Select Committee on European Scrutiny Minutes of Evidence


Examination of Witness(Questions 1-19)

RT HON PETER HAIN, MR NICK BAIRD AND MS SARAH LYONS

WEDNESDAY 20 NOVEMBER 2002

Chairman

  1. Secretary of State, can I welcome you to the Scrutiny Committee once again? First of all, we congratulate you on your promotion to the Cabinet. We have learnt from experience that the person who occupies the position of European Minister can hope for short terms and a wee bit longer terms, but I understand you are the second European Minister to be promoted to Cabinet. I am sure, if anything, our co-operation with you over the last twelve months or so has helped with your promotion, so we are delighted about that!

  (Peter Hain) Thank you very much, Chairman. I am sure the promotion is entirely due to your co-operation!

  2. Can I kick off? Given your promotion to the Secretary of State to Wales, the issue of subsidiarity will possibly have more importance than previously. Do you think the early warning mechanism involving national parliaments proposed by the Convention's working group on subsidiarity will make any difference in practice, given that the Commission could simply override the national parliament's objections?
  (Peter Hain) I think it will make a major difference and I think this Committee's proposals in that area—though not fully achieved in the Convention yet—were an important contribution to framing the debate which helped us to press for the principle of subsidiarity to be vested with national parliaments, and for us to win that argument. It is true that we have not established a permanent watchdog, but there was a very allergic reaction in the Convention to creating another institution. In practice the way it will work is that any new Commission proposal will be immediately e-mailed to national parliaments and, I guess, to your Committee, Chairman (should that be the procedure determined by our Parliament) for a determination as to whether the principle of subsidiarity (in other words, whether the matter should be decided at the national state level or a European level) is infringed by that proposal, or—as important, I believe, though it has not received as much attention—the principle of proportionality, in other words, whether the Commission proposal is too intrusive, or too heavy-handed a way of going about a desirable objective. I mention proportionality because I think the antagonism to some proposals and policies emanating from Brussels is not because—as often—people feel subsidiarity has been infringed but because they feel a worthwhile objective is being achieved in too heavy-handed a fashion. So national parliaments will have a period of, perhaps, four to six weeks to react to whether they think the principle of subsidiarity is being infringed or not. That is a major constitutional advance for us (Britain) and for Europe as a whole, because up until now the institutions of the European Union, subject to national vetos and so forth, have been able to proceed as they wish. I cannot over-emphasise how important an achievement this has been and, indeed, how much, as it were, traditional resistance we had to overcome to secure it. So an early warning mechanism, I do think, is a very, very important principle to have established.

  3. Do you accept that what came out of the Convention is a far weaker proposal than your own? Is it your intention to accept that or are you going to press for your original intentions, which are far better than what has come out of it?
  (Peter Hain) We put forward the idea of a watchdog mechanism. What we have is a virtual watchdog, not a new body meeting in Brussels regularly, as it would presumably have to have done, but every national parliament in the loop. Of course, in future this may evolve and we would be very comfortable with that. There would be nothing to stop national parliaments freely deciding to get together, should a particular issue be so critical. My impression and my prediction of how this would work is that the existence of this early warning mechanism will act as a severe deterrent on the Commission, the Council and the European Parliament. It is not just the Commission that gets into the area of infringing subsidiarity, it is often actually in the Council or the Parliament in the process of subsequent decision making that this might arise. I think it will be such a significant deterrent that it will effectively build into European decision-making a weather eye on not infringing either subsidiarity or proportionality principles. I do not know if, at the end of the day, the absence of a formal mechanism—which, as you know, would have been quite difficult to implement, to get national parliamentarians all in the same place on the same day—is going to make a lot of difference.

  4. If subsidiarity is basically a political rather than a judicial concept, is the European Court of Justice a suitable body to deal with subsidiarity problems at the end of the legislative process?
  (Peter Hain) At the moment, of course, it is a final court of appeal, and there is recourse to the ECJ. What we did not want to do, and what we have so far avoided (though there are, in the Convention, conclusions still in issue to be decided) is the idea that judges could be brought in at any time to make rulings on this issue. It was quite significant that in the working party in which I represented the Government on subsidiarity, the court's Advocate came to give evidence and the court did not want that either, because they knew they were the final court of appeal and they did not want to be brought in on what, for us, was a basic principle: elected politicians should be the arbiters on this matter, not judges.

