| Previous Section | Home Page |
Column 280
would inhibit their ability to earn for themselves and their families. We certainly do not wish to extend competence in this area.In health, it may be right for the Community to complement national programmes through co-operative research and collaborative health campaigns, but the basic provision of health care is a matter for the national Government. So too for education. It is right for the Community to ensure mutual recognition of qualifica-tions ; it should promote student exchange and language training ; but it cannot have a place in determining national educational curricula.
Significant extensions of Community competence were agreed in the Single European Act. Other extensions have happened by a gradual process of accretion. It makes sense therefore to codify and ring-fence Community competence, but the Dutch text goes much further than is justified by any of the criteria I have set out. We shall therefore seek to curb the proposed extensions of Community competence either by cutting out some of the proposals altogether or by ensuring in other cases that decisions can be taken only by unanimity.
Our present system of frontier controls helps protect this country from not only crime but illegal immigration, drugs, and terrorism. It would be irresponsible to weaken our controls, and we are not prepared to do so, but in the fight against international crime we need the maximum international co-operation, exchange of information and joint action. The Twelve are considering the creation of a European version of Interpol to bring our co- operation together on a coherent basis. I welcome that proposal. It is a classic case for intergovernmental co-operation between the countries of the Community rather than for co-operation within the framework of Community law. It is an area where Governments, not the Commission, have expertise. I hope that Europol can be established at the European Council at Maastricht on an intergovernmental basis.
For an agreement to be reached at Maastricht, there will have to be give and take on all sides. I have set out for the House the most crucial points.
On EMU, there must be strict economic convergence, and a provision that will allow this country to decide whether, not just when, to join a single currency.
On political union, we must safeguard NATO and avoid the creation of competing European defence structures.
We will co-operate in foreign policy, but that co-operation must not interfere with our ability to take decisions on our own national interests.
We must include powers for the European Parliament that give it greater control over the Commission but do not allow the Parliament to become an equal of the Council in making policy for the Community.
We must constrain the extension of Community competence to those areas where Community action makes more sense than national action or action on a voluntary, intergovernmental basis.
The Community has been the motor force of Europe's post-war development. The aim from the beginning was to achieve far-reaching goals by down-to- earth means. The goals were democracy, prosperity and stability in Europe. The means were the creation of a single market in goods and services.
Column 281
Mr. Gerald Bermingham (St. Helens, South) : Will the Prime Minister give way?
Today, the Community is still the motor force for Europe's development, but there is more at stake in Maastricht than the legal text that we shall have before us. In recent months, we have seen tumultuous changes in our continent.
Mr. Cryer : Will the Prime Minister give way?
The Prime Minister : I shall not give way to the hon. Gentleman. At Maastricht in December, we shall shape the future of the Community. We must shape it in ways that will accommodate those wider European changes. Our overriding aim must remain democracy, stability and prosperity in Europe, but our responsibility is now wider than just to the existing members of the Community. It must also be to all the other European countries which are now returning to democracy for the first time in 50 years. Our door must be open to them. We must prepare for the day when the EFTA countries in the north of Europe and the new democracies in the east of Europe want to become part of the Community. When they are economically ready to join the Community, we must be ready to accept them ; and we must tell them so now.
We can now plan for a European Community stretching north to the Baltic and east to the Urals--a Community that embraces the free market principles that are at the heart of the treaty of Rome. Such a Europe would be more than an economic entity. It would not only guarantee prosperity, but would underpin democracy. It would put an end to centuries of mistrust, suspicion and war. It would secure a lasting peace across the whole of our continent. I believe that that is a Europe worth building and worth making sacrifices for. That is the Europe for which I shall argue at Maastricht.
I commend that Europe and this motion to the House.
