Outcome of the European Union Referendum

Earl of Caithness Excerpts

Tuesday 5th July 2016 Lords Chamber

[The Earl of Caithness (Con)]

My Lords, Europe has a long history of being a turbulent continent and I agree with the noble Lord, Lord Armstrong, that it could return to turbulence again if we are not very careful. As we have recently remembered, 100 years ago, as so often in earlier times, Britain’s influence on affairs on the continent was through the gun, bullet and bayonet. A further conflict occurred some 20 years later, but then there was a massive change. For the past 40 years our influence has been at the negotiating table, and that influence has been considerable.

Looking back, it is to our discredit that as politicians who served in Government, we have failed to sell the message that we were influential and there were good things that came out of the EU as well as irritations. Indeed, it was often worse. We have tended to blame Europe whenever possible. Most of the press and broadcasters are equally to blame, with headlines that bear little reality to the truth. For 40 years there has been a steady drip-drip negative effect on people’s perceptions of the EU. The referendum campaign was bitter, negative and divisive, as was the one in Scotland a couple of years ago. Due to the exaggerations and lies told, there is increasing distrust of the “ruling elite”, and that is a negative of the referendum; it will make government harder.

Politicians are held in even less regard than they were before the campaign, and it was then at a disappointingly low level. In business life those politicians who made such outrageous claims would probably have been sacked. Regrettably they remain MPs, and unfortunately will doubtless come here in due course. Given the inaccurate propaganda campaigns, will Her Majesty’s Government now amend the remit of the Advertising Standards Authority so that in the future it has influence over non-broadcasting advertising during election and referendum campaigns and can act in a way that it cannot now?

In another respect the referendum campaign has been a huge success. It has enabled a revolution to take place through the ballot box without there being violence except for the tragic death of Jo Cox and without one side imprisoning the leaders of the other. In how many other parts of the world would that have been possible? Unusually, I disagree with the noble Baroness, Lady Mallalieu, on the question of how well aware those who voted were of the implications of the vote. The EU Select Committee highlighted in its recent report the fact that numerous surveys have shown the UK to be the least informed member state on how the EU works. The Electoral Commission confirmed this in its polling during the referendum, which showed that 69% of the public were not well or very well informed about the EU and that 16% said they were not contacted about the referendum. Our democracy is indeed a flawed vessel and we need to learn lessons from that.

Now that we have decided to change our position in the EU, we are moving into uncharted territory, and we badly need a plan and leadership. This afternoon in the Communications Committee we received evidence on how important it is for the Government to give that leadership. London is the centre for the creative industries in Europe and they, like other businesses, are already seeing contracts lost and concerns raised about the future. People need to be reassured that as we change position, the UK is open for business now and will still be a good place for business in the future.

Inevitably our debate has been centred on UK interests, so I am particularly grateful to the noble Baroness, Lady Bowles of Berkhamsted, for reminding us of the implications of our actions on the rest of the EU. Too often we overlook that. Most seismic shocks have ripple effects and the EU is reacting in different and unexpected ways. One area is that its budget will have to change dramatically. Change is already starting to happen as the Commission and member states jockey for positions as a result of our decision. Who knows, it might become a very attractive unit of which we want to be a part in the future, but before that let us not forget that we cannot demand what we like. We will soon have to negotiate with the Commission, the EU Parliament, other member states, probably the WTO, EFTA and the EEA while keeping the devolved Governments on side as well. It is not an option for us to say how those negotiations are going to take place. It will be like playing chess against more than 30 people at the same time. That is why continued regular contact and good relationships with them are so important. Sadly, Mr Farage has served this country ill by his rudeness.

When it comes to trade and renegotiations, our position will a tricky one. I gather that we have only 20 active trade commissioners, compared with the 600-odd specialists working for the EU. Can I ask my noble friend what plans the Government have to recruit from the private sector? Indeed, how many are needed to help the brightest and the best of our Civil Service in this endeavour?

I add my name to the questions posed by the Leader of the Opposition and the noble and learned Lord, Lord Wallace of Tankerness, on Article 50. I also ask my noble friend whether she expects the EU to invoke Article 128 before or after Article 50 is served. Can the Minister confirm that the noble Lord, Lord Kerr of Kinlochard, is right in saying that under Article 50 a withdrawal agreement must include the outlines of the future relationship and therefore the Swedish Commissioner is wrong to say that they are separate? Can an Article 50 notice be withdrawn and, if so, what is the procedure for that?

I have some other quick questions. What discussions have the Government had with the European Banking Authority about moving its headquarters from London? Has the leave campaign submitted a list of laws that they claim have been imposed on us by the EU and which they would like to see repealed immediately? Given the importance to Scotland of universities and scientific funding, what steps are being taken to ensure continued participation in programmes such as Erasmus and Horizon 2020? Given that these are delegated competencies, what action can Scotland take on its own in these areas? I have been told of provisional contracts and courses already being cancelled. What are our liabilities and commitments with regard to the EIB when we withdraw from the EU? In relation to the EU budget, what are our liabilities and commitments if we withdraw from the EU before 2020, and what will our position be if we have to help negotiate the next budget?

We are now a divided country, and today’s debate has shown that. Sadly, the leave side are showing no signs of understanding the concerns of those who wish to remain. That needs to change. While I regret that we will no longer be at the top table in the EU, influencing decision-making, we have to move forward positively and together as a country.