Select Committee on European Scrutiny Minutes of Evidence


Examination of Witnesses (Questions 20-39)

17 DECEMBER 2003

MR DENIS MACSHANE MP, MR DAVID FROST, MR TIM BARROW AND MR PAUL JOHNSTON

  Q20 Mr Bacon: There is not a text?

  Mr MacShane: There is a text.

  Q21 Mr Bacon: What does it say?

  Mr MacShane: I defer to advisers here. They are in the library of the Commons and they are on the websites. There are several texts. There is a convention text; there are the different packages that were published after all the conclaves at IGC negotiating sessions during October and November principally, and then there is Mr Berlusconi's summing up which you have just read from.

  Q22 Mr Bacon: Mr Berlusconi summing up, the "Declaration of the President", refers to a text. You sound like you are saying that the negotiating acquis is not one text at all but a whole load of different texts from different Member States. Which of those is right? The first or the second? It says that it is not open to further discussion.

  Mr MacShane: I have to go by what the President said.

  Q23 Mr Bacon: That is what I am trying to do too.

  Mr MacShane: I think it is a perfectly fair question. We may need some clarification on that. My firm understanding is that we do not have an amended treaty. We do not have a treaty as of Saturday afternoon. We have texts in the plural. I am not sure whether the Italian noun covers singular and plural. They consist of the convention, the different presidency declarations in the course of the IGC discussions and of course Mr Berlusconi's final statement itself. There is not a single text, in the singular.

  Q24 Mr Bacon: What you are saying is really that you are taking all the different texts of the different Member States, their different negotiating positions, you put them in a large sack and that is what Mr Berlusconi is referring to.

  Mr MacShane: No. We are talking about presidency declarations that were issued, for example, on the pasarelle clause; that went. The single legislative council went. There were other issues that were contentious that were dealt with through negotiation but we do not have a final text that incorporates—

  Q25 Mr Bacon: It does say here, "not open to further discussion".

  Mr MacShane: The difficulty there is that that was Mr Berlusconi's statement as translated into English. I have tried to explain several times what my understanding is. I do not think it is a secret or unknown text. The only things in writing are the convention draft, the presidency declarations as produced after the different IGC negotiating sessions and this. I am happy to write to the Committee to clarify this.[1]

  Mr Bacon: That would be very helpful.

  Q26 Chairman: The Prime Minister said in his statement that he was assuming that things were banked, inferring that it was agreed. Then, when the IGC reconvenes to discuss a future treaty, the outstanding issues that have not been dealt with need to be dealt with. That is not set in concrete because once they open up the negotiations again everything is up for negotiation. Some of the red lines that we had agreement on will have to be re-agreed when we go through that process.

  Mr MacShane: That is why we have used this concept of banking. We assume that, if the presidency of the European Council makes a declaration in front of 24 other heads of government and states that there is agreement on unanimity in this or that area, that is de facto a bankable decision of the entire Council. I have taken part in Council meetings and if the presidency says something I do not like I raise my hand, one against 24, and say, "This is unacceptable to the UK. I must ask you to come back and think again." That did not happen, as I understand it. I was not physically present there; it was the PM and Foreign Secretary. You are equally right, Chairman, in that when the IGC resumes its negotiations, if it does, nothing is agreed until everything is agreed. Anybody can reopen almost anything, but I do think it is slightly unrealistic, having been through the discussions and negotiations we have been through in the last 20-plus month, the President having made the statement he did, that a sensible person would start knocking on the door, saying, "We want to ignore all of that, ignore what the presidency announced and what 24 other heads of government gave consent to and reopen these issues." Theoretically, that could happen.

  Q27 Mr Connarty: One of the two issues that were of concern was the passarelle clause. What has been banked on that?. We were not sure when I was in Rome and we had the presidency's draft. It could be rejected or accepted by X countries. It did not state what X was. Is X one country or a number of countries? The second is what have we banked on energy? We seemed to completely lose it and the presidency proposal was not acceptable to the UK. We then put amendments down. What did we bank on that issue?

  Mr MacShane: As far as energy is concerned, in effect, there is no change on existing arrangements. What we succeeded in doing was getting language that we put forward with the help of our Dutch colleagues that certainly satisfied the energy industry. I could find the exact words if you want.