4.19 pm
Mr. Neil Kinnock (Islwyn) : I beg to move, to leave out from "House" to the end of the Question and to add instead thereof : regrets that Her Majesty's Government's preoccupation with divisions in its own Party has meant that in the Inter-Governmental Conferences it has not taken the negotiating approach necessary to ensure that the United Kingdom exercises decisive influence on the future of the Community in ways which will help to advance the living and working standards of the people of this country in company with other peoples of Europe ; calls upon Her Majesty's Government to work for an agreement at the European Council which ensures inclusion of the Social Charter, qualified majority voting on social and environmental matters, powers for the European Parliament to hold the Commission to account in ways that complement the role of national parliaments, decision-making at the level--local, regional, national or Community--where maximum democratic control is at all times exercised, foreign and security policy co-operation without the development of a European Community military role, widening of the Community as rapidly as practicable, co-operation to combat terrorism and other crime, and strengthened powers for ECOFIN as the politically responsible counterpart to any European Central Bank system ; and urges the Government to work to secure agreement to, and adopt policies for, high levels of employment, sustainable non-inflationary growth, balanced regional and national economic development and social cohesion, and for the fundamental reform of the CAP, in
Column 282
order to achieve real economic convergence in the years leading to economic and monetary union and a single currency as the essential foundation for those changes and to safeguard the long- term interests of the people of the United Kingdom.'.The background to this debate, and clearly the cause of this debate, involves the great change--or different kinds of change--taking place across the continent of Europe and within the European Community. The basic question at issue in the debate is whether the United Kingdom is to be carried along in the wake of those changes or to be a driving force for change. It is essential that our country takes a lead. That is the only way to exert the decisive influence over the direction and nature of the economic, political and social development under way in Europe. The British people know that ; they are well aware of the dangers of Britain being in a second division in Europe, and they do not want to be left behind.
The need for an active and positive approach to change is well understood by Governments in the rest of the Community. They recognise the reality of the economic interdependence that now exists and which will be intensified by the completion of the single market. As a result, they are determined to build on that interdependence by moving towards economic and monetary union. They are clear about their objectives ; they know what they want. This Government most certainly are not clear.
"As so often in the past, our Government are stuck in the defensive mud. Grabbing a begrudged compromise here ; clutching an opt-out clause there. Devoting maximum diplomatic effort to dilution and delay. This is a dreary, demeaning and ultimately self-defeating posture. It is playing for a draw."
I am grateful to the Daily Mail for that accurate description of the Government's attitude. It is not good enough for our country to have a Government who are playing for a draw. It became clear as the Prime Minister's speech progressed that that is precisely the most that he is playing for.
The country cannot be properly served by a Government who pretend that they can somehow call a halt to or defer the agreed purpose of the rest of the Community. As the right hon. and learned Member for Surrey, East (Sir G. Howe) advised everyone in the Financial Times last week,
"There is nothing to prevent a group of countries pressing on with a separate Treaty The fact is that we cannot, even if we wished, stop the others going ahead."
The Government must face that reality and its implications squarely, but they have not. They must stop trying to persuade themselves or the country that some sort of semi-detached arrangement can be made that will serve Britain's interests--there is no such arrangement. Anyone who thinks there is should simply consider what our country's position would be if our neighbours and trading partners formed a monetary union and, even though economic convergence had been achieved, Britain stayed outside. The Prime Minister refused to answer that question, which was asked by the hon. Member for Glasgow, Govan (Mr. Sillars). The implications of the Government staying out of a union when they had decided, on the basis of convergence, to form one, are serious and potentially disastrous.
More immediately, before those years pass and there is any immediate prospect of monetary union, it must be recognised how vulnerable Britain would be if the Government's strategy were to avoid commitment to the process under way in the European Community. That is
Column 283
not a theoretical matter, but a practical issue. If a British Government continued, as a matter of policy, to stand apart from the process, would inward investors who need access to markets of the whole community think of locating in a semi-detached country ? The Prime Minister referred to Nissan at Sunderland. Everyone in the House must want further inward investment and the development that comes with it. In the intervening period between Maastricht and the further stages, the Prime Minister and the Government must face the fact that, if they are standing apart, they will put a question mark over the prospect of further investment and further development.Mr. Robert Adley (Christchurch) : The right hon. Gentleman spoke a short while ago of consistency and clarity. A few seconds ago, he mentioned inward investment and a Japanese company. I do not recall that that was always his keenest and most enthusiastic point. In 1972, when he and I were both in the House, I voted in favour of the European Communities Bill, as it then was, and the right hon. Gentleman voted against it. In 1974, I opposed the referendum on Europe when he was in favour of it. Will the right hon. Gentleman give the House one example-- [Interruption.]
