European Affairs

Pat McFadden Excerpts

Thursday 25th February 2016 Commons Chamber

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

I beg to move,

That this House has considered European affairs.

In just under four months’ time, the British people will face a choice—one that has been denied to them for many years—that we pledged to give them in our election manifesto and that we are now delivering; a choice that will have profound consequences for this country for a generation or more—whether to remain in the European Union on the basis of the deal negotiated by the Prime Minister or to leave.

The last time the British people were consulted on this question, 40 years ago, the answer was a clear yes, but much has changed in that 40 years, and the fact that we are holding this referendum now is recognition of a growing unease at the direction in which the EU has evolved—a growing sense that Europe was pursuing a goal that Britain did not share, and that we risked being dragged into a level of political integration for which few in Britain have any appetite.

For 25 years, I have shared that sense of unease. I have always considered myself a sceptic, and I consider myself a sceptic today. Like most people in Britain, I do not feel any warmth or affection for the EU or its institutions. I am irritated by the tone of much of what I hear coming from Brussels and instinctively suspicious of anything that sounds like a “grand projet”. But we do not live in some ideal world; we live in the real world, and the EU is part of that real world. The question that we have to answer is not: do we like it? The question we have to answer is whether we are stronger, safer and better off in the EU rather than out of it. Stronger, because our global influence is enhanced by being a leading member of the world’s largest trading bloc. Safer, because working together with EU partners strengthens our defences against organised crime and terrorism. Better off, because Britain benefits from having a domestic market of 500 million consumers and the clout that a quarter of the world’s GDP gives the EU in negotiating trade deals.

[Mr Pat McFadden (Wolverhampton South East) (Lab)]

The Prime Minister has said in recent days that his view of the European Union’s impact on our collective security had changed over the years because of his experience as Prime Minister. The Foreign Secretary would probably be thought of by many people as having a Eurosceptic background. Has his experience as Foreign Secretary also changed the balance of his view on the European Union’s impact on our collective security?

[Mr Hammond]

Yes, it has. First as Defence Secretary, and now as Foreign Secretary, I have seen how, in practice, working with EU partners is an important tool in our armoury. Of course, the EU will never, in any way, replace the security benefit that we get from NATO; it does a different thing. However, we have seen in the conflict over Ukraine that economic sanctions—which, in reality, are the only practical weapon available to us in responding to the challenge of Russia—when properly honed and consistently used by the European Union, will prove to be a very important weapon in our armoury against Russian aggression.

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[Mr Hammond]

Let me make my point, and then I will happily give way to my right hon. Friend. A vote to leave is a vote for an uncertain future. That is a simple fact. That uncertainty would generate an immediate and negative reaction in financial markets; on that, all market commentators agree. Indeed, the mere possibility of a leave vote will have a chilling effect on business confidence even before the referendum.

[Mr McFadden]

It is already happening.

[Mr Hammond]

As the right hon. Gentleman suggests from a sedentary position, we have had a foretaste of that this week in the currency markets.

A vote to leave would trigger a fixed two-year time period under the treaty for the UK to negotiate the terms of our exit from, and our future relationship with, the EU. We would, of course, seek to reach agreement with the other 27 member states during that two-year period. In the meantime, however, we would be able to offer British businesses that wanted to invest no assurance at all about their future access to EU or other markets. We would have nothing to say to Japanese, American or Chinese companies that come here looking for a base from which to produce for the EU market. That would be truly a leap in the dark, and the effect would be to put the economy on hold until the negotiations were completed. At the end of those two years, there is no guarantee that agreement would have been reached, but our exit would be automatic unless every single one of the remaining member states agreed to an extension of the negotiating period.

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[Hilary Benn]

When I was International Development Secretary I argued precisely that Europe should change its policies, including the common agricultural policy. I shall say something about development a little later in my speech, because that too is a really strong argument for remaining part of the European Union.

