European Union (Approval of Treaty Amendment Decision) Bill [Lords]

Nigel Evans Excerpts

Monday 10th September 2012 Commons Chamber

[Mr MacShane]

If I may, I will try to speak to the clause. I might make other comments on Third Reading, but I hope not to detain us long. What is extraordinary about this clause is its sheer impertinence. Our Eurosceptic friends in the Conservative party are for ever telling us that we do not want Europe interfering in our affairs. The proposed legislation, however, says that we should wait until every other national Parliament has made up its mind—

“laid an order certifying that the constitutional requirements of all the members states of the EU have been complied with.”

What business or right is it of this Committee to demand that the constitutional requirements of every other sovereign nation state be met before we make up our minds, and until

“all the related and legal challenges have been disposed of”?

Let us imagine each of the other 26 fellow EU member states adopting the same clause and waiting for their Parliament to ratify the ESM treaty and all legal challenges to be completed.

[The First Deputy Chairman of Ways and Means (Mr Nigel Evans)]

Order. The right hon. Gentleman is talking about amendment 1 as opposed to clause 1.

[Mr MacShane]

As ever, Mr Evans, you are right. I will not repeat my speech but I think the Committee has got the point.

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Clause 1 accordingly ordered to stand part of the Bill.

[The First Deputy Chairman of Ways and Means (Mr Nigel Evans)]

We now move to clause 2, amendment 1, for which Mr MacShane has already whetted our appetite.

Clause 2

Extent, commencement and short title

[Mr Clappison]

I beg to move amendment 1, page 1, line 14, leave out subsection (2) and insert—

‘(2) This Act shall not come into force until the day after the Secretary of State has laid an order certifying that the constitutional requirements of all the member states of the EU have been complied with and all the related legal challenges have been disposed of.’.

I am grateful to the right hon. Member for Rotherham (Mr MacShane) for giving the Committee a perhaps unintended trailer of the film, as it were, but I hope to persuade hon. Friends that the film is rather better than his trailer for it. The gist of his argument was: what business is it of ours and how dare we lecture Europe on what it should do? But there is a difference between what he said and the amendment, which is concerned with what Europe has decided and how it takes effect in this country. That is rather a different matter, and I hope that I will persuade the Committee that important questions arise from it.

The amendment, which I do not intend to press to a vote, is designed to probe some of those questions. In the negotiations leading up to the amendment to article 136 of the EU treaty, the Prime Minister secured a good deal for Britain. It was a good deal for reasons I shall explain shortly. I do not want to go into the background of how in May 2010 the country became committed to the European financial stabilisation mechanism, which was different from the European stability mechanism, which we are talking about now, and from the European financial stability facility—there is no shortage of such acronyms and measures. In fact, I asked the House of Commons Library this morning how many attempts the EU had made since 2008 to resolve the euro crisis, but it said that it was difficult to say in the time available because there had been so many and it was so complex. However, it gave me a rough estimate of 17, including the latest one from Mr Draghi—we must hope that the 17th is more successful than the previous 16.

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[Dr Julian Lewis]

Is not the real choice that is going to have to be faced that the euro will be dismantled in an orderly way, or will collapse in a disorderly way? Is not the danger that we feel that we cannot be seen to be sabotaging this project, in which so many of our colleagues in the European Union have invested so much energy and treasure, and yet, by not speaking the truth about the matter, we are making more likely a disorderly collapse, rather than orderly dismantling?

[The First Deputy Chairman of Ways and Means (Mr Nigel Evans)]

The hon. Gentleman will answer that intervention through the prism of amendment 1, please.

[Kelvin Hopkins]

Of course, Mr Evans. Amendment 1 is essentially about delaying our approval of this measure until such time as the eurozone countries have agreed, signed and sealed it. That is a very sensible way forward. The hon. Gentleman is right, and I and others have made the point a number of times that there are examples of single currencies that have been dissolved in an orderly and managed way. When the Soviet Union was dissolved, the first thing its countries did, wisely, was to create their own currencies. Such countries were able to choose an appropriate parity and interest rate, and to do what was necessary to make their own economies work well in relation to others. That is obviously the way forward, and in the journals it is increasingly being said that the dismantling of the euro, which would enable countries to reflate their economies, would be far less painful than what is happening now in some of the eurozone’s weaker countries, which is dreadful for working people. There is mass unemployment and falling living standards, and growth in Greece has fallen by upwards of 20%. They really are in serious pain and difficulty, and it could not be worse if they re-created the drachma, devalued and started selling cheap holidays to British people who want to enjoy the sunshine of Greece. That is their way forward, and the same is true for other countries.

There has been talk about how to help our Irish friends. I have many Irish friends and constituents, and I have said before—even last week—that the way forward for the Irish is to persuade them to re-create the punt, depreciate and come to a sensible parity with sterling. We are their major economic partner, and they belong much more in the sterling zone than the eurozone. That would be massively beneficial to the Irish, including the relatives of many of the people who live in my constituency.

Delay is absolutely sensible and the right thing to do. I ask that, even now, the Government consider delaying our ratification until such time as the eurozone countries have all signed and sealed the deal.

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[Kevin Brennan (Cardiff West) (Lab)]

On a point of order, Mr Evans. The Minister for Education and Skills in the Welsh Government has announced this afternoon that there is to be a regrading of English GCSE for those candidates in Wales who sat the Welsh Joint Education Committee examination board. As you will be aware, there are also many candidates in England who sit their English language GCSE on that examination board. Have you or Mr Speaker received notification from the Secretary of State for Education of an intention to come to the House to respond to this development, in relation to the controversy about GCSE English grading this year?

[The First Deputy Chairman]

Thank you for that point of order. No indication has been received that a Minister wishes to make a statement on that matter or any other, but should that change, I am sure that the House will be informed in the usual manner; and those on the Treasury Bench will have heard the point of order.

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[Mr Baron]

rose—

[The First Deputy Chairman of Ways and Means (Mr Nigel Evans)]

Order. We are going a little wide of amendment 1.

[Mr Baron]

I take your point, Mr Evans. My hon. Friend was clearly not listening, because I was talking about currency blocs, and to the best of my knowledge we were not a member of a currency bloc in 1967. However—I throw this back at him—I do not for one moment believe that he is arguing that our exit from the exchange rate mechanism in 1992 did this country any harm at all. In fact, our economic recovery kicked in, almost to the day, because we left what was in effect a currency bloc.

In summary, I fully endorse the comments made by my hon. Friend the Member for Hertsmere. We should delay the introduction of the ESM. There are too many questions that need answering. I would very much welcome some clarity on the points that I have raised, particularly about the design flaws in the ESM. I would also ask the Minister for Europe to address the fundamental point: why the Government continue to believe that by joining in the political mantra that we need to save the euro, we are doing our eurozone partners any favours. I would point out to him that all the economic evidence suggests that by sticking to that mantra, and indeed by implementing the policy, we are prolonging the agony and delaying the inevitable.