Brexit: Horizon 2020 and Erasmus
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The Lord Privy Seal (Baroness Stowell of Beeston) (Con)
My Lords, it is the turn of either the Cross Benches or the Conservative Benches. We will go to the noble Baroness, Lady Coussins, and I hope we can get in a Conservative next.
Baroness Coussins
Thank you. Will the Minister acknowledge the vital importance of the Erasmus programme for the funding of the third-year abroad element of modern language degrees, especially when the shortage of MFL teachers will be even more acute because of the Government’s EBacc target? How will the Government plug the Erasmus gap both for outgoing UK students and for the incoming Erasmus students from the EU who supply our schools with foreign language assistants?
International Trade Opportunities
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The Lord Privy Seal (Baroness Stowell of Beeston) (Con)
My Lords, by all means leave the Chamber if you are on the way out, but may I ask those exiting to do so quietly? My noble friend is trying to introduce this debate, but if anyone wants to leave now and go that way—do they want to go now?—they can do so while I am talking. I encourage my noble friend to start again.
Baroness Mobarik
My Lords, during the past few weeks, our focus has been on the EU referendum of 23 June and the result to leave after 42 years of membership. We are clearly entering a period of very significant change in the UK economy and in commercial relations between us and the EU. There is rightly a great deal of concern, as there is such a substantial degree of integration between the UK and EU economies. These cannot be disentangled overnight, and nor should they be. It is imperative that we maintain our access to the single market and that we negotiate the best trade relationships with the EU. I have every confidence that my colleagues will lead Brexit discussions to protect and enhance our trading position with the EU.
What we must not allow is a state of paralysis as we try to extricate ourselves from the EU and its institutions, and we must not ignore the absolutely crucial need to develop business opportunities with the rest of the world. If we accept that the degree of access to the single market may affect the types of agreements that can be negotiated elsewhere, the task has to start now—and simultaneously with the Brexit negotiations. While many of us may have serious misgivings and concerns about the impact of the referendum result, there is a general consensus that going it alone has one obvious plus: it allows us to be nimble and flexible. After all, it is one of the reasons that so many voted for an exit from the European Union. We now need proactive engagement with the rest of the world. It will by no means be from a standing start but we have to work to make it greater.
It may be useful to remember that the highly developed markets of the US and the EU have relatively slower growth than the emerging markets. We have of course been aware for some time that the world’s centre of gravity has been shifting eastwards and that building trade links with emerging markets is essential. In recent years, we have witnessed closer economic ties between Britain and China; the Chancellor’s support for the Asian Infrastructure Investment Bank illustrates this well. China has a maturing economy that is ripe for the services and luxury goods that are Britain’s strengths, but certain markets have been ignored to a large extent in the past. We must now take the opportunities wherever they are to enhance our relationships, and in particular to re-engage with the Commonwealth, where we already have such strong historical ties and a special relationship, which we have not taken advantage of fully.
The Commonwealth accounts for around 10% of UK trade; that has remained stable over the last decade. Among the Commonwealth countries, Australia, India, Canada, Singapore and South Africa are the largest of the trading partners. However, with the Commonwealth we are provided with a spectrum of economies at various stages of growth, from the developed and advanced economies of Australia and Canada all the way to some of the fledgling economies in Africa that really need support. In between, there is the exciting frontier of fast-emerging and fast-growing economies, such as those of India, Pakistan and Bangladesh.
IMF reports show that the developing and emerging economies’ share of global GDP has increased to 55.1%. I suggest that we require much more additional resource to establish proactive and dedicated campaign teams for particular regions—essentially, a task force working with existing departments and institutions to strengthen our commercial trade and business links with countries outside the EU. These campaign teams should be results-driven and run like a business. Unusual times and circumstances mean that we have to think out of the box—so we should have fewer reports and more action.
This is not to say that business organisations have not already been working hard in seeking global markets, but, by being liberated from the constraints that the EU inevitably presents as it seeks to balance the needs of its many members, the UK should be able to be more targeted in developing these commercial relationships through a highly tailored approach by country, region and sector.
I must acknowledge the work of the Foreign and Commonwealth Office through its embassies, high commissions and consulates that do such a fine job in building trade relations—but they have to be strengthened, as does UKTI. For example, one Commonwealth country in which I have an interest, as the Prime Minister’s trade champion in Pakistan, has huge potential yet there is not even one person at UKTI dedicated to developing business with it. I had the honour of representing the UK Government in Karachi last October when, for the first time, it held one of the Great British Festival events that promotes the Great Britain brand. The very small and dedicated team at the consulate had done a great job but we need to do so much more for a market which has been given emerging status and has a population of 200 million people, the vast majority under the age of 30. Although I am keenly aware that issues such as security have been an impediment to this potential trade, the arguments for engaging with this market are now too many to ignore. Apart from its significant population, its vast natural resources and a growing middle class with purchasing power are key attributes.
I hope that noble Lords will bear with me if they have heard this before, as I have previously highlighted these points and opportunities in another debate, but it is important to remind noble Lords that the Chinese investment of $42 billion in an economic corridor—a network of roads, railways and pipelines to transport oil and gas—enables China to develop a cheaper and shorter route to trade and investment with the Middle East, Africa and Europe. It links China, all the way through Pakistan, to the port of Gwadar on the Arabian Sea. According to analysts, it will place Pakistan at the heart of four out of the five fastest trade flows in the world. The UK has the potential to engage there in a number of areas: in energy, infrastructure, agriculture, dairy and of course education, which is key to building a skilled workforce for this emerging economy.
Pakistan is a good example of somewhere with which we already have some business links but where there is lots of room for growth. Preconceptions about security, corruption and the difficulty of doing business —in Pakistan in particular but non-western countries in general—need to be challenged, with a more realistic appraisal provided by trade organisations and the FCO. One thing that can help, and where we are well placed to deliver effectively, is our capacity-building skills and consultancy generally. These emerging economies are crying out for this. Education, which I have mentioned, is another area of expertise where we could be doing so much more across the emerging economies of the Commonwealth. High-value engineering, fashion retail—where we are possible world leaders—and of course financial services, which probably deserves a whole debate in itself, are all areas within our capacity.
But while we scope out our strategy for the future and where we want to be 10 years hence, we must also ensure that our teams pursue policies that will provide a future for those left behind in society, in particular by developing our manufacturing base. It is about being outward-looking, and engaging globally—but that means looking to home, and building and supporting businesses here. The last two days of debate on the outcome of the EU referendum have highlighted the concerns of many noble Lords that we have real issues of inequality and disparity in our society. So this must be a time for collective thinking—for creative thinking.
It is the small and new businesses which continue to revolutionise the economy of this country. The talents of people from all regions of the United Kingdom—from the north of Scotland all the way to the most southern regions of England and Wales and Northern Ireland—will take us forward. If we want to export, we have to make things. We must increase and expand our manufacturing base and output. The very substantial regional and generational inequalities have to be tackled, and having a goal to promote Britain abroad is a great way to take everyone forward together. It is time to invest in entrepreneurship and to teach and provide the young with certain skills. This is already being done in many schools but needs ever-greater attention. It is crucial that we persuade potential investors that the UK’s infrastructure and policies are among the most attractive in the world for manufacturing. I will make one important point here today: the UK has underinvested in infrastructure and we are hesitating once again in our commitment to airport expansion. This cannot be right at such a crucial time for our country and our economy.
As a student of history, I spent many hours trawling through the dusty archives of the Mitchell Library in Glasgow when I was carrying out some postgraduate research—which, I hasten to add, never saw completion. I recall the sense of awe when uncovering old company documents and reading of the great trading nation that Britain was. As a small island with a small population, Britain was the most advanced economy of the 19th century. Of course, the circumstances were quite different—we had the advantage of leading the industrial revolution—but there was something else there: determination and a strong work ethic. The degree of entrepreneurship and the fearlessness in exploring new geographies around the world was really quite remarkable.
With globalisation, we are so much more inter- connected, and in some ways that should make it easier. But we require leadership and the right conditions for business to flourish—venture capital investment and finance for small and medium-sized enterprises, and proper connectivity. There is one great plus that I can see from leaving the EU; with any luck, there will be a reduction in red tape and bureaucracy, which has for so long stifled SMEs. Perhaps now we can develop conditions whereby public procurement can benefit small companies.
I can say from my own experience of business just how dismal a scenario it has been. OJEC has required the kind of resource that small businesses just do not have. OJEC, or the Official Journal of the European Community—or now OJEU, the Official Journal of the European Union—is the publication in which all tenders from the public sector which are valued above a certain financial threshold according to EU legislation must be published. It is one rule that it will be a relief for companies such as mine to flush away—and let us refrain from putting other red tape in its place. We now need more doing and less paper-pushing.
Finally, we ought to develop a “Built in Britain” brand: something that stands for quality and longevity. It requires collective thinking from industry and government and requires an aggressive mix of bureaucrats and business people to make it happen. We need a Built in Britain brand which carries everyone with it and is part of the nation building that is so badly required—a banner under which we can export to the rest of the world.
In closing, I ask my noble friend the Minister to perhaps give us some indication of the current thinking of Her Majesty’s Government on the global opportunities for trade post Brexit.
Outcome of the European Union Referendum
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Lord Williams of Baglan (CB)
My Lords, like many in your Lordships’ House, I did not expect a few weeks ago to be speaking in a debate today on the UK leaving the EU, but that is what we are now doing.
Formally, of course, it is the EU but, for all intents and purposes, there is little difference between the EU and Europe. In that regard we are joining the outsiders: Norway and Iceland, Switzerland, Albania—that country much beloved of Michael Gove—and the rump states of the former Yugoslavia, Bosnia and Herzegovina, Serbia and Montenegro. We cannot build our future on relations with this small band of countries. It is abundantly clear that our non-European allies and economic partners, such as the United States and Japan, saw our future within, not without, the EU.
We now have to find our way in an uncertain and even dangerous world with few friends. Even before 23 June, it was clear that the Obama Administration was becoming increasingly critical of the present UK Government. Leaving is a rejection of the other, and a rejection of our long-standing partners in the European Union. In the United States it is often said that leavers are losers. History is full of departures with unforeseen results—among these, the Confederate States, which left the United States in 1860 to be defeated a few years later in a bitter civil war; and the League of Nations, of which the great Woodrow Wilson was one of the architects but whose country, the United States, refused to join, dooming the League of Nations from the start. President de Gaulle took France out of NATO, only to readjust a few years later when the Soviet Union invaded Czechoslovakia. What sort of outcome is it when it is difficult for the friendliest foreign ministry in the world to find anything positive to say about a retreat from the world which, in itself, directly imperils the union of these isles?
I warn, too, as a former UN Under-Secretary-General, of the threat to our position as a permanent member of the Security Council. We are now the smallest and weakest of that group. Three members—the United States, Russia, and China—are great continental states with economies and populations much larger than ours, which is set to decline even further. Then there is France, which is soon to be the only EU state permanently on the Council. On its own, France will, I believe, increasingly seek to use its position to claim de facto to be the voice of the European Union. There is a real danger that just as our political strength has been depleted and our economic future looks uncertain, our moral authority and influence in the UN will decline.
It was not the Prime Minister of a Middle Eastern autocracy or a Latin American dictatorship but the Netherlands’ Mark Rutte who sadly said of the referendum outcome:
“That country now has collapsed—politically, economically … and you will have years ahead of you to get out of this mess”.
Those are harsh words but they are harsher when they come from one of our closest allies and a fellow member of NATO. They move me to ask the Minister what measures the Government anticipate taking to repair the UK’s reputation and global influence, and how they will counter the perception of UK isolationism, which is now, I believe, widespread.
The situation is complicated even further by the current Conservative Party leadership campaign, as noted by the noble Lord, Lord Naseby. It is taking place at a pace that is incomprehensible for any other country. That in the 21st century we are taking a month or more to elect the leader of one of our great democratic parties, and our Prime Minister, is incomprehensible to anyone outside of these isles. We cannot live, especially at this time, without an active Prime Minister. He frankly cannot hide behind the closed doors of No. 10. On the contrary, there is a strong case for him visiting key allies and economic partners such as the United States and Japan, to calm nerves in Washington and Tokyo. This cannot be left for two months. And when I speak of two months, September is the opening of the General Assembly of the UN. Every Head of Government in the world will be present and we cannot be unseated.
The Lord Privy Seal (Baroness Stowell of Beeston) (Con)
My Lords, for the House’s information, the Prime Minister is attending the NATO summit this weekend. To suggest that he is not attending the current global summits is inaccurate.