[Mr McFadden]

Before my right hon. Friend moves on from the list of employment rights that are guaranteed at EU level, it is important to point out that when those who would take us out of the European Union attack EU red tape and bureaucracy, they are usually talking about precisely those rights. For example, the right to equal treatment as a part-time worker and so on—those are measures of justice in the workplace, not needless bureaucracy.

[Hilary Benn]

I completely agree with my right hon. Friend. Indeed, when one of the Ministers who advocates Britain’s exit from the European Union was asked on television at the weekend to provide an example of red tape, he referred to health and safety. Health and safety is not red tape, a burden or regulation; it is about protecting British, German and Spanish workers when they go to work in the morning, to make sure that they can do their jobs safely and securely. If we voted to leave, we could end up with a double nightmare. Unfortunately, there would still be a Conservative Government in this country and, given past records, I am not entirely sure that I would trust them to ensure that we keep the rights we currently have.

There is an even more important reason why we should remain a member of the EU: Britain’s influence in the world is strengthened by our membership. It promotes interdependence through trade and advances our economic security, because it works to tackle conflict and other global challenges, and it helps to protect us from crime and terrorism. There is nothing patriotic about diminishing the United Kingdom’s ability to make its voice heard by other nations. Stumbling out of Europe and pulling up the drawbridge would serve only to harm our position and influence in the world.

The global economic crash of 2007-08 shook the public’s faith in the ability of Governments, regulators and institutions to protect them. What it really brought home to us is the need for more, not less, co-operation with other countries, and stronger multilateral institutions, not weaker ones. If we are going to deal with the problem of big companies that show an aversion to paying tax, Europe is a very good place to start.

We should also acknowledge that the growth in the number of member states of the EU has been a very powerful force for change for the better on our continent. The prospect of membership offered the former communist states of central and eastern Europe a really powerful incentive to meet the conditions for joining. They were creating an alliance built on the values of democracy, respect for human rights, free media, the rule of law and individual freedom. As the Foreign Secretary made clear, that also helped us to be stronger in facing up to aggression and problems around the world. There is no doubt that the sanctions agreed against Russia have had an impact. They are biting. Although the Minsk agreement has not been fully implemented—the conflict is frozen—it was precisely because Europe was united and determined that we were able to have that impact. Let us be absolutely clear: Russia would see Britain’s exit from the EU as a sign of our weakness. It would see it as a sign of European weakness at the very moment when, in the face of that threat, we need to maintain our collective strength. [Interruption.] If the hon. Member for Harwich and North Essex (Mr Jenkin) wants to intervene, I will of course give way.

The deal with Iran is another really good example. Europe came together in solidarity and achieved something that many people thought would not be possible. We have heard reference to the action, through Operation Atalanta, to deal with piracy off the horn of Africa. Look at the sanctions on Burma. We are just about to see something we never thought possible: Aung San Suu Kyi’s party taking power by democratic change. Europe’s voice in saying that what the previous regime had done was not acceptable was a powerful force for good in the world.

These collective displays of solidarity remind us of the power, working with our European allies, to do good. I have to say the current problems in Syria remind us of our failure in that particular conflict.

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[Mr Pat McFadden (Wolverhampton South East) (Lab)]

Let me begin by saying that, while I have enjoyed all the speeches so far in today’s debate, I pay particular tribute to the right hon. Member for Mid Sussex (Sir Nicholas Soames) for a most moving speech, which I think the whole House found pleasure in hearing.

The first week of this referendum campaign has been dominated by the positioning of members of the Cabinet and the more Godly members of the Conservative party. It is of course of interest—we are in politics so we know that it is of interest—when a political party is divided. The first point that I want to make today is that, however interesting that may be, this referendum and the decision facing the country are far more important than the position of any individual politician, the share price of any individual politician, the career ambitions of any individual politician, or indeed divisions within any single political party. It is about the future of the country. The question on the ballot paper, of course, is whether we remain in or leave the European Union, but beneath that question lie layer upon layer of fundamental issues. It is to a few of those that I shall address my remarks.