  Q28 Mr Connarty: The Committee has seen the words.

  Mr MacShane: That is a presidency declaration. The presidency declaration puts into writing what everybody formally agrees. We did not get that far on Friday and Saturday because it stopped where it stopped. On the passarelle clause, there is now clear language that says if the national parliament makes known its opposition within six months of notification of a change, a European decision shall not be adopted. One parliament can knock it out so in effect it gives each parliament a veto which is why I say I welcome some of the developments that in my view were leading to a strengthening of the authority of national parliaments. That I am able to read in quotes because it is a formal presidency declaration, so we have it in writing.

  Q29 Mr David: On the issue of national parliaments, that is something new which I personally welcome. Some people have suggested that one of the things that has become evident over the last few weeks is that perhaps the mood in Europe is somewhat different than members of the convention took it to be. It was said therefore that this hiatus that we have, this period of reflection, gives us a chance not only to bank what we have but also maybe to think about some new ideas, like increasing the role of national parliaments. Reflecting this new mood, perhaps we ought to look at the issue of subsidiarity again more closely and perhaps introduce in partnership with other states new suggestions about how that subsidiarity principle could be made more real. Would the British Government support such a move?

  Mr MacShane: Yes. We feel very strongly that one of the lessons from the whole process is that you cannot build the European Union against a nation state. It has to add clear value to what a nation state does just as nation states are hugely strengthened by pooling parts of their sovereign power in partnership under a constitutional treaty with other countries. I feel very strongly that we, as the oldest Parliament in Europe, should be taking a lead on seeing how we can build parliamentary scrutiny into European decision making. As you know, a constitutional precedent was set on the initiative of the Foreign Secretary. A standing committee was created to hold hearings while the IGC was taking place. I think I am right in saying that in no previous treaty negotiations has Parliament created a standing committee to which negotiators were accountable and had to report. We are very grateful for the raising of the energy issue, which emerged through that process. I regret that there was not a great level of participation, though I salute honourable Members who did diligently turn up to that committee. I think you may need to look at a version of that for continuing its work. You and I have had discussions, Mr Chairman, about the possibility of more Scrutiny Committee meetings taking place either in other capitals or in Brussels itself, with commissioners having to be accountable, the need to build links with other Parliaments and national assemblies. An awful lot of what happens in Europe does not start in Brussels. It starts in London, Paris or Berlin or wherever and the best legislation is that which you are there at the beginning of to shape, rather than reacting when it is already a done deal. This will mean almost a revolution in the way we do some of our business. What is sauce for the Westminster goose is sauce for 24 other parliaments' gander in that they will also ask that commissioners be accountable to them and might want to exercise oversight or even veto rights on issues which may be of high importance to us. The main thrust of your question is absolutely right. The one lesson I have from being a little more than a year in office as Europe Minister and coinciding with the second half of the convention and the IGC is that Europe ignores national parliaments and national wills at its peril.

  Q30 Mr David: You would be favourably disposed towards any suggestion that might be made to strengthen the draft constitutional treaty by having greater powers for national parliaments included?

  Mr MacShane: There are two separate issues. We always wanted what was colloquially known as a red card system but we failed to persuade other members of that. I am not sure it is particularly helpful at this stage by ourselves to introduce new demands in the context of a resumed IGC, if and when that happens. Independently of that though, I think there is a huge amount that the House of Commons or Parliament as a whole can and should be doing, obtaining better interpretation, travel and translation services, linking up with other European committees and other national parliaments, doing more work directly in Brussels, so that at every stage we are there before suddenly an issue arises at the last minute and it is difficult then to unpick. I do pay tribute to the IGC standing committee's work and Members from all parties in really representing the interests of the North Sea energy industry and there, frankly, MPs were ahead of the executive and they served Parliament, their constituents and important national interests exceptionally well.

