HC Deb 04 March 1999 vol 326 cc1205-7
8. Dr. Julian Lewis (New Forest, East)

If he will list the constitutional issues which he assessed as not creating a bar to United Kingdom membership of the single currency. [72420]

The Economic Secretary to the Treasury (Ms Patricia Hewitt)

In his statement to the House of Commons on 27 October 1997, my right hon. Friend the Chancellor of the Exchequer set out clearly the Government's view of the constitutional implications of joining the single currency. Sharing a common monetary policy would represent a major pooling of economic sovereignty, so the constitutional issue is a factor in the decision, but it is not an overriding one. Rather, what it means is that, for monetary union to be right for the UK, the economic benefits should be clear and unambiguous, and the final decision should be made by the British people in a referendum.

Dr. Lewis

Is it not clear that the Minister has just dodged the whole point of the question? It was not about the pooling of economic sovereignty, but about the loss of democratic sovereignty and democratic accountability.

Given that continental politicians have repeatedly admitted that one of the main purposes of economic and monetary union is to create a political entity—a single state in Europe—will the Minister now confirm the logical implication of the Government's position, which is that, if the five economic, and they are only economic, tests that the Government have set are fulfilled, there is no amount of loss of political and democratic sovereignty and accountability that they would not be content to put up with?

Ms Hewitt

The hon. Gentleman has made it clear why the Conservative party is completely marginalised on one of the most important questions that faces this country. Again, he has made it clear that the Conservative party—the anti-European Conservative party—is saying that, even if joining a single currency were good for Britain, for the economy and for jobs, it would be against it and against it for ever. The Labour party is the party that speaks for the British interest.

Mr. Denis MacShane (Rotherham)

There are constitutional issues at stake involving parliamentary democracy. In the past 24 hours, we have seen two major developments. An all-party committee set up in good faith to allow Parliament to help business to prepare for the single currency has been boycotted by the Tory party, and boycotting is a 19th-century weapon. Also, has not the shadow Chancellor said that he is so indifferent to the House that he proposes to lead the Tory party on to the streets of this country? It has become the party of Trotskyists on European issues. We have "Militant Maude and the Tory Trots against Europe".

Ms Hewitt

I am sure that you will be as grateful as the rest of the House, Madam Speaker, for the fact that my hon. Friend asked that question in English. He is absolutely right. When the Conservative party was in government, it opted out of the social chapter which would have given the British people fair standards at work. It has now opted out of the cross-party group on preparations for the euro and out of defending the national interest. It is wholly marginalised in the debate.

Mr. Nick Hawkins (Surrey Heath)

Will the Minister recognise that my constituents and businesses—particularly small businesses—throughout the country think that the most important constitutional issue is that of the Government spending taxpayers' money before they have any democratic mandate to do so? Will she admit that the words "changeover plan" are seen by people and businesses as a handover plan, handing over British democratic sovereignty without any mandate to do so? If she and her friends in the Government were honest, they would have a referendum now. They have no mandate to spend a penny piece of taxpayers' money without a referendum—they know that they would lose it, so they dare not hold it now.

Ms Hewitt

Let me stress once again that we have made it clear that the final decision on whether to join a successful single currency will be made by the British people in a referendum. Businesses want economic stability, low interest rates, low inflation and practical support to ensure that they can take advantage of the opportunities created by the euro. The Government are giving them that support. Perhaps the hon. Gentleman will speak to those on his Front Bench and urge them to join the cross-party group that we have set up to ensure that there is parliamentary involvement in the preparations for the possible decision to join.

Mr. Kevin McNamara (Hull, North)

Does my hon. Friend agree that, if the Conservative party were logical on the question of democratic accountability, it would be seeking more powers for the European Parliament so as to be able properly to control the Council of Ministers and demanding less secrecy in that Council? It would also be insisting that the second and third pillars on the operation of powers, created by their Government, should become answerable to democratically elected Parliaments and not dealt with in secret by Ministers of Justice. There might then be a degree of sincerity in the Conservatives' words.

Ms Hewitt

My hon. Friend is right in his criticism of the official Opposition. It is impossible for them to have any intelligent view on the matters to which he refers when they are now so clearly the anti-European party. The Government will continue to ensure that British interests are defended by our policy of constructive engagement in the European Union.