§ 9. Mr. John Bercow (Buckingham)If he will make a statement on the constitutional issues raised by possible British entry to a European single currency. [41681]
§ The Economic Secretary to the Treasury (Mrs. Helen Liddell)Sharing a common monetary policy with other member states represents a pooling of economic sovereignty, so we accept that there are important constitutional considerations. That is why the Government are intent on holding a referendum before Britain joins the single currency.
As the Chancellor pointed out on 27 October last year, the constitutional issue is a factor in the decision, but not an overriding one—rather, it signifies that, for monetary union to be right for Britain, the economic benefits should 1096 be clear and unambiguous. If a single currency would be good for British jobs, business and future prosperity, it is right in principle to join. Given the comments of the Leader of the Opposition on Tuesday, it seems that, even if it were right for the British people for us to be part of a single currency, a future Conservative Government would not join it.
§ Mr. BercowIs the Economic Secretary aware of the statement made by the president of the Bundesbank, Hans Tietmeyer, that within a single currency
it is an illusion to think that states can hold on to their autonomy over taxation policies"?If that statement is vindicated by events, does the hon. Lady believe that the cession of sovereignty would represent a constitutional bar to Britain' s joining such a currency—yes or no?
§ Mrs. LiddellThe hon. Gentleman—if I may borrow a phrase from the right hon. and learned Member for Rushcliffe (Mr. Clarke)—is getting rather excitable. Many people in different organisations make a variety of statements. Indeed, some Conservative Members have referred to other Conservative Members as dinosaurs who are out of date. The key element relating to fiscal policy is the principle in the treaty of co-ordination among national Governments, not the transfer of responsibilities to the centre. [Interruption.]
§ Madam SpeakerOrder. Hon. Members should stop these parrot-like cries.
§ Mr. Tony McNulty (Harrow, East)Does my hon. Friend believe that Britain's preparations for economic and monetary union were helped or hindered by crass and irresponsible speeches that referred to public disorder and civic unrest, or does she agree with the right hon. Member for Henley (Mr. Heseltine) that, happily for Britain, such comments are speeches without audiences?
§ Mrs. LiddellMy hon. Friend make a valid point. It is notable that some Conservative Members have referred to the intemperate remarks made by the Leader of the Opposition. Ironically, the confident attack on the right hon. Member for Henley (Mr. Heseltine), as being unwilling to listen and hopelessly out of touch, came from a party which currently enjoys only 28 per cent. support in the opinion polls.
§ Mr. Eric Forth (Bromley and Chislehurst)I am sure that the House is grateful to the Economic Secretary for verifying the fact that there is, indeed, an important constitutional element to the question whether we should join the European single currency. Will she ensure that the Chancellor of the Exchequer includes that statement in any further comments that he may make on the matter, and that he does not continue to confine his criteria to economics?
§ Mrs. LiddellPerhaps the right hon. Gentleman was off choosing a new tie on 27 October, when my right hon. Friend the Chancellor made it clear in his statement to the House that, although he recognised the constitutional issue, he did not regard it as an overriding objection to our joining a single currency.