The first is the tone in which this referendum campaign is conducted. I am clearly in favour of the UK remaining in, but I want also to understand the impulse of some of those who want to take us out. I speak not principally of the leading and familiar advocates of Euroscepticism in this House, but of my constituents and many of the constituents of other Members who have concerns about this. It is important for those of us who want the UK to remain in to acknowledge the sense of loss about the changes wrought by globalisation that have made many people feel that they do not have a stake in the country’s story. It is important to acknowledge with respect that sense of loss.

Another issue underlying the question on the ballot paper is our economic and trading position. I will not go through the statistics, but we are part of a single market of 500 million people. It is the main destination for our exports. That is a big reason why as a country we are successful in attracting inward investment from both inside and outside the European Union. I believe in a UK economy that champions the activity of making things, as well as our great services. Let us consider one product, for example—a Ford car. These days such a car is likely to have its engine made here in the UK, but the rest of the car made elsewhere in the European Union—one product that contains both imports and exports. This is how modern manufacturing works. It is a supply chain and a product brought together across different borders in the European Union, with no tariffs, according to a single set of rules.

[Nigel Adams (Selby and Ainsty) (Con)]

I am pleased that the right hon. Gentleman has brought up the issue of trade. Given that the economic powerhouse, Iceland, has managed to negotiate a free trade deal with the world’s second largest economy, does he not share my confidence in Great Britain’s ability to negotiate free trade deals with growing economies around the world?

[Mr McFadden]

I have looked at some of the trade agreements negotiated between individual countries and China, and I recommend that the hon. Gentleman does too. Those trade agreements often allow complete and free access for the Chinese end of the operation, with severely limited and tariff-imposed access for the smaller country, so I disagree with the view that we should have a choice between trading with the rest of the world and trading with the EU. We should do both.

[Sir William Cash]

Will the right hon. Gentleman give way?

[Mr McFadden]

Given the time limit, I shall make progress, if I may.

Another issue underlying the question on the ballot paper, and to which my right hon. Friend the shadow Foreign Secretary referred, is that of employment rights. The EU is not just a trading relationship or a market. There is a social Europe aspect. Six million workers in the UK have gained new or enhanced rights to paid holidays. Around 400,000 part-time workers, most of them women and many of them low-paid, gained improved pay and conditions when equal treatment rights were introduced. I repeat the point I made in my question to my right hon. Friend. When people attack red tape and bureaucracy from the EU, it is very often those things that they mean—the right to decency at work. As my right hon. Friend said, parents’ right to enjoy time with their newborn baby is not needless bureaucracy. This is part of a decent, civilised economy. That, too, is on the ballot paper when the issue is debated.

Then I come to the question raised most eloquently by the right hon. Member for Mid Sussex—the question of security. I will not repeat in a less eloquent manner the argument that he made. We ignore at our peril the achievements of peace that the European Union has helped to guarantee. This is an argument not just of interests, but of values. We should not underestimate the importance of resolving conflicts peacefully and of common commitments to democracy, human rights and respect for one another’s borders. Compare those with the way that conflicts in Europe were resolved before the European Union was in place. Of course, the European Union is not perfect. I have served on the Council of Ministers and the patience even of a pro-European like me can be tested by several hours in the Social Affairs Council, with the headphones on, but I always stopped to check myself and say however frustrating this might be, compared with the way that decisions used to be reached or conflicts used to be resolved in Europe, it is a great improvement.

On security, we have to ask ourselves who outside the European Union would be pleased to see a British exit or pleased to see a wider break-up of the European Union. The answer most clearly is President Putin. No one would be more pleased than him to see our security compromised in that way.

[Mark Pritchard]

The right hon. Gentleman is right to suggest who would benefit from a UK exit from the European Union. It would, of course, be Russia, but does he agree that Russia would also benefit from Scotland breaking away from the United Kingdom?

[Mr McFadden]

I will come to Scotland shortly.

I want to quote General Sir Peter Wall, the former Chief of the Army General Staff, who said on the BBC last year:

“Unlike the Cold War when things were more binary . . . in a modern interconnected world it’s not just the defence capability that is going to be fundamental to our security. It’s going to be a number of other issues too.”

