The Second Reading of the European Union Bill took place yesterday. During the debate, Bill Cash made the following interventions:

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Mr Cash: Given that we stood united as a party in opposing the Lisbon treaty and supporting a referendum, and given that we voted for that, will my right hon. Friend explain why we have done a U-turn on that within the coalition Government? Will he also explain why he was not prepared to come to my European Scrutiny Committee to explain the circumstances behind the Bill?

Mr Hague: On the first point, I do not think the coalition Government have done a U-turn, as the Bill implements part of the coalition agreement that was set out in the few days after the general election. It is true that the Conservative party, when the Lisbon treaty was ratified last year, said that in those circumstances we could no longer hold a referendum on the treaty. That, of course, was made clear before the general election. My hon. Friend is being a little unfair to both parties in the coalition.

On the second point, I understand that my hon. Friend the Minister for Europe gave a splendid exposition of the Government's position to the European Scrutiny Committee. As the Minister who was most involved in drafting the Bill, he was best equipped to go before the Committee. I look forward to discussing these issues with my hon. Friend the Member for Stone (Mr Cash) on many occasions. Let there be no fear about that.

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Mr Cash: I am extremely grateful again to my right hon. Friend. Does he recall that in the evidence that was given to my Committee and in the conclusions of the report that it produced last night, there was an assertion and a conclusion that the Bill invites litigation in the courts? He has just confirmed, with regard to the circumstances of a referendum, that he too would invite litigation. Does he not think that the time has come when this House, as the ultimate authority of the law of this land, should decide such matters, and not just buck them over to the courts?

Mr Hague: The Bill is about many matters being decided in this place or by the people. The hon. Gentleman's point is distinct from the one that was raised in the European Scrutiny Committee report about clause 18. I made the point that an executive ministerial decision is subject to judicial review, which is always the case. The decision of the right hon. Member for South Shields (David Miliband) on the Lisbon treaty was taken to judicial review by Mr Stuart Wheeler, albeit unsuccessfully. Ministerial decisions are subject to judicial review and that is not changed by the Bill….

Mr Cash: I wish to put on record the fact in the conclusions to the European Scrutiny Committee's report issued last night, we unequivocally rejected the notion of a common law principle, because it would offer the courts a gateway to take over jurisdiction in areas that we regard as unacceptable in UK constitutional law. …

Yvette Cooper: I am afraid that the hon. Gentleman is not picking a fight with me; he is picking a fight with his Government, whom I quoted, and the European Scrutiny Committee, which I also quoted. His disagreement is with them, but I hope that he agrees that clause 18 does nothing at all to change sovereignty. In fact, the hon. Member for Crawley (Henry Smith), who asked about a written constitution, got further than anybody else in raising the key question about sovereignty that the hon. Gentleman's Government are pretending to solve while, in fact, doing nothing of the sort.

Mr Cash: I simply make the point that our Committee report is utterly clear on that subject. What the right hon. Lady quoted is correct. However, her Government were as responsible as any for giving more and more judicial authority-ultimate authority-to the courts. Their main policy over many years could be characterised as handing over more and more powers to the judges at the expense of this House.

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Mr Redwood: It means that when a British Foreign Secretary makes foreign visits, he or she will be kept waiting while the EU ambassador is received and considered because the latter will speak with more authority on behalf of more people and more states.

It is the third area that we have always reserved for national veto and national competence-central economic policy making-to which I shall address the remainder of my brief remarks in this truncated debate. Literally as we meet here this afternoon, crucial and massive issues are being hammered out in secret around the Council table in Brussels. Quite likely to be on the agenda is the issue of European sovereign bonds and the effective creation of a European sovereign in financial matters that issues debt and guarantees debt on behalf of member states. Do we want that? Are we in it? Is it not a transfer of power if we go along with it? Is it not an issue on which we should be invited to express our views?

Another item on the agenda may be the future membership of the euro. The Council could be considering in secret whether all member states are able to stay in the euro and whether the strong or the weak members should leave. If they are to keep the euro area together, what will be the arrangements for the large transfer payments that need to be made if the single currency is to have some hope of a decent life in the future, as all successful single currency areas have much bigger transfers of tax revenues, subsidies and money around them than the euro area currently does?

