “red card”. We appear to have a system that has more holes in it than a Swiss cheese—so much so that it is more like a lottery ticket that has been through the wash. The question is: is it valid? The idea is that we club together and form a majority with other national Parliaments to stop unwanted EU taxes and laws, but that would not enable our Parliament, by itself, to reject anything that it did not want. This would be an extension of the ineffectual “yellow card'” system currently in operation, but with an even higher threshold.

Lord Hague once referred in this Chamber to the system then in operation, which was similar to what is now being proposed:

“Given the difficulty of Oppositions winning a vote in their Parliaments, the odds against doing so in 14 countries around Europe with different parliamentary recesses—lasting up to 10 weeks in our own case—are such that even if the European Commission proposed the slaughter of the first-born it would be difficult to achieve such a remarkable conjunction of parliamentary votes.”—[Official Report, 21 January 2008; Vol. 470, c. 1262.]

The “lottery ticket” system will not work. It would be like a football referee getting out his fraction of a red card, only then to consult with 14 other officials before deciding what to do, by which time the game is over. If we are serious about regaining control of our borders and fisheries, and about having the ability to set our own trade deals and the power to set our own business regulation, sovereignty must be restored to Parliament. It is quite simple. Everything else is a cop-out, a sell-out, a lottery ticket fraud. Let us be honest about the washed-out lottery ticket.

[Dr Julian Lewis (New Forest East) (Con)]

I am glad that I did not interrupt my hon. Friend in the midst of that wonderful metaphor. One of the real problems with the mentality of those who subscribe to the EU project is that instead of being honest enough to say “no” to those of us who want our sovereignty back, they put forward devious and deceptive and pretences to say yes, when in reality they know it means no.

[Mr Baron]

I can only agree with my right hon. Friend. Having said that, the Minister for Europe is nothing but a courteous and able Minister, and I am delighted that he is in his place. I would not want him to be under the illusion that we are suggesting that of him, but there has been a tendency to act out a charade, when actually we have been on the conveyor belt of ever closer union. We need greater honesty in this debate.

[Mr Bernard Jenkin (Harwich and North Essex) (Con)]

My hon. Friend has raised the issue of sovereignty, and the draft decision document published this week by the European Union contains a section called “Sovereignty”. If ever there was a misnamed section of a document, it is this—perhaps my hon. Friend will come on to that. The one thing that this document does not return to the United Kingdom Parliament is sovereignty over the laws that are made for this country. Indeed, it promises a “red card”, which is no more than an extremely cumbersome method of qualified majority voting in the European Union.

[Mr Baron]

I cannot but agree with my hon. Friend.

[Sir Edward Leigh]

Does anybody want to disagree?

[Mr Baron]

There will be people who want to disagree—don’t worry.

I will just turn, if I may, to the immigration emergency brake, which again is questionable. I speak here with a tinge of sadness, because I think the Government have framed this part of the debate in the wrong manner. Let us first of all be clear that the emergency brake access to in-work benefits will last only four years, with the EU, not Britain, judging whether the emergency brake is declared. Not even here do we have control. It is also unclear what happens after the period expires. In addition, access to benefits would gradually be increased, meaning it is moot how much of a deterrent to immigration a brake would actually be.

My sadness—I have said this many times in this place —is that I believe the Government are wrong to couch the debate in these terms. It feeds into a negative narrative about immigrants. It ignores the fact that almost all—the vast majority—immigrants from the EU come to Britain to work hard. They are not looking for benefits. It ignores the fact that large-scale EU immigration cannot be stopped, in all truthfulness, while we adhere to the EU’s founding principle of freedom of movement, particularly as the rise in the national living wage picks up speed. Let us have real honesty about this debate. I am fed up with listening to politicians focus on benefits and play to the gallery. It is absolutely wrong to do so. It feeds a negative narrative. The vast majority of immigrants —let us make this absolutely clear—come here to work hard and we should acknowledge that fact, so let us have clarity about the emergency brake. After all, it can only be used by the EU backseat driver, and we all know how dangerous that can be.

There are massive holes in the two key planks of the Government’s renegotiations. Is that important? For some, it will not be. I say it is important, because while the general view may be that we are standing still while inside the EU, we are in fact standing still on a conveyor belt towards ever closer union. Let us be absolutely clear about that. Indeed, the lesson of the eurozone crisis is that the EU usually finds a way of achieving what it wants, ever closer union, even at the expense of violating its commitments. As Mr Juncker once said,

“when it becomes serious, you have to lie”.