Lord Williams of Baglan
I am grateful to the Minister. That is exactly the sort of thing I would like to hear and I hope the Prime Minister can do more in that regard in the coming weeks. We must be conscious, too, of NATO. In these times, when we are set to leave the EU, we must pay it greater attention, and I am glad the Prime Minister will be going to that summit. It is true that the vast majority of NATO members are also in the EU; that is, aside from Norway, Iceland, the US, Canada and Turkey. It is particularly important to make it abundantly clear that though we may—quixotically, as historians are likely to note—be leaving the EU, our commitment to the UN and NATO, and, for that matter, the Commonwealth, is as strong as ever. I call on the Minister to consider an action plan to demonstrate our internationalism at a time when most of the world will be agreeing with the Dutch Prime Minister.
Outcome of the European Union Referendum
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The Lord Privy Seal
That this House takes note of the outcome of the European Union referendum.
The Lord Privy Seal (Baroness Stowell of Beeston) (Con)
My Lords, our debate today has the potential to be one of the most significant in the recent history of your Lordships’ House. Indeed, I see today as a real opportunity for us as a House to reflect on the decision that has been made and to offer some clear thinking about the issues we now face as a country. It is an opportunity for the House of Lords to show why it exists.
In repeating several Statements over the last week, I have set out the views of Her Majesty’s Government, and I want today to be much more than an occasion for me to set them out again. Over the next two days my noble friend Lady Anelay and I are here primarily to listen, so, in opening, I will try to start the process of reflection by offering my perspective both on the vote itself and on the responsibilities incumbent on this House, as I see them, in the weeks and months ahead.
To state the obvious first, the referendum was a momentous democratic exercise. Over the weeks of the campaign we saw passionate cases put forward by both sides and, more importantly, we saw voters engage with an enthusiasm that we had not seen for many years. Indeed, more than 33 million people from across the UK and Gibraltar exercised their democratic right.
I appreciate that when the votes were counted it was not the result that many of us may have wanted— indeed, 48% of us voted to remain—but the result was clear. By a margin of more than 1 million, 52% of the people who voted elected for the United Kingdom to leave the European Union—an instruction that this Government, and all of us, must respect and seek to act on.
Baroness Stowell of Beeston
It would be possible for us to go over the campaigns again in detail, to look for ways to re-examine the result or to pose again the question of our EU membership, but in my view that would be the wrong thing for us to do. Not only would it distance us further from many of the people we are here to serve; worse, it would be a missed opportunity to serve them better. Instead, we should take this opportunity to play our part in shaping the way ahead and, as I see it, perform our duty of reassuring people about our country’s future by offering some clear thinking about that way forward.
Clearly, there is further work for us to do in determining our future relationship with the European Union. As the Prime Minister said, we are leaving the EU but we are not turning our backs on Europe. The next steps will not be easy. There will be complex negotiations ahead but we should approach them with the clear guiding principle of ensuring the best possible outcome for the British people. As the Prime Minister has made clear, the nature of negotiations, and the shape of any deal we strike, will be for his successor and their Government. That is why it will be for them to decide when to trigger Article 50.
In the meantime, there is a lot of ground to cover in examining the options available so that, when decisions are taken, we put our best foot forward and maintain Britain’s reputation as an open, outward-looking nation, maintaining our strong partnerships in Europe, continuing to play our role on the world stage, holding fast to our values of tolerance and respect, and showing that Britain remains open for business. That is something that we in Government will do with the input of all the devolved Administrations. It is something that I hope this House will play an important part in as well, for among the membership of this House of Lords we have an unrivalled expertise in EU and foreign affairs. We also have a range of EU committees, whose dispassionate scrutiny is admired here, in Brussels and around the European Union. That means that we are well placed to come forward with ideas to make a future deal a success for all parts of the United Kingdom.
I know that noble Lords will express views and have questions about the nature of further parliamentary involvement beyond that and the precise form that it will or should take. Those are valid questions, and the debate among legal minds has already begun. I know that our Select Committees may also choose to examine them, but those are questions which will, rightly, be for the next Prime Minister to address. I am clear, as Leader of this House, that Parliament should have an appropriate role. However, in debating what that role should be, we should be careful to show that our focus remains on delivering the referendum result and on applying all our knowledge and experience to make our future a successful one for the United Kingdom.
That is an important point and brings me on to the broader responsibility we have to bear in mind as we proceed, particularly as an unelected House. In the period since the vote there has been a lot of analysis and reflection about the reasons people voted how they did. The headline from those who voted to leave was clear: they wanted to leave the European Union. Their reasons will have varied and, for some people, may have developed over many years. However, whatever those reasons, we must take that message away and deliver on the instruction we have been given.
In doing so, we must also consider that the vote reflected something else as well: a frustration with the status quo: a sense that voters felt distant from those who exercise power and misunderstood by the people who make the decisions that affect them. So although we rightly must focus on the question of our place in Europe, as we do so, we must not lose sight of that desire for people to be better understood. If we are able to address the challenges we face with that in mind, we will build public confidence in Parliament and this House within it.
That means demonstrating that our focus is on delivering success for all the people of the UK, whichever way they voted, and on finding solutions that fit with people’s understanding of the choice the country made. If we do not, we will miss the opportunity before us and the gaps this vote highlighted will only become more entrenched between old and young, graduates and non-graduates and those living in our major cities and elsewhere—or, to put it another way, the gap between those who have privilege, power and influence and those who feel they do not.
Noble Lords may ask how we can possibly do all this. That is where we can demonstrate the value of our experience and expertise. I was never of the view that the people are fed up with experts, but I do believe that some of those who feel that gap I have just described may be fed up with experts not understanding them. In times of uncertainty such as these, people rightly look to those of us in positions of leadership to use our knowledge and our understanding of the challenges people face to develop an answer that works for them.
That may be the point on which to conclude because it reflects the essential challenge we now face. The result on 23 June was for the United Kingdom to leave the European Union. I campaigned vigorously for remain, as did many in your Lordships’ House, but I stand by the result of that referendum and want to work hard now to implement what has been decided.
As we proceed we must not forget the interests and views of the 16 million other people who voted to stay. In the disappointment many feel about the outcome of the referendum, there may be a temptation to simply leave to others the consequences of the Brexit vote. After all, although the result told us clearly what people were voting against, it did not give us a specific view as to what people were voting for. Yet the public as a whole, however they voted, deserve more. With the referendum result they have asked us to come together and to come up with a solution that works for everyone and achieves the best outcome for Britain on every possible front. It is our duty, as public servants to do just that.
There will be challenges ahead, of that I am sure, but it is for us all to find the way forward to meet them so that the United Kingdom can continue to prosper, as one nation, in the years to come. I beg to move.
Business of the House
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Baroness Stowell of Beeston
That Standing Order 40(1) (Arrangement of the Order Paper) be dispensed with on Tuesday 5 July to enable the debate in the name of the Lord Privy Seal to be taken before oral questions.
European Council
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The Lord Privy Seal (Baroness Stowell of Beeston) (Con)
My Lords, with the leave of the House, I will now repeat a Statement made by my right honourable friend the Prime Minister in another place. Before I do, because this is the first opportunity the Government have had in this House to condemn the horrific terrorist attack in Istanbul yesterday, I am sure that all noble Lords will join me in offering our thoughts and prayers to those who have been affected. Details are still emerging, but in response to such attacks we stand as one.
The Statement is as follows:
“With permission, Mr Speaker, I would like to make a Statement on yesterday’s European Council. This was the first Council since Britain decided to leave the European Union. The decision was accepted and we began constructive discussions about how to ensure a strong relationship between Britain and the countries of the European Union.
But before the discussion on Britain, there were a number of other items on the agenda, and I shall touch on them briefly. On migration, the Council noted the very significant reductions in illegal crossings from Turkey to Greece as a result of the agreement made with Turkey in March, but it expressed continued concern over the central Mediterranean route and a determination to do all we can to combat people smuggling via Libya.
Britain continues to play a leading role in Operation Sophia with HMS “Enterprise”. I can tell the House today that Royal Fleet Auxiliary “Mounts Bay” will also be deployed to stop the flow of weapons to terrorists, particularly Daesh, in Libya.
On NATO, Secretary-General Stoltenberg gave a presentation ahead of the Warsaw summit, and the Council agreed the need for NATO and the EU to work together in a complementary way to strengthen our security.
On completing the single market, there were important commitments on the digital single market, including that EU residents will be able to travel with the digital content they have purchased or subscribed to at home.
On the economic situation, the president of the European Central Bank gave a presentation in the light of the outcome of our referendum. Private sector forecasts discussed at the Council included estimates of a reduction in eurozone growth of potentially between 0.3% and 0.5% over the next three years. One of the main explanations for this is the predicted slowdown in the UK economy, given our trade with the euro area. President Draghi reassured the Council that the ECB has worked with the Bank of England for many months to prepare for uncertainty, and in the face of continued volatility our institutions will continue to monitor markets and act as necessary.
Returning to the main discussions around Britain leaving the EU, the tone of the meeting was one of sadness and regret, but there was agreement that the decision of the British people should be respected. We had positive discussions about the relationship we want to see between Britain and our European partners and about the next steps on leaving the EU, including some of the issues that need to be worked through and the timing for triggering Article 50. Let me say a word about each.
First, we were clear that, while Britain is leaving the European Union, we are not turning our back on Europe, and it is not turning its back on us. Many of my counterparts talked warmly about the history and the values that our countries share and the huge contribution that Britain has made to peace and progress in Europe. For example, the Estonian Prime Minister described how the Royal Navy helped to secure the independence of his country a century ago. The Czech Prime Minister paid tribute to Britain as a home for Czechs fleeing persecution. Many of the countries of eastern and central Europe expressed the debt they feel to Britain for standing by them when they were suffering under communism and for supporting them as they joined the European Union. And President Hollande talked movingly about the visit that he and I will be making later this week to the battlefields of the Somme, where British and French soldiers fought and died together for the freedom of our continent and for the defence of the democracy and the values that we share.
So the Council was clear that, as we take forward this agenda of Britain leaving the European Union, we should, rightly, want to have the closest possible relationship that we can in the future. In my view, this should include the strongest possible relationship in terms of trade, co-operation and, of course, security—something that only becomes more important in the light of the appalling terrorist attack in Turkey last night.
As I said on Monday, as we work to implement the will of the British people, we also have a fundamental responsibility to bring our country together. We will not tolerate hate crime or any kinds of attacks against people in our country because of their ethnic origin. I reassured European leaders who were concerned about what they had heard was happening in Britain. We are a proud, multi-faith, multi-ethnic society—and we will stay that way.
I turn to the next steps on leaving the EU. First, there was a lot of reassurance that, until Britain leaves, we are a full member. That means that we are entitled to all the benefits of membership and full participation until the point at which we leave. Secondly, we discussed some of the issues which will need to be worked through. I explained that, in Britain, there was great concern about the movement of people and the challenges of controlling immigration, as well as concerns about the issue of sovereignty. Indeed, I explained how these had come together. In turn, many of our European partners were clear that it is impossible to have all the benefits of membership without some of the costs—something that the next Prime Minister and their Cabinet are going to have to work through very carefully.
Thirdly, on the timing of Article 50, contrary to some expectations, there was not a great clamour for Britain to trigger this straightaway. While there were one or two voices calling for this, the overwhelming view of my fellow leaders was that we need to take some time to get this right. Of course, everyone wants to see a clear blueprint in terms of what Britain thinks is right for its future relationship with the EU. As I explained in my Statement on Monday, we are starting this work straightaway with a new unit in Whitehall, led by a new Permanent Secretary, Oliver Robbins. This unit will examine all the options and possibilities in a neutral way, setting out costs and benefits, so that the next Prime Minister and their Cabinet have all the information they need with which to determine exactly the right approach to take and the right outcome to try to negotiate. But the decisions that follow from this—including the triggering of Article 50—are rightly for the next Prime Minister. The Council clearly understood and, I believe, respected that.
I do not think it is a secret that I have, at times, found discussions in Brussels frustrating. Despite that, I believe we can be proud of what we have achieved: whether it is putting a greater focus on jobs and growth, cutting the EU budget in real terms for the first time and reducing the burden of red tape on business, or building common positions on issues of national security, such as sanctions to stop Iran getting a nuclear weapon, standing up to Russian aggression in Ukraine and galvanising other European countries to help with the lead that Britain was taking in dealing with Ebola in Sierra Leone. In all these ways, and more, we have shown how much we have in common with our European partners, as neighbours and allies who share fundamental values, history and culture.
