European Council

Baroness Stowell of Beeston Excerpts

Monday 22nd February 2016 Lords Chamber

[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. The Statement is as follows:

“Mr Speaker, I would like to make a Statement on the agreement reached in Brussels last week, but first let me say a word about the migration crisis which was also discussed at the European Council. We agreed that we needed to press ahead with strengthening the EU’s external borders to ensure that non-refugees are returned promptly and to back the new mission to disrupt the criminal gangs working between Greece and Turkey who are putting so many people’s lives at risk. I made clear that Britain will continue to contribute, and will step up our contribution, in all these areas.

Turning to Britain’s place in Europe, I have spent the last nine months setting out the four areas where we need reform and meeting all 27 other EU Heads of State and government to reach an agreement that delivers concrete reforms in all four areas. Let me take each in turn.

First, British jobs and British business depend on being able to trade with Europe on a level playing field, so we wanted new protections for our economy to safeguard the pound, to promote our industries—including our financial services industries—to protect British taxpayers from the costs of problems in the eurozone and to ensure that we have a full say over the rules of the single market while remaining outside the eurozone. We got all those things. We have not just permanently protected the pound and our right to keep it but have ensured that we cannot be discriminated against.

Responsibility for supervising the financial stability of the UK will always remain in the hands of the Bank of England. We have ensured that British taxpayers will never be made to bail out countries in the eurozone. We have made sure that the eurozone cannot act as a bloc to undermine the integrity of the free trade single market, and we have guaranteed that British business will never face any discrimination for being outside the eurozone. For example, our financial services firms—our number one services export employing over 1 million people—can never be forced to relocate inside the eurozone if they want to undertake complex trades in euros just because they are based in the UK.

These protections are not just set out in a legally binding agreement; all 28 member states were also clear that the treaties would be changed to incorporate the protections for the UK as an economy that is inside the EU but outside the eurozone. We also agreed a new mechanism to enable non-eurozone countries to raise issues of concern, and we won the battle to ensure that this could be triggered by one country alone. Of course, none of these protections would be available if we were to leave the EU.

Secondly, we wanted commitments to make Europe more competitive, creating jobs and making British families more financially secure, and again we got them. Europe will complete the single market in key areas that will really help Britain: in services, making it easier for thousands of UK service-based companies like IT firms to trade in Europe; in capital, so that UK start-ups can access more sources of finance for their businesses, and in energy, allowing new suppliers into our energy market, meaning lower energy bills for families across the country.

We have secured commitments to complete trade and investment agreements with the fastest-growing and most dynamic economies around the world, including the USA, Japan and China, as well as our Commonwealth allies, India, New Zealand and Australia. These deals could add billions of pounds and thousands of jobs to our economy every year, and, of course, they build on the deals we already have with 53 countries around the world through which Britain has benefited from the negotiating muscle that comes from being part of the world’s largest trading bloc.

Country after country have said to me that of course they could sign trade deals with Britain, but they have also said that their priority would be trade deals with the EU. By their nature, these EU deals would be bigger and better, and a deal with Britain would not even be possible until we had settled our position outside the EU. So for those Members who care about signing new trade deals outside the EU, we would be looking at years and years of delay.

Last but by no means least on competitiveness, one of the biggest frustrations for British business is the red tape and bureaucracy, so we agreed that there will now be targets to cut the total burden of EU regulation on business. This builds on the progress we have already made, with the Commission already cutting the number of new initiatives by 80%, and it means that the cost of EU red tape will be going down, not up. Of course, if we were to leave the EU but ultimately achieve a deal with full access to the single market, like Norway, we would still be subject to all the EU’s regulations when selling into Europe, but with no say over the rules. As the former Europe spokesman for the Norwegian Conservative Party said:

‘If you want to run Europe, you must be in Europe. If you want to be run by Europe, feel free to join Norway in the European Economic Area’.

Thirdly, we wanted to reduce the very high level of migration from within the EU by preventing the abuse of free movement and preventing our welfare system acting as a magnet for people to come to our country. After the hard work of the Home Secretary we have secured new powers against criminals from other countries, including powers to stop them coming here in the first place and powers to deport them if they are already here. We agreed longer re-entry bans for fraudsters and people who collude in sham marriages and an end to the frankly ridiculous situation where EU nationals can avoid British immigration rules when bringing their families from outside the EU.

This agreement broke new ground, with the European Council agreeing to reverse decisions from the European Court of Justice. We have also secured a breakthrough agreement for Britain to reduce the unnatural draw that our benefits system exerts across Europe. We have already made sure that EU migrants cannot claim the new unemployment benefit, universal credit, while looking for work. Those coming from the EU who have not found work within six months can now be required to leave. At this Council we agreed that EU migrants working in Britain can be prevented from sending child benefit home at UK rates. This will apply first to new claimants and then to existing claimants from the start of 2020. We also established a new emergency brake so that EU migrants will have to wait four years until they have full access to our benefits.

People said it was impossible to achieve real change in this area and that a four-year restriction on benefits was completely out of the question, yet that is what we have done. Once activated, the emergency brake will be in place for seven years. So if it begins next year, it will still be operating in 2024 and there will be people who will not be getting full benefits until 2028. All along we have said that people should not be able to come here and get access to our benefits system straightaway—no more something for nothing—and that is what we have achieved.

I am sure that the discussion about welfare and immigration will be intense, but let me just make this point. No country outside the EU has agreed full access to the single market without accepting paying in to the EU and accepting free movement. In addition, our new safeguards lapse if we vote to leave the EU, so we might end up with free movement but without these new protections.

The fourth area where we wanted to make significant changes was to protect our country from further European political integration and to increase powers for our national Parliament. Ever since we joined, Europe has been on the path to something called ever-closer union. It means a political union. We have never liked it, we never wanted it, and now Britain will be permanently and legally excluded from it. The text says that the treaties will be changed to make clear that, and I quote,

‘the Treaty references to ever closer union do not apply to the United Kingdom’.

So, as a result of this negotiation, Britain can never be part of a European superstate.

The Council also agreed that ever-closer union, which has been referred to in previous judgments from the European Court of Justice, does not offer a legal basis for extending the scope of any provision of the treaties or of EU secondary legislation. People used to talk about a multi-speed Europe. Now we have a clear agreement that not only are different countries able to travel at different speeds but they are ultimately able to head to different destinations too. I would argue that that is a fundamental change in the way this organisation works.

We have also strengthened the role of this House and all national Parliaments. We have already passed a referendum Act to make sure that no powers can be handed to Brussels without the explicit consent of the British people in a referendum. Now, if Brussels comes up with legislation we do not want, we can get together with other parliaments and block it with a red card. We have a new mechanism finally to enforce the principle that, as far as possible, powers should sit here in Westminster, not in Brussels. So every year the EU now has to go through the powers it exercises and work out which are no longer needed and should be returned to nation states.

In recent years we have also seen attempts to bypass our opt-out on justice and home affairs by bringing forward legislation under a different label—for example, attempts to interfere with the way the UK authorities handle fraud were made under the guise of EU budget legislation. The agreements at last week’s Council ensure that this can never happen again.

The reforms we have secured will be legally binding in international law and will be deposited as a treaty at the UN. They cannot be unpicked without the agreement of Britain and every other EU country. As I have said, all 28 member states were also clear that the treaties would be changed to incorporate the protections for the UK as an economy outside the eurozone, and our permanent exclusion from ever-closer union.

Our special status means that Britain can have the best of both worlds. We will be in the parts of Europe that work for us, influencing the decisions that affect us, in the driving seat of the world’s biggest single market and with the ability to take action to keep our people safe, but we will be out of the parts of Europe that do not work for us: out of the euro, out of the eurozone bailouts, out of the passport-free, no-borders Schengen area, and permanently and legally protected from ever being part of an ever-closer union.

Of course, there is still more to do. I am the first to say that there are still many ways in which this organisation needs to improve, and the task of reforming Europe does not end with last week’s agreement. But with the special status this settlement gives us, I believe the time has come to fulfil another vital commitment this Government made, and that is to hold a referendum. So, I am today commencing the process set out under our referendum Act to propose that the British people decide our future in Europe through an in/out referendum on Thursday 23 June. The Foreign Secretary has laid in both Houses a report setting out the new settlement that the Government have negotiated. This fulfils the duty to publish information set out in Section 6 of the European Union Referendum Act 2015. As the Cabinet agreed on Saturday, the Government’s position will be to recommend that Britain remains in this reformed European Union.

This is a vital decision for the future of our country. We should also be clear that it is a final decision. An idea has been put forward that if the country votes to leave we could have a second renegotiation and perhaps another referendum. I will not dwell on the irony that some people who want to vote to leave apparently want to use a leave vote to remain. But such an approach also ignores more profound points about democracy, diplomacy and legality. This is a straight democratic decision—staying in or leaving—and no Government can ignore that. Having a second renegotiation followed by a second referendum is not on the ballot paper. For a Prime Minister to ignore the express will of the British people to leave the EU would not just be wrong, it would be undemocratic. On the diplomacy, the idea that other European countries would be ready to start a second negotiation is for the birds. Many are under pressure for what they have already agreed. Then there is the legality—I want to spell out this point carefully for the House because it is important. If the British people vote to leave, there is only one way to bring that about, and that is to trigger Article 50 of the treaties and begin the process of exit. The British people would rightly expect that that should start straightaway.

Let me be absolutely clear how this works: it triggers a two-year time period to negotiate the arrangements for exit. At the end of this period if no agreement is in place, then exit is automatic unless every one of the 27 other EU member states agrees to a delay. We should be clear that this process is not an invitation to rejoin; it is a process for leaving. Sadly, I have known a number of couples who have begun divorce proceedings, but I do not know any who have begun divorce proceedings in order to renew their marriage vows.

I want to explain what would happen if that deal to leave was not done within two years. Our current access to the single market would cease immediately after two years were up, and our current trade agreements with 53 countries around the world would lapse. This cannot be described as anything other than risk, uncertainty and a leap in the dark that could hurt working people in our country for years to come. This is not some theoretical question; this is a real decision about people’s lives. When it comes to people’s jobs, it is simply not enough to say that it will be all right on the night and we will work it out. In the weeks to come we need properly to face up to the economic consequences of a choice to leave.

I believe Britain will be stronger, safer and better off by remaining in a reformed European Union: stronger because we can play a leading role in one of the world’s largest organisations from within, helping to make the big decisions on trade and security that determine our future; safer because we can work with our European partners to fight cross-border crime and terrorism; and better off because British businesses will have full access to the free-trade single market, bringing jobs, investment and lower prices.

There will be much debate about sovereignty—and rightly so. To me what matters most is the power to get things done for our people, for our country, and for our future. Leaving the EU may briefly make us feel more sovereign, but would it actually give us more power, more influence and a greater ability to get things done? No. If we leave the EU, will we have the power to stop our businesses being discriminated against? No. Will we have the power to insist that European countries share with us their border information so we know what terrorists and criminals are doing in Europe? No, we will not. Will we have more influence over the decisions that affect the prosperity and security of British families? No, we will not. We are a great country and whatever choice we make we will still be great, but I believe the choice is between being an even greater Britain inside a reformed EU and a great leap into the unknown. The challenges facing the West today are genuinely threatening: Putin’s aggression in the east; Islamist extremism to the south. In my view this is no time to divide the West. When faced with challenges to our way of life, our values and our freedoms, this is a time for strength in numbers.

I end by saying this: I am not standing for re-election; I have no other agenda than what is best for our country; I am standing here today telling you what I think. My responsibility as Prime Minister is to speak plainly about what I believe is right for our country, and that is what I will do every day for the next four months. I commend this Statement to the House”.

My Lords, that concludes the Statement.

--- Later in debate ---

[Lord Wallace of Tankerness (LD)]

My Lords, I, too, thank the noble Baroness the Leader of the House for repeating the Prime Minister’s Statement. At the outset, I declare my registered interest as a member of the board of Britain Stronger in Europe. I say gently to the noble Baroness, Lady Smith of Basildon, that twice in her remarks she talked about four months being a long time. A number of us in your Lordships’ House who are veterans of three and a half years on the Scottish referendum would think four months a relative relief.

Those of us on these Benches very much welcome the Prime Minister’s successful renegotiations in Europe last week. The hard work that he put in, not only last week but in the weeks leading up to it, was very evident and it is fair to say that what he came away with exceeded many people’s initial expectations. We also welcome the willingness of other EU member states to work with the United Kingdom to reach this compromise. That demonstrates the degree of good will towards the United Kingdom from other EU Governments, and their commitment to maintaining British membership. I was delighted yesterday to hear the Prime Minister setting out, at long last, the strategic case for the United Kingdom continuing its membership of the European Union. It was very welcome, too, that the Prime Minister took the opportunity in his Statement to knock on the head the fanciful idea that, in the event of an out vote, there could be a second renegotiation and a second referendum.

The referendum vote in June will be of the utmost significance. It will settle not only Britain’s relations with Europe, but our place in the world. We very much believe that the United Kingdom will derive strength from being seen as a team player and engaged in international affairs. It is an illusion of sovereignty to suggest that, if we come out, we will somehow get sovereignty back. Liberal Democrats are firmly committed to the United Kingdom’s place in the European Union. We are united in our belief that the United Kingdom is better when it is united with our colleagues in Europe. In an uncertain world of challenges and threats, I also believe that Europe is better and stronger for having the United Kingdom in it as a member state.

We have spoken from these Benches on a number of occasions about how we will use the campaign to speak about the positive case for Britain remaining within the EU. In the EU, Britain can thrive. Together, we will be a stronger and more prosperous nation, securing jobs and creating opportunity for our children and grandchildren. We have created together the world’s largest free trade area, we have delivered peace, and we have given the British people the opportunity to live, work and travel freely. History shows that Britain is better when it is united with our European partners. Together, we are stronger in the fight against the global problems that do not stop at borders. We can combat international crime, fight climate change, and together provide hope and opportunity for the future.

It is worth reflecting for a moment on the creation of the European Union and its lasting legacy. After decades of brutal conflict on the continent, European nations came together in co-operation. To this day, neighbours and allies support each other in what remains the world’s most successful project in peace. We remain stronger together in continuing the fight against terrorists who despise our liberal and modern way of life. Will the noble Baroness the Leader of the House take the opportunity to repudiate the alarmist comments made by her colleague, the Secretary of State for Work and Pensions, when he said that remaining in the EU exposes Britain to a Paris-style terrorist attack? Does she agree that it is only by working in co-operation with our international friends and neighbours that we can combat such threats to our security?

