European Union Referendum (Date of Referendum etc.) Regulations 2016

Baroness Morgan of Ely Excerpts

Wednesday 2nd March 2016 Lords Chamber

[Baroness Morgan of Ely (Lab)]

My Lords, the starting gun has been fired and the Minister has correctly pointed out that this is the beginning of an historic journey for our country. This is about our country’s place in the EU and in the wider world. It is comforting to hear, after so many years of sniping and criticism, a full-blooded defence of the European Union from many, if not all, quarters of government. While we will pretend to enjoy the sight of Cabinet Members falling out with each other over this issue, it is worth underlining that the decision on whether we remain or leave the EU is too great a decision for us to fall into party-political squabbles. Whatever the initial motivation within the Tory party for wanting the EU referendum, we now need to do all we can to secure a remain vote, to put country above party and to do what is in the best interests of this nation.

The SI before us today, as the Minister has stated, sets out the date of the referendum, the start of the referendum period and the date on which designated organisations can apply for recognition. We have debated many of these issues before and we have no objection to the SI. The more interesting documents before us today are the White Paper, which sets out the agreement that the Prime Minister negotiated in Brussels in mid-February, and the devastatingly factual document produced by the Government on the process for withdrawing from the EU. If you were not sure about which way to vote in this EU referendum before, I would suggest you read the document on the process for withdrawal, which makes extremely sobering reading on what will happen in the interim period prior to any future relationship with the EU being concluded—a period that could last for a decade and put us in an extremely difficult situation as a nation. In addition, it is worth reading the document on alternatives to membership that has come hot off the press today.

The fact is that many of us would have supported the effort to remain a part of the EU, irrespective of the outcome of the Brussels negotiations. We believe that our relationship with our nearest neighbours must be much more than the four areas set out in that renegotiation. We think that our relationship is fundamental, yes, for access to our largest export market; critical, yes, for us to ensure safety for our citizens; and critical, yes, for protecting workers, consumers and the environment—but more than that, it sets out how we want this country to meet with the wider world. Never before have our country and our world been so interconnected; never before have we seen international terrorist threats that confront us all; never before have we seen worldwide emigration on the scale we see today; and never before have we been quite so aware that what happens economically on the other side of the continent will impact on our own standard of living in the UK. Now is not the time to be turning our backs on our nearest neighbours. Now, while the US is signing partnership deals with Pacific nations, is not the time to be retreating into splendid isolation, with no assurance of what our market access will look like. And now, when Russia is menacing in central Europe and the Middle East is in upheaval, is not the time to be reneging on EU solidarity and threatening our own national security. Now is the time to show leadership in Europe and demonstrate that we are committed to displaying an outward-looking vision for our country, safe in the knowledge that we have strength in numbers.

There are others who would have rubbished any deal the Prime Minister had returned with. Had he promised a decade’s supply of the finest Belgian beer, or guaranteed a place in the European Championship for every UK nation, or guaranteed lovely sunny days for the next three years, they would still have said no. They believe that we need to regain sovereignty. Where was our sovereignty, though, last week, when the pound plummeted and the markets decided that all this insecurity was bad for our economy? Where was our sovereignty when we needed to ask Italy to send back one of the London bombers? And where will our sovereignty be when we have to go back to our continental colleagues in the event of a no vote and beg for access to their market of 500 million consumers and an economy of almost £11 trillion?

I have heard the argument that the EU has a trade surplus with the UK, so they will want to trade with us; but that does not take account of the fact that EU exports to the UK account for 3% of EU GDP, while our exports to the EU account for 14% of our GDP. Only in Cyprus and Ireland does the UK represent more than 10% of total exports. Half of the EU’s trade surplus with the UK is accounted for by just two member states, Germany and the Netherlands—yet every single EU member state would have a veto on what that agreement would look like. Can we honestly be confident they would all be willing to sign on the dotted line in a generous trade deal? The leave campaign seems to have a schizophrenic attitude towards EU member states. On the one hand, they say that the EU is constantly ganging up on the UK and that we have no influence; and on the other they say that were we to leave, EU member states would roll over, allow us to tickle their tummies and agree to any new trade agreement we demand. Which one is it?

In an interconnected world, sovereignty is a fantasy concept. What the outers are offering is a dream ticket, promising a better life; but they have no idea of nor common belief in what that dream looks like or where it may lead. Nor can they offer any practical pathway or route to get to their promised land.

[Lord Pearson of Rannoch (UKIP)]

My Lords, does the noble Baroness agree that although we have 3 million jobs making and selling things to clients in the European Union, they have 4.5 million jobs selling things to us? Does she agree that they need our free trade much more than we need theirs and that it will therefore continue?

[Baroness Morgan of Ely]

The noble Lord clearly was not listening to me. I just explained that not every single other member state, some of which do not have a trade surplus with us, may want to sign on the dotted line for a future trade agreement. The fact is that 14% of our GDP depends on our relationship with the EU compared with 3% of its GDP. They would have the upper hand in a future negotiating strategy.