It is a poignant reminder that, while we will be leaving the European Union, we must continue to work together for the security and prosperity of our people for generations to come. I commend this Statement to the House”.
My Lords, that concludes the Statement.
Lord Wallace of Tankerness
Or she. The difficulty will be knowing what they are negotiating about, because the leave that Mr Nigel Farage campaigned for is not the leave that the honourable Member for Uxbridge and South Ruislip, Mr Johnson, campaigned for. Can the noble Baroness tell the House whether the new Whitehall unit she referred to will be preparing dossiers on all the varied positions, whether 57 varieties or more? Will it be putting those forward to the incoming Administration, setting out what the implications are for each of the leave varieties and addressing some of their fundamental contradictions?
I am also concerned that, as we go forward, there will be growing dissatisfaction and frustration as people realise that much of what they have been promised will not be possible. That must pose a threat to liberal democracy in this country, indeed, to parliamentary democracy, which is based on attention to evidence, reasoned debate, willingness to compromise and tolerance. I note that the Statement emphasised that we are not turning our back on Europe and that the European Union is not turning its back on us. This is important as we move forward, so we can demonstrate that there can be constructive discussions on the future.
We know that following this Statement there will be a Statement from the Home Office on hate crime. I share the deep concerns that have been expressed in your Lordships’ House about the surge of resentment, intimidation and blatant racism that we have seen in this country since last Thursday. This is not our Britain. We want a Britain which is a country of tolerance and acceptance. Words are not enough, we want some reassurances of increased police awareness and activity, not just in London but throughout the country.
I have some specific questions about our immediate relationship with the European Union, picking up on what the noble Baroness, Lady Smith of Basildon, said. The Prime Minister confirmed in the other place on Monday that he will appoint a new Commissioner to fill the vacancy. Can the Minister give us an indication of when the position will be filled and what the process will be for appointing a new Commissioner? Following questions on Monday, I wrote to her yesterday querying not when but how Article 50 might be triggered. What are the United Kingdom’s own constitutional requirements in terms of paragraph 1 of Article 50? If she cannot answer today, will she indicate that she will be in a position to do so when we debate these matters next Tuesday? Again, noting what the noble Baroness, Lady Smith, said about the presidency of the Council of the European Union, which we are due to take up a year this week, can the Minister give us an indication of the Government’s position on that? Indeed, does she think it wise for us to go down that road and, if so, what in the world would we be putting on the agenda? We need a real indication of the Government’s assessment and analysis of that situation.
Finally, it is clear that many people in English regions and in Wales felt let down and left behind, not just by Europe but by politicians and decision-makers at home. People in the north-east and south-west of England voted against London, I believe, as much as against the European Union. But the sad reality is that the alternatives offered by the leave campaign will do nothing much to help those in England’s poorer regions. Those who promised that we can spend the money we get back from Europe on the NHS and wider public services are also people who believe in shrinking the state. There seems to be a fundamental contradiction here. Will the Leader look again at disproportionate cuts in local authority budgets and public investment in places such as Cornwall, the north-east and the north-west? Will the Government address with more urgency investment in training, further education and skills? Will she say how we might be able to secure the hopes and aspirations of younger people, who voted in such numbers to remain in the European Union?
These are domestic issues. They do not have to await negotiation with 27 other EU countries, nor do we need negotiation with 27 other EU countries to determine whether European Union citizens currently living and working in the United Kingdom can stay here post-Brexit. This is something we can do ourselves and surely the Government must start addressing these issues now.
Baroness Stowell of Beeston
My Lords, it is clear that there are very strong views and feelings right now following the referendum result last week. I understand that. A very important event has taken place and a very important decision has been made. While I feel it is absolutely right that we follow this clear instruction that has come from the British people to leave the European Union, it is important, as the Prime Minister stressed in his Statement, that we are not turning our back on Europe or our European partners, and we must work together with Europe to ensure that we continue our shared security and that we do so in a way that promotes and protects the prosperity of the United Kingdom and all the people living in all parts of the United Kingdom.
As the Prime Minister has been at pains to say, the precise relationship between the United Kingdom and Europe in the future will be one for his successor to decide and is not one that he, in his remaining few weeks as Prime Minister, will be taking the lead on. It is very important that this Government make a big contribution to maintaining the stability of this country in a very uncertain time. I do not dispute that it is a very uncertain time for people, and that is reflected in different ways.
Picking up on the first point raised by the noble Baroness and the noble and learned Lord about the status of British people living in Europe and of European citizens living and working in this country, the first and most important thing to say is, whether you are a Brit living and working abroad or whether you are a European citizen living and working in this country, you are making a valuable contribution. Certainly, the EU citizens living and working in this country are making a vital contribution to our country. The Prime Minister has been at pains to stress that right now nothing is affected by the result of the referendum last week. I very much heard and understand the House’s anxiety about free movement between this country and other European Union member states. We are not trying to negotiate about people’s individual status in the way that some noble Lords are trying to interpret what was said previously. We are saying that although at this moment nothing has changed—all rights are protected—we are going to have to work through a period of deciding the impact of the referendum result. Some of the impacts will come from our negotiations and discussions with Europe in the future and some may sit outside these. Over the next weeks and months, it will be uncertain. We have got to work together to try to provide what reassurance we can that people’s rights are not changed at this time. That is very important.
The noble Baroness also referred to uncertainty around the impact of the result of the referendum on the economy and jobs. To repeat what I have said, and I say this as someone who campaigned for us to remain in the European Union, it is vital for us in getting as soon as we can to that point of greater stability that we focus our energies on our negotiations for the future of this country in terms of its relationship with Europe. We cannot ignore the fact that there is a significant effect from that referendum decision that will lead ultimately to us leaving the European Union. The Government were of course leading the remain camp. We did forecast that there would be potential economic difficulties as a result of any decision to leave. However, in the light of this decision we must now ensure that we mitigate any immediate volatility arising. Over the weekend we have seen from the steps that were taken by the Bank of England and its work in co-operation with other institutions that its contingency planning has had a good impact on the markets in terms of providing some reassurance.
In the weeks that follow we clearly need to prepare for the new Prime Minister being in place and outlining what kind of relationship we want in the future with Europe and how that relationship will work, particularly in respect of the single market and whether we are going to be in it. Between now and then, the Prime Minister, the Secretary of State for Business, Innovation and Skills, the Chancellor and others will continue to have meetings with business leaders. The fact that we have a strong economy and are able to withstand this period of uncertainty is also helping stability. The unit that the Prime Minister has set up in Whitehall is there to make sure that at the point at which the new Prime Minister is in place they have at their disposal as much factual information as possible so that when they have got a clear vision of what kind of relationship the UK will have with Europe in the future they can move swiftly to the point of triggering Article 50.
The noble Baroness raised questions about the increase in hate crimes or demonstrations of racism against people. As I said on Monday, these are wholly and utterly abhorrent. Together we must make it clear to anybody who is trying to use the referendum result to promote racism that we reject that—we in the United Kingdom have not given up on our values. The fact that a majority of people in this country has decided not to be a member of the European Union any more does not mean that we should stop promoting the important values of this country. My noble friend Lord Ahmad will say more in the Statement that follows.
The noble Lord, Lord Campbell-Savours, is pointing to the clock. The Companion makes it clear that, if necessary, I can go beyond 20 minutes in order to respond to some of the points that have been raised. I will respond to them, but that will not in any way reduce the time allocated for Back-Benchers.
The noble Baroness and the noble and learned Lord asked some specific questions about the UK Commissioner in the European Union. The Prime Minister has made it absolutely clear that we are a fully paid-up member of the European Union until we stop being a fully paid-up member of the European Union and therefore have some entitlements, which include a Commissioner. He has raised this with the President of the Commission and we hope very soon to come forward with a nominee for that post. As for questions about next year’s EU presidency, I understand clearly that we need to get that resolved soon. I expect it will be done in short order, but I do not have any further information to offer at this time.
The noble and learned Lord asked about Article 50. Article 50 is the legal route we will follow in order to exit from the European Union, and I think we have all become familiar with the idea that triggering Article 50 will start that process formally. The Prime Minister has made it clear that he will not be triggering it and that it will be a matter for his successor. But in his view it is important that they are clear, at the point at which they trigger Article 50, about the kind of relationship the United Kingdom should have with the European Union. That will assist in the negotiations.
As for Parliament’s role in that process, as noble Lords heard me say on Monday, I am very keen to ensure that this House plays an important part between now and the start of any Article 50 process. Neither I nor the current Prime Minister can prescribe what role there might be for Parliament in deciding what the next Prime Minister will come forward with to take to Brussels in terms of the specifics of that process, but as I said on Monday, this House in particular has a wealth of knowledge, experience, expertise and wisdom, and I want to ensure that we use that as best we can. However, I want us to use it and channel it to secure a long-term successful future for the United Kingdom, while recognising that the people of this country have decided that our future will not be as a full member of the European Union.
Lord Tomlinson (Lab)
My Lords, I will raise the question that was raised very clearly by both the Front Benches—by the noble Baroness, Lady Smith, and the noble and learned Lord, Lord Wallace of Tankerness. The noble Baroness, Lady Smith, quoted directly from the Statement on the “next steps” before leaving:
“First, there was a lot of reassurance that until Britain leaves, we are a full member”.
Can the Leader of the House explain two things to us? First, what was the PM’s rationale for almost creating a precedent for his successor by not attending yesterday’s meeting? Secondly, if we are going to appoint a new Commissioner, what was the rationale for our present Commissioner so quickly deciding to resign? Those two issues show to me that we have already given up on part of the fight.
Baroness Stowell of Beeston
In response to the noble Lord’s first point, it is worth me clarifying what the arrangements are in terms of what the European Council can and cannot do in light of the United Kingdom’s decision. Until Article 50 is triggered, the European Council cannot meet without all of its member states. The meeting held today was not a meeting of the European Council; it was a meeting that they decided to hold in order to have informal discussions about the United Kingdom’s decision to exit from the European Union. That is a matter for them.
As far as the appointment of a new Commissioner is concerned, my noble friend Lord Hill has been an excellent Commissioner, and I am glad the noble Lord concurs with that point. As I said the other day, my noble friend made clear on Saturday his reasons for resigning from that post, and he obviously speaks for himself on that. However, as the Prime Minister has said, we are entitled to a European Commissioner and that is something he hopes to take forward.
Lord Howell of Guildford (Con)
Would my noble friend agree that there are two gleams of light in this rather churlish account of what has occurred in Brussels? The first is that there are reports that the principle of freedom of movement is in fact being re-examined right across Europe; it was said to be immutable, but it seems that, in the real, practical world that we now live in, it will have to be changed and that might be extremely useful for us. Secondly, the central and east European countries—their Governments and, indeed, their peoples—seem to be urging that the present Commission should be removed and that the new Commission formed, and indeed the President of the Commission, should be rather more constructive and friendly towards the United Kingdom and our ambitions.
Baroness Stowell of Beeston
I would say something else in response to my noble friend and his comment about churlishness or any kind of negativity, and that is to point noble Lords to the comments made by my right honourable friend the Prime Minister. The talks that took place yesterday in Europe were constructive; the tone was warm. We have not reached a point where we are doing anything other than proceeding in a way that is both responsible and constructive and that will lead to, as far as we are concerned, a continuing relationship—albeit a very different one in the future—because we think that is important and in everybody’s interest.
As to my noble friend’s comment about freedom of movement and the prospect of that being changed in some way, I am not sure that the read-out that the Prime Minister has given me, or the comments that he made to the other place, would be quite as encouraging as my noble friend has suggested. On the contrary, the leaders of the other members of the European Union do feel very strongly about freedom of movement—and that being not just goods, services and capital but also people—and what the Prime Minister explained in his discussions with them last night was that a willingness to consider that differently might have made a difference. I think it is also worth noting that this new future arrangement with the European Union, whatever it may be, will not lead to the deal that the Prime Minister did strike some months ago. I do not think we should underestimate him, and perhaps now we can see just how much he did achieve in getting them to agree to those changes to the welfare arrangements as a response to this particular issue.
Lord Hannay of Chiswick (CB)
My Lords, would the noble Baroness the Leader of the House recognise that what the Prime Minister said about the treatment of European Union citizens in this country is that he will graciously apply the law of the land—no more, no less? Does she not think it a little odd that the Prime Minister and the Government should have to say that they will obey the law of this country? That is what that adds up to—nothing more. Could the noble Baroness tell us what figures for growth of the British economy underpins the figures she quoted from the European Central Bank regarding the effect on the eurozone economy? Those figures must exist; otherwise, they could not could not have been produced.