Britain is already stronger and better off trading and working with Europe. We are part of the world’s largest single market, allowing British businesses to grow and prosper. Our people have more opportunities to work, travel and learn than ever before. Staying in the EU gives our children and grandchildren greater prospects, and the best chance to succeed. Does the noble Baroness share my concerns, therefore, at the dramatic fall in sterling today—referred to by the noble Baroness, Lady Smith—which we believe was driven in great part by fear of Brexit? Does she agree that the threat of leaving the EU is already costing British businesses and that it would be much worse for British exporters if we were to withdraw from the world’s biggest single market? Can the noble Baroness indicate when we will get the Government’s report on EU membership under Section 7 of the European Referendum Act that Parliament passed towards the end of last year?

This country’s place in the world depends on our getting on well with our neighbours, who share our values and interests. Does the noble Baroness the Leader of the House agree that this referendum is about the kind of country we want to leave to our children and grandchildren, and about how we think of ourselves as a country? Does she agree that issues such as climate change and the natural environment are better tackled when we come together to think about the world we want to leave to future generations?

There has been speculation about a statement or an initiative on sovereignty, which was lacking from the Prime Minister’s Statement today. Before going down that particular road—it may just have been a ruse to try to bring Boris on board—will the noble Baroness reflect that in fact further piecemeal constitutional meddling of that kind may end up with consequences more damaging than the ones they seek to resolve? Will she give the House an indication of the Government’s thinking on that?

Finally, will the noble Baroness confirm that this is, indeed, a once-in-a-generation decision and that there is only one opportunity to show that the United Kingdom is not a country that is isolated and sidelined but one that is open, outward-facing and proud of its place in the international community, and that an out vote means taking the United Kingdom back and an in vote means taking the United Kingdom forward?

[Baroness Stowell of Beeston]

My Lords, I am grateful to the noble Baroness, Lady Smith, and the noble and learned Lord, Lord Wallace of Tankerness, for their remarks and their support for what the Prime Minister has negotiated in Europe this weekend.

I shall start by reflecting on the significance of the events at the end of last week. On Friday my right honourable friend the Prime Minister did something that many people had predicted was not possible: he delivered a legally binding, irreversible renegotiation of our relationship with the European Union. In doing so he secured a new settlement, carving out a special status for this country that gives us the best of both worlds and means that we remain in the parts of Europe that work for us—the noble Lords have talked about some of them—around making sure that we are stronger and safer. That most definitely includes security: although we retain our responsibility to national security, we benefit from the co-operation of our partners in Europe in terms of protecting ourselves from terrorism. Through his renegotiation my right honourable friend has secured terms that mean we will be better off because of increasing competitiveness and the securing of the completion of the single market. He has also made sure that we stay out of the parts that are not in our best interests and have frustrated us for too long.

Having secured all that, we now need to get on with our other commitment to deliver to the British people the opportunity that they have long waited for to have their say on whether Britain should remain in or leave the European Union. The noble Baroness made reference to four months and the time between now and the referendum taking place. I note what the noble and learned Lord said about the length of time of the Scottish referendum campaign. I say to noble Lords that the reason why it is four months is that we are reflecting the proper processes and steps that it was agreed in the European Union Referendum Act should take place between now and the referendum happening. That process has started today: the statutory instrument confirming the date has been laid. That will be debated in both Houses and is subject to an affirmative resolution. Today we have also published the White Paper, which meets one of the requirements of the referendum Act regarding the other information that we as a Government are required to produce. That will happen, in line with the Bill, 10 weeks before the referendum takes place. So that is all in train.

With regard to other points raised by the noble Lords, I say to the noble Baroness, who talked about wanting to see the UK remaining a powerful figure within Europe as a result of the referendum, that I agree with her. We are a powerful player in Europe now and that is what we want to remain. She made the point that the European Union would continue to exist even if the United Kingdom voted to leave. She is absolutely right: if this country decided to come out, the European Union would still be there. As my right honourable friend the Prime Minister said when he was being interviewed yesterday, one of my Cabinet colleagues said on Saturday when we were discussing his renegotiation, “This utopia might sound fantastic but I bet that when you got there, there would still be a European Union”. It is a place that will exist because other people would be members of it even if we were not.

The noble Baroness said it would be important that between now and the referendum taking place the Government continued to govern, and that there are other matters of greater importance to the people of this country. I agree with her about that; we have important business to conduct and will continue to do so.

The noble and learned Lord made reference to the effect on the currency markets. In my view, such an effect between now and the referendum taking place would be about uncertainty: we are now in a state where there is a debate going on and there is some uncertainty about the result of that referendum. What I, the Prime Minister and the Government are arguing is that, by voting to remain in the European Union, we would provide certainty for the future of this country. If this country decides to leave the European Union, it would create a long period of uncertainty.

As to the noble and learned Lord’s question about the sovereignty of Parliament, we have already, in the last few years, protected the sovereignty of this Parliament by passing that Act in 2011, which means that never again can any Prime Minister give away powers to the European Union without coming back to this country and giving the people a say. The very fact that we are having a referendum later this year, in June, is also an act of sovereignty. It also means that the people of this country are in charge of their own destiny. I very much believe and hope that the result of the referendum will see that we remain strong and secure in our future, having the best of both worlds, which means being part of a reformed Europe, but also being in charge of our own destiny and taking advantage of the changes that the Prime Minister has been able to negotiate.

[Lord Taylor of Holbeach (Con)]

My Lords, we are now into an extended period of 40 minutes, which reflects the importance of the Statement made by my noble friend the Leader of the House. We will make the most of that time if noble Lords, with a little bit of self-discipline, restrict themselves to short questions. On top of that, we will be able to go around the House in our usual way.

[Lord Hague of Richmond (Con)]

My Lords, now that the negotiations conducted by the Prime Minister can be subject to intense scrutiny and analysis, does my noble friend agree that it is very important that all possible alternative arrangements with the European Union be subject to an equivalent degree of scrutiny and analysis? Is it not the case that, as even many of us who are long-standing critics of the EU have to recognise, there would be a basic choice between leaving the single market in order to escape its requirements, freedom of movement and regulations, and staying in the single market with those same requirements and regulations? Would that not represent a loss of sovereignty rather than the recovery of sovereignty?

[Baroness Stowell of Beeston]

My Lords, I do not think the House will be surprised to hear me say that I very much agree with my noble friend. He is absolutely right: anybody campaigning for Britain to leave the European Union will have to spell out what that means and what they are suggesting the people of this country would be voting for. They need to be specific about the model that is being proposed. If it is a model like Norway, they need to explain to the people of this country that there is no cost-free alternative; that is important for people to understand. There is not another way in which there is no disadvantage. It is quite possible for the United Kingdom to survive and prosper outside of the European Union, but we believe that Britain would remain stronger in the EU, and it is for others to make their case as to what “leave” means.

[Lord Kinnock (Lab)]

My Lords, does the Leader of the House agree that it is neither pessimistic nor defeatist for us to argue for the United Kingdom to remain in the European Union? It is total commitment to advancing and upholding the stability, security and well-being of our beloved country. It is practical patriotism instead of the risk-riddled leap into the unknown of leaving. Will she therefore dismiss the glib and duplicitous suggestion that voting to leave will somehow compel the European Union to amenably accommodate the economic preferences of the United Kingdom outside the EU? Being pro having cake and pro eating it is an infantile desire, not an adult reality. I hope she will agree that the choice is in or out, not “in, out, shake it all about” and then rashly hope that something helpful will turn up for a country that has abandoned all rights, influence and power by leaving the EU.

[Baroness Stowell of Beeston]

I certainly agree with the noble Lord that voting to remain in the European Union is very much a patriotic decision. If we cast our vote in that way, we are recognising the power and influence we wield as our country in that European Union, and that we will have both the benefit of being in that Union and—because of what has been renegotiated—greater control of our destiny than we have been able to have up to now. The noble Lord is absolutely right about voting to leave. To vote to leave means to leave, and that will be it: it is about being either in or out.

[Lord Hannay of Chiswick (CB)]

My Lords, in my view the agreement reached by the Prime Minister is both substantive and valuable and I thank him for the efforts he made to achieve that. Can the noble Baroness perhaps cast some light on the views of the Mayor of London, who appears to think that if we vote to remain, that will be a green light for federalism? If that is so, why are all the federalist leader-writers on the continent rending their garments because of the agreement reached last week? Could he perhaps be wrong and, while we are at it, could he just understand that the motto of the European Union is not “E pluribus unum” but “United in diversity”?

[Baroness Stowell of Beeston]

I think I will leave the noble Lord to get into a battle about Latin with somebody else—I hope he will forgive me, but I will not engage in that. However, I am very grateful to him for recognising that what the Prime Minister achieved in Brussels was substantive and valuable. He is quite right about the reaction in Europe to what the Prime Minister has achieved. Unfortunately, I have only recently been given some quotes so I will not try to read them out, but clearly, the other leaders in Europe have been able to explain to their people that the UK has got itself a new status in Europe, with new terms. They have also acknowledged that, with the exception of the specific carve-out for the United Kingdom on ever closer union, the changes the Prime Minister has negotiated are to the benefit of Europe as a whole—this is not just about a benefit for the UK—and have acknowledged just how hard the Prime Minister pressed them during these negotiations. The noble Baroness referred to the scenes in Europe. I argue that they demonstrated just how difficult it was for the Prime Minister to get this better deal for the UK. On that basis, we can have every confidence in it.

[Baroness Ludford (LD)]

My Lords, I am delighted that the Prime Minister has shifted to making the big, positive, patriotic case for our membership of the European Union; it is perhaps a pity that he has not been making that case over the last decade. Perhaps I may ask the noble Baroness, with a slight note of concern, how the Government will avoid the adverse consequences of what I might call the “be careful what you wish for” aspects. One is the special status she just talked about, which is in some respects a semi-detached status. How will we make sure that the UK truly is in the lead on EU policy areas such as security and climate change, where we want to be fully engaged? Secondly, although the red card is unlikely ever to be used, there is a danger that it could be used by national parliaments ganging up against the liberalisation of services in the single market in a protectionist way that would not be in our favour. Lastly, on the sovereignty angle—my noble and learned friend Lord Wallace referred to a constitutional court—if the UK Supreme Court becomes a constitutional court that can override Parliament, how will that increase British parliamentary sovereignty domestically?

[Baroness Stowell of Beeston]

The noble Baroness covered a lot of ground and she will forgive me for not dealing with all those points, in order to allow other noble Lords to get in. She suggested that the Prime Minister is only now making the positive case for Britain’s membership of the European Union; I disagree. It is also very important for us to acknowledge that there has been a great deal of frustration among the people of this country about the way Europe has operated for a long time. They have been frustrated at not getting the opportunity to have a referendum. The Prime Minister is being so positive about what he is putting forward to the United Kingdom because he has addressed people’s concerns through his renegotiation and is giving them the opportunity finally to have their say. That is an essential and important part of the message that we need to deliver.

On the noble Baroness’s other points, what is important about ever-closer union and what the Prime Minister was seeking to address in his renegotiation is that we now have the power—which we never had before—not to be involved in things we do not think are in Britain’s interests.

[Lord Howell of Guildford (Con)]

Does my noble friend agree that, however one regards the details of the deal, there can be no doubt that our right honourable friend the Prime Minister has opened up huge new opportunities for the reform of Europe as a whole? As we have reached this point, will she encourage her colleagues in government from now on to put maximum brainpower, energy and imagination into working with the other peoples of Europe to achieve the fundamental reforms the European Union desperately needs in the face of its present crises, and for which most of the people of Europe are yearning?

[Baroness Stowell of Beeston]

My noble friend makes an important point which the Prime Minister, I and others in government are very conscious of. He is quite right, and as I think I said to him when I repeated the previous Statement, this is not the end but the start of a process of reform. We want Europe to work in the best interests of all its peoples. It started reforming. It started changing. It started reducing some of the regulation and burdens that we know are not in people’s interests, but more needs to be done and we will very much support that.

[Lord Soley (Lab)]

Does the Minister agree that, important as the economic arguments are—and I am sure they will take pride of place in the coming months—we must not lose sight of the political and security arguments? Europe is facing challenges in the east from President Putin and in the Mediterranean area and Syria, and there are security problems between the nation states of Europe trying to unite to face those threats, so can she make sure that those arguments are heard? They are profoundly important to the stability of this country and of Europe.

[Baroness Stowell of Beeston]

I very much agree with the noble Lord. One of the advantages of being in Europe—and for us to make clear to the people of this country—is that we have led the way in some of the action that has been taken in the last few years to make sure that we are more secure, whether it is issuing sanctions against Putin or increasing the co-operation between member states on sharing information to defeat terrorism. That is a very good and powerful reason for us to remain in the European Union and an argument that we must continue to make.

[Lord Lawson of Blaby (Con)]

My Lords, I declare an interest as the present chairman of Vote Leave. Is it not clear that the trivial and inconsequential changes that the Prime Minister has secured—subject to legal challenge, of course—fall far, far short of the fundamental, far-reaching reform which three years ago in his Bloomberg speech he said was necessary? Is it not clear that the referendum on 23 June will be about not whether we wish to remain in a reformed European Union but whether we wish to remain in an unreformed European Union, which, alas, it has proved itself to be? However, there is one thing that I welcome. In his Statement the Prime Minister has admitted—I think for the first time but, if not, it is the first time that I can recall—that the purpose of the European Union is to create full-blooded political union. That is clear in the Statement. However, he says that we shall not be part of it. Maybe we will not be but we will still be shackled to it and will have a quasi-colonial status—that is the closest parallel that I can think of. Is it not the case that the referendum on 23 June will be about whether we wish to be a self-governing, independent democracy?

[Baroness Stowell of Beeston]

As my noble friend knows, it always pains me to have to disagree with him, but I disagree in particular with his description of what the Prime Minister secured through his renegotiation in Europe. To describe it as trivial and inconsequential is just not accurate. My noble friend is right in that the Prime Minister acknowledges that the European Union is about political union, but he has secured that we are not a part of that—it is in a legally binding document. It is very clear that we are carved out of it. Furthermore—this point has not had much of an airing—not only do we have a United Kingdom carve-out but the document says:

“The references in the Treaties and their preambles to the process of creating an ever closer union among the peoples of Europe do not offer a legal basis for extending the scope of any provision of the Treaties or of EU secondary legislation”.

That is an instruction to the European Court of Justice and it will apply not just to us but to everybody else who is a member of the European Union and does not want to be part of a political union.