Those are the words of the President of the European Commission.

The EU is developing all the trappings of a nation state: a currency, a body of law and a diplomatic service. It makes no secret of its ambitions or its determination to succeed, even if this results in a democratic deficit with its own peoples. We only have to hear what has been said by some of the key people in the EU. Mr Juncker has made his position very clear:

“if it’s a ‘yes’, we say ‘on we go’; and if it’s a ‘no’, we say ‘we will continue.’”

Angela Merkel has made her wishes clear:

“we want more Europe, and stronger powers to intervene”.

Martin Schultz, President of the European Parliament, has been particularly blunt:

“the UK belongs to the EU”.

Mr Barroso, the former President of the Commission, has cast light on the EU’s integration process:

“they must go on voting, until they get it right”.

If things do not change, the UK is captive on a journey to who knows where. Looking into voting at the EU’s Council of Ministers, academics based at the London School of Economics—there has been very little research on this—have shown that, in recent years, Britain has voted against the majority far more often and been on the losing side more than any other member state. It is not as though it is even getting better within the internal structures of the EU. The British people never signed up to this and it is therefore right that they are finally having their say in a referendum. Do the British Government truly believe that they can muster sufficient votes to stop this inexorable vote towards ever closer union? That is one of the key questions Ministers should try to answer today.

[Kate Hoey (Vauxhall) (Lab)]

The hon. Gentleman mentions various eminent and well-known persons in the EU. Is not one thing that binds them all together in relation to this debate the fact that they are not elected? We in this Parliament had no say in who they are and we cannot get rid of them. The hon. Member for Gainsborough (Sir Edward Leigh) mentioned Enoch Powell. Tony Benn said that if we cannot get rid of the people in an institution, it is not democratic.

--- Later in debate ---

[Mr Baron]

I very much agree with the hon. Lady. There is a democratic deficit in the EU. It is no coincidence that the European Parliament, after the most recent elections, is probably the most Eurosceptic European Parliament in the EU’s history. There is a connection there and the EU needs to recognise that it needs to put that democratic deficit right.

[Mr Andrew Turner (Isle of Wight) (Con)]

Does my hon. Friend agree that even elected people do not get thrown out? We cannot get rid of Dan Hannan, for example, because he is No. 1 of 10 or 11 Members of the European Parliament.

[Mr Baron]

There are many flaws in the system. The peoples of Europe—although one can generalise too much in this respect—are asking more and more questions as the system fails to deliver, in particular on the economic front. Mass unemployment is causing great hardship in many countries and the EU is failing to deliver.

[Sammy Wilson (East Antrim) (DUP)]

rose—

[Mr Baron]

I think I have allowed the hon. Gentleman to intervene once already. No? In that case, please do.

[Sammy Wilson]

The hon. Gentleman is being very generous in giving way. He is hitting the most important point here. Does he accept that this is not just an academic debate about sovereignty? This is an issue that goes to the very core of social cohesion. If people feel they cannot change those who make decisions, we will have all kinds of trouble and tensions on our streets. That is the core of the issue. Democratic institutions are important for the wellbeing of society.

[Mr Baron]

I completely agree and that is very well put. It is terribly important that there is an element of democratic accountability. If there is not, we will alienate sections of society and issues such as unemployment will not be properly addressed. How are people going to voice their opinion without moving to the extremes of the political divide, and feeding that extremism because they do not feel they can be democratically represented within the existing structures?

[Mr Philip Hollobone (Kettering) (Con)]

Does my hon. Friend agree there is a practical side to the issue of sovereignty, too? As a member of the EU, we have lost our sovereign ability to negotiate friendly or free trade agreements with major economies around the world. It would be in this country’s interests to have a friendly trading agreement with the big economies, such as America, China and Japan. We cannot do that, however, because we have lost our seat at the World Trade Organisation and our membership of the EU forbids us from making such negotiations.

[Mr Baron]

That is absolutely right. It is a question of sovereignty, at the end of the day. If we cannot take our seat at the WTO and negotiate our own trade deals, indirectly that is a loss of sovereignty. There is no doubt about that. I am conscious that time is ticking on, so I will make some progress if colleagues will forgive me.