Baroness Stowell of Beeston
I am not able to provide right now the data that the noble Lord has asked for on the economy. If I can, I will write to the noble Lord with that information. I would say to him again, and to the House as a whole, that we have a strong economy in this country, and it is because of that strong economy that we are in a good position to withstand whatever period of uncertainty we are about to endure.
Baroness Falkner of Margravine (LD)
My Lords, the noble Baroness tells the House that the empty chair today is not because of any legal issues but because it is an informal meeting. She will know that Nicola Sturgeon is meeting the Commission chairman, Mr Juncker, as well as the President of the European Parliament today. Is that an informal meeting as well? Is foreign affairs still a reserved matter, or will they have discussions with the Scottish Government over amending the Scotland Act and consultations about Brexit?
Baroness Stowell of Beeston
I can certainly confirm that foreign affairs is a reserved matter and that the UK’s relationship with the European Union is just that—the UK’s relationship with the European Union. The decision to leave was one taken by the United Kingdom as a whole. Future negotiations on our future relationship will be United Kingdom led. That said, the Prime Minister has been at pains to stress that, in this period—and, he hopes, that of his successor—the United Kingdom Government will consult the devolved Assemblies. We want to ensure the best result for all parts of the United Kingdom and this Government very much believe that that will be achieved if we consult them.
As for the noble Baroness’s points about empty-chairing discussions on this, that and the other, I point out to noble Lords that, in addition to attending the European Council yesterday, the Prime Minister held bilateral meetings with other members of the European Union, the President of the Commission and so on. He has said today that, while formal negotiations on the UK’s exit from the EU will be triggered by Article 50, which can be triggered only by the United Kingdom—and members of the European Union have made clear that, from their perspective, that is the point at which formal negotiations will start—that will not prevent discussions taking place bilaterally. That is something which he very much hopes his successor will continue.
Lord Wigley (PC)
My Lords, on that very point, I have a strictly technical question, for which there must be a very clear answer. If indeed, as far as Brussels is concerned, negotiations can start only after Article 50 has been moved—those negotiations may be satisfactory or unsatisfactory as far as the UK is concerned—at the end of that process, does the UK have the right to withdraw its application under Article 50?
Baroness Stowell of Beeston
I am sure that we will find over the next couple of years that there will be lots of debates about many of these things, but what is very clear to me is that, once Article 50 is triggered, that is the formal start of the exit process. Unless an agreement is reached between the United Kingdom and the other member states in advance of the end of the two-year period—or at the end, if there is unanimous agreement among those member states with the United Kingdom that it should be extended—once that process starts, it will be completed at the end of two years.
Lord Hain (Lab)
Does the noble Baroness agree that yesterday the Prime Minister was the first in Britain’s history to attend a European Council without a clue as to what the British agenda was? Given that his possible, perhaps likely, successor Boris Johnson wrote a newspaper article on Monday saying that we needed to stay in the single market, only for his aide to say yesterday that he was too tired when he wrote it and did not really mean that, and given that on the doorstep in south Wales, as I can testify, people voted leave because immigration was going to be reduced—a promise also reneged on by the leave leaders—is there not now an irrefutable case for this House to consider a referendum at some point in future after the deal has been agreed, because it is very evident that people voted last Thursday without any idea what was actually going to happen to them?
Baroness Stowell of Beeston
We are in a situation where, clearly, this Government campaigned for our recommendation to the British people, which was to remain in the European Union, but a majority of the British people rejected that position and decided that we should exit. This Prime Minister is working hard, between now and the point at which he is replaced, to provide as much as he can by way of factual information so that the next Prime Minister is in a strong position, as soon as possible, to outline the kind of relationship that the United Kingdom should have with the European Union. I have explained that the Article 50 process will be the formal trigger process between the United Kingdom and the European Union. As for the point at which other events will occur, once there is that clarity on the type of relationship that the next Prime Minister wishes the United Kingdom to have with the European Union—when that is presented and other contributions, whether from Parliament or anyone else, are made—I cannot say at the moment, as that will be something that the next Prime Minister has to decide.
Lord Forsyth of Drumlean (Con)
My Lords, could my noble friend confirm that the Prime Minister is first among equals and that we do not have a presidential system of government in this country? Could she say, on behalf of the Government, for whom she speaks in this House, that any European citizen living in Britain has a right to remain here and that right will not be in any way affected by Brexit, and that the position is not negotiable? She must be aware that many people are concerned about their position and their future and surely it is the responsibility of the leadership of this Government to make it absolutely clear that there is no question mark over that.
Baroness Stowell of Beeston
I will say what I have said already—which I believe is very clear, although I understand that my noble friend is seeking from me something which goes beyond what I am able to do at this time—which is that, as things stand, nothing has changed. However, I understand and very much appreciate why he and others are raising these questions. These are things which we will have to return to, and I recognise that we will have to return to them as quickly as we can.
Lord Kerr of Kinlochard
Does the noble Baroness understand that the point made by the noble Lord, Lord Forsyth of Drumlean, has enormous force and is understood all around this House? This morning, I heard the French ambassador tell of French citizens in the streets of London—detected as French because they were speaking their language—being told by the crowd to go home. We cannot have this; the Government have to speak up.
Baroness Stowell of Beeston
I hope the noble Lord, Lord Kerr, has heard me say already today that anybody who is at this time telling anybody that they should go home is completely and utterly wrong, and that is not something which this Government are in any doubt about whatever. What I cannot say to the noble Lord or to the House, I fear, is—at the point at which we exit the European Union—what our relationship will be with France, in order to determine what kind of citizenship rights we want to offer.
Lord Richard
The noble Baroness said earlier that we should all now concentrate our energies on the negotiations, if I understood what she said. Can she help me a little bit? How can I concentrate my energies on negotiations when, first, I do not know when they will be negotiating; secondly, I do not know who is going to be doing the negotiating; thirdly, I do not know precisely what they are going to negotiate about; and fourthly, I do not know what our negotiators are trying to achieve?
Baroness Stowell of Beeston
I am not sure that there was a question in there, my Lords.
Baroness Stowell of Beeston
As the noble Lord knows and the House understands—we all understand—the people of the United Kingdom were offered an opportunity to decide whether we should remain in the European Union or not. They have made their decision; we are now in a period of having to transition between that decision having been made and the next steps being taken. At the moment, what the Prime Minister is doing, and what I am doing, is setting out the information that we have—recognising of course that there is much more that needs to be established. That is something that the next Prime Minister will have to take forward but, in the meantime, the Government are doing quite a bit in order to prepare for that stage.
Baroness Smith of Newnham (LD)
My Lords, I am almost minded to ask—given that Vote Leave promised us that we could “take control”—whether anybody is in control at the moment. However, I want to point to Chancellor Angela Merkel’s comments in the Bundestag yesterday when she said that she was concerned about German citizens living in this country who are concerned about their future. We have not even triggered Article 50 yet. The noble Baroness suggested that nothing changes until we leave, but, actually, things have changed already. People are aware that we have taken that vote and that decision. We need some leadership from the Government and we need to know that the rights of EU nationals resident in this country will be secured. That is for the Government to do, not for negotiations.
Baroness Stowell of Beeston
I am afraid that I can only say what I have already said, which is that the rights of all people from the European Union living in this country are unchanged at this time. As frustrating as it may be for the noble Baroness to hear me say it again, their rights are completely unchanged. It is of course something that we will need to clarify, but it is not something that I am able to do today.
Lord Hayward (Con)
My noble friend made reference to the growth figures and the projected growth of not only Britain but the European Community. Pending the referendum, a large number of decisions seem to have been deferred. To boost economic growth, I ask that some of them are now taken and implemented. I cite two examples, one slightly less contentious than the other: there is a planning application pending in relation to City Airport, which would be a good indicator of future economic growth; and there have been requests from all sides of this Chamber that a decision on runway capacity in the south-east is announced before the Summer Recess. I hope that that is stuck to.
Baroness Stowell of Beeston
Clearly there is a range of different decisions that we will have to continue to reflect on. I am not in a position to give my noble friend any new information about the timings of those decisions.
Baroness Stowell of Beeston
Order, order. I am so sorry, my Lords. As noble Lords know, we do not have points of order in this House.
Baroness Stowell of Beeston
We are now moving on to the next Statement. The noble Lord asks about the time allocated to Back-Bench questions. As he knows—I think that he was here in the House on Monday—I was very happy to extend the time on Monday for Back-Bench questions. I have repeated this Statement today. We have scheduled time on Tuesday next week for a full day’s debate for noble Lords to debate Europe and we will have a series of debates on Thursday. I know that there is much that noble Lords want to debate and question, and there will be lots of opportunities, but I am afraid that we have to continue with our other business. My noble friend Lord Ahmad is about to make a very important Statement which covers some of the topics that noble Lords have been raising. I am sorry, but we are going to move on. I just want to explain to the House what it is that we are doing right now. My noble friend is now going to move on.
Outcome of the EU Referendum
Baroness Stowell of Beeston Excerpts(7 years, 10 months ago)
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Lord Taylor of Holbeach (Con)
My Lords, with the leave of the House, it may be helpful if I make a brief business statement regarding our proceedings this afternoon and in the coming days. My noble friend the Leader will now repeat the Prime Minister’s Statement on the outcome of the EU referendum. Following discussions in the usual channels, we have made provision for 40 minutes of Back-Bench questions. I have also agreed to consider further extensions if at the end of 40 minutes there is still a significant number of Members wishing to ask questions.
I reassure noble Lords, however, that this will be the first of several occasions for the House to take stock of recent events. There is a European Council meeting later this week, and we intend to arrange a full debate next week—probably on Tuesday, in lieu of the Second Reading of the Policing and Crime Bill, which will be rescheduled to a later date.
The Lord Privy Seal (Baroness Stowell of Beeston) (Con)
My Lords, with the leave of the House, I will now repeat the Statement given by my right honourable friend the Prime Minister in another place. The Statement is as follows:
“With permission, Mr Speaker, I would like to make a Statement on the result of the EU referendum.
Last week saw one of the biggest democratic exercises in our history, with over 33 million people from England, Scotland, Wales, Northern Ireland and Gibraltar all having their say. We should be proud of our parliamentary democracy. However, it is right that, when we consider questions of this magnitude, we do not just leave it to politicians but rather listen directly to the people. That is why Members from across this House voted for a referendum by a margin of almost 6:1.
Let me set out for the House what this vote means, the steps we are taking immediately to stabilise the UK economy, the preparatory work for the negotiation to leave the EU, our plans for fully engaging the devolved Administrations, and the next steps at tomorrow’s European Council.
The British people have voted to leave the European Union. It is not the result that I wanted nor the outcome that I believe is best for the country I love, but there can be no doubt about the result.
Of course, I do not take back what I said about the risks: it is going to be difficult. We have already seen that there are going to be adjustments within our economy, complex constitutional issues and a challenging new negotiation to undertake with Europe. However, I am clear, and the Cabinet agreed this morning, that the decision must be accepted and the process of implementing the decision in the best possible way must now begin.
At the same time, we have a fundamental responsibility to bring our country together. In the past few days, we have seen despicable graffiti daubed on a Polish community centre and verbal abuse hurled against individuals because they are members of ethnic minorities. Let us remember that these people have come here and made a wonderful contribution to our country. We will not stand for hate crime or these kinds of attacks. They must be stamped out.
We can reassure European citizens living here and Brits living in European countries that there will be no immediate changes in their circumstances. Neither will there be any initial change in the way that our people can travel, in the way that our goods can move, or in the way that our services can be sold.
The deal we negotiated at the European Council in February will now be discarded and a new negotiation to leave the EU will begin under a new Prime Minister.
Turning to our economy, it is clear that markets are volatile and there are some companies considering their investments. We know that this is going to be far from plain sailing. However, we should take confidence from the fact that Britain is ready to confront what the future holds for us from a position of strength.
As a result of our long-term plan, we have today one of the strongest major advanced economies in the world and we are well placed to face the challenges ahead. We have low, stable inflation. The employment rate remains the highest that it has ever been. The budget deficit is down from 11% of national income and forecast to be below 3% this year. The financial system is also substantially more resilient than it was six years ago, with capital requirements for the largest banks now 10 times higher than before the banking crisis.
The markets may not have been expecting the referendum result but, as the Chancellor set out this morning, the Treasury, the Bank of England and our other financial authorities have spent the last few months putting in place robust contingency plans.
