Sunday, 9 January 2011

Cameron faces Commons defeat over Europe

David Cameron faces the prospect of an embarrassing defeat on Europe next week

as Labour prepares to join forces with Conservative Party rebels to oppose a flagship Bill.

David Cameron faces the prospect of an embarrassing defeat on Europe next week as Labour prepares to join forces with Conservative Party rebels to oppose a flagship Bill.
Some Tory backbenchers are angry about Mr Cameron's handling of Europe Photo: REX

Conservative backbenchers are preparing to ambush the controversial European Union Bill which goes before the Commons when MPs return from their Christmas break.

Eurosceptic Tories will table radical changes to the legislation, which they claim does not deliver on its promise of a referendum on future transfers of powers to the European Union.

If the changes strengthening the legislation are not accepted by the Government, some Conservatives said they might even vote down the entire Bill.

Last night Labour sources signalled that Ed Miliband, the Labour leader, will order his MPs to oppose the legislation too.

The prospect of a pincer movement of Labour MPs and Tory rebels is acutely worrying for Mr Cameron, whose Coalition majority of 76 would be overturned if just over half that number of Tories joined forces with Labour.

It would be the first defeat for the Prime Minister on the floor of the Commons since coming to power.

The looming rebellion is a blow for Mr Cameron, who introduced the Billas a way of reassuring Eurosceptic MPs that he was preventing further erosions of power to Brussels after he dropped his promise to hold a referendum on the Lisbon Treaty.

But the move appears to have backfired. The mood among Tory backbenchers has been worsening for some weeks and some have rebelled on other issues, including tuition fees, because they are so angry about Mr Cameron's handling of Europe.

Last night Conservative MPs leading the rebellion said they hoped most of the 38 Tories who voted down increases to the EU budget recently would join a rebellion against the EU Bill.

Up to 40 more are believed to be unhappy and could either vote to change the Bill or abstain when it goes before MPs on January 11.

The rebels say the proposed legislation, which is meant to offer a guarantee of a referendum on any substantial transfers of sovereignty to Brussels under future EU treaties, offers no safeguards at all.

It gives ministers the power to decide whether a referendum is necessary within two months of a treaty change. Anyone would then be entitled to challenge the minister's judgment through judicial review.

Tory backbenchers claim the move is window dressing and in fact could result in a more dangerous position than is the case currently because the courts, and not Parliament, would end up deciding whether a Treaty was acceptable.

Labour opponents say the proposals are a "dog's dinner" and would create a legal minefield. Mr Miliband will oppose the legislation claiming it could open the way for endless legal challenges, a senior party source said.

It is understood Tory rebels are planning to hold informal talks with Labour this week to try to agree on an amendment tightening up the Bill that they can all support.

"There is a kernal of agreement between us," said one senior Labour insider. "If we are going to have a Bill of this sort, then making it work is essential. Our position is not a million miles from the Tory rebels."

The legislation was recently panned by the Commons European Scrutiny Committee. Bill Cash, the chairman of the committee, has tabled amendments strengthening the so-called "referendum lock" to ensure EU Treaties are appraised by Parliament not the courts.

He said: "The Government has come forward with a proposal which could make things worse. My amendments reaffirm the supremacy of the UK Parliament.

"I would say this is a matter of national interest, not party politics. This is a crucial matter of the national interest and I would hope all MPs would react accordingly and support my amendment."

Many high-profile Tory MPs are critical of the Bill, including veteran backbenchers John Redwood and David Davis as well as many newly elected Conservatives, who are overwhelmingly Eurosceptic.

Philip Davies, MP for Shipley, called the Bill "ludicrous". He said: "It is full of anomalies. The feeling is we have already given away too many powers.

"If they thought this bill would buy off the Eurosceptics I think they have made a crass error of judgement."

Mr Redwood said: "I'm all in favour of a referendum on transfers of power and I'm all for asserting parliamentary sovereignty but I'm not persuaded this Bill does either of those things, and the Government would be wise to improve it."

The shadow foreign secretary, Yvette Cooper, said the Bill would be a "lawyers paradise".

Miss Cooper is said to be sympathetic to the idea of a referendum on future transfers of power and is understood to be willing to look at the possibility of backing Tory amendments.

When Labour was in power it controversially refused to offer a referendum on the Lisbon Treaty.

But a Labour source said: "If there is major constitutional change we support the idea of a referendum. Has there been a slight change of tone since Gordon Brown on this? Yes, maybe a fraction."

He added: "This is a big own goal for David Cameron. He was trying to appease Tory Eurosceptics but this doesn't appease them at all. All it is doing is winding them up evenmore.Referendum plan is 'massive advance' for UK democracy

William Hague: Referendum plan is 'massive advance' for UK democracy

William Hague 'When [the Bill] becomes an Act this will be the strongest defence of national democracy put in place anywhere in Europe' Photo: AFP

Mr Hague writes: "When [the Bill] becomes an Act this will be the strongest defence of national democracy put in place anywhere in Europe."

However, leading rebels last night insisted the government's pledges did not go far enough to ensure that parliament's will could not be overturned either by the EU or by the courts – and vowed to press ahead with amendments "reaffirming the supremacy of parliament".

Government whips were embarking on a round of arm-twisting and persuasion this weekend ahead of Tuesday's vote on the Bill's key "clause 18"- with the government still facing the possibility of a humiliating defeat.

This would require up to 42 Tory rebels to vote against the coalition, which has a notional majority of 83. assuming that Labour, nationalist parties and independents backed the rebels.

All Liberal Democrat MPs and ministers appear certain to vote with the government.

Bill Cash, the veteran Tory Eurosceptic and chairman of parliament's European Scrutiny Committee, said the vote represented a "critical test of parliamentary sovereignty" and predicted that "substantial numbers" of Conservative MPs would back his amendments.

He and his fellow rebels protest that plans which are meant to ensure that the public has the final say over proposed transfers of powers to Brussels – through referendums – in fact make the current position worse because it would be the courts that would have the final say over ministers' decisions on whether to hold a public vote.

Mr Cash warned: "This would not be a massive advance for national democracy. It would be a massive reverse."

The MP wrote to Mr Cameron on the issue but the Prime Minister's reply, seen by The Sunday Telegraph, did nothing to answer the rebels' key demands.

Mr Cameron wrote in the letter, dated 5 Jan: "The political price paid by any future government that sought to take back the powers given to parliament and voters by this Bill would rightly be high and painful.

"I do not therefore subscribe to the view that the referendum provisions would represent a weakening of parliamentary sovereignty."

Mr Hague uses his article to acknowledge the rebels' position but does little or nothing to appease them.

He writes: "Some people have argued that the Bill does not go far enough or has loopholes.

"But the truth is that only in a few minor areas does it give the ministers of the day any discretion at all about the calling of a referendum – and then only if they can persuade parliament and the courts that they are right.

"When it becomes an Act this will be the strongest defence of national democracy put in place anywhere in Europe. It is a massive advance for national democracy.

"And not only will current and future ministers in this country know that they cannot hand over powers without a referendum but other nations' governments will too.

"It will always have to be in their minds if they are contemplating changing the EU Treaties that any consequent increase in the EU's powers would trigger a binding referendum in the United Kingdom."

Labour sources, who were last night keeping their powder dry ahead of the vote and refusing to reveal their intentions, claim the issue is a huge "own goal" for Mr Cameron because the Bill was originally intended to "throw a bone" to the Tory right but has only succeeded in increasing their opposition to the government.

William Hague has made a defiant defence of the coalition's plans to ensure Britain retains parliamentary sovereignty over new laws passed by the European Union ahead of a Commons showdown this week.