Mr Cash: My right hon. Friend portrays so accurately the realities that lie behind this Bill, which is about the economic crisis in Europe as well as many other matters. Does he agree that one serious current problem is the financial stability mechanisms and that if we do not assert our rights in this House and make certain that the courts cannot get their hands on an interpretation that would go the other way, we could end up paying for other countries beyond Ireland-Portugal, Spain and others?

Mr Redwood: My hon. Friend is absolutely right, which is why the transfer of power, if not of competence, is such a crucial issue and why we need to engage in a public debate at this very moment about how far this should go….

Mr William Cash (Stone) (Con): People have fought and died over many centuries over the need to affirm parliamentary sovereignty-in the civil war and at the time of the defeat of the Stuarts in the 17th century, when the Stuarts' absolute sovereignty was literally killed off. Since the advent of modern democracy in 1867, people have fought and died in two world wars to preserve the right to govern themselves through their own Parliament by freedom of choice in the ballot box.

The European Union claims sovereignty over our democratic Parliament, and this mouse of a Bill does little to preserve it. Given the present European crisis with the euro, as my right hon. Friend the Member for Wokingham (Mr Redwood) so accurately pointed out, and given the failure of economic governance in which we are absorbed and the coalition Government's continuing acquiescence in European integration and their refusal to repatriate powers, the Bill does little or nothing to improve the situation.

The European Scrutiny Committee reported last night, to an eerie silence from the BBC, and as we clearly indicated, the Committee's report is essential reading for those who really want to know what is going on. There are grave objections to the principle, the methodology, the distorting and misleading explanatory notes that accompany the Bill, and clause 18 itself. Clause 18 is a judicial Trojan horse leaping out of Pandora's box. It is not, as the Foreign Secretary claimed, an enlightened act of national self-interest.

Parliamentary sovereignty is not built on a common law principle, as the Government claim. It is built on the sturdy foundations of the freedom of choice of the voters of this country, and not the whimsy or the Euro-integrationism of some Supreme Court judges. They increasingly claim that they are upholding the rule of law, but I have to ask which rule and whose law.

Shortly before he died last year, Lord Bingham, the late Lord Chief Justice, in his book "The Rule of Law," took on three fellow members of the Supreme Court who had previously adjudicated on the Jackson case with him in the House of Lords a few years ago as to their views on parliamentary sovereignty, as set out in our report. This is an extremely unusual situation and was greatly merited. I do not impugn their motives, but I criticise their judgment.

Only a couple of months ago, Professor Drewry of London university stated in a lecture that

"one can perhaps detect in the recent pattern of House of Lords and Supreme Court decisions, an appetite on the part of the Justices-encouraged by some continuing developments in EU and human rights law-to begin to get to grips with constitutional issues that previous generations of judges would have regarded as completely off limits."

In this context, judicial activism is on the march. It has been there for a long time and it is increasing its tempo. The judges are not toying with all this, as was suggested by one witness. I suggest that Members read not only our report, but the articles, many of them written by these judges, and the speeches, for example, of Lord Steyn and Lord Hope, and many others that are quoted in our report.

The Bill, as Professor Adam Tomkins said in evidence, and as I mentioned in an intervention on the Foreign Secretary, is an invitation to litigation and, I would say, deliberately so. It has been left in a dead letter box in the precincts of the Supreme Court across Parliament square.

Clause 18 is not a proper sovereignty clause, when it could have been what was promised in our manifesto. Last night the Minister for Europe said that the Bill

"delivers on what was in the coalition programme simply as an agreement to consider the case for a sovereignty Bill",

and that the Bill-that is, a sovereignty Bill-

"is being introduced by the means of clause 18".

I am bound to say that it is not that at all. It is even dangerous.

Thomas Docherty: As the hon. Gentleman says, this is a mouse of a Bill. Does he agree that what we need is genuine reform of the European Union so that it delivers what it should be concentrating on, and that sovereignty should remain in Parliament and not be passed across to shyster lawyers arguing the case in the Supreme Court?

Mr Cash: I strongly agree with that sentiment. Indeed, I go further and say that I have always argued for an association of nation states based primarily on trading and political co-operation. Above all else, we must ensure that we make those decisions in the House on behalf of the electorate. Where we find it impossible to make those decisions, it is increasingly argued that it should be done by referendum, when we abdicate the power in the House to the people as a whole.

