European Union Referendum Bill

Lord Blackwell Excerpts

Tuesday 13th October 2015 Lords Chamber

[Lord Blackwell (Con)]

My Lords, it is a great pleasure to follow the noble Lord, Lord Maclennan, whom I greatly respect even though we often disagree on this topic. Before I begin I should make clear that, while I have a number of business interests set out in the register, in speaking today I will be setting out my personal views.

Given my contribution to previous debates in this House on this topic, you will not be surprised to learn that I strongly support the Bill and the proposed referendum. Indeed you may remember I introduced a Bill into the House in 2004 to bring about the promised referendum on the European Constitution, a referendum opportunity that was sadly missed. Like others, and given the huge changes in the European Union since 1975, I believe even more strongly now that a referendum is long overdue. I also strongly support the Prime Minister’s attempt to negotiate a more viable relationship with the European Union before the country is asked to decide on continued membership.

The fundamental reason for those views is the continued drive, reinforced by the Lisbon treaty, to move ever closer to a political and economic union among the majority eurozone and would-be eurozone members. It is essential that they do so to provide the cross-country financial support, common fiscal discipline and common social policies that they need for the euro to survive. We should not stand in their way but that means that the current position of the UK—bound by the same treaties and institutions—may become increasingly unsustainable. We are not and never will be part of the eurozone, so the reality is that we cannot be at the heart of a European Union that becomes increasingly focused on the governance and political decision-making of an integrated eurozone core. With most decisions on a wide range of EU competencies now taken by majority voting in the Council of Ministers and the European Parliament, the UK risks being bound by laws imposed by a political group of which we are not a part and which in many areas has different interests, different legal, social and political traditions and often different attitudes towards free markets.

This should not be a question of win or lose or whether we can win a few concessions at the expense of other members, or indeed whether we can impose our vision of reform on the rest of the European Union. Rather it should be about whether we can get agreement across Europe to a new settlement that suits everyone: a new kind of treaty relationship between the UK and the eurozone members that makes it sustainable for us to become and remain a member of a wider but looser European Union club, alongside but apart from the eurozone core—a member of the European club but not part of or a brake on their ever-closer political union. That decision, when it comes, is of sufficient political and constitutional importance to justify putting it to the people in a referendum.

Those who oppose or perhaps regret this democratic process make two arguments. The first is that it is too complicated an issue to put to the UK electorate and risk coming up with the wrong answer; the noble Lord, Lord Liddle, called it a “reckless gamble”. I have no sympathy with that view. Indeed, I share the view that the attitude of European leaders holding that perspective over the last half century has caused the widening gulf between the leaders and the wider populations across Europe. The evolution of the European Union and particularly the creation of the eurozone has moved the project from a purely economic to a strongly political and constitutional union. You cannot force nations into shared sovereignty and pooled democratic oversight unless the people feel that they have become or are becoming one nation. Politicians who do not carry their electorate with them in those decisions rapidly forfeit their trust and ultimately risk exacerbating rather than removing national tensions.

The second argument I have heard is that the objective of staying in the European Union is a foregone conclusion, and that even raising the possibility of exit weakens our ability to play a strong role within the European Union and creates damaging uncertainty. For the reasons I have set out, I do not agree that remaining in the European Union without a significant change in the current treaty arrangements is ultimately sustainable from a political and constitutional perspective. Nor do I believe that there is a compelling economic argument to override those considerations. Of course, under any outcome it would be simplest to stay in the single market if we could do so while protecting the global competitiveness of the City of London and other key sectors from unwelcome regulation. However, whatever the nature of our relationship that emerges, it is clearly in the interests of both European and UK businesses to maintain a workable trade arrangement. Therefore the long-run impact of a change in our position will depend on whether any attempts to create trade barriers are offset by the potential benefits from being free to develop a less regulated and potentially more globally competitive UK economy. There are voices on both sides of that argument, but in the end our global competitiveness in the fast-growing markets outside the European Union must be a primary concern.

Equally, whether we are in or out of the European Union, we can and should maintain close co-operation with our European neighbours on non-economic matters of common interest, including of course defence and security. On the other hand, unless we seek to negotiate a new relationship and do so with the full understanding on both sides that a significant change is needed, we are unlikely to get an outcome that secures a sustainable position for the UK within the European Union in the longer term.

