Select Committee on European Scrutiny Minutes of Evidence


Examination of Witnesses (Questions 1- 19)

WEDNESDAY 10 SEPTEMBER 2003

RT HON JACK STRAW, MR KIM DARROCH AND MR TOM DREW

  Q1  Chairman: Foreign Secretary, welcome to the European Scrutiny Committee. I understand that you were thinking this was your first appearance in front of our Committee and, indeed, it is. It is the first time we have had the Foreign Secretary in front of our Committee. I am sure we are both looking forward to it. This particular meeting is to discuss the very important issue of the pending IGC on the Convention proposals. Could I kick off by asking the question, how much room for manoeuvre will there be at the IGC to make changes in the draft Treaty, given the pressure from many quarters to keep the text largely as it is?


  Mr Straw: I think there will be significant potential for manoeuvre. Of course I am aware of some comments that have been made by some representatives of Member States, but the key text was what was agreed at the Thessaloniki Summit at the end of June which said that the Convention proposals were a good basis for starting the IGC. That is our rubric, it is a very satisfactory form of wording, and I was involved in the wording. It is a good basis for starting and it remains to be seen where we finish. The second point is that there was an informal but important meeting of European foreign ministers at the weekend in northern Italy and we spent a significant part of the Friday and Saturday discussing our opening positions on the IGC and the arrangements for negotiation within it. It was very apparent from listening to all the contributions around the room that almost every Member State had issues which they regarded as important to them which were different from that proposed in the Convention text. What we now have to do, obviously, is to try and ensure that these different positions are brought together in a manner which is satisfactory to the British negotiating position. Will there be a proper negotiation of the IGC? Yes.

  Q2  Mr Cash: Foreign Secretary, the borderline for  governments between misunderstanding, misrepresentation and straightforward lying is often a pretty thin one in important matters. I am very concerned about some of the points that have emerged in the last 48 hours or so in this White Paper. The White Paper says: "The Constitution will cover the way we govern ourselves" and it also further goes on to say—

  Mr Straw: Which paragraph is this?

  Q3  Mr Cash: This is at the beginning. I am quoting exactly: "The Constitution will cover the way we govern ourselves." It also goes on to say, which I think contradicts that: "The Treaty will not change the fundamental relationship between the EU and the Member States". Today at Prime Minister's Questions, the Prime Minister said that there will be no change in the fundamental nature of our constitution but Mr Hain, the Leader of the House, presumably on good authority, said that the Prime Minister believes the new Constitution is absolutely fundamental, more important than Iraq. In Warsaw, in May this year, the Prime Minister said that the euro was of such economic and constitutional significance that a referendum would be sensible and right. The degree of contradiction in all of this is pretty severe. What I would like to ask you is this: if British entry to the euro, according to the Prime Minister at Warsaw, is constitutionally significant, how is it that the European Constitution, which includes the euro, is not constitutionally significant? How, therefore, is it possible for the Government to escape the logic of the situation to give the British people a referendum, which is what they obviously want, and how can you justify not giving it to them?

  Mr Straw: First of all, I wholly refute your opening statement, let me make that clear. I think that political debate on all sides is debased if we start from the position that we are acting in a dishonourable way or not seeking to tell the truth. I am not going into the reason why this has come, I suspect that responsibility for this lies with more than one party. Let us work on the basis that we have democratic government and the currency of political debate, which is words and figures, means something to us and to the people that we are talking to. What I have sought to do in this White Paper is to spell out what the effect of this Constitutional Treaty would be, where our red lines are, where our points of disagreement are which are not red lines, but also to put it in the context of why we judge on balance that a Constitutional Treaty of this kind is a good thing, and the reason for that is because of enlargement. I have not got the exact words before me that you were quoting, you were not able to give me the exact reference, but of course it is true that European law has primacy over British law, as it does over the law of any other Member State. That, as I was explaining through Mr Speaker to you yesterday, Mr Cash, has been a sine qua non of our membership of the European Union since its inception. Just so we can clear this one up, it is not only a matter of what is in our own national legislation, Article 2.2 of the 1972 European Communities Act, but in two key European Court of Justice cases, one in 1964 called Costa v Enel and another key one in 1978 called the Simmenthal case—

  Q4  Mr Cash: 1964, I think, Costa.

  Mr Straw: Yes. I thought probably that your legal expertise would come before your politics.

  Q5  Mr Cash: I am trying to weave them together.