The Prime Minister misses the importance of parliamentary sovereignty in the EU debate. That is a mistake No. 10 is in danger of making when it focuses too heavily on Project Fear issues, such as immigration and jobs. We all know it is the loss of parliamentary sovereignty that really lies at the heart of our uneasy relationship with the EU, and which has rankled since we first joined in the 1970s. Over the course of the referendum campaign, I do not believe Project Fear will bite. Ever-increasing numbers of big businesses, including the likes of JCB, Toyota, and Unilever, make it clear that they will not pull out in the event of a Brexit. Indeed, a recent Barclays report suggested a Brexit would be beneficial to the UK. Jobs are linked to our trade with Europe, not to our membership of the EU. Given that our vast trade deficit is in the EU’s favour, it would want to sign a trade agreement in the event of a Brexit.

Furthermore, even if the EU wanted to get awkward, it could not. Falling global tariffs since the 1970s mean that both the UK and EU are bound by the WTO’s “most favoured nation” tariffs—the USA’s average being under 3%. One can easily lose 3% in a currency swing in a week. Many smaller countries outside the EU easily trade with it. Does the “in” camp think the public believe we could not do likewise?

What excites voters’ imagination is the ability to restore sovereignty to our ancient Parliament. I rather suspect the Prime Minister knows this, and that consequently he is holding something in reserve—we are hearing something about a sovereignty Bill, for example—but details are scant. If it is true, however, does it not acknowledge that the “washed-out lottery ticket” and the EU “backseat driver brake” are not fit for purpose? Will the Minister supply the House with more details?

In conclusion, there has never been a better time to renegotiate our relationship with the EU, and nor are we ever likely to be in a stronger position to win meaningful concessions. I therefore urge the Prime Minister, at this critical stage, to return to the renegotiations and seek nothing less than a true restoration of parliamentary sovereignty. Let us step back for one brief moment. If the EU did not exist today, would we really invent it? I cannot understand why this and other Governments have acquiesced in this charade. I can only surmise it is because it is easier not to correct it and to do nothing, than to put it right and take action. But inaction is costing this country dear, not just by way of our £10 billion a year net contribution, but in terms of our sovereignty and responsibility to the people of this country.

[Several hon. Members rose—]

--- Later in debate ---

[Mr Baron]

I am delighted that my friend and colleague on the Foreign Affairs Committee is giving way. I suggest to him gently that when the Scottish people voted for the Union, they voted for its ability to make decisions on behalf of all the peoples of our Union. That needs to be recognised by the SNP.

[Stephen Gethins]

I thank the hon. Gentleman for his contribution, which was thoughtful, as usual. On that point, of course the Scottish people did. It is a matter of respect. We may not have liked that decision, but it is the decision that they made, and it is why we are here in record numbers to make our contribution. Let me draw out the point about respect, because I believe that the hon. Gentleman may agree with it. If we are going to have a referendum, we should not have it too soon. That means respecting the electoral process in Scotland, Wales, Northern Ireland, London and the English local authorities. My right hon. Friend the Member for Gordon (Alex Salmond) and Members from every single party in the House have signed my early-day motion stating that a June referendum would be “disrespectful”, and I think that goes to the heart of the matter. That is why the European Union referendum will be a huge test of the Union that the voters of Scotland voted to remain in.

As well as considering the respect agenda and allowing a long time, the Government—Opposition Members may agree with me on this—should have the courage of their convictions and have a proper debate about membership of the European Union. My right hon. Friend the Member for Gordon announced the date of the independence referendum 545 days before it was held. I am not quite suggesting that we should wait 545 days before we sort this out, but I am suggesting that June is too early and that if, as the Government suggest, this is a once-in-40-years decision, we should make it properly and have the courage of our convictions. I fully believe that the case for remaining in the European Union stands up to that scrutiny, and I look forward to making that case. I know that Conservative Members have different views, and I respect them, but let us have a proper debate on the matter.

As my right hon. Friend quite rightly said, and the hon. Member for Basildon and Billericay mentioned this point as well, we do not want another “Project Fear”. I have been concerned by some of the arguments that have been made. Do not get me wrong, Mr Speaker, because I believe—I will say this to put it on the record—that the United Kingdom could be a successful independent country outside the European Union and that it could stand on its own two feet. The question is whether or not we are better off by doing so. Let us not have another “Project Fear”.