In today’s world, security is a combination of hard power and soft power, so when we speak of security in the European Union, we are not talking about a European army. We are talking about the values associated with being a member. Anyone who doubts their importance should talk to the members that live close to Russia’s border. They will confirm that being part of the EU is important to their security.

The hon. Member for The Wrekin (Mark Pritchard) asked me about Scotland. As we have heard already in the debate today and in comments in recent days, the integrity of the United Kingdom is also on the ballot paper when we cast our vote. That is clear. It seems to me a great pity that those who profess to be the most committed to the United Kingdom are cavalier about the future unity of the country, which is at stake through the referendum.

Whatever the actual words on the ballot paper, I believe that underlying them are fundamental issues for us. Perhaps the most important of all is what kind of country we are going to be. The easiest thing in the world is to look at some of the issues that we see on our television screens—the flow of refugees, the economic problems that have afflicted Europe in recent years—and to conclude that the best thing we could do is to walk away, pull up the drawbridge and say it is all too difficult. Though an answer that might be, I do not believe that it is leadership. In the end, this is a question of leadership, and that is why I believe the most important response to those issues is to resolve to play a full part with our partners and allies in facing up to them. That is why I want to see us remain in the European Union and to see the UK continue as an outward-looking, open, confident, engaged player in the world.

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[Mr Evans]

If Tony Blair thought that he was doing this project any favours by denying the British people a referendum, he was greatly mistaken. I think that the reason he withdrew the promise of a referendum was that he thought the British people would vote no. Ireland regularly has referendums on treaties, and it sometimes has a second one, but normally after another discussion with the European Union in which parts of the treaty are changed to make it more favourable to Ireland. Had we voted no to the Lisbon treaty, I suspect that there might have been a different project for the United Kingdom—a third way, to use Tony Blair’s favourite phrase—in a more associative relationship with the European Union, based more on trade than on the political entity that we know a number of European Union leaders want. I think that Tony Blair did this project no favours whatsoever.

I will vote to leave the European Union because I love my country, but I respect those who will vote to remain, because they love their country too; both sides believe that they are acting for the betterment of their country. My grandfather fought in the first world war and my father fought in the second world war, and they did so to give democratic rights to countries within Europe, and indeed across the rest of the world. Devolution is a keystone of British policy, bringing power closer to the people, but I believe that the leading elites of Europe might as well be from another planet. Most normal people in this country, and indeed across the rest of Europe, cannot name a single member of the Commission. We have scores of these faceless governing elites, many of them on salaries way above the Prime Minister’s.

That reminds me of this great red card that we have been told will allow us to stop legislation we do not like, so long as we join together with another 14 countries to block it. The idea was ridiculed by William Hague in this Chamber when it was first suggested. Even if the legislation we were trying to block proposed the murder of the first born, he argued, we would be unlikely to get 14 other countries to come together in the timescale that we would be given. Remember what happened—this is a measure of how influential we are in the rest of Europe—when we tried to stop Juncker becoming President. We went on a great salesmanship deal throughout the rest of the European Union, and how many countries did we get to support us? The answer is one—Hungary—out of 27.

[Mr McFadden]

I am glad that the hon. Gentleman has raised the Government’s failed attempt to stop Mr Juncker. That was not because the European Union is some evil organisation; it was because the Government were completely useless at finding allies. When Labour were in government, we made a similar effort to stop a candidate and we were successful. The answer is to make friends and do the job better.

[Mr Evans]

I think that the answer is for us to have a veto on things we do not like. That is what sovereignty is all about. When I fight a general election, I want to be able to deliver what is in my party’s manifesto. I raised earlier the issue of child benefit going to youngsters who have never set foot in the United Kingdom. One of our manifesto promises was to stop that, but now we are told that we cannot do that. That is the nub of the problem; we are putting promises in a manifesto that we cannot deliver because the European Union will not let us.