[Lord Wigley (PC)]

My Lords, I declare an interest as a board member of Britain Stronger In Europe. Does the noble Baroness agree that there is an overwhelming economic case for us to remain as a member of the European Union? Nowhere is that more the case than in Wales. Over recent years we have seen international companies from Japan, the United States and elsewhere locating there to sell to the European Union. Leaving the Union would destabilise that relationship and undermine our economy.

[Baroness Stowell of Beeston]

Yes, I agree with the noble Lord. We have to acknowledge the foreign investment that comes into this country and into Wales, a lot of which is from European Union countries. We benefit tremendously from our trade as part of that single market, and we would put that very severely at risk if we were to leave.

[Lord Spicer (Con)]

My noble friend has just talked about a legally binding document protecting our interests. How do the Government then deal with the question of the acquis communautaire and the fact that the so-called watertight legislative protection of our rights in the past has never survived challenges in the court? These matters have to be addressed if some credibility is to be given to this so-called legally binding document.

[Baroness Stowell of Beeston]

In the interests of time and the fact that many people want to get in, I shall say to my noble friend Lord Spicer what I said to my noble friend Lord Lawson. The Prime Minister has secured, for the first time ever, a return of powers to a nation state. That has never happened before. He has secured that and we can now take advantage of it—something that we have never been able to do before.

[Lord Campbell of Pittenweem (LD)]

My Lords, last week at the Munich security conference the United States Secretary of State, John Kerry, expressed the hope of having a strong United Kingdom within a strong European Union. In the opinion of the noble Baroness, why should the United States attach such significance to our continuing membership of the EU?

[Baroness Stowell of Beeston]

It does so because it sees how influential we are in the European Union. It sees that we not only have an impact on the very important international and global issues of the day but bring a lot to what happens in the rest of the European Union. That is why the US wants us to stay.

[Lord Clinton-Davis (Lab)]

I speak as a former European Commissioner. It is absolutely essential that we remain in the European Union, expressing our point of view and being able to judge whether something that has been put forward is in our interests. We can say what we like there. To say that we have no influence—an argument advanced by the noble Lord, Lord Lawson—is absurd. I speak from experience. You have to go through all the institutions of the European Union, not only the Commission, and eventually you end up with a compromise. That is not a dirty word. In my view, it is absolutely essential that 28 countries should perform like that and come to a reasonable decision. To experiment in the way put forward by those who oppose remaining in the EU would be absolutely absurd. In my view, membership of the Union is essential and we should have no doubt about that. We do have a voice.

[Baroness Stowell of Beeston]

It is important not only that we make the strong case for membership of the European Union that the noble Lord has outlined, but that we stress that we are confident in making that case because of the reforms that the Prime Minister has been able to secure. We must not underestimate people’s frustration with the European Union, and we were not happy with the status quo.

[Lord Bilimoria (CB)]

My Lords—

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[Lord Bilimoria]

My Lords, first, perhaps I may just build on what the noble Lord, Lord Campbell, said. Should not the Prime Minister make more of the fact that it means a lot to countries dealing with the United Kingdom that we are part of the European Union? Countries such as India see the UK as a gateway to Europe and I do not think that enough is made of that. Secondly, perhaps I may build on what the noble Lord, Lord Howell, said. The Prime Minister talks about the best of both worlds. You can be a Eurosceptic, as I think I am—I hate the way that the European Parliament works and the fact that it has to go to Strasbourg every month, and I hate the gravy train, the waste of money and the fact that nobody I am aware of knows who their MEP is—and still believe that it is the lesser of two evils, rather than the best of both worlds. Does the Minister agree that it is probably better to stay in the European Union because it is the best of both worlds and the lesser of two evils?

[Baroness Stowell of Beeston]

Or you might say, “Better the devil you know”. Basically, I agree with the noble Lord: you do not have to be a raging Euro-enthusiast and to have been so for donkey’s years to support staying in the European Union. As I said to the noble Lord, Lord Kinnock, this is patriotic. We believe very much in the power and sovereignty of the United Kingdom, and we believe that by being in Europe we can have, as the Prime Minister described it, the best of both worlds. As to the point of the noble Lord, Lord Bilimoria, about making more of the way in which we are a gateway to the rest of Europe, I agree with him, and the Prime Minister is already making that case. We have four months to go and he will keep making that case. I hope that the noble Lord and others will help us in that task.

[Lord Lamont of Lerwick]

Does the Minister recall an interview given some time ago by Jacques Delors in the German newspaper Handelsblatt in which he said this:

“If the British cannot support the trend towards more integration in Europe, we can nevertheless remain friends, but on a different basis. I could imagine a form such as a European economic area or a free-trade agreement”?

Does not that show, without prejudging it, that there is an alternative available, or was Delors just completely wrong?

[Baroness Stowell of Beeston]

My noble friend is right to say that there is an alternative—of course there is an alternative. That is why there are two choices for the British people: to leave or to remain. The alternative—and it may be something like the Norway model—is not inconceivable, but it would not be without cost and is not something that we should walk blindly into without recognising that it brings with it its own disadvantages. We have to be clear what the alternative is. That is what the next few weeks and months will have to be about in this debate: if there is an alternative, what is it?

[Lord Foulkes of Cumnock (Lab)]

My Lords, can I follow up on the particular point that has just been raised and the excellent point that was raised by my noble friend Lord Hain? Since the Minister and I are on exactly the same side—enthusiastically, and for the first time ever, I think—can I ask her a favour? Will she go back to the Cabinet and say, “Let us find some way of requiring these people who are against the present arrangement to put forward their alternatives so that we can examine them in detail”? They need to be required to do that so we can see clearly what the alternative is. If the Cabinet can come up with some kind of arrangement for that, I will give it and the Minister three cheers.

[Baroness Stowell of Beeston]

It is for those who want to campaign to leave to come up with their arguments and the case for that. It is not for me, on the opposite side of the argument, to try to find a mechanism for them to do so; that is their responsibility. We will go through the process of formally designating the leave campaign and, as part of that process, I imagine that the respective group that is successful will be the one that the Electoral Commission feels has covered all the requirements set out for it.

[Lord Framlingham]

My Lords, I am sure the Leader of the House will agree with me that the most important thing in the next four months will be to put the arguments—all the arguments—as fairly as possible before the British people. All the Front Benches in this House are for staying in and all the Front Benches in the House of Commons are for staying in. This afternoon, the Prime Minister confirmed that he is going to use the whole power of the Civil Service to campaign to stay in. Does the Leader of the House think that that is entirely fair and right, and should it be of some concern to our House?

[Baroness Stowell of Beeston]

On the last point that my noble friend makes, the Government have adopted a position and are not neutral on this. We are arguing to remain in a reformed European Union because we believe that that is in the best interests of the people of this country. But, ultimately, it is for them to decide. Like the noble Lord, Lord Foulkes, my noble friend is right to say that the people who would advance leaving have to make their case and be clear in their arguments. To be honest, the inclusion in the campaigns of some very significant figures—potentially from this House and from the other place; I do not know how everybody is going to vote—means that there will be a serious debate over the next few weeks. I think that that is a good thing.

[Lord Taylor of Holbeach]

My Lords, I wonder whether we might hear from the noble Lord, Lord Low.

[Lord Low of Dalston (CB)]

My Lords, it would be entirely appropriate for the Government to make the case which they support for remaining in the European Union with all the strength at their command. The case for remaining within the European Union does not stand or fall by the details of the deal that the Prime Minister negotiated in Brussels at the weekend. Nevertheless, it is very clear from the Prime Minister’s Statement, which the noble Baroness the Leader of the House has repeated for us, that the deal tends much more to the substantial and significant, as was depicted by my noble friend Lord Hannay, rather than the trivial and inconsequential, as portrayed by the noble Lord, Lord Lawson. However, it is probably fair to say that the balance of the media comment and their portrayal of the deal has tended towards the trivial and inconsequential. Given that, will the Minister provide an assurance that the Government will spare no effort to get across to the British people the substantial and significant progress that the Prime Minister has made in persuading the European Union to accommodate the British position and that it does not remain within the Westminster bubble, as we have heard it described this afternoon?

[Baroness Stowell of Beeston]

I certainly think that the Government have a responsibility to be clear about what they are advancing and to communicate that directly to the people. But I also think that the media play an important part in our democratic process. Noble Lords have been arguing about other people making their case, and it is important as well that, through the media, people get to hear the arguments for and against. I would never stand at this Dispatch Box and criticise the work of the UK media.

[Lord West of Spithead (Lab)]

My Lords, the noble Baroness the Leader of the House will be well aware that there is no doubt whatever that the people of our nation are safer in terms of terrorism and serious organised crime because we are part of the EU. We lead Europol and have the European arrest warrant and all sorts of things. At the grand strategic level of defence, there is no doubt that NATO is most important to us. However, does the noble Baroness agree that Europe is very important to our nation? We have twice saved its bacon in the last 100 years and there is no doubt that, at the moment, there are huge threats. If we left the EU, I think there would be a certain flakiness within it. Does the noble Baroness agree? This is a very bad moment for that to happen. Europe needs us and, if it becomes flaky, the risks from people like Putin and the southern flank would be huge. We need to bear these things in mind.

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[Baroness Stowell of Beeston]

That is why the Prime Minister has said that perhaps the only person who would cheer if we were to vote to leave would be Putin. Clearly, we do not want to do anything that is going to brighten up his day.

[Lord Pearson of Rannoch (UKIP)]

My Lords, will the Minister tell us how this pathetic deal is in any way the fundamental reform of the EU itself that we were promised? For instance, can she tell us how it has reduced the hugely undemocratic powers of the Luxembourg court and the European Commission? The Prime Minister tries to frighten us by talking about leaving the European Union as being a leap in the dark that will, for example, lose us our present access to the single market. Does the Minister accept that Europe sells us very much more than we sell them, that we have 3 million jobs exporting to them but they have 4.5 million jobs exporting to us, and that we are in fact their largest client? Does she accept that they need our free trade very much more than we need theirs? Can she tell us why that trade will not continue, because they will come running after us to have it?

[Baroness Stowell of Beeston]

No, I am afraid I do not agree with the noble Lord’s description of who benefits most, Europe or us, from the relationship. I shall not take up time rattling through all the statistics, but I say this to the noble Lord: in the end, it is about what is of greater benefit to all of us—to the UK and to the rest of Europe. As a trading bloc, we all benefit from the UK being in the European Union. It is not just about how we benefit in this country—although we do. As for the noble Lord’s questions about sovereignty, I refer him to what I said to my noble friend Lord Lawson. I really do disagree with what he says about that.

[Lord Cormack (Con)]

My Lords, as we begin four months of campaigning, should we not just gently reflect that the most publicly apparent achievement of eight years of amusing, dynamic, flamboyant leadership in London has been gridlock?

[Baroness Stowell of Beeston]

No, I do not agree with my noble friend.

[Lord Maclennan of Rogart (LD)]

My Lords, is not the greatest achievement of the European Union, to which we have belonged since the 1970s, the fact that we have had 70 years of peace? After the two world wars Britain was financially at a loss. We lost our empire and we lost our ability to spend, and this is the whole purpose of the European Union being saved. If we left the European Union we would destabilise it, and that might lead to a break-up.

[Baroness Stowell of Beeston]

The noble Lord certainly puts a clear case for the European Union and for our remaining in it. Much as I agree with what he has said, there is something that cannot be repeated often enough, particularly for those who are undecided—and we must always remember that a lot of people are unsure of which way to vote. So although the noble Lord is right, we also need to emphasise that the European Union does not work quite as we want it to in all areas. That is why we have been renegotiating the terms, and we are now confident enough to advocate staying in.

[Lord Blencathra (Con)]

My Lords, I declare an interest as a supporter of Vote Leave. Does my noble friend agree with me—she probably does not—that the real threat we face, and the huge frightening leap in the dark, would be if we now remained in Europe? Europe has seen that Britain is a bit of a paper tiger. A few years ago we were saying that we wanted fundamental and far-reaching reform. Then we asked for very little, and I am afraid we settled for a lot less. When Europe comes to implement the next treaty change and the Five Presidents’ Report, and as it heads for being an ever-tighter federalist superstate, will we not be ignored, mocked, sidelined and completely stitched up?

[Baroness Stowell of Beeston]

As my noble friend predicted, I do not agree with him. One area that I would point to in order to illustrate my disagreement is what the Prime Minister secured around economic governance. Again, I do not think that it has been properly understood yet how significant the protections that he has secured are—not just for our currency, but for the City of London and our financial services. I assure my noble friend that the other member states, and particularly the French President, were in no way shy about fighting hard to prevent us getting what we wanted, but we secured a good deal for Britain in the end.

[Lord Harris of Haringey (Lab)]

Will the Minister convey to the Prime Minister the relief that we on this side of the House feel—indeed, our sincere congratulations—that he is beginning to put such an unequivocal and clear case for our membership of the European Union? Will she urge him, in the months that lie ahead, to put that case to the whole country, including Labour supporters and people of no party affiliation, and not just to conduct a desperate internal debate inside the Conservative Party?

[Baroness Stowell of Beeston]

I can certainly reassure the noble Lord that the Prime Minister will do exactly what he has just outlined. This is not about the Conservative Party; it is about the future of the United Kingdom. What we are doing here is what we believe is in the best interests of the people of this country.

[Lord Stoddart of Swindon (Ind Lab)]

My Lords, if the country votes out on 23 June, should not the first action the Government take be to repeal the European Communities Act 1972? That would enable negotiations to take place under Article 50. Secondly, is the Minister aware that earlier this month the original six leaders of the EEC came out and said that it was absolutely essential for Europe to proceed to ever-closer union, including fiscal union? In those circumstances, if Britain is not to be in that particular club, will we stop talking about being at the heart of Europe?

[Baroness Stowell of Beeston]

As I have already explained, what the Prime Minister has secured on ever-closer union means is that we, the United Kingdom, can be a member of the European Union in a way that properly reflects what we want from being a member. As the Prime Minister said in his Statement, we never wanted to be part of a political union, and now we have a legally binding agreement, which will be amended in the treaties, to show that we will not be part of an ever-closer union even if other members of the EU decide that is what they want.

[Lord Willetts (Con)]

My Lords, we are rightly told that Britain’s future is as a global trading nation. But often, on trade missions abroad, one would find that other EU member states such as Germany and France had been there before us. So will the Minister confirm that membership of the European Union is not an obstacle to fulfilling those ambitions, and that we should not use our membership as an excuse for failing to tackle problems in our own performance?

[Baroness Stowell of Beeston]

My noble friend makes an important point. I very much agree with him that we have a responsibility always to get the best for Britain, whether we are acting independently and unilaterally or as part of the European Union, and we should never use the European Union as an excuse for our own inefficiencies or inadequacies.