As for uncertainty, I am afraid that that is the price of living in a democracy. While uncertainty may mean that some business investment is held back in the short term, there are many reasons why the UK is likely to remain an attractive global location whatever the outcome, and ignoring the democratic process may be even more costly, as I have argued. I hope that a sensible debate will emerge so that, in the light of what the Prime Minister’s negotiations achieve, we can have a level-headed assessment of what future will best deliver a global vision for a competitive UK economy and a sustainable relationship with our European neighbours—a relationship that addresses the reality of the increasing economic and political integration of the eurozone within the EU club.

It is important that the House is seen as upholding the democratic process by endorsing the commitment of the Government to put the best achievable outcome of the EU negotiations to the electorate and abide by the result. We should give the Bill our full support.

European Union Bill

Lord Blackwell Excerpts

Wednesday 13th July 2011 Lords Chamber

[Lord Liddle]

That is because the argument for British membership of the Union has not been made forcefully. That is why we need to do that in future. However, we are not going to do that as a result of this Bill. That is where noble Lords opposite are wrong.

All our political institutions suffer from major distrust. If, again, you consider the polling evidence on trust in Parliament or trust in the Government, you will find that there is as much mistrust in the British Government, the British Parliament and the British political parties as there is in the European Union. Of course, one does not underestimate the degree of scepticism among the public, but it is ironic that we are discussing the question of Europe today when the Murdoch press is in such difficulty in its relations with the British people. I do not know how many noble Lords in this House have received mail and been approached by members of the public because of the amendments that we carried when the Bill went through the House before, but I suspect very few. The real public anger today is directed at the media—particularly at the Murdoch press and at News International, which more than other organisation has used its position to obstruct positive British policy in the European Union. By going along with this Bill we are sacrificing representative democracy and Britain’s ability to pursue an effective policy in Europe.

I do not think, as I say, that is why the proposers are putting this Bill forward. I think that the Liberal Democrats are rather embarrassed by this piece of legislation, despite what the noble Lord, Lord Wallace, has told us.

It may upset the noble Lord, Lord Pearson of Rannoch, greatly but I have a lot of friends in Brussels. One of them passed on to me a letter that Nick Clegg, the Deputy Prime Minister, had sent to Andrew Duff MEP about this piece of legislation. Towards the end, it says:

“In addition, any referendum to ratify a Treaty change covered by the EU Bill’s referendum lock must first be preceded by an Act of Parliament in order to provide Parliamentary approval and to make provisions for the holding of a referendum”.

We all agree about the Act of Parliament. He goes on to say:

“This would, for example, enable a future Parliament to decide that the provisions in the EU Bill should not apply by amending the Treaty change Bill to that effect”.

The only way I can read that statement is that the Deputy Prime Minister believes that the provisions of what would become the European Union Act 2011 would not apply if, in future legislation ratifying a European decision or a European treaty, a clause was inserted that the question was not constitutionally significant and therefore did not justify a referendum. I would very much like to know whether the Minister agrees with that interpretation of the Deputy Prime Minister’s letter; whether he agrees and accepts that in any future Act ratifying an EU decision a Minister could insert a clause rather along the lines of our amendment; and if so, why the Government refuse so adamantly to accept this sensible amendment? I beg to move.

[Lord Blackwell]

My Lords, the noble Lord, Lord Liddle, called his amendment sensible. We should be clear that it is a wrecking amendment. It requires the Government to assert that a proposal is of major constitutional and economic significance. The noble Lord himself said that no Government voluntarily submit to a referendum. No proposal would come into the scope of this Bill unless the Government had supported it and had voted in favour of it in the European Union, so we can take it that the Minister and the Government would be behind whatever proposal was being put forward. We are then asking the Minister to volunteer to put a referendum through the terms of his amendment. As he said, no Government will voluntarily do that. We have the example of the Government’s record on the Lisbon treaty, which by every measure should have been put to a referendum but which the Government solemnly told the House did not require one. It is partly because of that that we have the mistrust to which the noble Lord, Lord Wallace, referred.