Clause 18 defies the sovereignty clauses on which the shadow Cabinet, the Whips and Back Benchers voted on several occasions before the general election, using my "notwithstanding" formula. Our report, based on clear evidence from constitutional experts, upholds both the principle and the wording of the "notwithstanding" formula, which I proposed in amendments to the Legislative and Regulatory Reform Bill when we were in opposition. The Whips even asked me to put in their own tellers. As I said to the Minister for Europe last night, he too voted for those provisions. Why not now, therefore, and in the Bill?

We have no hope of resolving the effect and implications of the European crisis on our country, or of reducing by deregulation the impact of European laws on our businesses, including our small businesses, and our deficit, if we do not remove the overall burden of the 50% of economic regulation now on our own statute book, according the House of Commons Library on 13 October.

Mr Jenkin: Is not the real question, which those on the Government Front Bench must answer, why they will not put a declaratory clause, notwithstanding the European Communities Act, into the Bill. Are they saying that that itself would put us in breach of the European treaties? I submit that it would not. Should not they accept that by putting a "notwithstanding" clause into clause 18, they would, notwithstanding the European Communities Act, be reaffirming the supremacy of the House, something that is long overdue?

Mr Cash: I agree, and the evidence that we received indicates that that would be something that the courts would have to accept.

We are a parliamentary democracy, not a judicial autocracy. The common law principle, wrongly asserted as the basis for parliamentary sovereignty by the Government in their explanatory notes, gives the courts the interpretative means to walk through the gateway of our constitutional law into their application of EU law, including even the assertions of the European Court of Justice over our own Parliament and our own constitution, as well as our own laws.

Our report repudiates the means whereby the courts could gain, and some of them want to be the ultimate authority in the land. We were against Lisbon and for a referendum as a party. We can veto any treaty in future if we wish to do so, so why not do so? The Bill makes no provision for our current predicament, and provides only relative safeguards for the future, subject to the baleful influence of a Minister's decision as to whether a referendum would be required or not. One issue has been described by our witnesses as both dangerous and unnecessary, namely clause 18 in the context of the Bill as a whole.

This debate is about trust-the trust that the British people for centuries have granted to their elected representatives to do what is right by them and uphold the democracy for which people fought and died. The Bill betrays that trust by doing nothing to unwind the effects of failed European integration and its impact on us, and does little or nothing to provide security for the future as Europe flounders around in ever-decreasing circles and chaos.

The Bill is an opportunity missed to stop the acquiescence in the failed European integration at every turn, as I put it to the Prime Minister a few days ago. It is also a missed opportunity to reaffirm our parliamentary sovereignty with a proper sovereignty clause. The Bill is a missed opportunity and I shall not vote for it.

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Mr Cash: Does my hon. Friend agree that this road map contains an almost continuous tsunami of arrangements of the kind that he has described, and that the net result is that we are going further and deeper into Europe the whole time, instead of the other way round?

Mr Clappison: I am afraid that my hon. Friend is correct. We are deepening and extending the jurisdiction of the European Court of Justice.

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Mr Cash: Does my hon. Friend agree that the very fact that this provision is being included in statute inevitably means that the courts will have the opportunity to apply the common law principle and that therefore he cannot, by a speech in the House of Commons, restrict the manner in which the courts subsequently interpret the provision?

Mr Lidington: What I would say to my hon. Friend is that to some extent we are repeating the exchanges that we enjoyed in his Committee yesterday. Clause 18 places firmly on the statute book a point of reference to which any future court that considers an argument about the source of authority for European law in this country must have regard. My hon. Friend the Member for North East Somerset put it in terms of turning the clock back to 1972. As my hon. Friend the Member for Harwich and North Essex said in an intervention, it is not the case that the argument that European law derives its authority solely from Acts of Parliament has gone unchallenged. It was not only in the prosecution arguments in the metric martyrs case, but in the obiter from Lord Justices Steyn and Hope, to which he referred, that a very different case was asserted-namely that, over time, European law has acquired some kind of autonomous authority in this country. Hitherto, the United Kingdom courts have rejected that argument and upheld the doctrine that it is only through Acts of Parliament that European law has authority here. The clause will provide in statute for the first time a clear point of reference to which the courts must have regard. Read the full debate here.