Housing Estates

Baroness Stowell of Beeston Excerpts

Tuesday 9th February 2016 Lords Chamber

[Lord Low of Dalston (CB)]

My Lords—

[The Lord Privy Seal (Baroness Stowell of Beeston) (Con)]

My Lords, the House is calling for a Cross-Bencher so we must go to the Cross Bench first.

[Lord Low of Dalston]

My Lords, does the Minister accept that, when making large-scale policy changes on social housing or in implementing estate regeneration programmes, tenants desperately need access to information, advice and advocacy about their rights and options, on the implications for them and their families? Will she ensure that strategies for supporting housing and social welfare advice, commonly provided by such organisations as Shelter, citizens advice bureaux and law centres, are factored into the funding and effective structures for delivery?

European Union: United Kingdom Renegotiation

Baroness Stowell of Beeston Excerpts

Thursday 4th February 2016 Lords Chamber

[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 yesterday. The Statement is as follows.

“With permission, Mr Speaker, I would like to make a Statement on progress with our renegotiation. The House has now had the chance to study the documents published by the European Council yesterday. I believe that this is an important milestone in the process of reform, renegotiation and referendum that we set out in our manifesto, and which the Government are delivering. We have now legislated for that referendum and we are holding that renegotiation.

Let me set out the problems that we are trying to fix and the progress that we have made. First, we do not want to have our country bound up in an ever closer political union in Europe. We are a proud and independent nation, with proud, independent, democratic institutions that have served us well over the centuries. For us, Europe is about working together to advance our shared prosperity and shared security; it is not about being sucked into some kind of European superstate—not now, not ever.

The draft texts set out in full the special status accorded to the UK and clearly carve us out of further political integration. They actually go further to make it clear that EU countries do not even have to aim for a common destination. This is a formal recognition of the flexible Europe that Britain has long been arguing for. In keeping Britain out of ever closer union, I also wanted to strengthen the role of this House and all national parliaments, so we now have a proposal in the texts that if Brussels comes up with legislation that we do not want, we can get together with other parliaments and block it with a red card.

We have also proposed a new mechanism to finally enforce the principle of subsidiarity—a principle dear to this House—which states that, as far as possible, powers should sit here in this Parliament, not in Brussels. Every year the European Union has to go through the powers it exercises and work out which are no longer needed and should be returned to nation states.

Secondly, I said that we wanted to make Europe more competitive and deal with the rule-making and the bureaucracy that can cost jobs here in Britain and, indeed, across the European Union. We asked for commitments on all the areas central to European competitiveness. We want international trade deals signed, the single market completed and regulation stripped back. All these things are covered in the draft texts. There is a new proposal for specific targets to reduce the burdens on business in key sectors. This will particularly help small and medium-sized businesses, and there is a new mechanism to drive these targets through and cut the level of red tape year on year.

Thirdly, we are absolutely clear that Britain is going to keep the pound—in my view, for ever—but we need to be just as clear that we can keep the pound in a European Union that will be fair to our currency. Put simply: the EU must not become a euro-only club. If it does, it would not be a club for us, so we called for a series of principles to protect the single market for Britain. We said that there must be no discrimination against the pound, no disadvantage for businesses that use our currency, wherever they are located in the EU, and no option for Britain ever again to be forced to bail out eurozone countries. All these principles are reflected in the draft text, which is legally binding, and, again, there is a mechanism. Britain has the ability to act to uphold all these principles and protect our interests. We should be clear: British jobs depend on being able to trade on a level playing field within the European single market, whether in financial services or cars or anything else, so this plan, if agreed, will provide the strongest possible protection for Britain from discrimination and unfair rules and practices. For instance, never again could the EU try its so-called “location policy”—that the settling of complex trades in euros must take place only in eurozone countries. These principles would outlaw that sort of proposal. These are protections we could not have if Britain were outside the European Union.

Fourthly, we want to deal with the pressures of immigration, which have become too great. Of course, we need to do more to control migration from outside the European Union. We are doing that and we will be announcing more measures on that front, but we need to control migration from within the EU, too. The draft texts represent the strongest package we have ever had on tackling the abuse of free movement and closing down the back-door routes to Britain. It includes greater freedoms for Britain to act against fraud and prevent those who pose a genuine and serious threat from coming into this country. It includes a new law to overturn a decision by the European Court which has allowed thousands of illegal migrants to marry other EU nationals and acquire the right to stay in our country. It has been a source of perpetual frustration that we cannot impose our own immigration rules on third-country nationals coming from the European Union, but now, after the hard work of the Home Secretary, we have a proposal to put that right.

There are also new proposals to reduce the pull factor that our benefits system exerts across Europe by allowing instant access to welfare from the day someone arrives. People said that Europe would not even recognise that we had this problem, but the text explicitly recognises that welfare systems can act as an unnatural draw to come to this country. Our manifesto set out four objectives to solve this problem. We had already delivered on two of them within months of the general election. Already EU migrants will no longer be able to claim universal credit—the new unemployment benefit— while looking for work, and if those coming from the EU have not found work within six months, they can now be required to leave. Now, in these texts, we have secured proposals for the other two areas. If someone comes from another country in Europe, leaving their family at home, they will have their child benefit paid at the local rate, not at the generous British rate, and, crucially, we have made progress on reducing the draw of our generous in-work benefits. People said that it would be impossible to end the idea of something for nothing, and that a four-year restriction on benefits was completely out of the question. But that is now what is in the text—an emergency brake that will mean people coming to Britain from within the EU will have to wait four years until they have full access to our benefits. The European Commission has said very clearly that Britain already qualifies to use this mechanism, so, with the necessary legislation, we would be able to implement it shortly after the referendum.

Finally, let me be absolutely clear about the legal status of these changes that are now on offer. People said we would never get something that was legally binding—but this plan, if agreed, will be exactly that. These changes will be binding in international law, and will be deposited at the UN. They cannot be changed without the unanimous agreement of every EU country—and that includes Britain. So, when I said I wanted change that is legally binding and irreversible, that is what I have got; and, in key areas, treaty change is envisaged in these documents.

I believe we are making real progress in all four areas—but the process is far from over. There are details that still need to be pinned down and intense negotiations will take place to try and agree the deal with 27 other countries. It will require hard work, determination and patience to see it through. But I do believe that with these draft texts, and with all the work that we have done with our European partners, Britain is getting closer to the decision point. It is, of course, right that this House should debate these issues in detail. So in addition to this Statement, and of course a Statement following the Council later this month, the Government will also make time for a full day’s debate on the Floor of the House.

As we approach this choice, let me be clear about two things. First, I am not arguing, and I never will argue, that Britain could not survive outside the European Union. We are the fifth largest economy in the world and the biggest defence player in Europe, with one of the most extensive and influential diplomatic networks on the planet. The question is not could Britain succeed outside the European Union; it is how will we be most successful? How will Britain be most prosperous? How will we create the most jobs? How will we have the most influence on the rules that shape the global economy and affect us? How will we be most secure? I have always said that the best answers to those questions can be found within a reformed European Union. But let me say again, if we cannot secure these changes, I rule nothing out.

Secondly, even if we secure these changes, you will never hear me say that this organisation is now fixed—far from it. There will be many things that remain to be reformed and Britain would continue to lead the way. We would continue to make sure that Europe works for the countries of Europe, for the businesses of Europe, for the peoples of Europe and, crucially, for the British people who want to work, have security and get on, and make the most of their lives.

So, if we stay, Britain will be in there keeping a lid on the budget, protecting our rebate, stripping away unnecessary regulation and seeing through the commitments we have secured in this renegotiation. This will ensure that Britain can truly have the best of both worlds: in the parts of Europe that work for us, and out of those that do not; in the single market; free to travel around Europe; and part of an organisation where co-operation on security and trade can make Britain and all its partners safer and more prosperous, but with guarantees that we will never be part of the euro, never be part of Schengen, never be part of a European army, never be forced to bail out the eurozone with our taxpayers’ money, and never be part of a European superstate.

That is the prize on offer—a clear path that can lead to a fresh settlement for Britain in a reformed European Union: a settlement that will offer the best future for jobs, security and the strength of our country; a settlement which, as our manifesto promised nearly a year ago, will offer families in our country security at every stage of their lives. That is what we are fighting for, and I commend this Statement to the House”.

My Lords, that concludes the Statement.

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[Baroness Stowell of Beeston]

My Lords, I was very pleased to repeat my right honourable friend’s Statement about this important issue of Britain’s role in, and relationship with, Europe. We were elected as a Government to lead a process of reform and renegotiation and to hold a referendum on the EU. Many said that what we had set out to do would be impossible, yet we have already legislated for that referendum and we now have a draft text on the table that puts forward significant reforms in each of the four areas that are of greatest concern to the British people. The important thing to stress is that this is about addressing their concerns and the things that they have highlighted, all too often, over a very long time about Britain’s relationship with the European Union.

Before I address some of the specific points that were raised by the noble Baroness and the noble and learned Lord, I would say that, contrary to the way in which the noble Baroness described my right honourable friend’s approach to his responsibility, he has been very careful in his approach and very diplomatic. He had a plan which he was keen to put forward, negotiate over, hopefully achieve agreement on and then implement. What he has achieved so far is something that no other British Prime Minister has yet achieved in terms of coming to this Parliament and saying that there is the chance now to bring back powers to the United Kingdom from Europe. That is incredibly important.

The noble Baroness referred to one of the things we already achieved in the coalition Government: the justice and home affairs opt-outs. That was unprecedented in terms of us renegotiating our agreement with Europe on something that was very important. Both she and the noble and learned Lord talked about the use of language and about putting forward the positive case for Britain’s membership of Europe during the referendum campaign. That is clearly an important aspect of any campaign. The Statement from the Prime Minister that I have repeated was very clear that there are real benefits to the United Kingdom being in Europe, which we would lose if we were no longer part of Europe. He was also very clear in his Statement that it would be possible for the UK to survive outside of the European Union.

The noble Baroness asked about details missing from the documents that have been published and put forward by the Commission. This is a live negotiation, and those details are still to be discussed and debated. The Prime Minister is hosting the Syria conference today, which he will take as an opportunity to talk to other Heads of Government. He is travelling to Europe at the end of this week, and there will be another European Council on 18 and 19 February. A lot of this is still very much in play and up for negotiation, so I am not able to provide more detail on anything that is missing.

However, I assure the noble Baroness and the noble and learned Lord that, after the next European Council, I will, as is customary, repeat the Prime Minister’s Statement in this House. We do not yet know whether the Prime Minister will reach an agreement at that European Council, but in his Statement yesterday he committed to a full day’s debate in the other place after an agreement is reached. I am quite confident that we will be able to secure some time, in government time, for a debate in this House to discuss whatever the Prime Minister is able to agree, although I stress that we cannot be sure that that will happen at the European Council that is taking place later on this month.

The noble and learned Lord asked me about the legal status of the documents. It is very clear, because Mr Tusk has made it clear, that these are legally binding documents; they are irreversible. If the Prime Minister reaches an agreement with the other member states that he wishes to put forward to the people of this country, for them to decide then that they want to remain in Europe, after that decision is made then they will take operational effect—they will become operative—immediately. There are some elements that will be legally binding straight away. The deal will take effect straight away.

There will be some measures that are identified in the draft deal that will require some secondary legislation, perhaps through the European Parliament, but because of the way in which the Prime Minister has approached his renegotiation with Europe, a lot of the different institutions and people involved in this process have already come out and said that they are ready to respond and to do what is necessary in this case—in that case, in the European Parliament. We are confident that we will be able to make full progress should that deal be made, should the British people decide that that is what they want, because of the way in which people have already responded.

[Lord Taylor of Holbeach (Con)]

My Lords, we are now into an extended period of Q&A of 40 minutes. I recommend to the House that we be succinct in the questions that we lay and that we go round the House in our customary fashion. This should enable everybody to make a point.

[Lord Lawson of Blaby (Con)]

My Lords, is my noble friend aware that none of the important objectives set out in the Prime Minister’s Bloomberg speech three years ago has been achieved? He committed himself then to securing a “fundamental, far-reaching” reform of the European Union. These inconsequential scraps are certainly not that. He committed himself to the process of returning powers from the Union to the individual member states. That has not been achieved. The principle of the acquis communautaire remains in place, as does the passerelle clause of the Lisbon treaty which entrenches it.

He promised full-on treaty change. No such treaty change has been secured. On ever closer union, is my noble friend aware that the Solemn Declaration on European Union agreed in Stuttgart in 1983 explicitly commits the European Union to the ever closer union of the member states of the EU? Did the Prime Minister seek to have the Stuttgart declaration revoked, and, if not, why not?

[Baroness Stowell of Beeston]

I have huge respect for my noble friend and for his position and views on Britain’s relationship with the European Union. He has been involved in lots of negotiations in Europe over a significant period of time. From my perspective as a relative newcomer to this kind of thing and as a member of the Government, I look at what the right honourable David Cameron, our Prime Minister, has achieved. Let us not forget that it is Donald Tusk who has published this set of draft proposals, not the Prime Minister. Let us look at what he has come forward with. The Prime Minister has achieved something that nobody before him has achieved. On ever closer union, we will see for the first time institutions in Europe that we have criticised time and again for using the treaties and their preambles to try to extend the scope and power of union no longer able to do that. I think that is a massive step forward.

[Lord Boswell of Aynho (Non-Afl)]

My Lords, as chairman of the European Union Select Committee, I shall focus on the role of national parliaments. The text proposes that the Council will discontinue consideration of draft legislation in the event that reasoned opinions are sent representing more than 55% of the votes allocated to national parliaments. That is certainly welcome, as far as it goes. How will the new procedure interact with the existing reasoned opinion procedure, which will be considered by the House in its next business today? How can it be ensured that this new tool is of practical as well as purely symbolic value? What steps will be taken to put in place an effective mechanism for national parliaments to work together?

Last week in evidence to my committee the Foreign Secretary stressed the need to establish a more effective support machinery to co-ordinate the work of national parliaments. Can the noble Baroness confirm that the Government will actively work on such developments alongside this draft agreement?

[Baroness Stowell of Beeston]

The noble Lord is right to point out that the next business of your Lordships’ House is on a reasoned opinion, using one of the mechanisms that currently exist for sovereign parliaments to make their views known. The draft text proposes that parliaments have much greater power, with a red card, than they have currently. Clearly, a lot of the detail is still to be sorted out on mechanisms that would be used and how the red card would interplay with the yellow card. I think it is safe to assume that having at parliaments’ disposal a power that they do not currently have to block legislation would be a strong incentive to them to be more active than they might have been when they had at their disposal only a yellow card. My right honourable friend the Foreign Secretary is right to suggest that there might be greater co-ordination between parliaments across Europe to ensure that they get to the minimum level to have real and dramatic effect with the use of this new power.