Because of the Lisbon treaty we now have a treaty that allows many changes to the fundamentals of our treaty relationship with Europe, including the removal of vetoes on a whole range of policies covered by Clause 6, and amendments to the scope of the institutions and the powers of the European Union itself through the passerelle clauses. All are to be done through the agreement of Governments without the need for a treaty change, and therefore without the need for a referendum on a treaty change. That is why we need Clause 6: because the Lisbon treaty enabled those changes to be made without a treaty change, and Clause 6 ensures that that is picked up. The noble Lord’s amendment would completely destroy that provision and overturn the view of the other place.

[Lord Hannay of Chiswick]

My Lords, as the person who tabled most of the amendments that are the subject of this debate, I should say a few words. One is meant to rejoice when a Minister eats a large quantity of humble pie. I have to say, I am not rejoicing at listening to the noble Lord, Lord Wallace, eating humble pie for having helped to lead his party to the various majorities that confirmed the Lisbon treaty. Frankly, it is a sad day when the Liberal party recants from the policy that it has pursued for so many years, saying that it is out of touch with the people and has not taken sufficient account of their views.

Leaving that to one side, I took the trouble to listen to the debate in the other place. I think I was the only Member of your Lordships’ House who did so. It was rather a sad occasion, much less well attended than this one. I am glad to see a wonderful cross-section of the views held in this House, which will no doubt be vigorously debated in the minutes or hours that follow. There was practically nobody there. When the noble Lord says that the decision was adopted by consensus, it was the consensus of around 15 or 20 people. They were mainly the people who went into the Lobby against the Government on Clause 18 and managed to muster 22 votes. They are therefore people who, by their own admission, would much rather than Britain was not in the European Union. That is a perfectly respectable position to take; it is the position that the noble Lord, Lord Pearson, takes.

On the matter that we are discussing now, I support the amendment. No one, including me, is persisting with the amendments that we tabled to the Bill and were voted on in this House. They would have reduced the number of referendums substantially, though not to only three. The amendment did not affect the provisions that would have required a referendum if any general constitutional treaty, such as Lisbon, Nice, Maastricht or the Single European Act, had come forward. That was not covered by the amendment that was rejected by the House of Commons. Only the numerous provisions that provide for 56 other referendums were covered.

I should like briefly to make three points in favour of this amendment. First, on marginalisation, given the problems with holding a referendum at particular moments in our parliamentary cycle, there is a risk that people may be minded to vote for reasons that have nothing to do with the question on the ballot paper. Therefore, a British Government would be compelled to reject a change in Europe that they believed to be in the British interest and wished to support because they did not feel able to go to the country in a referendum. This is exceedingly serious. That is why we should all listen rather carefully to someone I respect enormously, Sir John Major, who said at Ditchley in the annual lecture that he gave last Saturday that Britain was at risk of being a semi-detached member of the European Union. I know that is not the object of the Government. I have heard many government spokesmen flatly deny that and say how active we are. However, they should take this risk seriously.

European Union Bill

Lord Blackwell Excerpts

Monday 23rd May 2011 Lords Chamber

As many noble Lords have said, this EU Bill is based on the wrong premise about our membership. Instead of erecting a kind of Maginot Line against all these marauding European enemies who apparently are always trying to do us down, we should recognise that the sharing of responsibilities with our partners has been good for Britain and good for Europe. By stimulating Ministers to set out the case for and the benefits of membership, this amendment can not only give the British people the real facts about our membership but begin a new and more positive phase of British membership of the European Union. I beg to move.

[Lord Blackwell]

The noble Lord will not be surprised that I cannot agree with his amendment. Arguments are put forward for the merits of our membership of the European Union and arguments are put forward about some of the disadvantages and costs of our membership. Where Members of this House and people in this country will disagree is in the balance of those arguments. The noble Lord cannot really be serious in asking for Ministers of the Crown to be bound to put only one side of those arguments in any future debate. Surely, if there is an obligation on Members of the Government, it should be to put a balanced view on any issue to do with the European Union to the House and to the country.

[Lord Clinton-Davis]

Does the noble Lord really contend that Ministers have performed their duty already? I hear the voice of negativity rather than positivity.