Mr. Speaker : Order. The hon. Gentleman is making an intervention, not a speech.
Mr. Adley : Will the Leader of the Opposition give the House one example of one major issue since 1970 to this very afternoon on which he has not changed his mind, purely for the electors' convenience, that relates to the European Community?
Mr. Kinnock : Immediately the hon. Gentleman and I entered the House --on the same day--I formed the view that he was a jerk, and I still hold that view.
Mr. Speaker : Order. Let us settle down. This is a very important debate that is being listened to outside the House. I am not sure--[ Hon. Members :-- "Withdraw."]--whether "jerk" is an entirely parliamentary expression. I have heard worse things here. Perhaps the right hon. Gentleman will refine his reference to the hon. Gentleman.
Mr. Kinnock : The question to which the Government must respond--
Mr. Speaker : Order. This gives a very bad impression to those outside the House.
Mr. Ivor Stanbrook (Orpington) : On a point of order, Mr. Speaker. Is it in order to insult an hon. Member by calling him a jerk?
Mr. Speaker : I have just said that I think that "jerk" is not among the list of unparliamentary expressions but I asked the Leader of the Opposition to refine it. Perhaps he will now do so.
Mr. Kinnock : Thank you, Mr. Speaker.
The question that the Government must answer--[ Hon. Members :-- "Withdraw."]--if they are to maintain
Column 284
their position-- [Interruption.] If the Tory party demonstrates its great nervousness by its attempts to disrupt, the whole country will form an accurate opinion-- [Interruption.]Mr. Speaker : Order. Let the House settle down. I said to the Leader of the Opposition that "jerk" is not on the list of unparliamentary expressions but, bearing in mind the nature of this debate, it would help the House if he refined what he has said in the interests of good order.
Mr. Kinnock : I respect you, Mr. Speaker, and I respect the House. If the hon. Member for Christchurch (Mr. Adley) is offended, though I doubt it, I withdraw any offence.
The question that the Government must answer is whether, if they were to maintain their stand-back attitude and what they call their options, British investors--not simply inward investors--who want to sell their produce throughout the Community and the rest of Europe would give priority to investing and developing in Britain when they had every reason to believe that the Government were ever ready to withdraw from the European process. That is the real problem.
Mr. Terry Dicks (Hayes and Harlington) : Get on with it.
Mr. Kinnock : The hon. Gentleman has an incurable problem, so I cannot help him.
The Chancellor of the Exchequer (Mr. Norman Lamont) : The House will be grateful to the right hon. Gentleman, because he has been making a clear statement and drawing a clear distinction between the two sides of the House. May we take it from what he has said that he is saying definitely that he would be prepared at Maastricht to make an irrevocable commitment to a single currency? That is what he is saying.
Mr. Kinnock : I am coming to that precise point. It is interesting that the Chancellor should anticipate it, and I am sure that he will find the answer very satisfactory indeed. He will also discover that my desire-- indeed, my absolute commitment--to ensuring that the House has a proper decision to make at any stage of development in the EC is at least equal to his. [Interruption.]
Mr. Speaker : Order. Will Conservative Members now please settle down? The Prime Minister was heard in silence, and I expect the same courtesy to be extended to the Leader of the Opposition.
Mr. Kinnock : The problem of the Government demonstrating a commitment to the continuing process in the EC is highlighted by the so- called opt-out clause. I understand that the Prime Minister wants to call it the opt-in clause. That is an interesting literary distinction, but I do not think that it is much more than that. As there is no possibility of any Government in the Community, certainly no British Government and certainly no Labour Government, not referring to their Parliament for a mandate before taking a step into entering monetary union, the opt-out clause simply codifies what will happen in any case, I believe, in every single one of the European Community democracies.