[Lord Liddle (Lab)]

My Lords, does the noble Baroness accept that many of us on this side of the House welcome the progress that the Prime Minister has made towards enabling him to argue the case for remaining in Europe in the coming referendum? However, if he is to win that case, would he take advice from Members of this House that he should not spend his time, as he did yesterday in the other place, trying to rally Eurosceptics against Brexit? Rather, he should make a positive and patriotic case for Britain’s membership of the EU. This should not be a “project fear”, but a “project hope”.

[Baroness Stowell of Beeston]

I am grateful to the noble Lord for offering his support to the Prime Minister, although I do not agree with how he described the Prime Minister’s approach to this. The Prime Minister has put forward a series of changes that address real concerns of the British people—British people who see real value in being a member of the European Union, but, quite frankly, are a bit fed up with it and the way it operates. The Prime Minister set out to renegotiate some of the terms that address those matters, whether it is around welfare or powers taken away from us. If he gets an agreement that he is satisfied is a good deal for the British people, then in the course of the next few months he will want to talk to those who are uncertain, a bit unsure and a bit undecided. Being successful in trying to persuade people requires any of us who seek to influence the views of others to be respectful of those who are currently unsure which way they might want to vote. We very much hope, whatever it is that the Prime Minister is battling for, that they vote with him.

[Lord Tebbit (Con)]

My Lords, can I ask my noble friend two precise and related questions? Yesterday the Prime Minister said in the other place that the emergency brake would be applied “shortly after the referendum”. First, does that mean that no combination of other member states can stop us applying that emergency brake in any circumstances? Secondly, he said that where benefits are paid in respect of beneficiaries not in the United Kingdom, they will be paid,

“at the local rate, not at the generous British rate”.—[Official Report, Commons, 3/2/16; col. 926.]

Will the computer at the department of pensions be up to doing that job?

[Baroness Stowell of Beeston]

I am happy to reassure my noble friend about two things on the emergency brake. First, the Commission has made it clear that in its view the emergency brake would apply immediately, assuming that the British people decide that they want to remain in Europe. It is worth reminding ourselves that not only has the Commission said that but President Juncker also said yesterday that this was a good deal in response to the failure of the previous Labour Government to protect the UK from an increase in immigration from the accession countries when they had opportunity to do so. This has been signalled as a ready-to-apply and will apply immediately if this is what the British people vote for.

Secondly, as far as benefits at local rate are concerned, the Prime Minister outlined our response and reaction to what is in the Tusk proposal. Clearly, we are confident that if that is what is in the deal and package we would be able to administer that arrangement.

[Lord Foulkes of Cumnock (Lab)]

My Lords, will the noble Baroness the Leader confirm that it is the United Kingdom that is the member of the European Union and that it does not matter if any principality, province or nation of the United Kingdom votes differently? It is the decision of the people of the whole of the United Kingdom that will be decisive in the referendum.

[Baroness Stowell of Beeston]

I want to take this rare opportunity to say to the noble Lord, Lord Foulkes, that I agree with him.

[Lord Hannay of Chiswick (CB)]

My Lords, I thank the noble Baroness the Leader of the House and the other two Front-Bench spokesmen for their statements. I agree that the Statement marks a significant shift on all four of the Government’s priorities in the renegotiation. I also welcome the noble Baroness’s statement about the legally binding nature of the package that the President of the European Council—not the Commission, by the way—has put on the table. This differentiates it very much from the Stuttgart declaration, which never was and is not legally binding nor does it have any legal force.

First, can the noble Baroness say that the use of the deposit at the United Nations of a legally binding text which was first introduced for Denmark at the time of the Maastricht treaty resulted in all the commitments in its renegotiation being honoured in the spirit and the letter? That is a very important point.

Secondly, while a good deal of mockery is sometimes unleashed on the complexity of this document, particularly in the pages of the press, it is not avoidable for a legal document of this nature not to be complex. If we look at any of the Acts passed by this House, we see that they are not light reading either. The reason is the same: they have to be legally applicable and deal with the legal complexities of the situation that they are set up to face. We should broaden the debate beyond this package when the campaign starts because there are far more important issues even than these to be discussed, but I welcome this Statement.

[Baroness Stowell of Beeston]

I am grateful to the noble Lord, both for his contribution and for picking up on my misuse of “Commission” when I should have been saying “Council”. He offers a great deal more experience of the European Union and its institutions, the European Council and indeed the United Nations. I am happy to confirm what he just said, particularly his comparison to Denmark. What is proposed in this document is very much in line with what is in place for Denmark, which has existed for over 20 years and remains absolutely legally binding.

[Lord Spicer (Con)]

My Lords, the Prime Minister says that we will never be part of a European superstate, but what about the acquis communautaire? It is intrinsic to the treaty and has to be addressed. What about the court, which always supports the acquis? What about the polemics of this? The draft agreement in front of us today has in it the objective of not only a single economic state but a banking centralised state, and therefore a fiscal centralised state, and therefore a federal state. The BBC hinted last night that there was a secret plan to deal with these issues, which are fundamental so would require major treaty changes. If that is true, I would be very interested to hear more about this, as I am sure the House would. Is such a plan being worked up on the side? If so, when will we hear about it?

[Baroness Stowell of Beeston]

What is recognised in the documents that have been published is that treaty change may be required in some areas but, until that treaty change occurs, the text will be legally binding; as the noble Lord, Lord Hannay, said, it will be deposited in the United Nations. This is not about avoiding treaty change but about legally binding irreversible decisions, acknowledging that, where treaty change is necessary, that will happen at the appropriate point. The decision document—the first and lengthiest of the documents published by Mr Tusk—makes clear that the European Court of Justice will be required to take account of that document when it is considering any of its judgments.

[Lord Davies of Stamford (Lab)]

My Lords, there have been quite a number of Eurosceptics who over the past 48 hours have criticised the Prime Minister for not bringing back a provision that would enable our Parliament to opt out of any EU legislation that it wanted whenever it wanted to. We should be absolutely clear about one thing: they are entirely and bitterly opposed to our being part of the single market, whether as a member of the European Union itself or by negotiating, if that proved possible, some access to the single market from outside. The single market is a single regulatory space. If individual members of the single market could pick and choose what they wanted at any time, it would not be a single market; it would be 28 separate and very fragmented markets. If we tried to negotiate access to that market from outside, not only would we not be able to pick and choose in that way—we would have to accept all the rules and regulations—but from then on we would have no role whatever in formulating those rules and in the legislative process.

[Baroness Stowell of Beeston]

The noble Lord is certainly right to point out that if the United Kingdom was not a member of the European Union, the way in which it would access the single market would be substantially different, because other countries with a different kind of relationship with the European Union might be able to establish the advantages but do not have an opportunity to influence the rules and how they apply. However, there are people in this House, the other House and the country at large who have long-standing principled views about the European Union that I very much respect. For the first time in over 40 years, we are giving everyone the chance to have their say and decide whether they want to vote us in or out of Europe. I do not want to diminish anyone who has a different view from someone else on this. As I said to the noble Lord, Lord Liddle, during any campaign on this it will be important that we communicate fairly and effectively with those who have yet to make up their mind about the benefits and otherwise of what is proposed.

[Lord Pearson of Rannoch (UKIP)]

My Lords, the Government assume that our membership of the EU single market has been good for our economy and that we benefit from the foreign trade arrangements that the Commission is able to secure because of its “clout”. I therefore ask the Government whether they have read a game-changing new analysis from Civitas entitled Myth and Paradox of the Single Market by Michael Burrage. If not, will they do so? It shows that four much smaller countries—Chile, Korea, Singapore and Switzerland—have done hugely better from their free trade deals than we have with the Commission negotiating our free trade arrangements on our behalf. Of course, if we left the political construct of the European Union we would keep our free trade with the rest of the single market—which is all we need—because we are its largest client. They need our free trade much more than we need theirs so it will continue.

I do not have time to deal with the shattering uselessness of the rest of the Prime Minister’s deal, which I understand we shall debate properly soon, but I thought I would ask this question in the mean time, and I look forward to the noble Baroness’s reply.

[Baroness Stowell of Beeston]

I am confident that those who are closely involved in this process have reviewed every text, document and so forth. I personally have not; I hope that the noble Lord will forgive me. The Prime Minister has made clear in his Statement that there are great benefits to being in the European Union that include access to trade. He is also clear that the United Kingdom could survive outside the European Union, but he wants to secure Britain’s membership in a reformed Europe—to negotiate something that would stack up for the people of this country and was then, in the end, for them to decide on.

[Lord Howell of Guildford (Con)]

My Lords, is not the fair and sensible verdict on this deal process so far that it is so far, so good? However, will the Minister accept that the really key word in the whole of this debate, and in the processes to discuss in the European Union, is “reform”, which lies at the centre of what I understand my right honourable friend the Prime Minister to be trying to achieve? Would it therefore not be best if London and the UK became—far more than at present—a strong source of ideas for the revitalisation and fundamental reinvigoration of the deeply troubled European Union rather than just a demander of concessions? Is that not the way we now want to go?

[Baroness Stowell of Beeston]

As always, my noble friend has spoken wise words, in that this is not just about trying to get concessions. It is about starting a reform process in Europe. I disagreed with what the noble Baroness said about the way the Prime Minister had approached this because, by starting this, he has kick-started within Europe a recognition that that institution has to change for all its members to prosper. More can be done. He hopes that he can achieve an agreement that will lead to us staying in a reformed Europe and for that to be the beginning of the process, not the end.

[Lord Steel of Aikwood (LD)]

I wonder if the noble Baroness is aware that, for those of us listening to the Statement today who were involved in the 1975 referendum, there was a strong sense of déjà vu as the same arguments went on after Prime Minister Wilson’s renegotiations? I am reminded of my great predecessor Jo Grimond saying, when we were haggling over the terms of entry into the European Community, that it was as though at the time of the Reformation people were not able to make up their minds until they knew what price the monasteries were likely to fetch. When we get to the referendum, can we operate at a slightly higher level?

[Baroness Stowell of Beeston]

I always try to operate at a higher level.

[Lord Howarth of Newport (Lab)]

My Lords, is it not clear that the European Union is incapable of dealing with the greatest challenges which face it— monetary policy and migration—and that it is in decline relative to the global economy? Is it not also evident that supranational political institutions that disregard national sentiment do not endure and that the European Union fails to command the loyalty of its constituent peoples and can therefore be expected to disintegrate, just as did the Austro-Hungarian Empire, the Soviet Union and Yugoslavia? Should not British policy accord with the march of history?

[Baroness Stowell of Beeston]

That was an interesting lesson in history, but at the moment we are concentrating on trying to get a better deal for the British people as regards their current membership of Europe, which I will focus my remarks on today.

[Lord Higgins (Con)]

Will my noble friend agree that there is an increasing danger—I drew attention to it on Second Reading of what is now the European Union Referendum Act—that voters will express their views as to whether the negotiations have been a success rather than on the more fundamental issues, which will otherwise get crowded out of the debate, and that we will lose the vote in favour of remaining in as a result? Also, should we not be too preoccupied with the rhetoric about ever-closer union when the two main planks of European policy, the euro single currency and free movement of people, are tearing the Union apart? We ought to try to get reform on those matters. However, having said that, the Prime Minister is making progress and I hope it will continue.

[Baroness Stowell of Beeston]

I am very grateful to my noble friend for his comments and his support. I agree that people will consider how to vote based on their view of the success of renegotiation—although I keep having to preface my remarks by saying that the Prime Minister has not yet reached an agreement with Europe; as he said in his Statement, he has not yet ruled anything out as regards the next steps. Notwithstanding the remarks of the noble Lord, Lord Steel, about a higher level, I am sure that we will see lots of debates about the detail. Some things will be of particular concern to certain people, while for many others there will be an instinctive reaction to the debate rather than attention to the detail, and we will have to cover all people’s interests in this important matter.

[Lord Hain (Lab)]

My Lords, whereas British membership of the European Union costs in net terms about £10 billion now, if we left, presumably we would still want to be a member of the single market. After all, half our national trade is there, but on the Norway model—the only rational basis for that membership—that would cost about £7.5 billion. Will the Government explain that over the coming weeks? Admittedly it is less, but not that much less, and we would be bound by future rules determined in Brussels, without our Ministers accountable to our Parliament and our elected parliamentarians accountable to their voters in Britain being able to influence them. That does not seem much of a bargain—we would pay but have no say. Does the Minister agree?

[Baroness Stowell of Beeston]

I agree with the noble Lord’s analysis. When we get to the campaigning stage, it will be important to help people to understand that there are most definitely alternative models, but that they come with costs and disadvantages that people will need to be aware of if those are the routes they want to pursue.

[Lord Forsyth of Drumlean (Con)]

My Lords, does my noble friend agree that the fact that our Prime Minister has had to spend months going all round Europe to secure a minor change to our benefit legislation indicates just how far we have lost the ability to determine our own affairs, which should be at the heart of the referendum campaign? Does she agree with Sir Stephen Nickell, from the Office for Budget Responsibility, that even the plan to stop access to in-work benefits would have “limited impact”? How far does she expect that plan to enable the Government to meet their target of reducing overall immigration to the tens of thousands from a net figure of 380,000? What is the Government’s estimate of the reduction in immigration that will be achieved by that benefit change?

[Baroness Stowell of Beeston]

The first thing I would say to my noble friend is that the Prime Minister has spent several months in Europe, negotiating a new deal for Britain. Some of the changes we have already made to welfare benefits and how they apply to people coming from European Union countries do not require any involvement of the European Union, so much so that we have got on and put them in place. Since the election, any European Union citizen coming to this country and who seeks a job will not be able to claim jobseeker’s allowance. If, after six months, they have not found a job, they will be required to leave. These are two of the four commitments that the Prime Minister made in our manifesto.

The other changes covered by the draft proposal set out in the documents address the remaining issues by introducing a sense of fairness that people in this country feel is needed. They are about ensuring that people are not able to take out before they have put in. My noble friend mentioned evidence that was given by Sir Stephen Nickell of the OBR about the effect on immigration. The value of these welfare payments to an average family is about £6,000, so people coming to this country get £6,000 immediately. This is quite a strong incentive for some. While I might not be able to provide a figure from this Dispatch Box today as to how many might be affected if this were no longer available, I am sure it would affect some people.