  Mr Straw: And that is a compliment, as it is, I hope, in respect of all of us who are lawyers. Both cases, one building on the other, held very clearly that EU law has primacy over national law, so of course what is in this Constitutional Treaty affects the constitutional arrangements for this country as long as we remain members of the European Union. One of the things which I did not talk about yesterday, which relates to this Treaty, is that there is a provision, extensive provision, in this Treaty for a Member State to withdraw from the European Union. I suspect that your party is moving towards that and one of the many benefits in this Treaty is that we are making arrangements by which you could effect that without having to do it outside of the Treaty. On the issue of the referendum, again we have been round the houses on this, but as we say in the White Paper and I said in the House yesterday, we have had referendums in this country where there is a decision to be made about whether we join a new institution or withdraw from an existing institution. The only national referendum we have ever had was the one in 1975 as to whether or not we withdrew from the European Union. It does not seem to me that there is any argument that whatever side of the argument people take over the merits of the euro, exchanging our national currency for a European currency is a matter of very great institutional significance, it is something which is plainly new and, therefore, referendum is appropriate.

  Q6  Mr Cash: It is about how we govern ourselves, which is what your White Paper says.

  Mr Straw: If we come to this Treaty, we do not believe, and I am happy to explain why and I have yet to hear the arguments the other way, that this involves fundamental change in the nature of the relationship between Member States and the European Union except, interestingly, in the judgment of a Committee of the House of Lords that it shifts the balance of power back from the Commission to Member States, and that is certainly not a case for having a referendum. As I said in the House in one of the last debates in July, if it did involve such a fundamental change so we were essentially joining what amounts to a new institution then that would be a case for a referendum, which it does not. On the reporting of the remarks of Mr Hain, this is using the adjective "fundamental" in a very different context. The outcome of the Convention, and then of the IGC, which is what he was talking about, yes, is something which would be fundamental but we happen to think that although the outcome is fundamental it is nonetheless beneficial overall to this country and does not involve any fundamental change in the nature of the relationship between Member States and the European Union.

  Q7  Chairman: Foreign Secretary, I understand that there is an Italian proposal which would limit discussion at the IGC to certain key issues. Does the Government accept the idea of a closed list of outstanding issues for the IGC to discuss?

  Mr Straw: No. The list that was prepared by the Italian Presidency was prepared after consultation with Member States, including direct consultation with myself—I went to Rome two weeks ago for a full day's discussion with the Italian Presidency—and it actually covers all the key areas of our concern. In addition to that, it was made very clear around the room that Member States would be free to raise any other issue and alongside the top line issues there is work going on on every single draft Article, not only to check it for its legal drafting but also for its technical implications, in some cases particular implications for one Member State which will not affect any other and so on.

  Q8  Mr Steen: Mr Straw, the implication of your statement was that the only reason that we had a Convention in the first place was because of enlargement and but for enlargement we would have merrily gone along as we were. Could you just explain what it was and what this Convention does which allows those extra countries to come in which they could not have done, conveniently, if we had carried along as we were going?

  Mr Straw: The answer to that is those extra countries have come in under Nice and not under this Convention. As I said in the House yesterday, Mr Steen, if there is not an agreed Constitutional Treaty as a result of this Convention, life will go on. Let us be clear about that. I never, ever suggested, because it is not true, that having this draft Treaty implemented, ratified and enforced is a precondition for the accession of these countries; that is plainly not the case. However, I was not at Nice as it happens, I think Mr Darroch had that pleasure, but everybody who was at Nice, everybody who observed Nice, recognises that the process was unsatisfactory and that a lot of issues which should have been resolved in anticipation of enlargement were not. It sorted out issues of European parliamentary representation post-enlargement in relation to the Commission and to the weighting of votes, the so-called triple lock on QMV. It did not sort out some of the other institutional problems. I was at Laeken and at Laeken that led to the Laeken Declaration and the establishment of the Convention. You asked me would the Convention have happened without enlargement, I doubt it very much. People may have said "We need a Convention to bring the existing treaties together" but I do not think there would have been that impetus for it. Take one example, the issue of rotating Presidencies, it made every sense at six when people had a rotating presidency once every three years, was okay at nine, when we joined, not bad at 12, difficult at 15 when it is once every seven and a half years, but once every twelve and a half years beyond a whole generation of ministers and politicians. What you have, and it is a point I make to my colleagues in the smaller countries, if you stick to the rotating Presidencies then imperceptibly power will gradually shift more to the Commission and away from Member States because it is the Commission which will increasingly have the expertise and Member States not. We can run a Presidency at 25 but smaller Member States, and some of them not so small, without naming them, really struggle. Against what is a very professional and committed Commission I do not believe that Member States, big or small, are well served by rotating Presidencies and I think they would be far better served by having a permanent Chair of the European Council with all the authority he or she would bring, able to co-ordinate the work of the Council, the European Council and the Council of Ministers, working alongside the Commission but sometimes against the Commission and reminding the Commission that this is a union of Member States.

