My Lords, perhaps it is for me to try to put this amendment back in its box, from which it seems to be rapidly escaping into fascinating issues such as reform of the House of Lords. I am not sure whether that is immediately germane to this amendment, which does not involve any transfer of powers or competencies to the European Union as far as I can see from the debate. I shall, if I may, abandon that and return to the amendment which the noble Lord, Lord Liddle, moved with fiery eloquence. He was frank enough to admit that the purpose of the amendment was an attempt to say, I think his phrase was, the same thing in a different way. I shall try to avoid giving the same answer in a different way, but I am afraid that the answer I am going to give will not please him very much. Anyway, I will do my best.
The amendment seeks to extend the scope of the significance condition beyond the two types of transfer of power identified by Clause 4(1)(i) and Clause 4(1)(j). We had a similar amendment, did we not, in Committee? I explained at that stage that the significance condition as drafted applies only where there may be a proposal for treaty change under the simplified revision procedure which would result in a transfer of power—I shall come to the competence issue in a moment—from the UK to the EU, as defined by the criteria in Clause 4(1)(i) and Clause 4(1)(j), namely treaty changes which seek to impose or extend a requirement obligation or sanction on the UK. It is only then that an assessment by the Minister is required as to its significance. As I said at the time, the significance condition is applied deliberately to such a limited range of proposals in order to establish a transparent and un-fuzzy, un-grey, unequivocal set of criteria, for Parliament as well as for the people, for which a referendum will be required under the Bill.
I am most grateful to the noble Lord for giving way. With the greatest respect, this amendment is about having a referendum, or not having a referendum, on matters the effect of which—to quote the Bill—
“in relation to the United Kingdom is not significant”.
Nobody in the world would argue that setting up a finance ministry for the European Union was not significant for the United Kingdom; the question is why we should have referenda on matters which are not significant. The noble Lord has cited a lot of possible scenarios, all of which involve dramatically significant events which would obviously be significant events for us, but the big issue concerns why we should have a referendum on matters which are known not to be significant for the United Kingdom.
I think that we are arguing in a circle because the Bill provides the significance test and matters in paragraphs (i) and (j) of Clause 4(1), which I have described, might well be ruled by Ministers not to be significant, and therefore there would be no referendum. Furthermore, in Clause 4(1) there is a whole string of exempt conditions where no referendum will occur. Therefore, I do not see what the noble Lord is worried about. As regards issues that are deemed to be insignificant, or issues that are deemed to fall under Clause 4(4)—sorry, I said Clause 4(1), whereas I meant Clause 4(4)—Clause 4(4) states that:
“A treaty or Article 48(6) decision does not fall within this section merely because it involves one or more of the following”.
There is your list. There are the things that are not significant which will not attract a referendum. The noble Lord was speaking with great feeling and fervour but I cannot see that his worry is well founded. I am clear that this amendment would not assist the purposes of the Bill and would undermine certain values and aims of the coalition’s European policy. On that basis, I strongly urge the noble Lord to withdraw it.
My Lords, I will withdraw the amendment, but the Government are making a major mistake in not listening to the points made not just from the opposition Benches but from the Cross Benches as well about the necessity to keep open some flexibility to deal with the unforeseen. If the United Kingdom wants to resist major treaty change, we will almost certainly have to propose minor changes which would demonstrate a willingness to deal with the practical realities of the situation that the EU would be facing. It is the Government who are not living in the real world and not facing up to what it is necessary to do if we are to be an effective member of the European Union in the years ahead. I regret very much having to say that, but with that I beg leave to withdraw the amendment.