[Lord Harrison (Lab)]

My Lords, when will the Government support and promote the European Union and the single market which was a creation of this House and Lord Cockfield? We now have another finance commissioner in Brussels promoting the Capital Markets Union, which is the subject of the next debate. We could say to the British people that not only are we promoting small businesses having access to money and supporting British firms and the consumer by taking advantage of it, but we are also promoting the economy and the City of London for the benefit of all. For goodness’ sake, speak up.

[Baroness Stowell of Beeston]

I agree with everything that the noble Lord has said and I think the Prime Minister’s Statement reflects that. It reflects the fact that there is real advantage to the United Kingdom in being a member of the European Union and we will keep on saying so unless and until he gets to a point where he is not able to agree new terms with the European Union and he decides that it is not in the UK’s best interests to pursue it.

The noble Lord is right. If we are able to achieve what the Prime Minister hopes to achieve, then the noble Lord can rest assured that there will be a positive case made for the benefits of Europe.

[Lord Tugendhat (Con)]

My Lords, I, too, welcome the Statement. I believe that the Prime Minister and his fellow Heads of Government all deserve congratulations on having reached a position where the essential objectives of the United Kingdom Government are well on the way to being achieved, while the essential fabric of the European Union is maintained. This is a considerable achievement.

Does my noble friend agree that it is in the interests of the United Kingdom—whether we are in the European Union or whether we are outside—to have unrestricted access to the single market? Does she agree that this is an enduring British interest? If we are to have unrestricted access to the single market, this will have to be taken into account in relation to any agreement on free movement of capital or free movement of people. What has been achieved in relation to immigration is that a formula has been worked out which will enable Britain to do what it needs to do to restrict immigration while not undermining the essential principles of the single market.

[Baroness Stowell of Beeston]

Yes, I agree with my noble friend’s assessment. He is quite right that access to the single market is not just about access to trade. It brings with it many other benefits. To partly pick up on my answer to the noble Lord, Lord Harrison, my noble friend chaired one of the cross-party committees that reported on TTIP, which we know is ongoing. We do not have that trade agreement in place yet, but this House, cross-party, came out very much in support of TTIP. It is of huge benefit to all members of the European Union. I would point to it as a reason for us wanting to stay in the European Union and I very much hope that all sides of the House agree. I note that the leader of the Opposition in another place was very sceptical and indeed critical of TTIP, but I hope that it is something on which we can join together in promoting as a good thing for Britain.

[Lord Jones of Birmingham (CB)]

Does the Minister agree that in main street UK this debate and the whole issue of reform will be reduced to a grubby little debate about immigration instead of what reform of this amazing group of 520 million people should be, which is how to enable southern Europe to make enough money to compete with northern Europe, and how to enable the whole lot to be globally competitive in Asia’s century? Why does not reform from the Prime Minister mean that instead of using our taxes to subsidise someone growing olives in Greece we use the same money to skill them up so that they would be welcome immigrants in our country because they would qualify for a job, or they would be qualified in their own country to attract inward investment to work there? If we continue to base southern economies in Europe on exporting olives and importing BMWs, they will go bust.

[Baroness Stowell of Beeston]

I am not sure that I agree with the noble Lord that the debate on the referendum will resort to being purely about immigration. Indeed, we all have a responsibility to ensure that it does not. In the answers that I have given to other questions already today, I hope that I have highlighted and reassured noble Lords that there is a positive case to be made, and we would have to make it if that is what we were promoting.

However, while I very much understand where the noble Lord is coming from and the arguments that he had just made, it is important that we do not diminish the concerns of people of this country about the current situation on immigration from Europe to the United Kingdom by saying that it is not something that should be addressed. It is part of the package of measures that the Prime Minister sought to negotiate because it concerns people. It concerns them for good reason, because there is a sense of unfairness and injustice about the way that the benefit system works for those who come here from other countries. At the same time, I am also clear that the people of this country are very positive about the important contribution that is made by immigrants from wherever they come.

[Lord Lea of Crondall (Lab)]

Would the Minister agree that the debate will soon have to look at the historic aspirations of the British people? The Minister referred two or three times to the yellow and red card systems—a football metaphor. Taking that metaphor a stage further, would she not agree that the people on the terraces are not little Englanders—to take England for a moment, as opposed to Scotland, Wales and Northern Ireland? They want to be in the Champions League just as at the same time, they want to be in the Premier League. There is no contradiction between the two.

[Baroness Stowell of Beeston]

I think so.

[Lord Cormack (Con)]

My Lords, as is clear from the exchanges today, and yesterday in another place, many parliamentarians want to play a vigorous part in the forthcoming referendum campaign. Can the Minister guarantee that the timetable of the two Houses will be arranged so that there are not impossible clashes, and there is a proper opportunity for parliamentarians on both sides to conduct an elevated and proper campaign?

--- Later in debate ---

[Baroness Stowell of Beeston]

We shall of course ensure what we can in providing opportunities for people to debate in this Chamber, but clearly it will be up to individuals how they use their own time during the referendum campaign.

[Lord Wigley (PC)]

My Lords—

--- Later in debate ---

[Lord Wigley]

My Lords, on the increased subsidiarity provisions that have been agreed, so that some decisions that have in the past been taken at European level will now be taken within the UK, can the Minister confirm that decisions on devolved matters will henceforward be taken in the National Assembly for Wales, the Scottish Parliament and the Northern Ireland Assembly?

[Baroness Stowell of Beeston]

I am afraid I shall have to write to the noble Lord on that one. It may be a bit of a technicality. Maybe we just have not got that far in the negotiations; I do not know. But if I can offer any more information in writing, of course I will.

[Lord Taylor of Holbeach]

My Lords, the 40 minutes are up.

Business of the House

Baroness Stowell of Beeston Excerpts

Thursday 28th January 2016 Lords Chamber

Moved by

[Baroness Stowell of Beeston]

That the debate on the Motion in the name of Lord Shipley set down for today shall be limited to two hours and that in the name of Baroness Sharp of Guildford to three hours.

Motion agreed.

Business of the House

Baroness Stowell of Beeston Excerpts

Thursday 21st January 2016 Lords Chamber

Moved by

[Baroness Stowell of Beeston]

That the debates on the Motions in the names of Lord Fowler and Baroness Wheatcroft set down for today shall each be limited to two and a half hours.

Motion agreed.

Business of the House

Baroness Stowell of Beeston Excerpts

Thursday 14th January 2016 Lords Chamber

Moved by

[Baroness Stowell of Beeston]

That the debate on the motion in the name of Lord Turnberg set down for today shall be limited to 3 hours and that in the name of Lord Campbell-Savours to 2 hours.

Motion agreed.

Strathclyde Review

Baroness Stowell of Beeston Excerpts

Wednesday 13th January 2016 Lords Chamber

[Baroness Hollis of Heigham]

It is an advisory time and I am coming to the end.

I would not expect a delay Motion to happen very often—perhaps six times a year—but the fact that it might would transform the value of our scrutiny; it would transform the care with which departments bring SIs to this House. The Lords would be doing exactly what it should by asking the Government and the other place to think again and then respecting their decision, as we should, when they have done so. So I hope that we can move down that path but with appropriate specified delay periods.

[The Lord Privy Seal (Baroness Stowell of Beeston) (Con)]

My Lords, perhaps I may interrupt before the next noble Lord rises to speak and add to the comment of my noble friend. We put in the guidance time because we know that the House will wish to rise at around 10 pm. We can do that only if everybody respects the speaking time. So I urge noble Lords to co-operate. When I get to my bit at the end I shall try to be brief but I know that the House will also want me to be fulsome in my reply.

--- Later in debate ---

[Baroness Stowell of Beeston]

My Lords, I offer sincere thanks to all noble Lords who have taken part in this debate. It is an important part of the process of the Government considering my noble friend’s report. I scheduled this debate today because I wanted to hear from noble Lords. I know that it is a big investment of time to contribute to a debate that starts mid-afternoon and goes on until now, so I am very grateful to everybody who has contributed. I must congratulate the two maiden speakers: the noble Baroness, Lady Bowles of Berkhamsted—I welcome her to your Lordships’ House—and the noble Lord, Lord Darling. I hope he will not misunderstand if I say that I will just call him “Darling” as I do not think that I can pronounce the place in his title where he is from, but he is warmly welcomed. We are very pleased to have both the noble Baroness and the noble Lord among our number.

I am grateful for all the contributions today. They have been interesting, constructive and helpful to me in my consideration of my noble friend Lord Strathclyde’s report. I want to thank my noble friend for doing his review, outlining a clear set of options and, today, setting out very clearly, when he introduced the debate, the route to how we got to where we are and why it is that the Government asked him to carry out that review.

There have, understandably, been a range of views expressed, but one thing that I found pleasing was that we are all united in our desire to uphold this House’s very important role as a revising Chamber. What has also been acknowledged in the debate today is that our relationship with the other place is at the heart of how we fulfil that important role. Also, as has been mentioned already, we have acknowledged an understanding that we are here to complement and not compete with the elected House of Commons. The noble Lord, Lord Empey, was right to highlight the risks when we do not properly respect and understand that relationship.

For us to work together effectively with the House of Commons, it is important that there is clarity on how we work together. When it comes to primary legislation, we are clear on how that relationship works; there is a dialogue between the two Houses and a mechanism, through ping-pong, for us to ask the House of Commons to think again, but there is also a way for the will of the elected House to prevail, with the ultimate back-stop of the Parliament Acts when all else fails.

With secondary legislation, the relationship between the two Houses is not structured as clearly. We cannot enter into a dialogue; we may only give or withhold our approval to a statutory instrument. If we choose to withhold approval, there is no mechanism to allow the will of the other place to prevail. That is what gives us this absolute power of veto. Given how significant that power is, it is essential that we have a shared understanding within your Lordships’ House about how it should be used. Yet, right now, we do not. That is a very important point to stress, because several noble Lords have said today that, in October, we asked the House of Commons to think again. We did not do that, because we cannot do that. We do not have that facility. What we did was to overrule the House of Commons, because it had already decided.

[Noble Lords]

Oh!

[Baroness Stowell of Beeston]

It had already decided what its view was on the statutory instrument and we do not have that mechanism for a dialogue.

The role of this House and its powers on SIs is not a new issue; this is something that we have heard from many noble Lords speaking today. My noble friend Lord Wakeham, through his royal commission, and other noble Lords have grappled with this issue in the past. Over the past few months, and indeed through today’s debate, what has crystallised, for me, is the fact that there is no clear agreement among us about how we exercise our powers. We are still debating and still disagreeing today about whether the Motions that were tabled in October were fatal or non-fatal. I feel that, for us to be effective, we cannot sustain that lack of agreement between us about how we use our powers.

The noble Lord, Lord Grocott, was the first person that I noted down who said, “It’s not broke so let’s not fix it”, but he was not the only one who made that point; in fact, the noble Lord, Lord Hunt of Kings Heath, said the same. But, as my noble friend Lord Strathclyde and others argued, conventions work only when both sides agree on what they mean in practice. The noble Lord, Lord Grocott, looked back on the submissions made by my noble friend when we were in opposition. I also looked at the submissions made to the Joint Committee on Conventions by the noble Lord’s Government when they were in power. Back then, the then Labour Government said in their submission:

“A contested convention is not a convention at all”.

I agree. That is the problem we have at the moment—we are contesting.

For us to fulfil our role effectively, we need clarity, simplicity and certainty—what my noble friend outlined as principles in his report—and we need to ensure that the other place has the decisive say on secondary legislation, just as is the case when we consider Bills. My noble friend’s report gives us the opportunity to consider how we could do things differently and tackle the long-standing questions raised.

Before I talk about some of the options that my noble friend outlined and the responses to some of those that he put forward, I should be clear that the Government are still listening. Tonight I will not offer any government response to what he put forward in his report—the options and the recommendation. In terms of considering the way forward, the Government will take account of this debate, which is why it has been such a valuable exercise. The noble Lord, Lord Foulkes, asked earlier that we should consider, and I am considering what has been argued—I am taking it on board. I have listened carefully to the debate tonight.

[Lord Foulkes of Cumnock]

I respect what the noble Baroness says, but in her remarks so far she gives no evidence whatever of having taken account of any of the comments made right around the House. Could she make it clear how all the points made—the very good suggestions from every quarter of the House—will be brought together, considered by the Government and dealt with? Will they look at setting up a Joint Committee?

[Baroness Stowell of Beeston]

I am conscious of time; everybody is tired. I am going to come on to that; I have just said that that is what I am going to come on to, and I will.

Some noble Lords thought that it would be best to proceed without legislation and instead to codify the convention; certainly there is an argument to be made in respect of that, but that approach would require us to restore a shared understanding about the convention underpinning our power of veto. Most noble Lords focused their comments on the third option put forward by my noble friend, the one that he recommends—as he described it, the ping without a pong. He suggests that that would replace this House’s power of veto with a new power to ask the other place to think again, with the House of Commons having the final say.

What he is recommending there is what noble Lords are arguing for. However, some thought that it would be necessary to retain the veto available to us now. I stress again that all these things are under consideration, but it is important for me to point out that we do not have an absolute veto when it comes to primary legislation. The new power that my noble friend suggests would be more in keeping with the role of this House, and the desire it has to ask the other House to think again.

The noble Baronesses, Lady Taylor and Lady Smith, and the noble Lord, Lord Hunt, and others asked me from the Labour side of the House to consider what was possible that would have some longevity and was not about just advancement for any particular party in government. Again, I found it very helpful to revisit what the Labour Party said to the Joint Committee on Conventions about the veto when they were in power. Forgive me for singling out the noble Lord, Lord Grocott, again but it was he who made this point to the Joint Committee. He said that,

“the House of Lords can veto secondary legislation … the very legitimate question arises … whether it would be sensible to consider the proposition that the Lords in respect of secondary legislation should do what it does with primary legislation, and see its function as being a delaying, revising chamber but not a vetoing chamber. That is really the question that is being put”.

[Lord Grocott]

My Lords, the noble Baroness will acknowledge that a lot of evidence went to the Joint Committee, which was set up by the Labour Government precisely to look at all these issues. That all-party Joint Committee, although a committee with a Labour majority on it, looked at it and the conclusions that it reached were agreed unanimously and adopted by both Houses. That is the way the process worked and it is the way any new process should work.