In the light of the fact that nobody knows which way the public will vote, I wonder whether the Minister in summing up would let us know whether the Government have made any contingency plans for what would happen, in the case of UK withdrawal from the EU, if there was to be a run on the pound. However, there are many people in this country who have yet to decide. It is those people we will all be trying to convince of the merits of our arguments in the next few months, and it is those people whom I believe the Prime Minister was trying to reach out to in his attempts at renegotiation. They may be relieved by the fact that we are no longer on an inexorable route to closer integration. They will be consoled by the guarantee that we will have a full say on the rules of the single market while remaining outside of the eurozone, and comforted by the knowledge that EU citizens will have to pay in to our welfare system before taking out of it. They can also be safe in the knowledge that the negotiations are legally binding and will take effect immediately after the British people vote to remain in the EU. The information that will set out citizens’ rights and duties if we cease our membership of the EU, which noble Lords requested to be produced prior to the referendum, will be invaluable to that group of people. We look forward to that information being published.

The EU is far from perfect. While we sit here in our gilded, centuries-old institution—

[Lord Robathan (Con)]

I should reassure the noble Baroness that I have been listening very carefully. Could she explain what role the World Trade Organization would have should there be any form of embargo or restrictions on British trade with the EU were we to leave?

[Baroness Morgan of Ely]

It is not about restrictions on trade. The fact is that we would have to renegotiate a completely new deal, about which we have no idea. We would still want access to EU markets. Some 50% of our trade is with the EU. If we went along with WTO agreements we would have to start paying tariffs on our exports. It may be that the noble Lord thinks that that would be a good idea for producers in this country; I believe that it would be fatal for many of our small businesses in particular.

[Lord Tebbit (Con)]

What does the noble Baroness think workers at the Airbus factory in Toulouse would say if their Government put a tariff on the engines made by Rolls-Royce, on the wings made by British Aerospace, and on the landing gear manufactured by Dowty here? Would they refuse to accept those and still expect buyers from overseas to buy an aeroplane with no engines, no wings and no landing gear?

[Baroness Morgan of Ely]

My Lords, I am glad that the noble Lord asked me about Airbus, which is a major manufacturing industry based in north Wales. About 6,000 jobs depend on that relationship. I can tell noble Lords that I have been speaking to the leaders of Airbus in north Wales. They have assured me that they are very much in favour of retaining their membership of the EU. They know that, yes, there may be a short period when they could not retrain and move that facility abroad, but I can tell noble Lords that, in the long term, the French and the Germans would be very happy to receive their ability to build wings on the continent, rather than having them built in our country. This is a critical issue and not a laughing matter, in particular for those 6,000 workers at Airbus in north Wales.

As I said, the EU is far from perfect. Yet we sit here in our gilt-clad, centuries-old institution, replete with our opaque methods of determining membership and quirky yet endearing traditions of expression. Who are we to throw stones at an institution that has had less than 60 years to establish itself? Yes, the EU needs reform: not just this one-off but constant reform to adapt to the needs and requirements of our age, as indeed do our own institutions in the UK.

As a nation we have a moral and practical interest in preventing conflict, stopping terrorism, supporting the poorest in the world and stopping climate change. We need our global institutions to function well to cope with these challenges. We either do this together through bodies such as the EU and UN or we will find to our cost that our ability to influence these challenges independently is restricted. How many would hear Britain’s voice whispering in the world?

The EU also needs the UK. It needs us to be at the top of the table to help reduce the burden on business and ensure that we fight protectionism and trade dumping. But we need the EU. The EU has given us clear water, cleaner air, safer food, anti-discrimination laws, maternity and paternity leave, billions invested in our poorest communities and £3 billion a year for our struggling farmers. Some 3.5 million British jobs depend on that relationship with our nearest neighbour. We have seen caps on bankers’ bonuses, the capping of credit and debit card fees, health and safety laws that have saved countless lives, paid holidays and protection for part-time workers.

But we cannot and should not duck the immigration argument. It is true that immigration brings pressures to some of our communities, but let us not forget that EU citizens make a net fiscal contribution to this country. They staff our hospitals, process our food and are central to the hospitality industry. Let us remind people that 2 million of our own UK citizens have taken advantage of the EU to make their homes on the continent.

[Lord Radice (Lab)]

The noble Lord, Lord Lawson, is one of them.

[Baroness Morgan of Ely]

Indeed, some of them are in our Chamber. A weakened EU, which is likely to happen if we leave, will not be in the interests of this country. Let us not forget that, whatever else the EU has or has not achieved, there has been a peace dividend for more than 60 years in what was up until 1945 the bloodiest continent in the world. We should not take peace for granted.

Whether we remain or leave the EU is probably the most important political decision that my generation will ever make. The new agreement has now been set out. Our party will be at the forefront of the campaign to ensure that we retain our membership and remain a strong and powerful voice in our challenging and changing world.