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The Prime Minister: The one advantage of all that is that the right hon. Gentleman has tried to put forward some policies of his own. It is worth analysing them.
Incidentally, on the question of divisions among Members of the European Parliament, I spoke to one or two MEPs from both the Conservative and the Labour groups. The one point on which they were agreed is that there is no group less disciplined and more disunited than the Conservative group in the European Parliament.
Let me go through the right hon. Gentleman's policy positions. First, it is absolutely clear from his remarks that he would block defence progress altogether. He says that the defence initiative that we have undertaken is in danger of dividing people and pulling NATO apart. NATO has endorsed the defence initiative--it is in favour of the defence initiative--for a perfectly sensible reason: it is an initiative to be undertaken when NATO does not want to be engaged in peacekeeping and humanitarian tasks. It is fully accepted by everyone that that is sensible. If we opted out and took no part in the debate in Europe, it would be run by those who are hostile to the whole idea.
The right hon. Gentleman says that we never needed to fight the withholding tax. Only a few months ago, the shadow Foreign Secretary said:
The right hon. Gentleman goes on about the policy on the euro being somehow by stealth, but the Government are committed to a referendum on the euro. He will not allow people a referendum on the euro in the next Parliament, even if it were in the interests of British jobs, industry and investment. If he rules out the euro on
principle for the next five years, why not rule it out for ever? The truth is that he has a principal policy position, which is to rule out the euro for the next Parliament, but to contemplate it for the Parliament after that. I cannot imagine anything more foolish as a policy for this country.The right hon. Gentleman wants us to go faster on enlargement--that is what he said. His policy is to renegotiate the treaty of Rome and to block the treaty on enlargement until that renegotiation is followed through. He is shaking his head, but the right hon. Member for Horsham (Mr. Maude) is nodding. The policy of the Leader of the Opposition is to block enlargement. To achieve that renegotiation, he needs every other state in the European Union to agree. Not one agrees with him. In other words, he would have to go to a European summit to block the very enlargement that he has the cheek to stand at the Dispatch Box and tell me that he wants more of.
As for the extension of qualified majority voting, we know why the right hon. Gentleman has come up with that policy. Let me ensure that I have it right: any extension of qualified majority voting results in a referendum. Is that right? [Interruption.] This is the only way to get policy out of the Conservatives. One has to resort to cross-examination. Therefore, any extension of that voting would result in a referendum.
The shadow Foreign Secretary also said that, if this Government agreed to a treaty at Nice, he would reopen negotiations if the Conservatives were elected and, presumably, he would have a referendum on that. Doing so would put the entire position in Europe in a state of complete chaos.
How come any extension of qualified majority voting deserves a referendum? When the right hon. Gentleman and other individuals on the Conservative Benches were all Ministers at the time of the Maastricht treaty, they denied the British people a referendum. The largest extension of qualified majority voting was agreed by a Conservative Government, first in the Single European Act and secondly at Maastricht--but there was no referendum. The Conservatives have done that because Mr. Sykes has come along with his money and made them do it. If anyone believes that it was a coincidence that that new policy was announced one day and that Mr. Sykes divvied up the money the next, they must be very naive indeed.
Now, there is one major difference between us on Europe, quite apart from everything else. The policy of the Labour party and of the Government is not for sale; the policy of the Conservative party is.
Mr. Charles Kennedy (Ross, Skye and Inverness, West): The Prime Minister shares the incredulity of many hon. Members of all parties that the much-vaunted new referendum come-what-may approach of the Conservative party did not even merit a question from the Leader of the Opposition between last week and this week, which probably tells us all that we need to know about consistency from that quarter where Europe is concerned.
On the withholding tax, does the Prime Minister agree that the welcome progress that the Government have made, both before and after the summit, must be followed
up at a more global level as well as closer to home? What further proposals do the Government have to help to bring pressure to bear on offshore financial centres that operate within our jurisdiction to make good the progress achieved?On the charter of rights, given that the right hon. Gentleman has said that the "gravity" of opinion is now swaying in a British direction, does he agree that, as the European convention on human rights has already been incorporated into Scots law--a considerable issue with which to grapple--and that that prospect is forthcoming for English law later this year, there may well be an argument for the EU as a body subscribing or becoming a high contracting party to the ECHR? If we are to move in that direction, rather than the charter direction, we believe that there is a strong case for a proper written constitution for Europe that clearly delineates the powers, responsibilities and jurisdictions of all levels within the EU. Does he agree, and is that something that the Government will further consider?
Finally, on the euro, if the message--largely credible--of the summit was that, where Britain engages rationally and positively, effective influence can be exerted, does not the same argument apply to the development of the eurozone and our participation in it? Given that our influence is virtually nil because we do not subscribe beyond the position already adopted by the Government, whose words have been mixed words of late, does the Prime Minister recognise that those of us who favour increasing engagement in the argument are worried that the headcase tendency wants to take this country out of Europe? Membership of the euro is but a fig leaf for that argument. The danger is that the prepare-and-decide policy espoused by the Government is beginning to look very much like the wait-and-see policy of the right hon. Gentleman's predecessor. Will the Prime Minister at all costs resist the temptation to follow his predecessor's lead, which we know ended in tears?
The Prime Minister: Let me revert for a moment to the headcase tendency. I meant to say that it is truly bizarre that the Conservative party is committed to a referendum on any extension of qualified majority voting, even a minute extension, but will not offer an opportunity for a referendum on the single currency in the next Parliament.
On the withholding tax and exchange of information on tax issues, yes, it is important that we pursue that. One of the most important aspects of the agreement that was secured is that we are pursuing, in parallel, exchange of information at an international level with countries such as the United States and Switzerland. That is important. Exchange of information, greater transparency and an end to banking secrecy are all worthwhile objectives, because they help to make sure that people pay the tax that they owe. However, it is important that we do not end up with the EU adopting rules to that effect, and find that, in a global economy, money simply goes to tax havens elsewhere. That is why we must pursue the matter at an international level.
On the charter of rights, I do not take the view that the Conservative party takes. It is sensible that we have a strong commitment to human rights and liberties in the European Union. We need to make sure that that does not unintentionally result in new laws which we in this country have not had an opportunity to scrutinise properly. We must guard against that.
With respect to positive engagement, this country's position is far stronger in Europe than it has been for many years. [Interruption.] Conservatives Members said that we just give in. That is after a summit at which the others changed their minds on the withholding tax; we did not change ours. Conservative Members cannot get their minds round that.
On the eurozone, we play a constructive part now in European economic policy. In one sense, because of the Lisbon economic summit, we have been leading the debate on that, along with other countries. It is important that the five economic tests are met for successful British participation. The position of the previous Government was not the previous Prime Minister's fault. Some members of his party were in favour of the principle of the single currency and some were wholly opposed to it.
That is not the present situation. We are in favour of the principle of British membership of a successful single currency but, for it to work, the five economic tests must be met. That is a sensible, pragmatic position. It allows us to make the tests, as the vast majority of the British people would want. Moreover, by allowing people the final choice in a referendum, our position is democratic as well.
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