[Baroness Stowell of Beeston]

I say to the noble Lord that the Joint Committee on Conventions of 2006 was clearly highly respected. It was a very significant committee, and its findings and work have really stood the test of time. The problem we have is that the convention that was set out there and reinforced by the Joint Committee—I am afraid that this is the problem, because we disagree and this is what we are having to address—is no longer operating in the way that it was agreed it should operate.

[Lord Cunningham of Felling]

I am grateful to the noble Baroness, and I apologise again for the state of my voice, but what she says is not correct. The committee was absolutely unanimous in endorsing the conventions. Both she and her noble friend Lord Strathclyde have introduced into the argument just today that somehow one of these conventions is contested. That is just not true. The conventions have been upheld and adhered to, and on 26 October no convention was broken.

[Baroness Stowell of Beeston]

I am going to move on, to make some progress. I do not disagree with what the noble Lord says about his committee of 2006. I do not want to dwell so much on October—I want us to look forward—but I am saying this about the events of October. It is all very well for the noble Baroness opposite to groan but, by agreeing to those Motions last October, this House said that it would decline to consider something until a set of demands had been met by the Government. That is what it voted for, and that had never happened before. That is why I assert that that kind of arrangement means that the convention as it exists, for this part of the agreement, is now difficult. That is the problem. Let me move on.

[Baroness Hayman]

I really do not understand the noble Baroness’s logic. Is she saying that if the House had accepted the amendment of the noble Baroness, Lady Manzoor, it would not have broken the convention but that because it found a way of doing something lesser, which did not destroy the SI, we did breach the convention? That seems to be the logic of her argument.

[Baroness Stowell of Beeston]

My precise point, which my noble friend made when he introduced today’s debate, is that, in practice, this House voted for something that had a fatal effect, and it is therefore no longer possible for us to say that our understanding of how that convention works continues. I shall give way one further time to the noble Lord and then I really would like to move on.

[Lord Cunningham of Felling]

I am grateful to the noble Baroness for giving way again, but she just again said something that is simply not correct. She said, in respect of the Division on 26 October, that something like that had not happened before. That is simply not correct. Between 1968 and 2005, there were five such Motions, three against a Labour Government, which were carried in this House, so it has happened before.

[Baroness Stowell of Beeston]

Okay, I am just going to make one simple point and then I really will move on. We are disagreeing because what happened previously were fatal Motions that we all understood to be fatal. On the Motions tabled in October, one side of this House is arguing that they were not fatal, the other side is arguing that they were. I am afraid that that disagreement is what has led us to have to ask my noble friend Lord Strathclyde to look at this issue and come forward with his report. He is trying to bring forward something which addresses the need of this House that has been outlined since 2000, when my noble friend Lord Wakeham first looked at this matter.

This House is influential when we act in a constructive and nonpartisan way. We do not need vetoes. The impact and effect that we have on legislation is very powerful, and we continue to have a very important role in our effect on the decisions that the Government make in legislation.

Many noble Lords said that this House should give up a veto only if there was some kind of trade-off for the Government to review how they use secondary legislation. This is a very important point. The speeches from the noble and learned Lord, Lord Judge, and my noble friend Lady Fookes were very powerful and they make a really important point. I said the same to the noble Lord, Lord Richard, when I delivered the Statement before Christmas. I am grateful to the noble and learned Lord and the noble Lord, Lord Hunt, for acknowledging that any criticism that Parliament may have of Governments for the use of secondary legislation is not new.

I also say to the House that I do not think that things are quite as bad as the House suggests in terms of our approach to secondary legislation—I do not just mean the Government, I mean the House as a whole. There is always room for improvement, but the number of SIs over the past 20 years has been pretty steady.

The committees of this House are very powerful and respected. The committee chaired by my noble friend Lady Fookes does a very good job of scrutinising delegated powers in primary legislation. Very often, the Government respond constructively to its recommendations. In the work that this House does on primary legislation, a lot of the changes that it makes are around the powers. My noble friend Lady Fookes has put forward some good arguments and ideas about how we can improve within government, and I will certainly take those away.

We should not forget that when SIs come into Parliament they are scrutinised by a Joint Committee of both Houses, as well as by the Secondary Legislation Scrutiny Committee chaired by my noble friend Lord Trefgarne. The tax credit SIs went through that JCSI, which is chaired by a Labour Member of the other place. In its report, the JCSI did not raise any questions or concerns about that tax credit SI.

Some have argued for a period of delay. Some have argued that it would be essential for us to ensure that we would introduce debates for the House of Commons when it considers secondary legislation. What is important, interesting and helpful to me is that, although there are different views being expressed today about how to operate without a veto, there are many noble Lords at least discussing the idea of not having a veto but having a new power instead of the veto. I am grateful to noble Lords for that response.

As I draw to a close, noble Lords have raised questions about a Joint Committee. I have already said that the work of the Joint Committee in 2006 was incredibly powerful, but I do not believe that right now we need another Joint Committee. We need to look at the options that have been put forward by my noble friend, but I know that my noble friend Lord Trefgarne and his committee have committed to looking at what has been proposed, and I am grateful to him.

As for the Commons looking at this, it is clearly for the other place to decide how it should scrutinise secondary legislation. However, as my noble friend Lord Crickhowell has identified, the Public Administration and Constitutional Affairs Select Committee in the other place has committed to look at what has been put forward by my noble friend Lord Strathclyde. It has a hearing next week at which he is giving evidence, so the Commons is also getting on with its consideration of this arrangement.

[Lord Tyler]

If the Leader of the House is dismissing out of hand the idea of a Joint Committee, how can she guarantee that the two Houses will think about this problem together? Members on all sides of the House have said how essential this is. How will she ensure that that happens?

[Baroness Stowell of Beeston]

The point is to make sure that the House of Commons has the final say on secondary legislation. It has set out how it wishes to consider what has been put forward by my noble friend. He has put forward his options after extensive consultation with Members of the other place, as well as with Members of your Lordships’ House.

There is clearly much for me to reflect on from this debate. I will do so with my colleagues in government. I am sincere when I say that the contributions have been very valuable. We have not come to any conclusions in government.

[Lord Foulkes of Cumnock]

The noble Baroness has said that she has not come to any conclusion, yet she has said that she is not going forward with a Joint Committee. How are the Government going forward? A lot of good suggestions have been made in this House. If we are not to waste the whole day that we have spent on this, she must indicate to the House how the Government will take this forward.

[Baroness Stowell of Beeston]

I have said what we are doing. We will reflect on the very important points that have been made today. My noble friend Lord Trefgarne and his committee will be looking at what has been put forward. There may be other committees of your Lordships’ House that wish to do so as well. We will be considering this in the period ahead; at an appropriate point we will consider which is the best way forward, and I will return to your Lordships’ House.

My noble friend has done a comprehensive piece of work. As my noble friend Lord Wakeham said, what is in my noble friend’s report is very similar to what was in the report of his commission 16 years ago. Many noble Lords have pointed to that as a way forward. I am not reaching any conclusion tonight on the right way forward, but my noble friend Lord Wakeham’s point is very important and it is worth us all dwelling on it.

Tourism

Baroness Stowell of Beeston Excerpts

Tuesday 22nd December 2015 Lords Chamber

[The Lord Privy Seal (Baroness Stowell of Beeston) (Con)]

My Lords, at the start of Questions there is no official line to say who is next. I urge that one noble Lord give way to the other.

[Lord Harrison]

My Lords, given that tourism is an important economic industry, rather than fiddling around with existing successful structures, would the Government not be better advised to place tourism under the aegis of BIS or, at the very least, to include it in the title of the department where it currently finds itself, that of Culture, Media and Sport? Why not add tourism to the title to give it the energy that is required to treat it seriously?

House of Lords: Strathclyde Review

Baroness Stowell of Beeston Excerpts

Thursday 17th December 2015 Lords Chamber

[The Lord Privy Seal (Baroness Stowell of Beeston) (Con)]

My Lords, with the leave of the House, I would like to make a Statement on the review of my noble friend Lord Strathclyde on secondary legislation and the primacy of the House of Commons.

On behalf of my right honourable friend the Prime Minister, who commissioned the review, I pay tribute to the noble Lord, Lord Strathclyde, and to the expert panel who assisted him. Before coming on to the review itself, it is perhaps worth rehearsing briefly the circumstances in which it was commissioned.

We have a clear purpose in this House as a revising Chamber, and in so doing, we complement the work of the other place. When we consider primary legislation, the conversation between the two Houses is clear. We can ask the House of Commons to think again through the process of ping-pong, but ultimately the will of the elected House can prevail, with the Parliament Acts available as a backstop.

Secondary legislation works differently. This House can only give or withhold its approval and there is no dialogue. If your Lordships’ House refuses to give its consent, the whole process grinds to a halt. It means that, unlike on primary legislation, we are able to exercise a veto, a very significant power, and so by convention we have exercised that power only in exceptional circumstances, doing so on only five occasions since the Second World War.

So withholding agreement to a statutory instrument is rare enough. To take that step on a Budget measure, as we did in October, was unprecedented, and to do that on a Motion where different sides of the House still disagreed as to its effect took us into uncharted territory. Yet only a day after the House exercised its veto, it was invited to do so all over again in respect of an order made under the Electoral Registration and Administration Act 2013. What had happened previously on two occasions in 13 years very nearly happened twice in two days. The exceptional was becoming a little less rare.

These events put a long-established convention in doubt and raise constitutional questions about the primacy of the elected House which needed to be examined. My noble friend was asked to examine whether there is a better way to handle secondary legislation in order that the elected House of Commons could have the decisive say, just as it does on primary legislation. My noble friend did that in his customary way, with careful thought and extensive consultation with parliamentarians in both Houses from across the political spectrum. The result is a considered report with three aims in mind: to provide clarity, simplicity and certainty in the passage of secondary legislation.

My noble friend outlines three options as to how the other place can be given the decisive say. Option 1 would remove the House of Lords from the statutory instrument procedure altogether, as already happens in respect of some categories of SIs. Option 2 would retain the present role of this House in relation to secondary legislation, but seek to codify the convention that has been put in doubt by clarifying the restrictions on how the House’s powers to withhold approval or to annul should be exercised, whether by resolution or changes to our Standing Orders. The third option would create a new procedure in statute. It is a compromise option that in exchange for removing the power of veto would give this House a new power to ask the House of Commons to think again. But the other place would have the final say, allowing it to insist on its primacy and override a rejection by the House of Lords.

My noble friend Lord Strathclyde, in submitting his review to the Prime Minister, has clearly recommended the third compromise solution as the way forward. I should add that he has recommended that the Government, with the involvement of the House of Commons Procedure Committee, should review the circumstances in which statutory instrument powers should be subject to already existing Commons-only procedures, and he recommends that the Government should ensure that both primary and secondary legislation are used appropriately.

My noble friend’s report is thoughtful and measured, and deserves proper consideration by the Government before we respond fully. That is what we intend to do. Of course, noble Lords will have views as to the best way forward. We want to listen properly to those views, and to those of Members of the other place, as we decide on our preferred approach. That begins today with this Statement and it will continue with a full debate on my noble friend’s report in the new year before the Government respond in full.

As we consider the way forward, it is important that we do so with those aims of clarity, simplicity and certainty in mind. All Governments require and indeed benefit from a strong Parliament holding them to account and providing scrutiny and, as my noble friend’s report highlights, the House of Lords has long played its scrutiny role very effectively. But in providing that scrutiny and challenge, it should be the elected House that has the decisive say on secondary as well as on primary legislation. It is by ensuring that balance that we can complement the other place and best serve the core purpose for which we are here.

I commend the Statement to the House.

--- Later in debate ---

[Lord Dholakia (LD)]

My Lords, I add my thanks to the Leader of the House for making the Statement and giving us advance sight of the report from the noble Lord, Lord Strathclyde. I also add my thanks to the noble Lord, Lord Strathclyde, and his team. The noble Lord promised the report before Christmas and he has delivered.

My party believes that both Houses should be examining better ways to work together to achieve more comprehensive, more informed and more effective scrutiny of government legislation and the actions of the Executive. We continue to reject the notion that any Government achieving a majority in the Commons should have the absolute power to prosecute their business without the burden of proper checks and balances, particularly as voter turnout declines and Governments are elected by a smaller and smaller share of the vote. We believe that a second Chamber, however it is constituted, should not be a mere echo of the House of Commons. We are interested in ways to strengthen the role of Parliament as a whole, not to convert the House of Lords from a revising Chamber to an impotent debating society.

We firmly believe that there is a strong case for enhanced parliamentary scrutiny of secondary legislation. This is particularly important when the primary legislation introduced by the Government is a skeleton Bill, with the statutory instruments flowing from it containing provisions which are more suitable for primary legislation. Already in this Parliament, the Government have introduced two such bills: the Childcare Bill and the Cities and Local Government Devolution Bill. If Governments make increasing use of skeleton Bills, it stands to reason that the SIs stemming from them should be afforded much closer scrutiny.

To that end, my party submitted formal evidence to the noble Lord, Lord Strathclyde, suggesting two different mechanisms by which this House could propose amendments to statutory instruments. We firmly believe that such a mechanism would allow the House of Commons to think again and would, in fact, reduce the incidence of this House withholding its approval of a statutory instrument—which, incidentally, has occurred only six times in the last 50 years. We do not believe that this House should be required to give up its power of veto, when this is such a rare occurrence. To do so would change the arrangements agreed by both Houses following the report of the Joint Committee on Conventions in 2006.

Does the Leader of the House agree that this is not simply a matter for the Prime Minister and the Government, but for Parliament? As there are wider implications, not least for the Parliament Acts, does she recognise that a simple amendment to the Statutory Instruments Act 1946 is clearly not sufficient to deal with this important issue? Does she agree that the proper way to proceed would be to reconstitute a Joint Committee of both Houses to ensure that the matter is fully debated?

We will have a further opportunity to discuss this issue and we will certainly have more to say at that time.

[Baroness Stowell of Beeston]

My Lords, I am grateful to the noble Baroness and the noble Lord for not rushing to their own conclusions on the report of my noble friend Lord Strathclyde, which was published today. I was encouraged by what the noble Baroness, Lady Smith, said about how she and the Opposition are very much interested in change that helps this House fulfil its purpose, because that is what I am interested in, too. This House has a very important role in the legislative process and in Parliament. We are here to scrutinise, challenge and hold the Government to account, and I say that as a member of the Government. I know that that is what this House is here to do, and I want it to be very effective at doing all those things. I want its purpose to be fulfilled properly.

Where I differ from the noble Baroness is about what happened in October. That is the problem. We are now confused as a House. We do not quite know how to deal with secondary legislation because the procedures that we have before us have become confusing. We have this massive power of veto and we have a convention which says that we should not use that veto except in exceptional circumstances.