[Lord Blackwell]

I think that that just illustrates the point that different Members of this Committee will have different views on this matter. My view is that if there has been a bias in the past, it has been for Ministers, in their desire to get the agreement of the House and the country to treaty changes, to downplay some of the consequences of those treaty changes that they did not wish the country to realise until it was too late. That has been part of the reason for the successive loss of trust in the Government and the European Union—the balanced arguments have not been put forward.

I have no argument with the fact that we should require Ministers to set out the arguments on both sides but to try to bind Ministers always to put out an unfailingly positive view of the European Union would be no service to this House or to the country and would simply compound the mistrust that has already been created.

[Lord Hannay of Chiswick]

My Lords—

[Lord Clinton-Davis]

My Lords—

[Lord Blackwell]

Perhaps I may give way to the noble Lord, Lord Hannay.

[Lord Hannay of Chiswick]

It seems to me that the noble Lord is propounding a pretty odd doctrine. Britain has been a member of the United Nations since 1945. I do not imagine that anyone believes that the UN is without fault but I have not yet seen a ministerial speech about the UN from any party which did other than support it. Britain has been a member of NATO for a very long time. It is an organisation which also has its faults. I have never seen a British Minister make a speech about NATO which did not support it. Why can they not do it about the European Union too?

--- Later in debate ---

[Lord Blackwell]

I may be corrected, but I am not aware that there is any statutory requirement for Ministers to make positive speeches about either of those organisations. It is up to Ministers to take their view and to make those views known. That is all I am saying about the European Union; namely, that it is up to Ministers to take a view and make that view known but that they should be allowed and, indeed, have an obligation on them, to state both sides of the case and make sure that they are not putting a too Panglossian view of the European Union in the way that this amendment would suggest.

[Lord Clinton-Davis]

I have rarely heard such piffle from any Member of this House as we have just heard. To suggest that Government Ministers would play fair on this issue is addled. At the moment, all the evidence points the other way. They are happier to point in the way of negativity rather than deploy the arguments in favour of the community.

European Union Bill

Lord Blackwell Excerpts

Monday 9th May 2011 Lords Chamber

[Lord Lamont of Lerwick]

Yes, but the noble Lord's criticism might have been a little modified in the light of the explanation that the Minister gave, rather than being put forward in quite such an aggressive manner.

In an equally probing spirit—because I, too, would like to understand this—perhaps I might ask the Minister two questions. Is he saying, first, that there is a distinction between a draft decision and a full decision, and that a Minister could indicate an agreement in principle to a draft decision? That was what I understood happened when we debated the European financial stability mechanism—the first of the three bailout funds, if I may call them that, that were arranged—when my noble friend Lord Howell clarified a certain amount of confusion in the House. Some noble Lords thought that we were making a final decision; he made it clear that we were not, that Parliament would have to decide on the principle of the matter, and that there would be another debate later. If that is the correct example of how this operates, we can see that there would be plenty of time for flexibility and consideration.

Secondly, are the words “or otherwise support” meant to cover also a position where abstention on a decision occurs? Where there is a requirement for unanimity, abstention cannot stop a proposal going through. It may be that that, too, is covered by the words. I have seen the words of Mr Murphy that the Minister quoted, and I think that that was one of the points that he was making.

[Lord Blackwell]

My Lords, I oppose the amendment for the opposite reasons to those that the noble Lord, Lord Liddle, and others gave for promoting it. It is important that it is very clear that the UK Government are not enabled to support or enable moves to go forward in Europe that imply a treaty change or a substantive shift in competences, without it being very clear that the UK Government must have support in a referendum.

The issue for me is that if the words “or otherwise support” were removed from Clause 6(1), the only restriction would be on a Minister of the Crown voting in favour. As the noble Lord, Lord Lamont, said, there are many situations in which a vote may neither be required nor be part of the procedure. Simply by sitting still or abstaining, Ministers may enable something to happen that would have binding consequences for the UK. To remove the words “or otherwise support” would completely nullify the provision. The discussion has led me to wonder whether the wording goes far enough, or whether we need additional text stating “to otherwise support or allow by default” a decision to which the provision applies. I would like an assurance from the Minister that this will catch all those situations where abstention, sitting on the hands or complicity would enable decisions to move forward.