As the Governor of the Bank of England said on Friday, the Bank’s stress tests have shown that UK institutions have enough capital and liquidity reserves to withstand a scenario more severe than the country currently faces. The Bank can make available £250 billion of additional funds if it needs to support banks and markets. In the coming days, the Treasury, the Bank of England and the Financial Conduct Authority will continue to be in very close contact. They have contingency plans in place to maintain financial stability and they will not hesitate to take further measures if required.
Turning to preparations for negotiating our exit from the EU, the Cabinet met this morning and agreed the creation of a new EU unit in Whitehall. This will bring together officials and policy expertise from across the Cabinet Office, the Treasury, the Foreign Office and the Department for Business. Clearly, this will be the most complex and most important task that the British Civil Service has undertaken in decades, so the new unit will sit at the heart of government and be led and staffed by the best and brightest from across our Civil Service. It will report to the whole Cabinet on delivering the outcome of the referendum, advise on transitional issues and explore objectively options for our future relationship with Europe and the rest of the world from outside the EU. It will be responsible for ensuring that the new Prime Minister has the best possible advice from the moment of their arrival.
I know that colleagues on all sides of the House will want to contribute to how we prepare and execute the new negotiation to leave the EU, and my right honourable friend the Chancellor of the Duchy of Lancaster will listen to all views and representations and make sure that they are fully put into this exercise. He will be playing no part in the leadership election.
Turning to the devolved Administrations, we must ensure that the interests of all parts of our United Kingdom are protected and advanced. So as we prepare for a new negotiation with the European Union, we will fully involve the Scottish, Welsh and Northern Ireland Governments. We will also consult Gibraltar, the Crown dependencies, the overseas territories and all regional centres of power, including the London Assembly. I have spoken to the First Ministers of Scotland and Wales, as well as the First and Deputy First Ministers in Northern Ireland, and the Taoiseach, and our officials will be working intensively together over the coming weeks to bring our devolved Administrations into the process for determining the decisions that need to be taken. While all the key decisions will have to wait for the arrival of the new Prime Minister, there is a lot of work that can be started now; for instance, the British and Irish Governments will begin meeting this week to work through the challenges relating to the common border area.
Tomorrow I will attend the European Council. In the past few days I have spoken to Chancellor Merkel, President Hollande and a number of other European leaders. We have discussed the need to prepare for the negotiations, in particular the fact that the British Government will not be triggering Article 50 at this stage. Before we do that, we need to determine the kind of relationship we want with the EU. That is rightly something for the next Prime Minister and their Cabinet to decide. I have also made this point to the Presidents of the European Council and the European Commission, and I will make this clear again at the European Council tomorrow.
This is our sovereign decision and it will be for Britain—and Britain alone—to take. Tomorrow is also an opportunity to make this point: Britain is leaving the European Union but we will not turn our back on Europe or on the rest of the world. The nature of the relationship we secure with the EU will be determined by the next Government but I think everyone is agreed that we will want the strongest possible economic links with our European neighbours, as well as with our close friends in North America and the Commonwealth, and important partners such as India and China. I am also sure that, whatever the precise nature of our future relationship, we will want to continue with a great deal of our extensive security co-operation and to do all we can to influence decisions that will affect the prosperity and safety of our people here at home.
This negotiation will require strong, determined and committed leadership and, as I have said, I think the country requires a new Prime Minister and Cabinet to take it in this direction. This is not a decision I have taken lightly but I am absolutely convinced that it is in the national interest. Although leaving the EU was not the path I recommended, I am the first to praise our incredible strengths as a country. As we proceed with implementing this decision and facing the challenges it will undoubtedly bring, I believe we should hold fast to a vision of Britain that wants to be respected abroad, tolerant at home, engaged in the world and working with our international partners to advance the prosperity and security of our nation for generations to come. I have fought for these things every day of my political life and I will continue to do so. I commend this Statement to the House”.
My Lords, that concludes the Statement.
On my own behalf and as Leader of this House, I believe there is a particular role for the House of Lords in this period as we deliver on the clear instruction of the British people. We can provide stability by lending our experience, knowledge and expertise to the challenges we face, and add something different to the House of Commons in helping to make this decision work for Britain. Our EU Committee and its sub-committees are well placed to assist the House. As my noble friend the Chief Whip has already indicated, we will facilitate a debate in government time next week which will provide a further opportunity for the views of noble Lords to be heard.
Lord Wallace of Tankerness (LD)
My Lords, I, too, thank the Leader of the House for repeating the Prime Minister’s Statement and welcome the words she added in respect of what your Lordships’ House may be able to contribute. I declare my interest as a Britain Stronger In Europe board member.
As a democrat, I respect the outcome of Thursday’s referendum, but—I suspect like many colleagues across the House—I am profoundly saddened by the result. I have a deep anxiety about what the future holds for our country. I am worried about the divisions that have been laid bare across the country during this campaign and echo many of the concerns expressed by the noble Baroness, Lady Smith of Basildon, about the tone of much of the debate and the campaigning. I am fearful for what this means for our outward-looking and tolerant country as well as for the future integrity of the United Kingdom. Many on these Benches are angry that notwithstanding his fine words in the Statement about his vision for Britain, this Prime Minister put party interest before national interest, complacently believing that he could win a referendum primarily designed to settle internal Tory divisions.
The European Union is an institution to which we have belonged and contributed for the past four decades. It has delivered peace, promoted equality, kept us safe and opened the doors of opportunity, but it will no longer be a part of Britain’s future. I think too that the leave campaigners do not appear to have any plausible strategy. We have already seen that they are backtracking on many of the promises they made during the campaign. So the result will change not only the very fabric of our country, it will change Europe and our relationship with the wider international community. Regrettably, the United Kingdom has on many occasions failed to provide leadership in the European Union. As a result, the people of this country have seen Governments play a half-hearted role at best. There has been a failure domestically to make the positive case for the European Union and the benefits it brings. In some ways, therefore, it is not unsurprising that when faced with years of the EU being blamed for everything that is wrong in this country, a majority of people voted to leave.
But I fear that we are only just beginning to realise the adverse impact the vote will have. Since Friday morning we have seen the value of sterling plummet. Some £120 billion was wiped off the markets in the first 10 minutes of trading on Friday, while this morning sterling slipped another 2.6% against the dollar and the pound is at a 31-year low. Surely the leaders of the leave campaign owe it to us to tell us what they think is negotiable with other members of the European Union, what is not negotiable in spite of their many promises, and what the likely consequences will be for the British economy. I welcome the fact that the Chancellor of the Exchequer and the Governor of the Bank of England have tried to steady the markets this morning, but fundamentally it is the uncertainty of the United Kingdom’s position which will continue to cause nervousness in the economy. Businesses and the markets like certainty, but certainty would appear to be the last thing we have in the wake of the referendum.
I have a number of questions for the noble Baroness. Can she indicate what the present Government would wish to achieve in negotiations with the European Union? Do they believe that we should seek complete access for the United Kingdom to the single market? Do the Government even have a view? Given that younger voters overwhelmingly voted to remain in, what hope can the noble Baroness and the Conservative Party offer future generations that they will have the same access to jobs across Europe as previous generations?
Of course it is not just the economy that is uncertain, but the very fabric of our constitution. Article 50 states:
“Any Member State may decide to withdraw from the Union in accordance with its own constitutional requirements”.
I think that the House will be interested to know what the Government’s view is as to what our own constitutional requirements are. Are they an Act of Parliament, a resolution of the House of Commons, a resolution of both Houses or an executive decision by Members? That is an important question for the noble Baroness to answer.
Scotland and Northern Ireland both voted strongly to remain in the European Union and the Secretary of State for Scotland has said that, if the people of Scotland ultimately determine that they want a second Scottish independence referendum, there will be one. Can the noble Baroness confirm that that is the position of the United Kingdom Government? Does it mean that if the Scottish Parliament asks for a further referendum, the Government will bring forward an order under Section 30 of the Scotland Act 1998 to transfer the necessary powers for a referendum to take place?
Northern Ireland as we know shares a land border with another EU country. Thousands of people cross it every day in both directions visiting friends and family, while the economy of Northern Ireland relies heavily on the European Union as a pull factor for internal investment, and directly in the form of research and development grants and peace grants. Can the noble Baroness set out the Government’s understanding of the operation of the common travel area where one country is an EU member and the other country is not? Can she also say something about mandate—the mandate of a future Prime Minister elected not by the country but by members of the Conservative Party, and what that means in terms of taking back control?
The leave campaigners have now admitted that they cannot do much to reduce immigration, so we need a serious and informed public debate about the long-term challenge of immigration. However, the anti-immigration rhetoric we have seen during the campaign has encouraged a surge of right-wing resentment. Perhaps the noble Baroness will wish to elaborate more on what the Government intend to do to tackle that. Finally, although I very much respect the decision of the noble Lord, Lord Hill of Oareford, to resign his position as a European Union Commissioner, we are still members of the European Union. Can she give an indication of the timescale for Britain to nominate another EU Commissioner so that we do not actually have an empty seat at the table?
We on these Benches firmly believe that it is in the United Kingdom’s best interest to stay as closely engaged in European networks of co-operation and joint operation as possible. We will continue to make the case for Britain’s future with Europe and to fight for an open, optimistic, hopeful, diverse and tolerant United Kingdom.
Baroness Stowell of Beeston
My Lords, as always I am grateful to the noble Baroness and the noble and learned Lord for their responses and I will seek to provide answers to some of the questions they have put forward this afternoon. I must start by saying that the British people have decided that we should leave the European Union and our priority now must be making this decision work for everybody in the UK, whatever side of the debate we were on. I am proud that this Government promised a referendum and delivered it and that we trusted the people with this very important decision. I voted and campaigned for remain, but a decision has been made, it is a clear one and it is very important that we get on now with implementing that decision and doing so in a successful way for the benefit of everybody who lives here.
I turn to some of the comments and questions put forward by the noble Baroness and the noble and learned Lord. As the noble Baroness knows, I was very shocked, like everybody else, by the death of Jo Cox. On the points she made about racism and some of the things that have been said and done in recent times, I do not want to debate again the way the campaigns were conducted, but I want to make some important points. The first is that whatever the result of this referendum and our decision to leave the European Union, this country has not given up on its values. We are still the United Kingdom and our values remain exactly as they were. I would condemn anybody who used the result of this referendum as an opportunity to promote racism. If there is any evidence of that, we should all work together to stamp it out. I certainly urge anybody who has experienced any kind of hate crime or racism to alert the police to that straightaway and to know that they do so with the full support of every decent person who lives in this country.
The noble Baroness referred to the role of this House and to political leadership in this country. As I said in my initial remarks as I concluded the Prime Minister’s Statement, this House has an important role to play. It is important for us to demonstrate our value to the democratic process by offering something that is a bit different from the House of Commons. One of the ways I hope we are able to achieve this, through our debates over the next few weeks as we consider the way forward on leaving the European Union, is that we are a little less political than the other House. That is one thing that is important about us, for which we attract a lot of positive response.
On the noble Baroness’s question about our current legislative programme—she referred to the Investigatory Powers Bill—the Government were elected on our manifesto commitments. We have a clear mandate and an important legislative programme that we have to continue to deliver. The Investigatory Powers Bill is one of the very important pieces of legislation that will safeguard the security and safety of people here in the United Kingdom. As for the impact on any of our legislation, we are in the European Union until we are out of the European Union and we have not yet triggered the Article 50 process that will put that process in train. We must very much continue with our programme and we have a mandate for that programme from the election of only one year ago.
The noble Baroness asked about the devolved Administrations and the role of Parliament in overseeing the process over the coming weeks and months. The noble and learned Lord also asked about Parliament’s role and what opportunity it will have to contribute to the decisions before final exit is made. It is too early for me to say what that might be, but as I hope I have indicated, I see it as an important part of the process that Parliament has a serious opportunity in this House to debate and express its views, and there is a role for our European Union Committee and its sub-committees to play in this process.
The noble and learned Lord asked about a couple of things in addition to the topics that the noble Baroness raised, the main one being Scotland and Northern Ireland. The people of Scotland made a very clear decision only two years ago that Scotland should remain in the United Kingdom. The Prime Minister has made it clear today—I very much echo the point—that in the way we proceed from here, we must work closely with the devolved Administrations. We will continue to do that, because we want to ensure that the way we exit from the European Union is to the benefit of all parts of the United Kingdom and all its people, so our constructive discussions will be a very big part of how we move forward from here.