  Q9  Mr Steen: If I can just come back on that one point and say that our party, as you know, takes the view that this is a major change and that a referendum is required and you have explained to Mr Cash why that is not the case. On the other hand, some people say it is a tidying up exercise. I am not clear, and I think the public outside is not clear, is it just to cope with the extra members or is there some devious plot underneath it all which is actually going to make Europe a different animal and Britain subservient to it?

  Mr Straw: It is no devious plot. If there was a plot here, the plotters would have chosen a different route than to have done it in technicolour and in public for 18 months. What one sees is what is in here, it has been a very public process. I may say that this is a far more open, transparent and public process and one which in practice has far better involved national parliaments than the previous arrangements where there was a bit of work done before the IGC, then people got into conclave and deals ended up being struck without any reference back to national parliaments or governments at three, four, five o'clock in the morning after everybody was completely exhausted. That has been part of the problem with Nice. I am not saying that there will not be an end game like that but this has been a much more serious exercise. "Tidying up" is not a phrase that I have used, and I do not use. There are two things happening here. One is that this is about consolidating the existing treaties which, as colleagues here know, are to be found in a number of documents and some of them are very confusing. When I first got involved in this when I was at the Home Office I started looking at the Treaty relating to the European Community and then the Treaty relating to the European Union. I kept being told that JHA matters were Second Pillar and, being a lawyer, I went to the documents to see where this Second Pillar was described but it was not described anywhere, it turned out to be a term of art. I eventually got the wet towel around my head and found it. One of the things that has been happening is that this is being brought together and, where possible, simplified. I do not make the claim it is simple, it is just intellectually in a much more coherent form. The other thing this is doing is reforming the institutions in certain respects and in some respects extending QMV, which I am sure you will want to come on to, Chairman, and doing other things which are well laid out in the White Paper. It is a matter of judgment as to what people feel about the whole. As I say, I have yet to hear clear arguments as to how this involves a fundamental shift in the balance of the relationship between ourselves and the EU.

  Q10  Chairman: You mentioned "technicolour" and the Government has introduced colour in the debate itself with talk about red lines, and the Prime Minister mentioned red lines today during Prime Minister's Questions. Would it be realistic for the UK not to accept the Treaty because one of its red lines was crossed, or is it the case that the red line is already there and they will not cross the red line?

  Mr Straw: It would be completely realistic, not only realistic but imperative, that we did not accept the draft, or the final version, if it crossed our key red lines. That is spelt out in paragraph 66 of the White Paper. To take an area where we have already established one qualification I am happy to go into, unanimity on defence and Common Foreign and Security Policy, I would not ever be party to a communitisation of foreign policy or defence policy; neither would the Prime Minister; neither would the party I represent, full stop. I am in favour very powerfully of the European Union being a union of nation states. The ultimate expression of a nation state is its ability to control its own armed forces and its armed forces are not there in abstract, they are both for defending a country's territory and also as an instrument of its foreign policy. I am very happy, however, to work co-operatively with our European Union colleagues and I believe that the development, where we agree it, of the Common Foreign and Security Policy, defence co-operation, is very greatly to our advantage.

  Q11  Mr Bacon: Foreign Secretary, you mentioned there paragraph 66 of the White Paper which includes the phrase "key areas of criminal procedural law".

  Mr Straw: Yes.

  Q12  Mr Bacon: Does that mean that a European Public Prosecutor is an absolute no-no, or does it mean that there could be a European Public Prosecutor as long as he or she had no power or if it was watered down sufficiently?

  Mr Straw: We do not happen to think there is a need for a European Public Prosecutor. I appreciate the arguments that others make.

  Q13  Mr Bacon: I am simply asking is it a red line?