Angus Robertson

  5. Minister, I am interested in the workings of what you describe as national parliaments when you talk about subsidiarity being breached. You will appreciate, of course, that the overwhelming majority of European business with regard to Scotland is not decided in this place, it is decided in the Scottish Parliament. I am under the impression that the UK Government has not been in favour of any greater involvement with the Scottish Parliament to ensure that subsidiarity is not breached. Could you, perhaps, paint a picture of how this six-week period might work with regard to devolved institutions if matters were infringing on their sovereignty?
  (Peter Hain) This is an important issue and I anticipated you might raise it. Can I just make one general European point and then a specific point about the United Kingdom? The European Union consists of regions within nation states as well as nation states themselves, and included in regions are nations like Scotland and Wales. However, the picture of regions across the European Union is very haphazard and very far from uniform; some countries do not have regions, others have different patterns of regional legislatures within them, as we do, and others have regional assemblies in some parts of their countries and none in others. So the idea that you could get a uniform, regional channel into the European Union's decision-making structure is, therefore, simply not a runner—whether that was desirable or not. The principle, of course, of the European Union being a union of sovereign Member States is the bedrock of the European Union. So I just make that general point. As far as Britain is concerned, this is really a matter for your Committee, for our Parliament, but I would personally favour—speaking as the Government's representative and a Member of the Cabinet—a situation in which any incoming e-mail from Brussels to Westminster was automatically copied to the Scottish Parliament, to the National Assembly for Wales and to the Northern Ireland Assembly (assuming that was up and running) for their views; so that there was a way of taking into account their views and, in your case, the Scottish Parliament's views. I think that would be a sensible way of handling it. However, you could not have a situation where, as it were, the subsidiarity principle was being decided on an ad hoc basis according to regions across Europe that have been differently constituted and, in some countries, do not exist at all.

  6. At the end of the day, the decision will still rest here at Westminster and not in Edinburgh?
  (Peter Hain) Of course, because that is the bedrock of the European Union and, of course, these matters are reserved matters, as you understand. I take your point that some issues may affect the Scottish level, or the Welsh or Northern Ireland level, for that matter. I am sure that this is a matter that can be sensibly organised in order to reflect those concerns.

Chairman

  7. It is a matter, of course, that is going to rise up the political agenda if, as we have been informed in the Queen's Speech, we are going to look at regions within England itself.
  (Peter Hain) Exactly.

  Chairman: The best practice that we gain through experience from now until we have more regional assemblies will help our process.

Miss McIntosh

  8. Secretary of State, you mention proportionality and the fact that certain proposals seem to be too intrusive and too heavy-handed, and you mention having a virtual watchdog. Is the Commission not the real watchdog and is it not currently failing in that role by, in fact, bringing forward policies which should, rightly, be the subject of subsidiarity and should be the preserve of national governments, and that it should be seen to be playing its role much more realistically in that watchdog role, which was one of its original duties under the original treaty?
  (Peter Hain) This was a point made by some members of the Commission who did not find this a particularly attractive idea. They said one of their remits was precisely to keep an eye open for subsidiarity principles. I am not sure that the Commission has been a particular culprit in infringing subsidiarity. It is much more complex than that. If I may make a confession, we, as the British Government (indeed, this Government) when we had the Presidency in 1998, came up with the Zoo Directive. Fine, but in retrospect were regulations for zoos a matter for the European Union or a matter for Member States? I think, in retrospect, we might have taken a different view, and you could repeat this right across the board; Presidencies tend to have their own fads, and it is the Council which is as much of a culprit in this area as anybody else. I do not know that the Commission has a particularly bad record on this, but from now on it will not be able to have a bad record.

  9. Having served as a Member of the European Parliament, I now find myself a Member of this Parliament.
  (Peter Hain) All the wiser for the experience.

  10. I would not like to comment. Given that an increasing role of national parliaments was one of the Government's main aims for the Convention, what changes in the role of the national parliaments would you like to see in addition to a subsidiarity role, bearing in mind the fact that it is not just about democratic accountability but, geographically, Members of Parliament can only be in one place at one time and, really, we should be here and Members of the European Parliament should be there? How do you see that we can enhance the role of the national parliaments? Is that not one of the biggest disappointments in the Convention to date?
  (Peter Hain) I do not think so, because, first of all, the principle of national parliaments being the arbiters on subsidiarity has been established, and most people did not expect that argument to be won but it has been, and received wide support not just from us but right across the Convention. So that is important on subsidiarity. The working group on the role of national parliaments—which my honourable friend the Member for Egbaston chaired very ably—came out with a number of other proposals which, to some extent, reflected the work of your own group, Chairman: the importance of scrutiny, minimum guidelines needed to improve national scrutiny procedures right across the board, because they are very uneven, and (an especially important point) greater links between Members of Parliament and Members of the European Parliament. I think you are quite right to say that they are different roles and it is not the job of Members of Parliament, such as us here, to continuously be in Brussels peering over European Union Parliamentarians' shoulders. On the other hand, I am struck—and I made this point in the Convention—by the huge gap there is between national parliamentarians and what is going on in the institutions of the European Union. Indeed, there is probably only a very select group of our own Parliament—including you, of course, and your Committee, Chairman—which has an up-to-date working knowledge of what is going on in Europe. So I think the fact that the working group proposed closer links and closer liaison is very much to be welcomed.