Lord Hague of Richmond (Con)
My Lords, is it not deeply unfortunate that an inevitable side-effect of this referendum result is that we have lost an outstanding Prime Minister who has given long service to this country and had more to give? Although it was his decision to hold an in/out referendum, we should remind the noble and learned Lord, Lord Wallace, that not long ago, in the general election of 2010, that was the policy of the Liberal Democrats as well, so they should not be too condemnatory about that. But will my noble friend broaden the thoughts rightly expressed in the Statement about bringing the country together to include the need for the economic and foreign policies pursued by a country leaving the European Union to be able to command the support of the millions of people who voted to remain in the European Union? Will that not be an essential attribute of a re-formed Cabinet and of a new Prime Minister?
Baroness Stowell of Beeston
My noble friend is absolutely right and I join him in paying great tribute to David Cameron as Prime Minister: it has been an honour for me to serve in his Government and his Cabinet. He is a remarkable man in the way he carries out his responsibilities as Prime Minister.
My noble friend said that we must ensure that the way we proceed from here commands the support of everybody in the United Kingdom, especially those who did not vote for us to exit. That is absolutely essential, and the next Prime Minister and his Government must give absolute priority to it.
Lord Reid of Cardowan (Lab)
My Lords, although I quite understand people complaining about the campaign, we are where we are, and the priority surely should be to try to give some political stability, and through that financial and other stability, at a time when, for all their personal qualities, it is obvious that the present Prime Minister and his opposite number across the Dispatch Box are completely lacking in authority on the subject of Europe.
I therefore want to ask one specific question that concerns the reassurances that nothing much will change in the short term and Article 50 has not been operated. What overtures were made to the British commissioner to persuade him not to resign with immediate effect, particularly given the crucial area of finance and financial services over which he had responsibility? I quite understand his personal position but can the Government assure me that they made every conceivable effort to make sure that the United Kingdom commissioner in charge of finances would be in place for the next few months? If they did not do that, it was another huge omission.
Baroness Stowell of Beeston
I am grateful to the noble Lord for giving me an opportunity to say how much I admire my noble friend Lord Hill, as my predecessor in this role and also for the work that he has done as a commissioner. He set out his reasons for deciding to step down from his role and the Commission decided to move his responsibilities to another commissioner.
Financial stability is clearly being given huge priority within government. We have heard from the Governor of the Bank and from what the Chancellor said this morning all the steps that have been taken so far to provide stability to the financial markets, and their readiness to go further, should that be necessary. But we must not forget that the reason we are in a strong position to deal with this situation is the progress that we have made over the last few years in ensuring that we have a strong economy and can deal with this situation. I absolutely acknowledge that the situation is uncertain, but we can deal with it.
Lord Boswell of Aynho (Non-Afl)
My Lords, I, too, welcome the Leader of the House’s repeating of the Statement and the personal postscript that she added in relation to the role of this House, and specifically of the EU Select Committee which I have the honour to chair. Will she therefore confirm to the House that at all stages, however long it takes, in the complex process of withdrawal and the development of a future relationship with the European Union, it is essential—perhaps more than it ever has been before and, to be frank, more than was evidenced during the process of the Prime Minister’s now aborted renegotiation bid over the last 12 months—that both Houses of Parliament should be informed and enabled so that they may make a full and constructive contribution to the discussion of these crucial issues? Frankly, this is a moment of crisis. In the interests of both this country and, we should not forget, its immediate neighbours and their economies, too, must not an opportunity be provided to enable the collective wisdom and experience of this House to be heard?
Baroness Stowell of Beeston
My Lords, I certainly acknowledge—as the noble Lord noted—that there is a huge amount of expertise and knowledge in this House that will make a strong contribution to the process. I am not in a position to provide the detail for which he asked. However, I will pick up on an important point that he made: while we have a big task in front of us in negotiating our exit and a new relationship with the European Union, we have strong bilateral relations with other member states within the European Union and, indeed, other countries around the world. We must continue with those relations, and continue to strengthen them, during this process.
The Lord Bishop of Chelmsford
My Lords, some commentators have said that the result of the referendum was a resounding victory for Brexit. I am not sure that I see it that way: 52 to 48 is, to my mind, a rather narrow victory. Where there is no overwhelming consensus, there is an overwhelming need to take account of the views of others. Nobody likes a bad winner. There has been too much hyperbole and spite in this debate. Yes, one side did win, the result is clear and we have to act on it. Those who advocated leave obviously need to take the lead in the negotiations that will take place. But we urgently need the sort of wise leadership that can build consensus. We need some sort of national Government—a coalition of good will where we can work together.
I serve the diocese of Chelmsford, which is, “east London in and Essex out”. Yesterday I spoke to a head teacher who said that the children were frightened when they went to school on Friday and that she had seen an increase in race hatred and intolerance. What plans are there to address the lack of unity in our nation and to counter the fear and race hatred that is on the rise? Can we ensure that those who lost this vote, as well as those who won, can be part of the planning going forward?
Baroness Stowell of Beeston
The right reverend Prelate’s remarks covered a large amount of ground. Although I said that we could, perhaps, do with a little less politics in this House than in the other place, I would not go quite as far as his proposal for the future. But he makes an important point about us avoiding becoming a divided nation as a result of the referendum. All of us who are involved in politics, or business, or who have other positions of authority and responsibility, have to properly understand what people feel when they express their views. During the campaign and over the last few months, I was interested in comments about people no longer wanting or respecting experts. I do not agree with that analysis but people want to feel, more than they do now, that experts understand why they feel the way they do. People may not feel they have benefited from the turnaround of the economy, or have felt left out of many of the advances we have made over the last 10, 20 or 30 years. As we proceed, we all have a responsibility to keep trying to reassure them that we understand why they feel the way they do and why they voted the way they did. We must now make sure, in the way that we implement the country’s decision, that we bring everyone along with us and that everybody in this country feels that they have a proper opportunity to fulfil their potential.
Baroness Kramer (LD)
My Lords, I am very much concerned about some of the complacency that I am currently hearing from the Government. Since the noble Baroness the Leader of the House and others on the Conservative Benches have the opportunity for direct conversation with the collection of MPs, one of whom will be our future Prime Minister, would they convey this? The City is already making its decisions, as are major businesses. Most of them started planning for the contingency of leave months ago. Over the weekend, we have heard very clearly, and the CBI have confirmed, that many major firms have put on a hiring freeze. Others are now reassuring their shareholders that they have plans in place to be able to move significant parts of their operations to continental Europe or Ireland. If they do not hear a clear commitment, a cast-iron guarantee, in a matter of days—possibly weeks, but certainly not months—from that group from which the Prime Minister will come, that we will remain wholly in the single market, the decisions will become irreversible. Many already are and the remainder and many more will happen. Complacency is not safe.
Baroness Stowell of Beeston
I reject the noble Baroness’s description of this Government as complacent. What has been evident over the last few days in what was said by the Chancellor this morning, by the Prime Minister today and by the Governor of the Bank of England on Friday is that there are measures in place to provide some stability within the markets. The noble Baroness is of course right that businesses will take decisions now that could affect people. We need, through a range of methods, to make sure that we project to the world outside that Britain is in a strong position to weather this period of uncertainty arising from the referendum decision. We can do that, and do it with confidence, because of the steps that we have taken over the last few years to strengthen our economy and to make sure that we are ready for whatever decision that followed. I also say to the noble Baroness and to the House that we remain a member of the G7 and of the G20, and through those kind of forums we have an opportunity to project that very strong and confident message as well.
Lord Lawson of Blaby
My Lords, as one of the minority in your Lordships’ House who warmly welcomes the decision that the people made in the referendum, I also warmly welcome the statesmanlike Statement of the Prime Minister today, which my noble friend repeated. May I suggest, too, that the campaign is over and that we are now in a new phase, and that it would be no bad thing if the campaigning organisations on both sides should shut up shop? I speak as somebody who took a prominent part in one of them. What has happened was implicit in the Prime Minister’s speech: the people have spoken and it is now for the Government to implement wisely the decision of the people.
In that context, I welcome the Prime Minister’s decision to involve the brightest and the best in the Civil Service in charting the way ahead. I believe that there is a great way ahead. Nobody should be put off by financial market volatility—I knew quite a lot of that when I was Chancellor. Financial markets are by their nature volatile. What matters are the economic fundamentals, which are good now and can get even better if we pursue a sensible policy. I regret the fact that the Treasury for a moment morphed into the office for budget irresponsibility but the Treasury can play a great part. I warmly welcome the approach that was charted in the Statement. Does my noble friend agree that the campaigning organisations should now shut up shop on both sides?
Baroness Stowell of Beeston
I certainly agree with my noble friend that the campaign is over. The public have spoken and we now all have a responsibility to implement that decision—and, as I have said, in a way which means that it is successful and in the best interests of this country. As my noble friend says, it is right that we are using the brightest and most talented civil servants to that end. Indeed, I am sure that we will draw upon a wide range of expertise outside Whitehall as well.
Lord Mandelson
My Lords, for the next two years the United Kingdom is entitled to have a commissioner in Brussels during a time when vital national interests will be considered by the Commission and the other EU institutions. Will the noble Baroness inform the House when that vacancy is going to be filled?
Baroness Stowell of Beeston
I am grateful to the noble Lord for that direct question but, unfortunately, I am not in a position to answer it in a direct way. At some point, I hope very much that I will be able to come back to him and make that information more widely available.
Lord Butler of Brockwell (CB)
My Lords, will the noble Baroness confirm that the UK’s departure from the EU will not become final until our negotiations over the next two years are complete? Since the terms of our departure will only be known then, will it not be the duty of the Government to give the people a chance to take an informed view on those terms before the UK’s departure becomes final?
Baroness Stowell of Beeston
It sounds as if the noble Lord is trying to suggest a second referendum at a later point. This has been a once-in-a-generation decision. The people of this country have been clear. When we trigger Article 50 the clock on the two-year process will start. The Prime Minister has not triggered it now because he believes that it is right that when going into that process the Government are clear on what kind of relationship they want with the European Union in future. That is why he is not doing so himself but is leaving it to his successor.
Baroness Smith of Newnham (LD)
My Lords, like the noble Lord, Lord Lawson, I welcome the creation of an EU unit in Whitehall, although one wonders why it did not exist already—I think that in some incarnations, it did. In particular, the idea of bringing together policy expertise is welcome. What provision is there for cross-party and non-party involvement in setting the mandate for those civil servants? After all, Vote Leave was a cross-party thing—it even had a Liberal Democrat on its board—and the remain campaign was also cross-party. Surely in the national interest the new Prime Minister should be looking across the spectrum to get the best input so that whatever deal we get really is the best for the whole of the United Kingdom and not just something that narrow parties can bring about?
Baroness Stowell of Beeston
Clearly the campaigns for leave and remain were cross-party, but there is one party in government. It was elected last year and this elected Government will have the responsibility, albeit very much, as I have already indicated, wanting to draw on expertise and knowledge from a range of different sources, of deciding what precisely they are going to seek to negotiate with Europe in terms of our future relationship.
Lord Howell of Guildford (Con)
My Lords, although in the next few weeks or even months we are obviously in a period of very painful adjustment—that is perfectly obvious—does my noble friend agree that it ought to be perfectly possible to achieve practical and constructive relations with all our European neighbours in the near future? I say that not just because it is a desirable thing for us to do but because the European Union itself is undergoing enormous changes and challenges at this moment and we are required to have a very constructive voice, whatever our status under the treaties. Does my noble friend agree that that approach will at least reassure our many friends all around the world and enable us to contribute to the continuing development of a strong Commonwealth network which will be a great support for us in future?
Baroness Stowell of Beeston
My noble friend is absolutely right. In addition to our relationships with other countries via those established institutions, whether they are the European Union, the Commonwealth, which we are absolutely still part of, the G7 or the G20, we will continue to build and strengthen our relations with other countries.
Lord Anderson of Swansea
My Lords, the Prime Minister made a very dignified statement on the steps of No. 10 last Friday. He again made a dignified Statement today in the other place. He is a decent and honourable man. Would it therefore not be very sad if future historians were to see his legacy as having made a very powerful statement against referendums a few years ago and then changing his mind because of a will-o’-the-wisp, illusive attempt to find party unity, a legacy which led to Britain leaving the European Union and, potentially, breaking up our own United Kingdom itself?
Baroness Stowell of Beeston
I am grateful to the noble Lord for the positive comments that he has made about the Prime Minister, but I am afraid I disagree with him about everything else that he has said. We were very clear in our manifesto that we wanted to provide the British people with an opportunity to decide on membership of the European Union. As I have already said, I am very proud that we gave people this opportunity and delivered on that clear commitment. We have arrived at a point that, as I was trying to suggest earlier, has been a long time coming. This is not about party unity, this is about giving people the opportunity to decide on something very significant. The people have decided they want change, and we have to respect that. It is not what I campaigned for, but they have decided. We are going to implement that decision, which is the right thing for us to concentrate on now.