There is the issue of Scotland being taken out of the European Union against its will. While we have been in the Chamber this afternoon, an opinion poll has been produced by TNS. It shows that 44% of Scots want to remain within the European Union, and 21% want to leave, with the remainder undecided. We look forward to that debate, but the poll shows that the overwhelming majority of the people of Scotland want to remain within the European Union.

--- Later in debate ---

[Pat Glass]

I said “largely”.

I do not believe that that represents the country we are here to serve or the views of the people outside Parliament. It has been yet another debate—I am sure there will be many more up to the referendum—in which members of the Eurosceptic right wing of the Tory party have been able to grandstand, while positioning an ice pick firmly in the back of their own Front Benchers and lining up to rubbish their own Prime Minister’s negotiations. Two of my Labour colleagues have joined in enthusiastically, but given that over 96% of the members of the parliamentary Labour party, including every member of the shadow Cabinet, are members of the PLP pro-EU group, it is absolutely clear that Labour is a pro-Europe party and that it is campaigning actively for a remain vote in the referendum.

I am conscious that the debate has been very long and that we have heard an awful lot from one side of the argument, but I want to be respectful of the House and to give the Minister time to sum up, so I intend to be brief.

Right at the beginning, the hon. Member for Basildon and Billericay said that the electorate got very exercised about our sovereignty. Not in my experience: people in my constituency are concerned about jobs, youth unemployment, housing, the bedroom tax, tax avoidance by large companies and, yes, immigration, but the people I speak to never talk about the sovereignty of the EU, EU bureaucracy or Britain’s rebate. That just does not happen on the doorstep.

[Mr Baron]

Will the hon. Lady give way?

[Sir William Cash]

Will the hon. Lady give way?

[Pat Glass]

No. I am sorry, but we have heard an awful lot from one side of the argument.

People in the Westminster bubble, particularly Conservative Members, are exercised about all those things, but given that I have no reason to believe that the people of North West Durham are any different from people across the country, they are simply not the top priorities of people working hard outside Parliament.

[Mr Baron]

Will the hon. Lady give way?

[Pat Glass]

No.

This is largely a Tory party drama—a blue-on-blue issue—with very little relevance to the lives of ordinary people who are struggling to pay their rents and mortgages, and to get their kids to school. The Prime Minister has repeatedly given in to his own right wing, seeming not to understand that they will never be satisfied on these issues. In doing so, he has risked this country’s future prosperity, safety and place in the world.

I will not go over them in great detail, but there are many reasons for remaining part of the EU. There is the economic case and the environmental case, as well as issues involving this country’s future safety and security and our place in the world. The Labour party is committed to keeping Britain in the European Union, because we believe it is in the best interests of the British people. For us, it is simple: Britain is a stronger, safer and more prosperous country as part of the European Union.

The world is becoming more and more globalised. The problems that we face are complex and they need complex international responses. We cannot solve the problems of climate change, international terrorism, international crime, people trafficking or mass migration across the world on our own; we can tackle those issues only by working with our partners in Europe. We are part of NATO and the UN, as well as of other organisations across the world, which means that we have given up some of the things we used to do ourselves for the greater good, the safety and sometimes the prosperity of our country. I do not see a problem with any of that.

I will move quickly on to what should happen in the future. I want our sovereignty to be enhanced through seeking democratic reform that will make EU decision makers more accountable to its people and not so metaphorically and physically distant from our communities. I want economic reform that will put jobs and sustainable growth at the centre of European policy, and that will bring in labour market reforms to strengthen workers’ rights in a real social Europe. I believe that we enhance our sovereignty by negotiating with our EU partners for policies and agreements that benefit us as a country and improve the lives of our citizens.

Ultimately, the referendum will come down to a decision to remain or leave, and I believe that the people of this country will vote for the future and not for a past that only ever existed in the minds of the Eurosceptics on the Conservative Benches.

--- Later in debate ---

[Mr Baron]

Many thanks for remaining with us during the course of this debate, Mr Speaker.

I suggest that we are approaching a seminal point in our history, when we will either choose to remain inside the EU and continue down the road of ever closer union, at the expense of our sovereignty, or vote to leave the EU and, thereby, regain our ability to have the final say on issues such as the primacy of our laws, the integrity of our borders and the extent of business regulation. The fact that No. 10 seems now to be talking about a sovereignty Bill clearly illustrates that the Government’s so-called red card system, or watered-down, washed-up lottery ticket, and the emergency brake controlled by an EU backseat driver, is unravelling as we speak.