[Lord Richard]

My Lords, I found that contribution extraordinary. Is the noble Lord seriously suggesting that if you sit on your hands and do nothing you are positively supporting something? Is he seriously suggesting that if the procedures are such that an abstention may produce a particular result in a vote, by engaging in that abstention and not participating in the vote one is somehow allowing it to go through? We are one country among a group and, as such, we have the options of supporting something, not supporting it or abstaining. You can decide, “I support it”, “I do not support it” or “I am not going to say whether I am going to support it or not”. The first of those is clearly support. The second is clearly not support. The third is an intermediate position which is neither support nor rejection. In those circumstances, I cannot for the life of me see how the words in the Bill can cover that intermediate position.

[Lord Blackwell]

I am suggesting that because, as the noble Lord will know, in Councils in Europe if you abstain or are simply absent from the meeting you do not prevent binding decisions being taken that would have an impact on the UK. If there is a decision about something that implies a transfer of competence from the UK of the kind that this Bill deals with, I would not want a situation where the noble Lord or a Minister representing the UK could—by simply not turning up—avoid his obligation to say to the European Union that a decision cannot go through because it is subject to a binding referendum in the UK.

[Lord Richard]

I do not want to pursue this too much, but is the noble Lord again seriously suggesting that if you do not turn up to a meeting you are supporting something? That is an extraordinary proposition.

[Lord Blackwell]

If by not turning up you allow a decision to be taken that binds the UK, you are implicitly supporting it.

[Baroness Nicholson of Winterbourne]

Noble Lords on all sides of the House must now surely recognise that this amendment is a mistake. I feel absolutely sure that it is an honest mistake, but it is a mistake based on a misunderstanding of the rules in the European Union. In order to work well in the European Union, you have to recognise that members come from many different states—as they have always done. In order to draw the members together so that they come to the meetings and all the rest of it, the European Union has different sorts of rules that are designed to attract them, to make absolutely sure that they come to the meetings. There are some very tough rules indeed if you do not turn up, and that is why this amendment is such a mistake. We cannot pass it because it would so gravely handicap United Kingdom Ministers in the Council of Ministers.

This way of working is commonplace throughout the European Union. If you do not turn up when it is a unanimous vote—and many votes are unanimous in different European Union institutions—you will be deemed to have agreed. That is what forces people to come from so many different nations. It is an enormous effort and very expensive for the Union and so on, so there are a number of rules that act like a magnet. This is one of them. Therefore, with the greatest respect, I suggest to noble Lords opposite—to the noble Lord, Lord Davies of Stamford, for example, and others—that they should rapidly withdraw this amendment. It is a little embarrassing. If it were to go through, we would be the laughing-stock of the Council of Ministers.

European Union Bill

Lord Blackwell Excerpts

Tuesday 3rd May 2011 Lords Chamber

[Lord Liddle]

The Minister has misunderstood what I have been trying to say. I apologise to the Committee if I have been giving a false impression but this amendment’s subject encapsulates fully the point that I am trying to make. What concerns us is: why tie up all the flexibilities that are within the existing, ratified structure of the Lisbon treaty, which were discussed in this House in the previous Parliament? Why tie all of those up in referendum locks that could have a very negative effect on Britain's power to act in its own interests within the European Union? That is the point and this amendment looks at one of those specific and unnecessary locks. Let me try and explain its point.

Clause 4(1)(m), which we debated last week, requires an automatic referendum if any amendment is moved to the Lisbon treaty, as it could be within the terms of that treaty, to alter the right of member states to ensure suspension of the legislative procedure. In Euro-speak, this is called the emergency brake and covers three areas of EU activity: social security, judicial co-operation and cross-border crime. It is the right of a member state to refer a matter where legislation is proposed in those areas to the European Council before the legislation can proceed any further. Britain supported emergency brakes in these areas in the passage of the Lisbon treaty. It did so because the previous Government thought that as regards social security, judicial co-operation and cross-border crime there might well be an argument in principle for more Europe. Indeed, there were compelling arguments for more Europe in this area but as a safeguard, just in case we did not like the look of the way things were going, we wanted to see how it worked. Therefore there was a need for an emergency brake.