[Noble Lords]

Oh!

[Baroness Stowell of Beeston]

Absolutely, my Lords, we should use it in exceptional circumstances. However, back in October, a new process was introduced concerning how this House exercised its veto. We have debated in this Chamber whether the amendments were fatal or non-fatal. We exercised that veto on something that related to taxation and spending; we have never done that before. That was unprecedented.

As a House, we need to look at—what my noble friend Lord Strathclyde was asked to look at—how we could provide certainty and clarity so that we carry out our role of scrutinising and challenging the Government more effectively and remove this confusion. He has set out in his report three options and has recommended one. His recommendation is, if you like, a compromise solution. It means that instead of that theoretical power, which we do not use very often, the House will have a new power to ask the House of Commons to think again. That was what a lot of noble Lords had been asking for recently, after the events of October. I urge the House to consider very carefully what is in my noble friend’s report. He has canvassed widely in this House and the other place and has come forward with a set of proposals and one that he is recommending. It merits our strong consideration before we rush to any decision.

The noble Baroness, Lady Smith of Basildon, asked me some questions. She asked specifically when the Government will respond. We will do so in the new year, as I said, but we will not do so until we have had a substantial debate. We can discuss in more detail the contents of my noble friend’s report.

The noble Baroness made reference to the use of secondary legislation. My noble friend’s report does not say that this Government, or previous Governments, have been using secondary legislation more than in the past. The graph in his report shows that the use of secondary legislation has been quite consistent over about 20 years.

The noble Baroness asked whether we would be consulting further. Clearly, we are listening; I want to hear from noble Lords today and we will again hear what noble Lords have to say in the debate in the new year.

The noble Lord, Lord Dholakia, mentioned that he and his party do not want to give up the veto of this House. He suggested that there should be a Joint Committee to look at this matter. He referred to the Joint Committee on Conventions, which the noble Lord, Lord Cunningham of Felling, chaired back in 2006. There was a convention in this House—the Joint Committee reviewed it when it did that important work in 2006—but, regrettably, that convention has now broken.

[Noble Lords]

Oh!

[Baroness Stowell of Beeston]

We are now looking for a way forward that provides that certainty and clarity, and I hope very much that we will be able to achieve that soon.

[Lord Taylor of Holbeach (Con)]

My Lords, we now have a period for Back-Bench questions and I hope that noble Lords will recognise that there is a lot of interest in this matter. As my noble friend said, there will be an extensive debate on this early in January, when noble Lords will be able to make their comments. It would be helpful if this period were used for brief questions, so that the maximum number of people can participate.

[Lord Butler of Brockwell (CB)]

My Lords, will the Leader agree with me that, for many years now, there has been dissatisfaction in all parts of the House with the binary choice that is open to us for either accepting or rejecting statutory instruments? Will she also agree that it is relevant that the procedure recommended by the noble Lord, Lord Strathclyde, is very similar to that which was recommended by the all-party royal commission under the noble Lord, Lord Wakeham, by the Leader’s Group in 2011 and by the Hansard Society and others? It would therefore be unfortunate if the circumstances in which this issue has arisen were to close people’s minds to positive consideration of the procedure that the noble Lord, Lord Strathclyde, has recommended.

[Baroness Stowell of Beeston]

I am hugely grateful to the noble Lord for that very important contribution. My noble friend has drawn on some of the extensive work done over the past decade or more by the commission chaired by my noble friend Lord Wakeham. The noble Lord, Lord Butler, is right; my noble friend Lord Strathclyde has come forward with a recommendation that deserves proper consideration, and I really hope that that is what this House will give it.

[Lord Wakeham (Con)]

The noble Lord, Lord Butler, has pointed out that we recommended something like my noble friend Lord Strathclyde’s third consideration. I was on the Opposition Benches at the time of the report, if I recall rightly. We made that recommendation because we wanted a better way for this House to discuss statutory legislation. It was deliberately designed to do that and, from talking around the House, I know that a lot of people believe that such a proposal is right. While I understand that Front-Benchers have their role in these matters, there is a great deal more support in this House for a proposal of this sort; my noble friend Lady Stowell can take comfort from that. I hope that she will consult widely with people before we finally reach a decision.

[Baroness Stowell of Beeston]

I am grateful to my noble friend for his remarks, and I very much take on board his advice about my approach over the next few weeks.

[Lord Grocott (Lab)]

As something of an expert—if I may modestly say so—on government defeats in the House of Lords, can I put it to the Leader of the House that this is no way to effect a substantial constitutional change that would strengthen Government in relation to Parliament, and fundamentally affect the relationship between the two Houses?

The Leader of the House refers constantly to the events in October. They were bizarre. A Government propose a reduction in the income of people in the lowest-paid families. The House of Lords says, “We think you should think again about this”. The Government say—amazingly—“We are thinking again, and we’ve decided that we agree with the House of Lords”. Yet the Government persist in what can be seen only as a malevolent way to set up a committee like this to cut the wings of the House of Lords.

This is a significant suggestion to the Government, I hope: if you want to effect change of this sort, do it in the proper, conventional way. That is by proper scrutiny—for which we have the 2006 example readily to hand; it came to conclusions not helpful to the Government, I may say—putting to both Houses the proposal of the Joint Committee of senior Members of both Houses, and then for the Houses themselves to decide whether they want to go ahead with this substantial change. A government-inspired report with no witnesses listed, no evidence taken in public, no calls for evidence in a way that we can understand—this is no way to effect constitutional change.

[Baroness Stowell of Beeston]

My Lords, I have huge respect for the noble Lord, Lord Grocott, and I listen carefully to what he says. The key thing that I am trying to identify in my remarks today is that we are in disagreement about what happened in October. That is what I find regrettable. It means that the important convention, which stood the test of time for so long, has been broken. He refers to the Joint Committee of 2006, which predates my time in the House but I understand from all my reading and research how important and respected it was. That committee reinforced the convention, but the convention that it reinforced has now broken. So what we have done is come forward with something which offers that clarity and simplicity. It draws heavily on previous work that has been done by other groups, such as my noble friend Lord Wakeham’s distinguished royal commission. The noble Lord, Lord Strathclyde, has come forward with a proposal and all I ask at the moment is that the House considers it—as indeed we in government are considering it.

[Lord McNally (LD)]

My Lords, I sat on the Cunningham committee and I remember the background to it being set up, which was the irritation of the then Labour Government at the behaviour of the House of Lords. The phrase then used was that part of the intention was to clip the wings of the House of Lords. The truth is that Governments do get irritated by this House. I think that I may have expressed the odd irritation myself occasionally from the Dispatch Box. But where the noble Baroness is misleading herself is that the convention laid down by the Cunningham committee has not broken down, because in that convention it very carefully and clearly states that the House of Lords must retain the right to say no. That was a red line for me. The reason for it was that put by my noble friend Lord Dholakia: that without retaining the right to say no, used sparingly, carefully and rarely, we become a debating society.

The noble Baroness has been a very good Leader of this House but I urge her to recognise that the Leader has those responsibilities, beyond government, to lead this House in a way that protects its powers. We must let go of that right to say no only with very strong arguments to do so. They have not been made today. Go back to a Joint Committee of both Houses, and perhaps even consider the fourth option: that statutory instruments could be amended by this House. That would be a way forward.

[Baroness Stowell of Beeston]

I have huge respect for the noble Lord, Lord McNally, and enjoyed working alongside him in government. I understand how seriously he takes these matters but I am afraid that I also disagree with his description of what happened back in October. In considering that piece of secondary legislation, we did two things: we overruled the House of Commons on a matter of taxation and finance, and we used a type of amendment to a Motion that has never been used before. That is referred to in my noble friend Lord Strathclyde’s report.

The point about the power of veto is that we should retain it if we retain our convention not to use it except in very exceptional circumstances. What I am arguing is that we are no longer clear what those circumstances are and by what kind of method we would use that veto. So I am afraid that I feel that we need to be able to reach some agreement and come up with a convention with which we all agree. We have to understand that conventions require all parties to agree. At the moment, I am afraid that we do not agree.

[Baroness Meacher (CB)]

My Lords, I applaud the noble Lord, Lord Strathclyde, for his report, and in particular the recommendation in his third proposal, which could be a useful way forward. I also support strongly the words of the noble Lord, Lord Butler. But the noble Baroness, Lady Stowell, repeatedly refers to confusion: she says that we have a disagreement, that we have broken a convention, and so on. I remind the House that on the tax credits issue, we did indeed have a very exceptional set of circumstances. The Chancellor of the Exchequer used a statutory instrument—regulations—to introduce £4.4 billion of cuts affecting very large numbers of extremely poor people across the country. The second aspect of this completely exceptional situation was that we in this House knew that the Government no longer had the support of the elected House of Commons on the issue, now that Conservative Back-Benchers understood the enormity of what the Chancellor of the Exchequer was attempting to do.

Could the Leader of the House agree that this House acts in the way that we did on that occasion only in completely exceptional circumstances? Can she therefore honour this House with a recognition that the House acts very properly and, indeed, acted properly on that occasion in offering the Government an opportunity to listen to the elected House?

[Baroness Stowell of Beeston]

Like the noble Baroness, and as I have already said, I feel very strongly and care passionately about this House having the right to scrutinise and challenge the Government and to do what it is here to do as far as primary and secondary legislation, and policy more generally, are concerned. I welcome what she said about my noble friend’s report.

However, by her contribution she has also illustrated what I am trying to say to the House. I do not want to debate the substance of the policy, because we are talking now about procedures. Back in October, the noble Baroness was at pains to tell the House that her amendment was not a fatal Motion but that it would allow the Government to think again. But it was never established in fact that what she was doing did not amount to a fatal Motion—we were in disagreement about it. There is no definition of these things in the Companion. We have a choice: we either withhold our consent or we give our consent. It was not possible for this House, using the method that the noble Baroness chose, to ask the Government or the House of Commons to think again, because we do not have that facility. We either approve or we do not.

If the noble Baroness is arguing for this House to be able to ask the House of Commons to think again, my noble friend Lord Strathclyde, in his paper, is suggesting a way which would provide the very thing that the noble Baroness is arguing for today and argued for back in October.

[Lord Cormack (Con)]

My Lords—

--- Later in debate ---

[Lord Cormack]

My Lords, I am most grateful. I am sure we are all grateful to my noble friend for what she has said, but I would ask her two things. First, it is right that we should have a full and extensive debate. However, as this report has been produced on the eve of the Christmas Recess, can we have a week or two after we come back where we can talk together informally, across the House, and then have a well-informed debate? Secondly, can that debate be informed by the fact that it is the Government who are answerable to Parliament—not the other way round—and by the fact that we are in this mess largely because of the appallingly inefficient way in which the other place deals with secondary legislation? It is therefore crucial—I ask my noble friend to talk to her colleagues in Cabinet about this—that the other place also debates this matter in detail, so that we have a more satisfactory balance in the way both Houses look at secondary legislation.

[Baroness Stowell of Beeston]

As my noble friend may not have had an opportunity to study my noble friend Lord Strathclyde’s report, he might not yet have spotted that it includes a reference to the other place and its role in secondary legislation. My right honourable friend the Leader of the House of Commons is also making a Statement today in the other place about this same topic.

As for when we will schedule the debate in January, clearly we will have to consider the timetabling of it alongside other matters when we return. However, my main commitment to this House is that there will be a substantial debate; it will be in government time; and we will do so early in the new year.

[Lord Richard]

My Lords, will the Government kindly recognise, if they have not already, that a balance has to be struck between the existing powers of this House and the way in which government carries out its business? There is a good case for this House giving up its veto—I accept that—but there is an undoubted quid pro quo that has to be demanded for it, which is that the Government stop playing games with statutory legislation. The reason why we got into this mess in October was because, on a major issue of government policy, not just a minor financial issue, they chose to do it by statutory instrument rather than by primary legislation. There has to be a recognition on both sides in this argument that, if this House is asked to give up a power that it has got but very rarely exercises, the Government and the other place must recognise that in matters that are proper for primary legislation that is how they should do it. I am fortified in that by remarks made by the noble Lord, Lord Lisvane, when this matter was last raised in this House. If the Government can give that sort of assurance that they will not have these wheezes and play the silly games that they have been playing, I am sure we can make progress.

[Baroness Stowell of Beeston]

The noble Lord, Lord Richard, makes an important point about the use of the proper legislative vehicle. I agree with him on that, and it is referred to by the noble Lord, Lord Strathclyde, in his report as a recommendation as well—and that is why I refer to it in my Statement, because it is important that we acknowledge that as well as his other proposals on the powers of this House. I am not sure that I agree with the noble Lord’s description of what is happening in the use of secondary legislation by this Government or, indeed, other Governments, but I accept the argument that he makes, and I accept that we have to be constant and vigilant to make sure that we always choose the right vehicle when we bring our measures to Parliament.

[Baroness Hayman]

My Lords, I have long supported improving Parliament’s scrutiny of statutory instruments. In that spirit, I say to the Leader of the House that this is certainly a useful report and we should give it proper scrutiny. I have to say also that that proper scrutiny will not be enhanced by the constant repetition of the idea that the convention was somehow broken. It will not be enhanced by suggesting that the tax credit scheme was killed off by this House, when it was killed off by the Chancellor of the Exchequer after this House gave him the opportunity to think again. It is important that we do not allow a mythology to grow around this issue.

Would the Leader of the House agree that, if this House is asked to give up the power to negate in favour of a power to delay, it has to be in circumstances that that delay can be effective, as it was effective in this case? Therefore, there has to be adequate time for the House of Commons to re-examine. Furthermore, the Government have to take into account what the noble Lord, Lord Strathclyde, said, that,

“it would be appropriate for the Government to take steps to ensure that Bills contain an appropriate level of detail and that too much is not”—

as it was in that case—

“left for implementation by statutory instrument”.

[Baroness Stowell of Beeston]

I do not want to rehearse again the events of October. When the noble Baroness has had an opportunity to study the report carefully, she will see that it refers to delay. My noble friend Lord Strathclyde recommends Option 3, and in it he sets out his argument about why delay should not feature as part of his recommendation. That will be something which we will no doubt debate further when we have the debate in January, which I have already committed to.

Channel 4

Baroness Stowell of Beeston Excerpts

Thursday 10th December 2015 Lords Chamber

[Lord Hamilton of Epsom (Con)]

My Lords—

[The Lord Privy Seal (Baroness Stowell of Beeston) (Con)]

My Lords, on this occasion I think the House would like to hear from the noble Baroness, Lady Bonham-Carter.