European Union Bill

Yvette Cooper Excerpts

Tuesday 7th December 2010 Commons Chamber

[Yvette Cooper (Normanton, Pontefract and Castleford) (Lab)]

I beg to move an amendment, to leave out from “That” to the end of the Question and add:

“this House declines to give a second reading to the European Union Bill on the grounds that, while the principle of referendums on significant constitutional and monetary changes is appropriate, the Bill is a flawed measure which would confuse the important issues at stake and make vital constitutional issues justiciable by the courts rather than resolved under the sovereignty of Parliament.”

The Foreign Secretary has been on a long and tortuous journey to get here today. The man who voted for the Maastricht treaty without a referendum and the former party leader who put Euroscepticism at the heart of his unsuccessful election campaign now finds himself in government with what he has described as

“the most fanatically federalist party in Britain.”

The Foreign Secretary’s diary engagement from last night rather sums things up for him, and I am sorry that he chose not to share it with the House. Last night, he went back to Smith square, to the old Conservative central office. From the windows where once Margaret Thatcher waved on election night now waves a blue flag with yellow stars. Where once sat Tory party researchers working on the Bruges speech, there are now French, German and Italian officials. He was invited for the opening and renaming of central office as Europe House. It cannot be easy for him. He is caught between the realities and the responsibilities of government and the rhetoric of Eurosceptic opposition. He is caught, as they say, between a rock and the hon. Member for Stone (Mr Cash).

[Mr Hague]

The record should also show that the room where I spoke last night was named the Churchill room by common agreement, and that I took the opportunity to remind all who were there of the need for EU institutions to bring down their budgetary aspirations just as the Government have had to do in this country.

[Yvette Cooper]

If only the Foreign Secretary’s willingness to open EU buildings extended to opening a proper debate on European issues in the House. Clause 10 purports to increase Parliament’s role before ministerial decisions are made, yet the truth is that the Government do the opposite. We have had no discussion of the European economy prior to the discussion between European Finance Ministers today, no discussion of practical measures to cut the European budget, such as reform of the common agricultural policy, and no discussion of working with Europe on human trafficking or the directive that the Government continue to opt out of.

This very morning, European Finance Ministers met to discuss the Irish support package and the European economy. In 10 days’ time, decisions will be made on the crisis resolution measures that will affect the entire European economy—not just the eurozone—for many years to come. National leaders will discuss a treaty change to introduce that package, yet when is the debate in the British Parliament? We have no idea what British Government Ministers are proposing or asking for.

We should hold pre-Council debates in this Chamber. The economic and political pressures that Europe faces are serious. European growth is slowing, unemployment has increased and markets are putting pressure on several eurozone countries, all of which matters immensely to Britain, yet we have had no pre-Council debates. At the end of this year, there will have been four European Councils, but no debate.

[Mr Redwood]

The right hon. Lady is raising crucial issues. Does her party support the idea of Britain being part of more EU economic governance powers to help euroland, and does she think we ought to offer more financial assistance to other euroland countries in crisis?

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[Yvette Cooper]

I think that the Government were right to provide support for Ireland, because the prospects for growth in Ireland will have a huge impact on our economy. That is also why it is important that the House debates the precise measures proposed as part of a permanent crisis resolution mechanism. The House does not know what those proposals are or what the Government are arguing for.

[Mr Ellwood]

Will the right hon. Lady provide some clarification, because her amendment does not make it clear where the Labour party stands on this issue? It supports referendums in principle, but it does not say when they would be held. When would a referendum be used on Europe? Will she also clarify whether it is still Labour’s long-term ambition to introduce the euro and an EU defence force?

[Yvette Cooper]

As the hon. Gentleman will know, we have set out our belief that there should be referendums in cases of major constitutional change or currency issues, and I hope that he supported our decision not to let Britain enter the euro for the very good economic reasons that have proved to be right in practice.

The economic issues are very serious. Markets are still putting pressure on several eurozone countries. This matters immensely for Britain, because the Government are relying on an increase in British exports of £100 billion over the next few years to keep our economy growing, and we will not get that if our largest export market has gone into reverse. The EU does not have a serious strategy for growth and jobs, just as the British Government do not. The eurozone does not yet have a strong enough response to the pressure from financial markets, and a strategy of nothing but co-ordinated fiscal austerity in every country in Europe will not deliver growth, will not ultimately satisfy the financial markets and will be bad news for Britain. That is what we should be discussing now; that is what Ministers should be debating in Europe; that is what we should be discussing as part of a pre-European Council debate in the House. It makes a complete mockery of the Bill not to have those discussions in the House, and exposes the sham of the Secretary of State’s approach to Europe.

[Charlie Elphicke]

The right hon. Lady has set out the many problems of euroland, so why has she committed her party to supporting further bail-outs there?