The logic of this very pragmatic position is that if we find in future years that the European Community is doing a good job in these fields, we will be prepared to rid ourselves of that emergency brake provision. Those who are disposed by nature to see everything that the EU does as a threat will never believe that anything can work, but those of us who think that it can be an opportunity should be open-minded about the possibility of the changes that are provided for in the Lisbon treaty.

I argue that these three areas are issues that are not of the highest national importance, like whether we join the euro, but are of significant importance where change might be necessary in processes that the Government might want to agree to. However, the Bill will require an automatic referendum. Look at them: first, social security legislation, which, as we know, is tied up with the right to work, study, and settle for retirement wherever you want in the EU, which is one of its most appealing citizenship rights; secondly, judicial co-operation, which is essential if we are going to effectively tackle the terrorist threats of the kind that the noble Lord, Lord Strathclyde, talked about earlier in his Statement on Osama bin Laden; and thirdly, cross-border crime, in terms of which we are all aware of the increasing problems of criminal gangs operated from outside the EU but often on its borders, in countries like Russia and some parts of the Balkans.

Surely we want to retain the flexibility to make Europe effective in those areas. That may require changes in these so-called emergency-brake provisions but, on a narrow but significant point, the Government are saying, “Oh no, we can’t do anything for at least seven years or so because we have to have a referendum and we are certainly not going to do anything about that this Parliament”. The argument from this side of the House is a different one: let us not tie ourselves up in these knots but have the confidence that in a representative democracy Parliament should deal with these questions; there is no place for a referendum on them.

[Lord Blackwell]

My Lords, I must apologise to the House and the Minister for having been unable to contribute to the debate on the Bill so far. I feel compelled to contribute at this point by the extraordinary speech of the noble Lord, Lord Liddle.

When the Government of the day brought the Lisbon treaty to this House, one of their proud claims was that they had protected the red lines that they had set out, including the red lines on areas such as social security and judicial co-operation, through the introduction of these emergency brakes. If legislation was brought forward in the European Union that was seen to be against our national interest in these areas, or against things that we could tolerate, we had the right to say, “We will not go along with this. We don’t think this should be applied to the UK”. Effectively, we have a veto. The other member states can proceed without us if they wish, but it gives us a cast-iron guarantee that in these very sensitive areas the EU cannot override the UK Parliament and the UK people in legislating in what are regarded as areas of national importance. For the noble Lord to say that we should now throw these emergency brakes away—

[Lord Liddle]

I am not saying that at all. I am saying that we should not tie ourselves up indefinitely in the need to have a referendum to make this change. That does not mean that I am in favour of immediate change in these things; I am not. But I want to hold open the possibility of flexibility in order that we can meet new circumstances if necessary.

[Lord Blackwell]

I am grateful to the noble Lord for his clarification. However, he talks about trust, and I have to say to him that the reason why the British people have lost trust in politicians to represent them in Europe is that over many years they have seen politicians stand up and say, “Minor changes. These won’t affect you”, but cumulatively those changes have added up to a huge shift in powers.

These brakes were put in the treaty, which was agreed by Parliament. The noble Lord may not want to remove them this year, but when does he want to do it? If he wants to do it at some time, that would be a substantial weakening of the current treaties. In the spirit of the Bill, which I wholly support, I regard anything that removes a veto or anything akin to one as a major change to the treaty that should not be carried through by Government without the provisions of the Bill requiring that as a major change it should be put to the people in a referendum.

In his speech, the noble Lord attempted to confuse the House by suggesting that the referendum would make it difficult for the UK to use these powers. I should make it clear—the Minister can correct me if I am wrong—that nothing in the Bill requires a referendum for the UK to use, or not to use, the emergency brake. The Bill is entirely silent about the use of Articles 48, 82 and 83. It simply says that if the EU seeks to amend the terms of the treaties under which we can use those emergency brakes, that will require a referendum. Whether or not the use of the emergency brakes itself required a referendum would depend on the substance of the matter that was contemplated being brought forward under those provisions, which would fall under other aspects of the Bill.