If that clause was taken to be a definition of the Government's position and repeatedly referred to as an escape route, which appears to be the intention, it would
Column 285
fundamentally undermine confidence in the Government's commitment to the European process. It would be a deterrent to investment and a disincentive to industrial development. That is a matter of basic practical issues, of jobs and of prosperity. Opting out would mean losing out. That is not an issue for some distant day in 1996 or 1998.Mr. Norman Lamont : I assure the right hon. Gentleman that what he has said is not correct. Other countries are prepared to give a commitment that they will move to a single currency without reference back to their domestic Parliaments. We are not prepared to do that, and that provision will not be in the treaty unless we ask for it. Is the right hon. Gentleman saying that he would give a commitment on any terms less than those that we are prepared to give? That is a question that he has not answered.
Mr. Kinnock : I would not be giving evidence of bad faith by looking for an opt-out clause--and the reason is that, unlike the Prime Minister, I do not have to try to patch my party together. The issue of the strength of the Government's commitment to the process is not one to be kept until 1996 or 1998, but must be faced by the Government now--not with devices to mollify the rival factions in the Conservative party, but with a determination to promote the opportunities for, and the living and working standards of, the people of this country.
Mr. John Butterfill (Bournemouth, West) : Will the right hon. Gentleman allow me to intervene?
Mr. Kinnock : No, I will not give way. There have been a few interventions.
The divisions in the Conservative party have already undermined the Government's position in their negotiations at the intergovernmental conferences. Every other Government in the European Community know that, for months past, the British Government's negotiating energies have been directed not at shaping the future of the Community but at papering over the cracks in the Tory party.
The Prime Minister must, even at this late date, put country before party. In the 20 negotiating days that remain before Maastricht, the Prime Minister must work for a treaty that will serve the best interests of Britain, and in doing so serve the wider interests of the Community. The right hon. Gentleman can do that by negotiating a more practical approach to the co-ordination of economic policies within the European Community.
Would it be right to conclude from the Prime Minister's remarks about the limitations on deficits that he completely rejects the 3 per cent. limit? Would it be right to conclude from his remarks also that in place of the stipulations that exist--which are much too rigid and impractical to be accepted--he would allow the co-ordination of deficits by the market? Would it not then be the case that the market would have a form of control-- indeed, sovereignty--that would not work to the advantage of the Community generally or of Britain specifically? It would be useful if the Prime Minister intervened to tell the House precisely what formula he had in mind for the limitation of fiscal deficits.
Column 286
In a reply to me in July, the Prime Minister recognised that there was a need to achieve "flexibility" in responding to changing economic circumstances. Is that what he has been seeking to negotiate in the references that he made to the limitations on deficits? There is widespread interest in that aspect, and I am sorry that the Prime Minister does not take this opportunity to make clear what should be a very straightforward point.The Prime Minister : I have done so already, expressly and explicitly, in my speech--as the right hon. Gentleman would know if he had listened.
Mr. Kinnock : I am sorry, but the Prime Minister--I am sure without any intention--is not right about the way that he expressed himself on that point. However, the House will have further opportunities during the debate to clarify that important point.
The Government should be negotiating on the basic question of the European central bank, to ensure that, in the Prime Minister's words to me,
"a European central bank would be accountable to a directly elected body."
I understand that the Government have not been negotiating for that. They should have been negotiating over the location of the European monetary institute and of a subsequent European central bank in the City of London, but they have never even raised those questions, despite the fact that, of all the countries of the European Community, the location of the central bank has much the greatest importance for Britain.
Our economy has a substantial financial services sector, which would be greatly disadvantaged if the central bank were located anywhere in the Community other than in this country and in London. The Government should be fighting hard, especially given the importance to the economy generally, and of jobs in particular, to ensure that the bank's location is established even as the European monetary institute is established.
Above all, the Prime Minister and the Government should be negotiating for the inclusion of a wider and more positive concept of economic convergence in the treaty than any that has yet emerged. As the Prime Minister said,
"convergence would certainly mean bringing the European economies closer together."--[ Official Report, 1 July 1991 ; Vol. 194, c. 25.]