[Yvette Cooper]

The hon. Gentleman needs to recognise that Britain will not grow without sufficient growth in our exports, especially given the sheer scale of the cuts that his Government are introducing. Without a sufficient increase in domestic demand, we are reliant on increasing our exports. Where does he want those exports to go, if he also wants us to turn our backs on Europe and allow the Irish economy to face serious problems? That would put a drag on our own economy and prospects as well.

[Ms Gisela Stuart]

Will my right hon. Friend confirm that the use of article 352 of the treaty on the functioning of the European Union will not require an Act of Parliament, and that the current bail-out of Ireland, which is a pretty significant activity to which we are contributing as part of our EU obligations, is being done under that article?

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[Yvette Cooper]

My hon. Friend makes an important point. It raises some of the unresolved questions coming out of the Bill and the interaction between the Bill and some of the crisis resolution mechanisms and proposed treaty changes. The Government simply have not answered those questions.

[Mr MacShane]

I am astonished that the Foreign Secretary of all people has thrown away this pre-European Council debate. I made my maiden speech in such a debate before people such as Ted Heath and Peter Shore. They are very important debates for our House of Commons, but the Government have thrown them in the dustbin because they cannot face the discussions needed. My right hon. Friend is right to keep emphasising this point, so will she commit us, when we form the next Government, to allowing a debate in Government time on Europe?

[Yvette Cooper]

My right hon. Friend is right: those debates are important. We could have had a pre-European Council discussion today, at the same time as European Finance Ministers are meeting and well in advance of national leaders meeting to discuss exactly these issues. Instead of talking about vital issues for the European economy, what are we doing? According to the Foreign Secretary, we are talking about referendums that he says we will not need and sovereignty that he says we already have—that is, referendums for powers that he says he will not even transfer, and sovereignty that he says will not change at all as a result of this Bill. Unnerving as I find it to be in agreement with the hon. Member for Clacton (Mr Carswell), I am afraid to say that he is right. This Bill is just smoke and mirrors to distract us from the fact that the Government have no strategy for Europe and no way of handling their own Eurosceptics.

Instead of having a serious debate about the future of Europe, the Foreign Secretary is pandering to the Eurosceptics, and it is the worst pandering of all, because it will not even work. All that it is doing is winding them up. This Bill is a complete dog’s dinner and he knows it, yet the Eurosceptics are salivating nevertheless. The Bill tries to constrain parliamentary sovereignty on the one hand and protect parliamentary sovereignty on the other, using a referendum lock that does one thing and a sovereignty clause that does the opposite—a referendum lock that tries to bind future Parliaments and a sovereignty clause that makes it clear that the Government can do no such thing. It is all in the same Bill, which faces both ways at the same time.

The Government’s press release on the sovereignty clause says:

“The common law is already clear on this. Parliament is sovereign. EU law has effect in the UK because—and solely because—Parliament wills that it should. Parliament chose to pass the European Communities Act 1972. That was the act of a sovereign Parliament.”

There is not much room for misunderstanding there. The statement then proclaims that

“to put the matter beyond speculation,”

the Government will introduce the sovereignty clause, but whose speculation are we talking about? It is not the speculation of the hon. Member for Stone (Mr Cash), because his European Scrutiny Committee has said:

“The evidence we received suggests that the legislative supremacy of Parliament is not currently under threat from EU law.”

The Committee continued:

“Clause 18 is not a sovereignty clause in the manner claimed by the Government, and the whole premise on which it has been included in the Bill is, in our view, exaggerated.”

The only source of speculation that I could find was one speech by a barrister on behalf of a client in 2002 and a speech by the Prime Minister in 2009. The truth is that the Foreign Secretary has set up a straw man in order to shoot it down, because he will not give his party what it really wants, which is a referendum on withdrawing from the EU altogether.

[Mr Jenkin]

The right hon. Lady really does not know what she is talking about. Let me refer her to the Law Lords’ judgment in the case of Jackson v. Attorney-General, in which Lord Steyn said:

“The judges created this principle”—

that is, the principle of parliamentary sovereignty.

“If that is so, it is not unthinkable that circumstances could arise where the courts may have to qualify a principle established on a different hypothesis of constitutionalism.”

Lord Hope said:

“Parliamentary sovereignty is no longer, if it ever was, absolute…Step by step, gradually but surely, the English principle of the absolute legislative sovereignty of Parliament which Dicey derived from Coke and Blackstone is being qualified.”

There are therefore two Law Lords speculating about the future of parliamentary sovereignty. The right hon. Lady had better do some homework.

[Yvette Cooper]

I am afraid that the hon. Gentleman is not picking a fight with me; he is picking a fight with his Government, whom I quoted, and the European Scrutiny Committee, which I quoted. His disagreement is with them, but I hope that he agrees that clause 18 does nothing at all to change sovereignty. In fact, the hon. Member for Crawley (Henry Smith), who asked about a written constitution, got further than anybody else in raising the key question about sovereignty that the hon. Gentleman’s Government are pretending to solve while, in fact, doing nothing of the sort.