  Q31 Mr Steen: I come to this convention business with a certain simplicity because I was always convinced and I was told that the purpose of the convention was to deal with the 25 countries. We cannot possibly have the same rules and regulations that we had for 15 so let us have this convention with just one or two nods and the whole thing will work like clockwork with the 25. What happened was not that but the conclusion was to codify all the treaties and simply call it a constitution. Some people were saying it is just tidying up the treaties and putting it into one treaty, which is the attractive way of doing it. The other way was a constitution over all national parliaments, the United States of Europe. It strikes me that either the UK Government has been hoodwinked, which I cannot believe, or that the Spanish and the Poles are alert to what the whole aim is and they are using the voting business as an excuse to kibosh the constitution. As I understand it, there hardly ever are any votes. When we were talking to Mr Kinnock, he said, "There have not been any votes. Everything is by consensus." If everything is by consensus, what are the Spanish and the Poles doing talking about votes? The reason is they have spotted that this is—I would not use the word "plot"—but a manoeuvre by the French and Germans to further their cause of the United States of Europe. Am I right? Bearing in mind Agatha Christie was a constituent of mine, you will understand why I am asking these questions. Secondly, we have talked about the Poles and the Spanish. What about all the other countries? What about the Latvians, the Estonians, the Cypriots, the Maltese? They are no fools. What are they doing in all this because we have not heard a word about them.

  Mr MacShane: I do not know if she was a constituent of yours when she disappeared and I do not know whether it is Miss Marple or Hercule Poirot, that well known federalist, who should solve these problems for us. After the not very satisfactory Nice Council procedures—you have heard the Prime Minister talk about those and that was a view commonly held across Europe—that decision was taken at Laeken to initiate the convention proceedings. There were some things that we think did go in the right direction, namely a standing chairman of the Council and getting rid of the six month rotating presidency, which were positive. You are right to say that votes are very rarely used. I do not think I have seen one in my short time as Europe Minister. Perhaps I will be lucky over the passage of years to see what a vote in the Council looks like. The pressure that is out there that the votes can be exercised—they do not come to vote because people know four or five countries are so-called blocking minority—is real. There are issues that we consider to be of importance that we either do or do not want to get past that are advanced or not because people can count the votes. The Estonians, Latvians and Cypriots are all very keen to join the European Union. They have voted overwhelmingly in referenda, not in Cyprus but in the other countries, to join despite the enticements put to them by people who invited them to say no. Estonia is a rigorously taxed, competitive, low tax economy and jolly good luck to it. It is doing very well. Others were very happy with the other arrangements. When we arrived in Brussels, it was also clear that France and Germany were not going to move so in a sense, if the object is to award hero status to a country that stopped the weekend at Brussels where it was stopped, you might as well give it to France. The Sun or The Daily Mail should declare President Chirac to be the hero of the hour, but I do not think that would quite fit in with their ideology. Poland certainly is determined to make a huge success of its membership of the European Union. It is as committed to European Union membership as this Government. All the accession states see the European Union in very positive terms and in due course they may consider that some of the arrangements under the existing constitutional treaties, the reference to an ever closer union, the Nice voting weights, the turning of the presidency every six months, may not be to their advantage but the future will answer those questions.

  Q32 Mr Tynan: When I look at the text, Mr Berlusconi says that delegations have agreed and there is unanimous political agreement on these subjects that they would not be reopened and then you have the contradiction from Prodi who explicitly rejected the claims. Could I ask a question as regards the red line issues, in particular on the basis of what decision was reached as regards qualified majority voting in respect of criminal justice?

  Mr MacShane: To my knowledge, we did not get to that discussion. We were largely happy with where we were on criminal justice. For example, we were not going to see a European public prosecutor created. We were quite happy with the development of Eurojust, but in the statement that Mr Berlusconi made, this famous oral statement, he referred to maintaining unanimity in the criminal justice field. He said that the majority of states wanted to keep unanimity on the financing of the EU, so we would consider that that also was a bankable assurance. To revert to earlier points, I have to tell you how it was. It is not a written declaration; it is a note taken but 24 other governments were there and all heard the same remarks.

  Q33 Mr Tynan: It says that the IGC only had 90 minutes in plenary session and the rest was on bilaterals and institutional points. The question I asked was regarding qualified majority voting. Was there a decision reached as regards criminal justice and whether qualified majority voting was applied or not?

  Mr MacShane: What we told the presidency was, as far as Britain is concerned, we want to maintain unanimity in these areas. Other countries also told the presidency that. In bilaterals or trilaterals with other leading partners who have a different perspective, we would spell out quite clearly that unanimity was vital for us. No unanimity, no treaty, if you like. Since the intensity of discussions was on the voting issue, we then passed to what Mr Berlusconi said as the President in office of the European Council at the meeting. He said that there is a consensus that unanimity is upheld in these areas. Those are the bankable statements that we refer to.