Lord Hannay of Chiswick
My Lords, would the Leader of the House agree that the timing of the triggering of Article 50 ought to be a relatively trivial and technical decision? It is entirely reasonable for the Government to say that they do not wish to do it until there is a new Prime Minister and a new Government in place. That is a reasonable point of view. But it would not be reasonable to start using it as a negotiating card and turning it into a bone of contention with those with whom we are going to have to negotiate constructively if we are to get a good outcome. I hope that she can agree that that is indeed the best way forward. The noble and learned Lord and the noble Lord, Lord Mandelson, raised the matter of the appointment of a British commissioner. The noble Baroness says that she will come back on that when she has an answer, but could she not register that it would be completely improper, under the terms of the treaty, for there to be no British commissioner for a period that could exceed two years? That really is not tolerable, either for us or for the Commission itself.
Baroness Stowell of Beeston
On the noble Lord’s first point, as I have said, it was a very clear decision by the Prime Minister that Article 50 should be triggered by his successor at the point at which they are clear on the kind of relationship that we are seeking with Europe. It has been reassuring that many other European leaders and senior figures within the European Union have acknowledged that we are right to consider this properly before we trigger Article 50.
Lord Maclennan of Rogart (LD)
My Lords, does the Minister not agree that Parliament is the constitutional sovereign power of the United Kingdom and that, consequently, referenda should be seen as advisory in nature? The nations of the United Kingdom did not vote in the same way in support of leaving. The United Kingdom Government have the presidency of the EU in the second half of next year and could therefore put forward procedures for reconsidering the structure of the European Union then.
Baroness Stowell of Beeston
I am grateful to the noble Lord for his comments but I am afraid the situation we are in is very clear. The British people have made their decision, and we are not going to seek to do anything other than implement it.
Lord Forsyth of Drumlean (Con)
My Lords, I gently point out that this is an unelected House and that the people have spoken. Instead of identifying threats, we should cheer up and identify the huge opportunities that are now available for Britain outside the European Union. I welcome the Prime Minister’s Statement and, in particular, the express promise to work with the devolved Administrations. In meetings with the First Minister of Scotland, can it be gently pointed out to her that she campaigned across the United Kingdom on a question that was decided by the United Kingdom? There was no Scottish question on the ballot paper; it was a United Kingdom question. As such, she and everyone in the United Kingdom should now do everything they can to advance Britain’s interests and not undermine them by seeking to do side deals in Brussels, which will make it more difficult for us to get the best deal for the whole of the United Kingdom.
Baroness Stowell of Beeston
My noble friend is right that this decision applies to the United Kingdom as a whole. I very much note the points that he makes but, as I have already stressed, in our involvement with the devolved Parliament and Assemblies we will seek to make sure that the outcome benefits everybody in all parts of the United Kingdom. We will engage in a way that is not just constructive but very positive, because that will be in the interests of the Scottish people.
Lord McConnell of Glenscorrodale (Lab)
On that very point about the people of Scotland and the way that they voted last week, it is important for your Lordships’ House to note that there was not just a small difference between the vote in Scotland and the vote in England and Wales; every single local authority area in Scotland voted overwhelmingly to remain in the European Union. That creates a significant difference between Scotland and England and Wales—not Northern Ireland, obviously—which has to be reflected in the discussions over the next two years. I welcome the fact that the First Minister of Scotland showed leadership over the weekend and said clearly that her number one objective in these discussions will be not to seek independence for Scotland or a second independence referendum but to secure Scotland’s relationship with the rest of the European Union. I should like an assurance from the Government that they will contribute positively to that discussion over the coming months and ensure that the First Minister has a role in the discussions in Brussels, not just in Whitehall.
Baroness Stowell of Beeston
I cannot give the noble Lord the assurance that he is looking for because it is just too early to be able to provide that kind of information. I understand the point that he makes about the difference of view in Scotland but the same can be said for the people of London; it was not just Scotland where a majority voted to remain. I come back to what I have already said: we are now seeking to implement a decision that was taken as the United Kingdom, and that is where we must focus our attention. However, that does not in any way diminish the Prime Minister’s commitment to involve all parts of the United Kingdom in the process—and that includes the London mayor and the London Assembly.
Lord Low of Dalston (CB)
My Lords, I am afraid that I do not find myself in sympathy with the views expressed by the noble Lord, Lord Lawson; I find myself rather closer to the point of view expressed by the noble Lord, Lord Butler. Does the noble Baroness the Leader of the House not agree that those in the leave campaign won the referendum on an essentially fraudulent prospectus? They said that we could continue to trade with the EU on very similar terms without having to accept freedom of movement. They said that there would be no adverse economic consequences, but we are already beginning to see them. They made completely unrealistic promises as to what could be done with the resources saved from our EU contribution—and, most glaringly of all, with breath-taking cynicism and within hours of victory they were maintaining that they never said that Brexit would enable them to reduce the level of immigration.
Moreover, it is clear that the leaders of the leave campaign have absolutely no plan as to the way forward. In these circumstances, and notwithstanding claims of democracy, does the noble Baroness not agree that the legitimacy of the referendum result is substantially undermined and that there is a very strong case for a second referendum on a more precisely focused question—something that nearly 4 million people have already signed a petition in support of?
Baroness Stowell of Beeston
I am afraid that I do not agree with the noble Lord. I am not going to comment on the different campaign teams and their campaigns. In my view, the people who voted to leave the European Union last Thursday knew that they wanted to leave the European Union. Their decision may have been motivated by a range of different things, but suggesting that they did not know what they wanted and that we should therefore somehow now seek another referendum to ask them, “Are you sure?”, is not the right way for us to go from here. I think that the right thing for us to do now is to focus on implementing that decision and to do so in a way that brings success and opportunity to the people of this country. We should make sure that it delivers a future that is good for everybody in this country.
Lord Lester of Herne Hill (LD)
My Lords, we are a parliamentary democracy in which Parliament is meant to be supreme. The leave campaign focused on restoring the powers of Parliament as one of its aims. Can the Leader of the House tell the House whether, before triggering Article 50 of the treaty, the Government will seek the approval of both Houses? If not, what do the Government envisage to be the role of Parliament? Will they rely purely on prerogative powers like a medieval king or will they involve our supreme legislature before taking the decision?
Baroness Stowell of Beeston
As I have already said, clearly it is very important that Parliament has a role in this process, but at this time I am not able to specify what that role is.
Lord Cormack (Con)
My Lords, does my noble friend accept that an enormous responsibility lies on the shoulders of the members of the Conservative Party in this country? They will be choosing not only a leader of the party but effectively a Prime Minister. Therefore, is it not crucial that they take into account the qualities of those who may be on offer, bearing in mind that we need a steadying hand on the tiller and someone who has the gift of statesmanship, and that the gifts of demagogy are not necessarily the same as the attributes of statesmanship?
Baroness Stowell of Beeston
My noble friend sets out the terms under which he will judge any contenders in the Conservative Party leadership contest.
Baroness Morgan of Ely (Lab)
My Lords, in July 2017 the UK is due to take up the presidency of the European Council. Can the noble Baroness tell us whether the UK will indeed take up that position and what on earth it will put on the agenda of that presidency?
Baroness Stowell of Beeston
That is one of the issues that will have to be decided in the next months.
Lord Tebbit (Con)
My Lords, is my noble friend aware that on Friday morning I woke not only with a song in my heart but with the words of the “Magnificat”—
“He hath put down the mighty from their seat and hath exalted the humble and the meek”—
in my heart, as we had won the referendum? Can she tell me whether the British Commissioner, whoever may be appointed, is allowed by the terms of his oath of office to pursue the British interest as opposed to the interest of the EU? I thought that the oath was very clear on that matter. Am I wrong about that?
Baroness Stowell of Beeston
I am afraid I am not familiar with the terms of the oath that commissioners take when they are appointed. My noble friend, as always, makes an interesting remark.
Baroness Stowell of Beeston
My Lords, as my noble friend the Chief Whip indicated at the start of this Statement, while we must respect the fact that there are a number of noble Lords who are down to speak at Second Reading of the Investigatory Powers Bill, so I do not want us to go on for too long, I can see that there are still at least four noble Lords seeking to ask a question. I am very happy, even though the clock will go beyond 40 minutes, to finish answering the questions of those noble Lords who have already indicated that they wish to ask one.
Lord Elystan-Morgan
My Lords, I am deeply grateful. Will the noble Baroness give an undertaking to the effect that before even contemplating activating the machinery of Article 50, the Government will first of all take into account the solemn voice of the two legislatures, and that failing to do so would be to abrogate and render nugatory the whole concept of parliamentary sovereignty? It is extremely sad and ironic that in the light of the European Union Act 2011 it is necessary for there to be a referendum and a parliamentary resolution before there can be any acquiescence to change. Indeed, it would be very strange that an act so existential as leaving the Union could take place without a parliamentary decision.
Baroness Stowell of Beeston
I am grateful to the noble Lord for his question but I am afraid I have nothing to add to what I have already said. In the interests of time, I will leave my comments at that.
Baroness King of Bow
My Lords, our constitutional role in this House is to scrutinise legislation and say to those in power, “Pause, reflect and vote again”. It is not a popular role, and I know that I will not be popular saying it here today. None the less, the House of Lords should ask those with power—in this case, the British people—to do the same thing that we ask the Government to do all the time: pause, reflect and vote again. They can vote the same way if they want—the Government do that all the time, don’t they?—but let us bear in mind that the British people were asked if they wanted the UK to remain or leave the EU. They were not asked if they wanted to break up the UK. Given that that is just one of the disastrous likely consequences, it is only fair that they should have that opportunity. In light of the petition, will the Government consider setting up a Joint Committee with the Commons simply to weigh the arguments for and against a second referendum, which may be at the end of the two-year process? If the answer is no, what happens if the online petition gets more than 17 million British signatories?
Baroness Stowell of Beeston
The noble Baroness raises an interesting point. I really do not have much to add to what I have already said. On the contribution of this House to our deliberations, I have set out how that should at least start. The people’s decision is clear on this matter.
Lord Campbell of Pittenweem
My Lords, the noble Lord, Lord Reid of Cardowan, said that we are where we are. He is quite right. Where we are is a country divided socially, economically and politically, where the very future of the United Kingdom is now at stake and with at least two years of economic uncertainty ahead. Is it not a bit rich that those who are responsible for creating these circumstances, apart from congratulating themselves, seem to want to take no involvement or interest in implementing the very decision for which they are responsible?
Baroness Stowell of Beeston
I am not sure that is quite how I would consider the situation. Clearly what has happened is that this Government believed that the UK should remain in the European Union, and we campaigned for Britain to do so. A decision has been made by the people to leave. The Prime Minister has accepted that decision and said that it has to be for his successor to implement it. That will be the way that we move from here.
Lord Higgins
My Lords, the decision that was taken last week has been widely described as democratic. However, it is not what we in this country have understood to be democracy—at any rate, since the time of Edmund Burke. We believe in a representative system of parliamentary democracy where Members of Parliament are elected as representatives, not as delegates, and therefore can take into account all the arguments and not be misled by the kind of misleading propaganda and lies that we have had in this referendum, which has shown very clearly what the disadvantages of a referendum are.
The fundamental problem with a referendum is that it is the dictatorship of the majority—in this case, a very small majority. It is therefore crucial now that our parliamentary system, in the light of what has been said but taking into account the divisions that are so apparent in society, does all that it can to ensure that the implementation of the result of the referendum takes into account the whole range of opinion across the electorate, not simply of those who happen, by a really rather small majority, to have won the debate.
Baroness Stowell of Beeston
My noble friend is right that in moving from here it will be essential that we do so in a way that unites all parts of the country, particularly those who voted a different way.
There is a point about parliamentary democracy that I have not already made: as I have said, this was in our manifesto. We passed an Act of Parliament to bring forward the referendum, and that piece of legislation went through both Houses. We debated the terms of the referendum. This Parliament decided those terms and they were the ones that applied. We must remember that. We have all contributed to the way in which the rules were set and the way that the people of this country then exercised their democratic right to vote in the referendum.