He meant in regard to "growth" and "performance", as well as in regard to "inflation" and "fiscal deficits". I agreed with that definition when the Prime Minister offered it in the House in July. That is the position from which he should be negotiating, but he has not started to do so yet.
The treaty definition of convergence is, of course, of crucial importance to the whole process of monetary union. The Government should be negotiating to gain full recognition of the fact that monetary union and a single currency could work successfully only if there were convergence in the real economic performance of countries : convergence in terms of growth and employment, as well as in terms of inflation and interest rates. No one can be satisfied with the present position. British and German inflation rates have moved together, but the German economy is growing at a rate of 3.5 per cent., while the British economy is in recession and shrinking by 2.5 per cent. Real convergence would mean similar and sustained growth rates, as well as similar inflation rates.
Column 287
If that real convergence is to be achieved, it will be necessary for the Community and member states to have worked out, and agreed to implement, regional and structural policies that--in the words of the draft treaty--"promote balanced development"; but the Prime Minister is not negotiating for that either. Real convergence of economic performance, accountability of institutions and active policies for balanced development are the essential ingredients that will be required to make a single currency practical and beneficial.Mr. Nigel Forman (Carshalton and Wallington) : The right hon. Gentleman has just mentioned balanced economic and social development, and his amendment refers to "social cohesion". Is he aware that some EC partner states want mechanisms for cohesion to be written into the text of the treaties that may be signed after Maastricht? What is his party's attitude to that idea?
Mr. Kinnock : I understand that the Spanish have made a specific point of seeking to ensure that outcome. On the basis of recent information, I am able to distinguish between their insistence at this point and a useful negotiating ploy. The hon. Gentleman would be well advised to pay some regard to the settlement of next year's budget, and to set arguments for including specific references to social cohesion in the Maastricht treaty in the context of the bargaining that that budget will involve.
The Chancellor of the Exchequer has recognised the importance of convergence. Last Thursday, he said on television :
"If that convergence is not achieved then the establishment of a (single) currency could be a tremendous dislocation and be at tremendous cost."
The right hon. Gentleman was, of course, absolutely right ; but he went on to say :
"We ought to wait and see if this convergence happens".
There you have it, Mr. Speaker. From the man who told us that unemployment was a price well worth paying, we now have the strategy for the 1990s-- "wait and see". The Wilkins Micawber of 11 Downing street tells us to wait and see. No other Government in the European Community are taking such a supine attitude to the need to secure convergence.
Mr. Peter Shore (Bethnal Green and Stepney) : My right hon. Friend has made a number of important points about the changes that will be necessary if European monetary union is not to do the country enormous damage. Can he assure us that he would not be prepared to support the present EMU treaty, which does not contain the provisions and safeguards that he has mentioned? Can he confirm that he does not merely wish to have a treaty that does not currently exist?
Mr. Kinnock : The unfortunate fact that my right hon. Friend must recognise is that the current treaty has been negotiated by the current Government, who do not share our sense of priorities. I can tell him that, if we had been involved in the process during the years in which this Government were involved, proper priority would have been given to the very stipulations that we laid down some time ago about convergence, the accountability of institutions and the need for a change in regional and structural funding--as well as several other considerations, some of which are now contained in article 2 of the treaty. Given my right hon. Friend's well-known views and
Column 288
his desire to protect the interests of the British people, I am sure that he would have found his part in the process very satisfying.The Secretary of State for Foreign and Commonwealth Affairs (Mr. Douglas Hurd) : Surely the right hon. Gentleman realises what nonsense he is talking. If he had been in charge, we would have been out of the Community, because that was the basis of his election campaign.
Mr. Kinnock : If Britain follows the policies and approaches set out by the right hon. Gentleman, it will be in the second division in the Community. To illustrate that point, let me remind the right hon. Gentleman of what his right hon. Friend the Chancellor said : "wait and see if this convergence happens."