  Q34 Mr Tynan: Qualified majority voting would not apply to criminal justice?

  Mr MacShane: That is what Mr Berlusconi said but we are back to the problem of nothing is agreed until everything is agreed. This is the difficulty with this procedure. It is not step by step. You rewrite a text; you amend it; you republish the amended version; you revisit it. It is a parallel process that allows people to maintain positions up to the moment when perhaps they have to come to some form of compromise. I cannot repeat enough that what you saw was what you got in the White Paper. Those are the positions that Britain took forward. I pay tribute to our diplomats and negotiators. The Foreign Secretary spent an immense amount of personal time on this. All during the autumn, we continually repeated that this was what we needed to bring back a constitutional treaty that would go through the House of Commons. I said that myself at a lower level in the bilaterals that I had. Our ambassador said that. Our diplomatic and EU expert said that. The last concluding moment was Mr Berlusconi announcing in the name of the European Union or the Council that there was agreement that unanimity should be maintained in those areas. I think it was a tribute to the very hard, professional work and very dedicated political work of the Prime Minister, the Foreign Secretary and the diplomats who serve our country very well.

  Q35 Mr Marshall: I am sure it is not lost on the great minds in the Foreign Office and Number Ten Downing Street that if the Irish fail and the Dutch fail and the Luxembourguese fail, the hot potato falls to us.

  Mr MacShane: It will be rather tepid by then, will it not?

  Q36 Mr Marshall: It could still be very hot, particularly in June and July 2005. I wonder if the Government is looking forward to that situation but, more seriously, what concrete suggestions, instead of all this airy-fairy discussion we have been having, would the British Government put forward to seek to resolve this impasse?

  Mr MacShane: In his speech yesterday, the Foreign Secretary talked of a period of reflection. I do not think two or three days after we are just back from Brussels it is appropriate to announce here significant new initiatives. I am certainly not mandated so to do. Personally, I want to think and reflect on this. We all have to go away and look at the whole convention procedure, look at the six months of the IGC and see how we come back to this issue. I think it would be useful to bring all the texts into one constitutional rule book or treaty that everybody could understand. I certainly personally attach quite a lot of importance to having a standing chair of the European Council, if we can achieve that, and having a greater voice and strength for national parliaments. If we achieve none of these things, we are back to where we are today, with everybody complaining that national parliaments do not have enough role. After the Nice and the Amsterdam Treaty, honourable and right honourable Members of this House said that they were inexorable steps towards a super state. After the Maastricht Treaty, honourable and right honourable members of this House said that Maastricht represented the open door to a superstate. In my own party, since they have left the House, old friends, like Tony Benn and Arthur Scargill, have said that we were opening the door to a superstate of Europe 25 or 30 years ago. I have not quite seen it happen but I do think that we will need to reflect seriously over the next few weeks and discuss with our Irish friends and our other friends (I think, principally, we will all take a Christmas and New Year break) on how we go forward. However, I do not have in my pocket any new British initiative today to report to the Committee.

  Q37 Chairman: Minister, it would be fair to say there are some of us concerned that there seemed to be an indecent haste to get an agreement under the Italian Presidency. Some of us were advising last year that because Mr Berlusconi wanted a Rome Treaty is not necessarily the reason for rushing. It may be that those who were pushing for an earlier settlement may well have done more harm than good.

  Mr MacShane: Mr Chairman, I completely agree with you and I think the Foreign Secretary also made the case "better no Constitutional Treaty than a bad one". I think he gave extensive evidence. I believe he has been the first Foreign Secretary to come before your Committee and in extenso explain his position. He has set up this IGC Standing committee and he has gone out of his way, if I can pay a personal tribute, to report to Parliament. We have had eight substantive debates in the IGC, something like 16 Parliamentary reports on it and a very great number of parliamentary committee hearings. Yes, I think festina lente—make haste slowly—is a good watchword. Europe has been through crises like this before; the 1960s was not a sunny period of the founding six but moments of the most enormous crisis with the so-called "empty chair" crisis initiated by General de Gaulle. We will come through this. I certainly welcome the chance to think a bit more and talk a bit more. I regard all four countries that have been most named in the last few days, France, Germany, Spain and Poland, as indispensable partners for Britain, and would not wish, as it were, to take forward positions in the face of bitter hostility of any one of them. I have respect and admiration for all those countries as they struggle to defend their national interests and build a stronger European Union.