  Mr Straw: If there were QMV for European Public Prosecutor, yes. Already in the draft Treaty we have a unanimity lock on it, a veto over a European Public Prosecutor. We look at other ways in which we can improve that Article but as a minimum we have what we need because we have that lock, it is there.

  Q14  Angus Robertson: Foreign Secretary, we are talking about policies which are acceptable and unacceptable and a moment ago you said that there were great improvements because of the role of national parliaments being taken on board. You will be aware that this Committee took a unanimous view that: "We, the Committee, are concerned about the prospect of exclusive EU competence in the conservation of marine biological resources under the Common Fisheries Policy and how this might affect the management of marine resources at all levels." If the Government takes the role of national parliament seriously why was this concern not addressed in your statement yesterday and why does it not even figure in the Government's White Paper?

  Mr Straw: Mr Robertson, you and I have discussed this. Of course we take what Select Committees say seriously, so do I, but that cannot mean that there is always going to be agreement on every issue. As it happens, there is not agreement on the issue of fact here. The point that you make, and we have had discussions about this and I have corresponded with you, is that you resist the idea that the conservation of marine biological resources is currently an exclusive competence. Now, I have tried to explain to you how it is an exclusive competence, and it is an exclusive competence. Aggregate fisheries, other than the conservation of marine biological resources, is a shared competence. What this draft Constitution does is to set out in much clearer language for the first time what are the exclusive competences and what are the shared competences. That is what is done in Articles 12 and 13. Because it is a fact—not what I think, because it is a fact—this does not change the status quo, and it is one which successive governments have followed, we do not think there is a case for seeking to change this in this way.

  Q15  Angus Robertson: Foreign Secretary, at a time especially when fishing communities are going through a crisis, people in those communities cannot understand why it is that the Common Fisheries Policy is being treated differently from the Common Agricultural Policy. Could you explain to them why it is that the CAP and its exclusive competences are described as being a shared competence in the draft  Constitution but the CFP is an exclusive competence?

  Mr Straw: No, with great respect, the CFP is not an exclusive competence, this is very clear in Article 13.2. What is an exclusive competence is the conservation of marine biological resources under the Common Fisheries Policy, it has long been so. Then it goes on to say under Article 13.2: "Shared competences apply to the following principal areas: agriculture and fisheries, excluding the conservation of marine biological resources." Chairman, it may be helpful to you if I send to the Committee a supplementary memorandum spelling this out. There is not a difference of opinion here, there is a difference of what we judge as fact here.

  Q16  Angus Robertson: Foreign Secretary, moving on to institutional reform: is the Government broadly content with the Convention's compromise proposals on reform of the EU's institutions? In particular, does the Government agree with the 15 smaller European countries who recently called for changes to the draft Treaty, including the return to the principle of one Commissioner per Member State? The third part of the question: is it in the UK's interest to prevent each Member State from having its own Commissioner?

  Mr Straw: We accept the broad institutional framework proposed by the Convention, not least the establishment of a Chair of the European Council and what goes with that. The issue of the number of Commissioners is a very sensitive one for all Member States but particularly for the smaller Member States. So far as that is concerned, we remain open to argument really. Have I signed up to the statement by the 15 smaller states? No. Are we open to argument on the issue? Yes.

  Q17  Miss McIntosh: Foreign Secretary, welcome. First of all, how many members of the Cabinet are there at the moment?

  Mr Straw: Sorry, how many members of the Cabinet? You mean what is the total size of the Cabinet? Twenty-three, I think.

  Q18  Miss McIntosh: Would it be so very different having a Commission from 2005-06 of 25 when it would bend over backwards to accommodate smaller states? I have to say I am half Danish, I studied in Denmark and I know it is very dear to the Danes and other Baltic countries to be able to include in their manifesto come election time that they will have their own Commissioner. That is my first question. The second question is that under the draft Constitutional Treaty there will for the first time be the status of voting Commissioners and non-voting Commissioners, how do you think that this  will be sold in countries with non-voting Commissioners?

  Mr Straw: On your first point, I understand the argument which is made by the smaller countries. On your second point, it is controversial so it is something we have got to examine.

  Q19  Miss McIntosh: If you understand my argument on the first point, does the Government support that argument?

  Mr Straw: As far as this is concerned, it is an issue of direct concern more to the smaller states than to us. We will be discussing this issue, as I have already started to do both with members of the Foreign Ministers Council and informally with members of the Commission.


 
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