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The Prime Minister: Of course the question should be on the constitutional treaty, but let me just say this to the hon. Gentleman. Ireland recently first voted against the Nice treaty, then came back to have a further referendum. Of course, it then came back and negotiated certain changes. That is wholly different from the position of the Conservative party, which wants to come back and say, "We are not going to have this treaty at all". That is the Conservative party's position. That is why there are two steps. I agree that the point of associate membership or withdrawal is not reached immediately, but I have to tell the Conservative party that if we were to come back and say that we would not have the treaty at all—not in any shape or form—the other countries around the table would not accept that. If I were in that position, I would not accept it.

Donald Anderson (Swansea, East) (Lab): My right hon. Friend made a powerful and convincing case over the past year that there was no need for a referendum, and there is every reason to think that by June, there will be something of a triumph of British diplomacy in that intergovernmentalism will be enshrined and our red lines maintained. He will not, therefore, be surprised if some of us ask what new and major factor has arisen. There are constants. In my judgment, there has not been a major change in the constituencies. The myth-mongering of the newspaper magnates is as before and, even worse, the opportunism of the Opposition, who held no referendum on Maastricht or the Single European Act, is maintained. The so-called alternative vision, as my right hon. Friend has said, is not shared by any other country, and can only be a recipe for either withdrawal or isolation. What is new?

The Prime Minister: My right hon. Friend and I share the same position on Europe, and however much we disdain the position taken by the Conservative party and believe—as I do—that most of its members want to have a fundamentally different relationship with the European Union from our existing one, I am afraid that we must accept that the fact of the matter is that this argument is not yet won in the country. We must accept that. We should not alter in any way our view on
 
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Britain's place in Europe but, on the contrary, should be prepared to go out and fight for it. That is what we should do.

Mr. David Curry (Skipton and Ripon) (Con): Does the Prime Minister recall taunting a previous holder of his office with weakness over the management of his party and his Government in respect of Europe? Is he not in exactly the same position? Given the abandonment of everything that he has ever said about the constitution—always with characteristic biblical certainty—does not that description now rightly apply to him: "Weak, weak, weak"?

The Prime Minister: I have not altered my view on the constitutional treaty, its importance, its terms or our negotiating position on it. The right hon. Gentleman, again, is someone who shares my view on Europe, but unfortunately does not share the view on Europe of his Front Bench spokesmen and his party. As he knows, his party wants to take Britain in a fundamentally different direction in Europe. In the end, this is not a question of pressure in the party or anywhere else, but there is now a real desire among the public to debate this issue. As pro-Europeans, we have to accept that.

I have watched matters accumulate over a period of time, including the myths about Europe. When I read those myths out, members of the right hon. Gentleman's party say that of course they are all nonsense; but in fact, some of them are exactly what they have been saying. For example, when the shadow Chancellor stood for election, he said not merely that he was against the single currency, but that he wanted to repatriate powers from Brussels. If that is the case, that negotiation, which is not supported by anyone else in Europe, will have to be conducted. That is the nature of the argument that we now face and if we are serious about winning the argument, now is the time when we have to go out and make it to the public.

Mr. Ian Davidson (Glasgow, Pollok) (Lab/Co-op): May I express my complete and enthusiastic support for Government policy on the referendum? I am sure that the Prime Minister will accept that as genuine, because I am not always as enthusiastic about every aspect of Government policy.

I particularly welcome the fact that the Government have been prepared to listen to the people. Will my right hon. Friend accept that many of us on the Labour Benches know that there is no merit in intransigence for its own sake and welcome the change? However, I ask him not to be too hasty in moving to the necessary debate and exploration of the measure, because it involves complex matters that need to be properly scrutinised. Will there be scope for any amendment or does he intend the measure to come before Parliament and the country entirely on a take-it-or-leave-it basis? Many of us want parts of the constitution to be amended, while we accept other parts thereof.

The Prime Minister: I welcome what my hon. Friend says about wanting to scrutinise this matter carefully in Parliament. That is the right thing to do. In respect of what Parliament can do, anything that we amend that goes to the heart of what is already in the treaty must be negotiated with people. However, it is right to say that
 
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we will have the fullest opportunity to debate the treaty, as we would any constitutional treaty, on the Floor of the House—and not just here, but in the other place.

Angus Robertson (Moray) (SNP): As an historic European nation, Scotland and the Scots have always sought to play a significant role in our continent—but not at any cost. It is right and proper that voters north of the border will be able to cast their ballots on whether the constitution is in Scotland's and Europe's interests, but does the Prime Minister understand that it will be impossible to win a referendum in Scotland unless unacceptable provisions on key industries such as fishing and energy are radically amended?

The Prime Minister: Fishing is still a shared competence, and we believe that that is right. In respect of energy, concerns have been put to us, but there is already agreement in principle to changes being made on energy to make the position clear. As far as I am aware, the changes have the agreement of the oil industry.

 
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Northern Ireland (Independent Monitoring Commission)

1.28 pm

The Secretary of State for Northern Ireland (Mr. Paul Murphy): With permission, Mr. Speaker, I should like to make a statement about a report that I have received from the Independent Monitoring Commission concerning paramilitary activity in Northern Ireland.