That is not being said by any other country or Government in the Community. Other countries are not saying, "Let us wait and see if convergence happens ; let us wait and see whether performance improves." They are saying, "Let us get on with building economic strength and working actively to secure convergence." That is what we in Britain must do : we must catch up, and then we must compete effectively as we have not done since the present Government came to office.
Several Hon. Members rose --
Mr. Speaker : Order. The hon. Members who are rising are on the list of those wishing to speak in the debate. It will not make it very easy for them to be called if they seek to interrupt now.
Mr. Kinnock : The great problem for our country is the fact that our Government do not follow the policies that are necessary for the building of economic strength. Economic, industrial and social policies that are regarded by Conservatives, Christian Democrats, socialist Liberals and coalition Governments in the rest of the Community as the conventional duties of government are anathema to our Conservative Government. As a result, our country is in severe recession, with falling manufacturing output, falling investment and negative growth for the second time in 10 years. It is small wonder that, of the 940,000 jobs that have been lost in the Community in the past year, 768,000--80 per cent.--were lost here in Britain. Every day since the current Prime Minister took office, 3,000 people in Britain have lost their jobs. That is not convergence ; it is divergence of the worst kind.
Not content with letting Britain's economic performance fall behind, the Government now want its social provision to fall behind as well. The 11 other Community Governments--Governments of all political persuasions--all accept the social charter and the extension of qualified majority voting to social policy. They understand that the single market must have a social dimension if it is fully to benefit the people of the Community. They face, realistically, the fact that in the single market there must be guaranteed minimum provisions of employment and social provision, so that countries with high standards are not undercut by those with low standards. Only the British Conservatives reject that rational view. Only the British Tories reject the social charter. Only this Government refuse to guarantee their people the same minimum rights as their fellow Europeans.
Eleven other Governments believe that employees are entitled to involvement in and information about the
Column 289
management of large-scale European companies. Only the British Government oppose that principle. Eleven other Governments believe that there must be general limits on daily and weekly working hours. Only the British Government oppose that principle. Eleven other Governments accept the proposals for basic rights to parental leave. Only the British Government are against that. Eleven other countries accept the extension of full-time employment rights to part-time workers. Only this Government oppose that in principle.Not content with relegating the British economy to the second division, the British Government want the British people to have only second-class employment rights in Europe. A Government who deliberately stand in the way of basic employment rights for millions of British people cannot claim to be standing up for Britain. They cannot claim, either, to be at the heart of Europe.
By the same token, a Government who resist qualified majority voting on environmental policies fail in their duty to our country and to the Community. It is clear to everyone that management of the international environment is a Community responsibility. I hope that the Government will approach that question at Maastricht in the most positive way, given that they perpetually make claims about their commitment to the environment. They make other claims, of course--
Sir Peter Blaker (Blackpool, South) : Will the right hon. Gentleman give way?
Mr. Kinnock : I apologise for not giving way to the right hon. Gentleman. It is difficult to do so after so many interruptions, all of which have eaten into the time available. In order to keep a sense of balance, I shall have to deny the right hon. Gentleman the opportunity to intervene.
The Government claim that, whenever decisions are taken at Community level, they are the actions of bureaucratic and unaccountable members or agents of the Commission who are trying to push their way into every nook and cranny of national life. It is true that the Commission has great powers that have been ceded by Governments and Parliaments--powers that will not be reclaimed by Governments and Parliaments. All the more reason, therefore, to make changes to address the resulting democratic deficit by ensuring that the Commission is held more effectively to account by the European Parliament, which is elected by the people in every Community country. I was glad to hear what the Prime Minister said in his speech, but it has to be put to him that if it is right for a non-elected Commission to initiate legislation that affects everybody in the European Community, how can it be wrong for the elected members of the European Parliament to have the same right to initiate legislation?
In the European circumstances, which are still volatile--sometimes tragically so--the Community has inevitably and increasingly become the centre of political and economic development in the entire continent. The evolution of the Community is continuing, both with the European Free Trade Association countries and with the new democracies of eastern and central Europe. That change must be fostered. I was glad to hear the Prime Minister strongly confirm that today. Among the most important of the actions to be taken is the gradual
| Next Section
| Home Page |