  Q38 Mr Heathcoat-Amory: Following Mr Tynan's earlier question about criminal justice, the Government's White Paper, which I have here, only gives the harmonisation of criminal law procedures as a red line issue, but we know the Government was concerned much more widely than that because of the amendments that it tabled in the Convention. I have a copy of the very strongly-worded amendments at that time, objecting, for instance, to all the articles about asylum, the harmonisation of civil law matters and, also, the inclusion of a European Public Prosecutor, because even though it will be by unanimity we will still be constitutionally committed to it if it goes into the final text. So in the Convention the Government had a lot more red lines, and I would like an explanation of what happened between the Convention and the White Paper which dropped all but one of the red line issues. Given that we may come back to this negotiation on the Convention late next year, the White Paper will clearly then be very out-of-date. So it may be an opportunity for us to raise matters, as the Poles did, quite late, after discussion in Parliament and with our electors about new matters which do concern us, particularly as we know that they very much did concern the Government when the Convention was on.

  Mr MacShane: Mr Chairman, there are different areas being slightly mixed together there: asylum, criminal law, European Public Prosecutor and criminal procedure. The Government was successful with other partners in removing the reference, for example, to a "single legislative council", in removing the reference to a European Public Prosecutor and on asylum, of course, we want the possibility of opting in to majority decisions where it is in our interests. We do not think we would have got movement on Sangatte or movement on setting up a European database—it is called Eurodat—which has allowed us to return home people who, in the jargon, are called "asylum shoppers". These were all areas where we wanted to defend what was in British national interest, and in some of those areas QMV would have been appropriate. The different amendments put up during the Convention discussion reflected also negotiating positions—some of them were small, some of them were technical. I know Members and Right Honourable Members who were on the Convention want to revisit what happened up to June last year, but looking forward to 2004 I think we will bank what we have achieved—and those are in the Presidency declaration, as I have said—and where we think QMV may be useful we will defend that position, but always in a way that is fully accountable to Parliament. At the end of the last IGC Standing Committee hearing, Mr Chairman, I said to Mr Cook, who chairs it: "Goodbye. That's it. We have had our meetings, it is all over." I spoke too soon. So I am sure if the Right Honourable Gentleman—and he has come to those meetings and been very assiduous—has continuing concerns they can be dealt with in that context.

  Q39 Mr Heathcoat-Amory: I am sorry, I still have not got a reply. If these were government objections, even to the QMV advantage, which the Minister is now saying is a good idea, that was not the view of the Government last summer. I am still not clear why that was whittled down to one sole objection in the White Paper. There is only one red line left out of all the government objections and all the unsuccessful amendments tabled during the Convention. I just want to know why the Government changed its mind in the few weeks, in some cases, between the tabling of those amendments which are very strongly worded—the Right Honourable gentlemen, the Member for Neath, was using language like "unacceptable" and "this is a fundamentally important amendment" at that time in the Convention and then it suddenly gets magically forgotten. I think we are owed an explanation for the dramatic change in the Government's negotiating position.

  Mr MacShane: With respect, Mr Chairman, paragraph 83 of the White Paper says that the Government "believes QMV would not be appropriate for criminal procedure law"; paragraph 84 "Government will not give up UK's right to carry out frontier controls and the protocol for safeguarding the UK position" and paragraph 85, ". . . see no need for the creation of an EEP [European Public Prosecutor]". So the message from the White Paper was, I think, pretty robust that the Government believed unanimity was in the wider interests of Europe in the crucial area of criminal procedure. Historically, in the contract between the citizen and the state, the citizen allows the state to take away his life, his liberty and his money. Well, we have abolished the death penalty, but we still put people in prison and we still take away money—they are called "taxes"—and our view was that those contractual relationships should principally remain ones between national Parliaments and national Governments and their citizens; it should not be transferred to Brussels. I think we have very strongly maintained that position.


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