Such measures will not stop us being drawn into ever closer union with the EU should we remain, and they certainly will not restore our parliamentary sovereignty. The British people want to be represented by their MPs, not governed by the EU. Sovereignty is ours to cherish, not to sacrifice. I am afraid that the Minister and the Government have been unable to answer our questions, so I therefore intend to press to a vote the motion which clearly says that the Government’s EU renegotiations must encompass Parliament’s ability to stop any unwanted legislation, taxes or regulation.

Question put.

A Division was called, but no Members being appointed Tellers for the Ayes, the Speaker declared that the Noes had it.

Question accordingly negatived.

[Mr Speaker]

The Division is off. Perhaps the hon. Members were locked in a room by somebody. Good heavens. Well, there we are. I was all ready to sit in for the Division—I have been here for the last two and a half hours for the debate, so I was perfectly prepared to be here for the Division, but a Division must take place in an orderly way, or not at all.

Daesh: Syria/Iraq

John Baron Excerpts

Wednesday 16th December 2015 Commons Chamber

[Mr Hammond]

I thank the right hon. Gentleman, particularly for his comment on the commitment of UK forces to their task. This will be the first meeting of Finance Ministers in the Security Council, and I think that sends a very clear signal about the importance with which we regard the issue. It does not mean that no steps have been taken; many measures have been taken already. Financial sanctions are in place, and a financial flows working group, led by Bahrain, has been operating for a year now, but the fact that Finance Ministers of the key countries in the world are going to New York tomorrow to sit in the forum of the Security Council to pass further sanctions measures is an important symbol of our commitment to shutting down this channel of Daesh’s lifeblood. We regard it as extremely important. We saw, in relation to sanctions on Iran, that getting the financial sanctions right was at least as important as getting the sanctions on flows of physical goods right.

The right hon. Gentleman asked me about the communications cell. The operation of the cell necessarily encroaches into the area of the secret intelligence agencies’ work, so I cannot give him details of the resources available to it or of the number of people deployed in it, but I can tell him that it is already having a visible and measurable effect on Daesh’s communication channels. He also asked me about deaths resulting from coalition action. Of course, any civilian death is deeply regrettable. I was referring to deaths attributable to RAF action, and I believe that while the House will obviously be concerned about civilian deaths more widely, it will be on the question of RAF-caused civilian casualties that hon. Members will want to focus, and I intend to ensure that the House remains updated if the situation changes in respect of any reports of any RAF-caused civilian casualties.

Finally, the right hon. Gentleman asked me about the protocols for investigating civilian casualty reports as the campaign moves on. NATO has well-established protocols for investigating any incidents where CIVCAS are estimated to have occurred or where imagery suggests that there could have been collateral damage to civilian buildings, and it routinely publishes the outcome of those investigations.

[Mr John Baron (Basildon and Billericay) (Con)]

Recent discussions with Government officials on a visit to countries in the region confirmed that key questions remain unanswered about the Government’s strategy on combating Daesh, which remains the best-funded terrorist group in history. On the non-military side, why are hard questions not being asked of regional allies about the funding of donations to Daesh from within those countries? When it comes to oil, why are we not asking our regional allies not only to disrupt the flow of stolen oil heading north but to combat the end customers of that oil? Without a market, there can be no cash flow.

[Mr Hammond]

My hon. Friend is right. We are focusing on all channels of funding to Daesh. He asserts again that it is receiving funding from within the region, and of course I cannot be certain that there are no channels of funding remaining open to Daesh from the region, but I am confident that none of the Governments in the region either contribute to or condone any such funding. On the question of the flow of oil, he well knows that that oil is being sold into a black market, and I am afraid that black markets are an inevitable consequence of any kind of embargo on the sale of goods. We are doing everything we can to interdict and disrupt the flow of oil and indeed to disrupt the flow of the proceeds of the sale of that oil. He will know that the scale of that production is small and that the means of transport are crude and sometimes even primitive, so it is difficult to disrupt that process to the extent that we would like. Bombing the wellheads so that the stuff cannot be produced in the first place is likely to be the most efficient way to do it.