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Mr. Ben Bradshaw (Exeter): Will the right hon. and learned Gentleman explain how his party imagines that the European Union can expand without gridlock unless qualified majority voting is extended?

Mr. Howard: If one takes the view that the only way forward for the European Union is to impose some rigid

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straitjacket of uniformity on every member state in every respect of the treaty provisions from Finland to Greece, the hon. Gentleman is right, but there is a different way forward, which does not require every member state to sign up to absolutely every aspect of every respect of the treaty. If that way forward is taken, it is not necessary to have more qualified majority voting in order for enlargement to take place.

Mr. Robin Cook: A moment ago, the right hon. and learned Gentleman was complaining about a veto for Spain; he is now objecting to the extension of qualified majority voting to the research budget. Has he not noticed that Spain is currently blocking and vetoing the research budget, unless it gets a guarantee for its structural funds? If he is so concerned about Spanish vetoes, why does not support us and take that veto away from Spain?

Mr. Howard: Because, as the right hon. Gentleman ought to know, we have used that veto on the research budget to good effect in the past. That is the way forward--to reach a consensus, even though that might take some time. He knows perfectly well that when I was talking earlier about his so-called opt-in, it was the Prime Minister's wrong, false and misleading claim that I was disputing, and it is about time we had an apology for that.

As powers are taken away from national Parliaments, they have been given to the European Parliament. Under the co-decision procedure, the European Parliament is put on almost the same footing as the Council of Ministers. It is given the power to veto proposals put forward by the Council of Ministers, and it is able to use that power to insist that those proposals reflect its views. The treaty extends co-decision to 23 new areas, including such important matters as social policy and transport policy.

The treaty also diminishes the freedom of member states to appoint Commissioners of their choice. In future, the European Parliament will have to approve the appointment of the President of the Commission; and the President of the Commission has been given a new power to veto the appointment of other Commissioners. What on earth was the justification for that change? It takes power away from democratically elected Governments and gives it to an unelected official in Brussels. Why did the Government agree to it? What benefits will that bring to Britain? I hope that the Minister of State will answer those questions when he winds up the debate.

Mr. Roger Casale (Wimbledon): How does the right hon. and learned Gentleman think proper accountability and scrutiny can take place without extending co-decision making to the European Parliament in areas where qualified majority voting applies in the Council of Ministers? Is he suggesting that qualified majority voting, which was greatly extended by the Government of which he was a member, should be abolished?

Mr. Howard: I thought that I had made it clear that I am not in favour of extending qualified majority voting in the treaty, or of extending the co-decision procedure. Accountability comes via national Parliaments, which hold their Governments to account for the way in which they cast their votes in the Council of Ministers. That is proper democratic accountability.

Mr. Dalyell: Forgive me, but I am just a little puzzled about all this. Am I wrong in thinking that the

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Conservative Members of the European Parliament have expressed themselves in favour of all the things that the right hon. and learned Gentleman says are so terrible?

Mr. Howard: I do not know whether the hon. Gentleman consulted the Labour Members of the European Parliament before expressing any view on these issues. Of course, doing so would not have been very profitable, because, as my hon. Friends have pointed out, Labour Members of the European Parliament have been gagged and are not allowed to say anything on these and other matters.

On the changes to the common foreign and security policy, will the Minister of State confirm that, once the member states have agreed to adopt a common strategy, it will be possible to implement decisions by qualified majority voting? Will he tell us what is meant by a common strategy? It is nowhere defined in the treaty, so will he explain that when he winds up the debate?

Next, I come to the treaty's human rights provisions, to which my hon. Friend the Member for New Forest, East (Dr. Lewis) referred. Let us be clear about the fact that we place great importance on human rights; but the provisions in the treaty are wide open to abuse. It will be up to the member states to judge whether a country is guilty of serious and persistent breaches of the treaty's human rights provisions. There will be no independent arbiter and no right of appeal. Once found guilty, the member state concerned will not be expelled, but will instead have all its rights suspended, including all its voting rights, while continuing to be bound by its treaty obligations. If it is felt necessary to deal with the problem, why does not the treaty simply provide a power to expel those member states?

When the Prime Minister returned from Amsterdam, he said that he had put jobs in their rightful place at the top of the European agenda. We whole-heartedly agree that jobs should be at the top of the agenda, but how does the Prime Minister square that pledge with his acceptance of the social chapter and the new employment chapter in the treaty? Despite his pathological reluctance to face inconvenient facts, he must be aware that unemployment in this country is lower than in the rest of Europe. Here it is falling because we have a much more flexible economy and fewer burdens on our businesses. He must also be aware that his fellow socialist Governments seem hellbent on increasing the burdens imposed on business by Europe and that they want those burdens imposed on Britain so that we lose our competitive advantage over their economies.

Mr. John Gummer (Suffolk, Coastal): Will my right hon. and learned Friend also examine this curious anomaly? If one is reasonably friendly towards the idea of a single currency, one must believe that we need as flexible a labour market as possible in those circumstances. Many of the ways in which we would otherwise deal with matters of distortion from one part of the European Union to another would no longer be in our hands. Is it not therefore surprising that those who want a single currency, or who are even more friendly towards the idea than some of my right hon. and hon. Friends, would proceed to make the European Union less flexible

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in that area, whereas they should have insisted on the British opt-out, to encourage others to follow them in pressing their case for a single currency?

Mr. Howard: It would be surprising, if one expected any clear thinking or consistency from the Labour party, but we already know, on the basis of the Government's record of the past six months, that it is idle to expect any clarity of thought or consistency from them. I therefore confess that I am somewhat less surprised than my right hon. Friend.

The question is: why on earth have the Foreign Secretary and the Prime Minister handed to the other countries of Europe the means by which they can impose on this country burdens that will impair our competitive advantage? After all, the Government are perfectly free to adopt any employment and social policy measures that they believe would boost employment in Britain because they have such a big majority. The social chapter, by definition, means that measures can be forced on us even when the Government do not believe that they are good for jobs.

For a long time, the Prime Minister tried to deny that that was so. Before the election, he tried to assure the Confederation of British Industry that he could prevent measures from being foisted on British business as a result of the social chapter, but even he has long since been forced to abandon that pretence. Last week, the Prime Minister was pressed on that by my right hon. Friend the Leader of the Opposition, and he confirmed that the Government oppose the Commission's latest proposals to extend compulsory works councils. However, because the Government have abandoned our opt-out from the social chapter, and because of the provisions of this treaty and this Bill, the Prime Minister will be powerless to prevent that.

This is a bad treaty. It is bad for Britain and for Europe. The agreement reached by the Labour Government in Amsterdam was very different from that which a Conservative Government would have reached. We stood resolutely against the social chapter, whereas Labour signed up to it. We opposed the new employment chapter, which would expose British businesses to new costs. Labour signed up to a new employment chapter, extending the European Union's role to determining employment policy.

Mr. Radice: I have been listening carefully to the right hon. and learned Gentleman's speech and his arguments against this Bill. Does he still believe that the Amsterdam treaty amounts to a threat to the nation state, as he used to say?

Mr. Howard: What I said in the quotation that the Foreign Secretary used in his speech was that the agenda for the Amsterdam summit posed a serious threat. Some aspects of that threat did not come to pass--no thanks to the British Government. As the hon. Gentleman knows, there were on the agenda even more extensive proposals for qualified majority voting than were implemented at Amsterdam. What was implemented at Amsterdam is bad

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enough, but the agenda was very much worse. It is no thanks to the Prime Minister or the Government that that agenda was not fulfilled.


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