Lord Davies of Stamford
My Lords, surely the point well made by the noble Lord, Lord Low, about a dishonest prospectus cannot be honestly contested on the facts. The Daily Telegraph itself wrote this morning:
“The Leave campaign misled the nation about the full risks of Brexit and what can be achieved without collateral damage to the economy and the unity of”,
the UK. In those circumstances, and very much following on from what the noble Lord, Lord Higgins, just said, is it not the responsibility of Parliament to ensure that before we pass a line of legislation on this matter, we assure ourselves that the Government have plans in place that are viable, coherent and genuinely in the national interest and do not have any hidden costs attached to them?
Baroness Stowell of Beeston
I hear very much the points that the noble Lord has made but they are very similar to points that have already been made that I have responded to. I do not have anything more that I can usefully add at this point.
Lord Stoddart of Swindon (Ind Lab)
My Lords, I was never in favour of joining the Common Market, and I have always wished to withdraw from the European Union so that we could govern ourselves. I rejoice at the instruction that the people have given us. If those people who are calling for a second referendum had won the existing one, I wonder if they would still be calling for another referendum. I very much doubt it.
I want to ask the noble Baroness a couple of questions. First, is it not necessary first of all to repeal the European Communities Act 1972, as amended? Secondly, if we remain in the single market, will we not still be obliged to agree to free movement of people and will not all of British industry be subject to the rules and laws of the single market?
Baroness Stowell of Beeston
As for as the legal process for exiting the European Union, triggering Article 50 is the only legal process for us to follow. It will clearly be led by another Prime Minister, but I am sure that we as a nation will want to do it responsibly. The noble Lord asks about the repeal of the 1972 Act. That would not occur at this stage, because it would be contrary to our wanting to exit from the European Union in a responsible manner. As for his question about the single market, yes, my understanding is that if we were to remain in the single market, it would require free movement of people.
Lord Blencathra
My Lords, I have been trying to get on my feet for a few years. As we conclude on the Statement today, as my noble friend the Leader noted, every major elected politician in the other place has said that, while they may not like the result, it must be respected and it must be implemented. Will she therefore caution some of my noble friends and all noble Lords that if we wish to unite the nation after this, this unelected House must not seek to thwart the will of the people by going into endless negotiations on or amendments to the minutiae of any legislation, which would be seen as a direct attempt to sabotage the will of the people?
Baroness Stowell of Beeston
As my noble friend knows, he and I were on different sides of the argument during the campaign, but I absolutely agree that the decision has been made, it must be respected and it should be implemented.
Lord Pearson of Rannoch
My Lords, do the Government agree that it would help to calm the markets and help our informal and later formal negotiations if our negotiators show now and clearly that they understand the difference between the single market and free trade? They should explain that we are in an irresistible position to maintain our free trade, which is what our businesses really need, because there are more than 2 million jobs, principally in Germany and France, making and selling things to us than we have making and selling things to them. That applies particularly to the motor trade, where we have been threatened with a 10% tariff, but for every car we sell them they sell us 2.4 cars and they own 64% of our domestic market. Can we make the distinction between the single market and free trade and decide that it is free trade we want to keep, so that it is the French and German industries that will keep their politicians in Brussels and elsewhere under control in this vital area?
Baroness Stowell of Beeston
The noble Lord is taking us into a stage which we are not currently at in asking about what we might want to negotiate, so that is something on which I cannot offer any detailed comment at this time.
I am very grateful to everybody, and I think we are about to move on to the next business.
Jo Cox MP
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The Lord Privy Seal (Baroness Stowell of Beeston) (Con)
My Lords, Jo Cox was clearly a remarkable woman. I never met her. Tragically, the first thing I knew about her was that she had been killed. We are shocked that a young woman in the prime of her life has been stabbed and shot dead in the streets of a town like Birstall on a Thursday lunchtime. We are sad that a husband has lost his wife and two young children will never see their mother again, and we are horrified because Jo was a Member of Parliament who was killed by a constituent while she was going about her work serving the people of Batley and Spen.
We have learned a lot about Jo over the past few days. None of us could fail to be impressed by her dedication and commitment both before and since entering Parliament. She was a woman who clearly cared about other people. She had travelled far, had wide horizons and she thought big. For me, what is most moving has been hearing what was clearly a woman with a passion for the world say in her maiden speech how proud she was to come from Yorkshire and to be representing the place where she had grown up and the people she had grown up among. The impression she gave this stranger, listening to her for the first time, was that Jo Cox was a woman who knew who she was, and I really like that.
We are not just paying tribute to Jo Cox today, we are standing in solidarity and shoulder to shoulder with the other House of Parliament. The House of Commons has lost one of its own in the most dreadful of circumstances. It is not the first time. Over the past 40 years, we have lost Airey Neave, Robert Bradford, Anthony Berry and Ian Gow at the hands of IRA terrorists. One of them, Robert Bradford, was holding a constituency surgery at the time of the attack and his caretaker was also killed. Thankfully, Stephen Timms survived a violent attack by a constituent, as did the noble Lord, Lord Jones, when he was the MP for Cheltenham, although tragically the noble Lord’s assistant was killed in that attack. But Jo Cox is the first MP to be killed in the line of duty by a constituent.
Today, as Leader of this House and on behalf of all noble Lords, I would like to pay tribute to all Members of the other place, our elected colleagues who follow their vocation to improve things for the benefit of those they represent. Their route to Parliament is rarely easy and it can take them years. It is usual for them to have to accept failure many times before being selected to represent their party, hopefully in a winnable seat and often not before they have had to stand and lose in a hopeless one. Those who do make it work tirelessly for their constituents, not just here in Westminster, but every week in their constituencies. But as the last election showed, dedicated or not, MPs can be unceremoniously rejected if the electorate is fed up with their party at large.
The British people deserve the best public servants to represent them in Parliament. Jo Cox was clearly a great public servant for her constituents. Thankfully, in that respect she was far from alone. Marking her death, tragic and unfair as it is, presents at least one opportunity for the sake of good democracy, and it is this: for those of us who know how hard MPs work, to raise awareness of their commitment to the people they represent.
On behalf of the whole House, I offer my sincere condolences to Jo’s husband, children, parents and sister, and to all her family and friends. On behalf of the Conservative Party in this House, I offer all of our colleagues on the Labour Benches our deepest sympathies for the loss of their dear friend. Finally, on behalf of the House of Lords, I offer our condolences and respect to our colleagues in the other place.
Careers Education
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Lord Storey
To ask Her Majesty’s Government what plans they have to develop careers education.
The Lord Privy Seal (Baroness Stowell of Beeston) (Con)
My Lords, later this year the Department for Education will publish the Government’s strategy for improved careers education and guidance for young people. This will set out a clear vision of the progress that we want to achieve by 2020. We are investing £90 million into careers policy over this Parliament. This includes £20 million to increase the number of mentors from the world of work, supporting young people who are at risk of underachieving.
Lord Storey (LD)
I am delighted to hear that the Government are producing this strategy. Would the noble Baroness not agree that careers education is hugely important to young people, particularly those from low-income backgrounds and from certain ethnic groups, who may not have the informal social networks that provide the equivalent advice and opportunity? She must also be concerned that the last Ofsted inspection found that only one in five schools was offering effective careers education.
Baroness Stowell of Beeston
Of course I am concerned if careers advice is not properly provided to students in all schools. It is vital that people have access to good careers advice and that through careers advice they can see clear opportunities for them when they leave school that go beyond just the academic route. That is why the Government have invested £90 million into careers policy this Parliament and will continue to place great emphasis and importance on careers guidance.
Baroness Corston (Lab)
As the chair of the Social Mobility Committee of your Lordships’ House, I would like to tell the Minister that we found that careers advice and education in this country is in a parlous state. The committee recommended that there should be: independent careers advice and guidance, supported by a robust evidence base and drawing on existing expertise, which should not involve schools and colleges; independent face-to-face careers advice which provides good-quality, informed advice on more than just academic routes; a single access point; and, finally, improved career education in schools.
Baroness Stowell of Beeston
The committee that the noble Baroness chaired on social mobility was incredibly important. It covered a topic close to my heart and to that of all noble Lords in this House in ensuring that people from all backgrounds have the opportunity to fulfil their potential and have great awareness and understanding of the various routes available to them in achieving their potential. That is why we as a Government are doing so much to try to improve the careers guidance, not just in schools but, as the noble Baroness says, to strengthen the dialogue and connection between schools and local employment and businesses in school areas.
Lord Leigh of Hurley (Con)
Could my noble friend tell the House what role she sees for employers in inspiring young people in careers? I declare an interest as an employer.
Baroness Stowell of Beeston
Employers should play a big part in inspiring young people and see that as an important part of their responsibility. That is why we have invested so much in creating opportunities for apprenticeships and how we want to see employers playing their part not just in providing those apprenticeships but in making sure that, in schools, students and pupils understand what is needed for them to be successful in the world of work.
Lord Aberdare (CB)
My Lords, I meet a lot of apprentices, hardly any of whom appear to have been directed towards their apprenticeship by their schools or careers adviser. How will the government strategy ensure that students, teachers and parents are more aware of vocational career opportunities, such as apprenticeships?
Baroness Stowell of Beeston
I hope very much that this is part of the responsibility of the Careers & Enterprise Company—and I am sure that it is—which we funded to inspire young people and help them to prepare for the world of work. But I accept and understand the point that the noble Lord makes about ensuring that families and young people understand the range of opportunities open to them. In my maiden speech in your Lordships’ House, I talked about how it is important and vital that people understand that there are a range of routes to success, and it is not just about going through to university—as important as that is, and as important as it is that we make that available to as wide a group of people as we can. For me personally, this is a mission that I feel very strongly about.
Lord Watson of Invergowrie
My Lords, I thank the noble Baroness the Leader of House and hope she will assume this role at some time in the future, given the clarity of the answers that we have had from her thus far. The Social Mobility Committee of your Lordships’ House said in April that the quality of vocational education in schools is sadly lacking and that not enough emphasis is placed on that. Its report made a recommendation to the effect that a new 14 to 19 transition stage should be established to delineate clearly between technical and academic lines. I understand that the noble Baroness will not be familiar with this but, when she has time, will she speak to the noble Lord, Lord Nash, and ask him whether he intends to accept that recommendation to demonstrate clearly to schoolchildren that post-school life involves much more than university?
Baroness Stowell of Beeston
On the noble Lord’s first point about vocational education, when the coalition Government in the previous Parliament were first elected we took significant steps to improve the quality of vocational education. It is something that we continue to give priority to, because it is important that vocational education has great status for it to be of value to people when they are in the world of work. I point out to the noble Lord that one of the new measures that have been introduced in the school regime in recent years is UTCs, which were championed by my noble friend Lord Baker as well as by the noble Lord, Lord Adonis. I feel strongly that all young people who are ambitious and want to get on should be clear in their teens that there are more routes to success than just through university. I hope very much that they feel very inspired to succeed through other routes because there are many people who have been able to go through a vocational route and have made it to places which they might not have thought they were able to get to when they started off in life.
Election of Lord Speaker
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The Lord Privy Seal (Baroness Stowell of Beeston) (Con)
My Lords, I am sure the whole House will wish to join me in offering our congratulations to the noble Lord, Lord Fowler, on being elected Lord Speaker and in offering our support to him as he prepares to take on his new role. I would also like to offer on behalf of the House our thanks to my noble friend Lord Cormack and to the noble Baroness, Lady Garden, for standing in this election. Elections are only possible when there are candidates and we are very grateful to both noble Lords. I would also like to pay a very brief tribute to the noble Baroness, Lady D’Souza, as our most distinguished Lord Speaker. There will be a proper occasion for us to pay tributes after the noble Baroness retires as Lord Speaker—because she remains our most distinguished Lord Speaker until 1 September. In the meantime, I offer my congratulations to the noble Lord, Lord Fowler.
Baroness Smith of Basildon (Lab)
My Lords, I concur with the noble Baroness’s comments. We welcome the opportunity at a later date to pay tribute to the work of the noble Baroness, Lady D’Souza, and to thank her for it. As the noble Baroness, Lady Stowell, said, we warmly congratulate the noble Lord, Lord Fowler. His election shows the high regard in which he is held in this House. He will know that he has the support of the entire House as he undertakes his duties. He will bring both his personality and his political skills to the role.
What we have seen today is a parliamentary first in that this is the first time that a man has been elected to the role of Lord Speaker. Nowadays, there are few positions in public life of which that can be said. I add our sincere thanks to the noble Lord, Lord Cormack, and the noble Baroness, Lady Garden, for not only having put themselves forward as excellent candidates and given us an excellent choice but for the way in which they conducted themselves during the election, which was a great tribute to them and, indeed, to the whole House. Therefore, we thank them and offer our very warm congratulations to our next Speaker.