Mr Cash

  11. Minister, I have to say that I think there is a certain degree of complacency in the way in which you answered that last question, not least of which, you may be aware, that our Committee were very critical of the report that was put forward by the working group on national parliaments, and for a very good reason. Only a few days ago we had two ministers in front of this Committee, one of whom, Mr Meacher, said that the presidency is sovereign. The question I want to put to you is this, in all seriousness: does this Government really believe in the sovereignty of parliament? It is a serious charge, but I have very grave doubts as to whether you really do. I would like to ask this question in the context of the scrutiny reserve and the way in which it operates: do you believe that parliament, if it were to decide that it did not agree with a European proposal, would be able to amend that proposal by subsequent enactment? Do you, as I put it to the Leader of the House the other day, still believe in the principle of national veto? Could you answer those questions?
  (Peter Hain) Yes, I am very happy to. Of course we believe in the sovereignty of parliament. That is the bedrock of parliamentary democracy and, indeed, the bedrock of our membership of the European Union. It was this Parliament that voted to join the European Union; it is this Parliament that has endorsed treaties and changes during the evolution of the European Union, and we could not have agreed to those changes without the sovereignty of our own national Parliament being respected and, indeed, giving us the mandate to agree those things. In many respects we have agreed to share sovereignty—willingly, voluntary, by vote in this Parliament, agreed to share sovereignty—with the European Parliament. Indeed, your own government did this more than anybody else over the single market—a huge sharing of trading sovereignty and commercial sovereignty to our advantage because our companies benefited from it.

  12. Not in the field of government.
  (Peter Hain) Similarly, we have agreed to share sovereignty over establishing a much better policy on dealing with the problem of human trafficking, in saying that this is a matter better decided by co-operation on a decision at European level so that we can get common standards to protect our own borders and our own society from gangs trafficking in human beings. I can give many other examples.

  13. Can I just follow that up by asking a simple question which arises out of the article by the Foreign Secretary in The Economist the other day?
  (Peter Hain) A very good article.

  14. I am glad to hear you say that because it rather contradicts some of the points you have just been making.
  (Peter Hain) I do not think so.

  15. Yes, it does.
  (Peter Hain) I really do not think so.

  16. You may say that until you hear my question.
  (Peter Hain) I am always interested in hearing your questions.

  17. He speaks in the context of whether or not parliaments would agree to EU proposals to a majority of national parliaments exercising something less than a veto but, nonetheless, exercising a degree of restraint on the manner in which those European proposals would go ahead. Once you do that you are effectively impugning the sovereignty of any one parliament—including this one—and, of course, once you move into the territory of making decisions by majority vote of national parliament then you are riding a coach and horses through the principles you have just enunciated.
  (Peter Hain) No, I do not agree with that because the principle that the Foreign Secretary was enunciating in that article, which is what I have spent some minutes explaining to you already this morning, was the new opportunity for national parliaments to determine subsidiarity and proportionality matters on issues which our own parliament has already decided should be a matter for European decision making. In other words, by sovereign decisions our parliament has decided on single market matters, on common asylum policy matters, on fighting terrorism matters and so on, and decided that our own national interests, including those of this sovereign parliament, are better protected by co-operation at the European level and then imposing a check on the nature of those policies, in respect of whether they infringe subsidiarity or proportionality, by perhaps majority vote. It is not the principle of the sovereign decision, it is a matter of whether the nature of that policy infringes the principles of subsidiarity or proportionality. I think, if I may briefly add to that, it is actually in our interest to have a majority rather than unanimity because we could have a group of Member States that were not that bothered about subsidiarity and proportionality being infringed, and therefore we would lose the ability to give ourselves the protection which majority voting would provide.

  18. You would say, and you did say—and I agree with that—that the foundation of our democracy is our parliamentary system as we have it in this country, which holds ministers to account in relation to a whole raft of matters, not just in trade and things of that kind but in a very different sense in relation to the running of government. That is the issue which I am concerned about here. Once you move into the territory that you have described, in handing over decisions which you say are in the national interest but which quite clearly are related to questions of transferring decisions in relation to the Common Foreign Security Policy and the like and monetary union and all these other matters to the European level, then you cease to be able to argue the case for the national interest and, therefore, you contradict yourself.
  (Peter Hain) On the contrary, I think your position is the contradiction here. If our Parliament, as it has done—as your government did more often than we have done—

  19. Over my dead body.
  (Peter Hain) You are a lone ranger on these matters—and a very attractive one, if I may say so. However, if our Parliament votes to say that our national interest is best protected against this phenomenon of human trafficking organised by criminal gangs by voluntarily sharing sovereignty on these matters to strengthen border posts to common standards, to share intelligence and to establish common legal procedures to combat this issue, surely the average person in the street is going to say "Good on you". It is a very good thing. We cannot isolate ourselves from this problem any more than we can isolate ourselves from, say, the threat to our environment. Pollution, as far as I know, even under the Conservative Party, did not stop at Calais. Therefore, sharing of sovereignty on environmental standards protects our national interest. I think that is the answer to your proposition.


 
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