[Mr Cash]

I simply make the point that our Committee report is utterly clear on that subject. What the right hon. Lady quoted is correct. However, her Government were as responsible as any for giving more and more judicial authority—ultimate authority—to the courts. Their main policy over many years could be characterised as handing over more and more powers to the judges at the expense of this House.

[Yvette Cooper]

I know that the hon. Gentleman has immense expertise on the details of the legal changes, but he and I have a long history of disagreeing over what is important in a particular case, and I suspect that we will continue to do so.

[Chris Bryant]

Is not one of the problems with the Bill the fact that it makes the decision on whether to hold a referendum justiciable, and therefore a matter to be decided by the courts, when it is surely a political decision for which elected Members of Parliament ought to take the rap at the ballot box if they get it wrong?

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[Yvette Cooper]

My hon. Friend makes an important point. The Bill will create a lawyers’ paradise because it is so confused and complex. Important issues will have to be decided by the courts as they try to interpret what the Government and Parliament meant, which could lead to decisions that override Parliament and delays to decisions that Parliament might want to make while those legal wrangles are taking place.

[Charlie Elphicke]

Speaking as a former lawyer, I find the Bill plain and obvious. If a future Government or bunch of politicians get together to cheat people out of a referendum, a little guy could come along and put a stop to that through the court system. That has to be right, in order to keep politicians to their promises.

[Yvette Cooper]

That little guy would have some serious questions about which cases could be taken to court, how long they would take to be dealt with, and what judgment the court would make.

The pledges on referendums are very confused. We agree that Europe should not be pursuing new treaties, major treaty changes or major transfers of power or competence, and we have long said that it is time for Europe to stop its institutional navel-gazing, but navel-gazing is exactly what the Bill proposes. It tries to pin down in legislation the detail of a whole series of changes that would, or would not, trigger a referendum, but it creates complete confusion as a result. It does not define the powers or competences that it wants to protect, and it does not explain what constitutes a significant change and what does not. It allows Ministers to make decisions in certain areas, but admits that that will be subject to judicial review.

As far as I could understand him, the Foreign Secretary said today that the extension of any competence—even a supporting one, and even in a very small or insignificant way—will require a referendum. However, new powers to impose requirements, obligations or sanctions on the UK, even if they would have far more impact on Britain than a small change to the competences, would not require a referendum if Ministers determined that the proposed changes failed their own significance test.

I am also completely baffled by the debate about the advocates-general, because schedule 1 clearly states that the matter would attract a referendum, but the Foreign Secretary said that it would not pass the significance test. As far as I could work out, as I fitted together what he was saying, we would not have a referendum on how many advocates-general there were to be, but we would have to have one on whom we were going to appoint.

This is a dog’s dinner of a Bill. It is completely confused. Frankly, it makes the Maastricht treaty look like light reading. The Minister for Europe has said that he does not believe a referendum should be triggered for a treaty change on the allocation of carbon credits. He says that that is not significant, and he has a point. That matter should not merit a referendum, but how can he be sure that the courts will take the same view when interpreting this legislation? What about the treaty change that is due to be proposed at the European Council next week? That change would make it possible for Europe to create permanent bail-out mechanisms to deal with future financial crises in the eurozone. We have said that we have some concerns about the overall policy approach that Europe is taking. Nevertheless, the Government have said that they support these changes, and we recognise the need to look at a treaty change in order to ensure that a permanent long-term response is in place. The Foreign Secretary seems to be hoping that this treaty change will not be covered by the Bill, but how can he be sure that the courts will take the same view? He is asking for trouble because the Bill is so contrived and complex. Lawyers will have a field day. He is contriving his Bill to avoid a treaty change that he has not yet negotiated, and contriving his treaty negotiations to avoid clashing with a Bill that he has not yet tested in Parliament or in the courts.

Furthermore, despite all the Foreign Secretary’s contortions, he will not keep his Eurosceptic party happy anyway, as we have heard in interventions today. His Government have signed up to the EU investigation order. They were right to do so, and we welcomed the move, but his Back Benchers wanted a referendum on the matter. His Government supported the Van Rompuy taskforce on economic information, but many of his Back Benchers wanted a referendum on it. They want referendums on crime, on justice co-operation on the European arrest warrant, and on pulling out altogether. He cannot keep his Eurosceptics happy, so he is desperately trying to distract them with this Bill. He promised them red meat, but he is now offering them an omelette instead.

This is a Government of chaos and confusion, with the Eurosceptics on one side and, on the other, the president of the European Movement and the Energy Secretary, who has said about Europe that the

“Tories have jumped into bed with the wackos and the weirdos”.

On this evidence, one could say the same of the Liberal Democrats. The Government can have unity without clarity, or clarity without unity, but they are clearly incapable of both. At a time when they should be working hard in Europe on the issues that matter—jobs, growth, trade, cross-border crime—they are collapsing back into navel-gazing and confusion and turning their backs on the opportunities and benefits that working in partnership can bring. This Bill is a mess, and they should go back to the drawing board and start again.

[Several hon. Members]

rose—