Before I move to the substance of my statement, I should like to take this opportunity to condemn in the strongest terms yesterday's sending of suspect packages to two elected representatives in Northern Ireland, the hon. Member for Belfast, East (Mr. Robinson) and Mr. Alex Attwood. I am sure that the whole House will join me in those sentiments. Police investigations into those incidents are continuing.

As the House will recall, the Independent Monitoring Commission was set up by an international agreement, supported by legislation that we passed in this place last year. It is composed of four distinguished members: John Grieve, former assistant commissioner of the Metropolitan police and Lord Alderdice, formerly presiding officer of the Northern Ireland Assembly, who were both nominated by the British Government; Mr. Joseph Brosnan, formerly secretary of the Irish Department of Justice, who was nominated by the Irish Government; and Mr. Dick Kerr, formerly deputy director of central intelligence in the United States, who was nominated by the US Administration.

Last Wednesday, the British and Irish Governments received the commission's first report. I am today laying it before the House as I am required to do by law. Copies will be available in the Vote Office at the conclusion of my statement.

The report is concerned with the continuing activities of paramilitary groups in Northern Ireland. The commission had originally expected to produce it in the early summer, but at the request of the Governments, it has brought forward its production. At the request of the Governments, in the context of its wider analysis, the report also specifically addresses the incident at Kelly's Cellars, Belfast, on 20 February 2004. That event, as the House will recall, caused profound controversy in Northern Ireland, which has in turn disrupted the conduct of the review of the operation of the Good Friday agreement that began earlier this year.

We are most grateful to the commission for advancing its report, which has clearly involved a great deal of work by all concerned. Notwithstanding the pressures of time, I believe that it has produced a very thorough and far-reaching report. Both Governments accept the commission's conclusions and recommendations.

The commission states that the situation is now much better than it was in past years, but it finds that paramilitary activity is at a disturbingly high level on the part of both republican and loyalist groups. I quote from the report:

"On the basis of reported figures—which, especially for assaults, may not reflect the full picture—the scale of paramilitary violence since 1 January 2003 has been worryingly high: approaching one murder a month; some three victims a week both from shootings and from assaults."

 
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It goes on to state that two parties represented in the Assembly, Sinn Fein and the Progressive Unionist party, have links with paramilitary groups. It is clear from the report that senior politicians are in a position to exercise significant influence over their activities.

The commission also expresses its belief that the incident in Belfast on 20 February was the responsibility of the Provisional IRA. It urges elected politicians in Northern Ireland to commit themselves to supporting the rule of law and the criminal justice institutions and says that, in the absence of a sitting Northern Ireland Assembly, it is not possible for it to make recommendations on measures that the Assembly itself might consider taking in response to its report. However, it makes it clear that

"had the Assembly now been functioning, we would have recommended in respect of Sinn Fein and the Progressive Unionist Party measures up to and possibly including exclusion from office."

In the absence of a sitting Assembly, however, it recommends that I

"should consider taking action in respect of the salary of Assembly members and/or the funding of Assembly parties, so as to impose an appropriate financial measure in respect of Sinn Fein and the Progressive Unionist Party."

When we debated the legislation relating to the commission last year in this House, I made it clear that the Government believed it very important that its recommendations should be given effect, and said that, in circumstances where it had made recommendations but action had not been taken, I would be able to use the powers of last resort granted to me by that legislation to take action myself in line with such recommendations.

In the light of that, and having considered the report, I am persuaded that it would be right to remove for a period the entitlement to the block financial assistance paid to Assembly parties in respect of both Sinn Fein and the Progressive Unionist party, and I propose to do so next Wednesday, 28 April. I have therefore today made an order under the urgency procedure, amending the Northern Ireland Act 1998 as amended by the legislation that we passed last year, to allow me to take this step in the absence of a sitting Assembly. It will also permit me to act to reduce Members' salaries should I see fit to do so in the light of a future IMC report. I will, however, in line with the legal requirement on me to act fairly, take account of any representations that I receive by next Tuesday from the two parties concerned before reaching a final decision.

The commission's other recommendations, all of which the British Government endorse, include that paramilitary groups must cease all forms of criminal activity; and that all politicians and others in prominent roles must exert every possible influence to bring about a cessation of paramilitary activity. I hope that this report, and the firm but carefully measured action that the Government are taking in response to it, will underline that it is essential that all paramilitary activity, from whatever quarter, should cease fully and completely. The commission's next report on paramilitary activity will be able to test whether that has happened, and if not, whether further action is needed. In the meantime, the Government remain firmly committed to the idea that political progress can be
 
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achieved only through dialogue. I shall continue to meet all the parties in Northern Ireland to explore how we can achieve the basis for a restoration of the devolved institutions.

In the context of the review, a number of interesting proposals have already been made. There is still much to discuss, but the report underlines starkly what steps need to be taken if we are genuinely to move forward to stable and inclusive devolved government. I must reiterate what the Prime Minister, the Taoiseach and others have said on many occasions: all paramilitary activity must come to an end if there is to be a stable future for devolved government in Northern Ireland. That is what the Prime Minister spelled out when he talked of acts of completion. It is what both Governments made clear in paragraph 13 of the joint declaration. The commission recognises in its report that violence and the threat of violence can have no part in democratic politics.

The Independent Monitoring Commission has a vital role to play in securing that development and underpinning it once devolved government is re-established. It has, through the report, demonstrated its impartiality, its competence and its willingness to speak the truth, even when it is uncomfortable to do so. I believe that the whole House will be grateful to it.

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