Removing the subsection, as the noble Lord is attempting to do, would mean that at some point in time a future Government could give away these vetoes without requiring that to be brought back to the people. That is exactly the kind of action that has led to the loss of trust of people in politicians and, unfortunately, in this Parliament, to protect them in this matter.

[Lord Hannay of Chiswick]

I am sorry that the noble Lord’s absence from earlier debates has not enabled him to catch up with where this debate has got to. Some of us were attempting to reduce sharply the number of provisions that require a referendum, for a number of reasons that are not the ones that the noble Lord, Lord Stoddart, gave but are related, as the noble Lord, Lord Liddle, said, to whether or not you believe in representative parliamentary democracy and the powers of Parliament. A number of us who have done so have put forward amendments that would effectively leave in the Bill the strengthening from the ratification of Lisbon powers, which means simply that if these changes were to be made there would need to be a resolution in both Houses, but would leave intact in the Bill a requirement for primary legislation before Britain could agree to that. That would be a strengthening of parliamentary authority in areas such as this, which in any case require unanimity. The idea that there is not a lock there is completely aberrant. What there is not, if you follow the amendments, is a lock plus a referendum, and that is for principled reasons that I have briefly attempted to explain. I am sorry to interrupt the noble Lord, but really and truly the situation is not quite as he suggests. Those of us who are trying to reduce the number of referendums are not trying to weaken the power of Parliament but to strengthen it.

[Lord Blackwell]

I thank the noble Lord for his intervention. Actually, I am fully aware of the nature of these amendments, all of which attempt to undermine the purpose of the Bill, which is to require a referendum if there is a major change to the treaties or a major shift in power. That is a principle that I fully support and which the noble Lord is attempting to undermine.

I hope that there will never be a referendum under the Bill because I hope that no Government will ever seek to transfer further power to the European Union in a way that would require the referendum requirement to be enacted. In hoping that we will never have such a referendum, I probably agree with the noble Lord. However, if we are going to restore the trust of the people of this country in the EU, we have to give them the cast-iron guarantees that the Bill provides and not undermine it in the way that the noble Lord, Lord Liddle, seeks to do.

[Baroness Falkner of Margravine]

I seek some clarification on the amendment of the noble Lord, Lord Liddle. It seems to wish to get rid of three emergency brakes but leave in place the one that includes the common foreign and security policy. That seems somewhat inconsistent; the noble Lord has mentioned several areas of co-operation where he believes it would be important, if the EU were to proceed in a manner that would be conducive to our interests, for us to do so. I suggest that the common foreign and security policy would be one area in which we have rather more expansive interests than in those of social security, judicial co-operation and cross-border crime.

Since the noble Lord gave a few examples, may I caution him on, for example, judicial co-operation? He thought that it may well be essential to have improved judicial co-operation if we are to tackle terrorist threats. That is an important point, but I also urge caution regarding the other direction. It is not that long ago that in this House the former independent reviewer of terrorism legislation, my noble friend Lord Carlile, warned us regarding the proposals for 60 days’ detention without charge that the previous Government wished to introduce. We must not go in the direction of the French legal system, for example, under which people have been interned for several years without charge. It cuts both ways: we may want enhanced co-operation but we may well not want it.

The previous Government negotiated the treaty and put in the emergency brakes. It is unclear what these moves would achieve and why that change of position has come about. Will the noble Lord reassure me on my understanding, which is that the Bill does not require a referendum before the EU can act in areas where the emergency brake exists? Co-operation is a good thing which can benefit the UK, but I thought that this was about making it clear to the British people that a referendum would be required if there is a move to abandon these important safeguards. Can the noble Lord explain what has caused this quite significant change in thinking?

--- Later in debate ---

[Lord Brittan of Spennithorne]

I am not making any statement about whether or not any particular provision was codification. I am talking about the correct interpretation of this provision in this Bill with regard to the future, which determines whether or not a referendum is called on the question. The test is an objective one: whether what occurs in future amounts to a codification, however it has been achieved, or goes beyond a codification and involves a change in the law. It is as simple as that.

[Lord Blackwell]

This is the one amendment this evening with which I confess that I have some sympathy. My interpretation of Clause 4(4)(a) is that it talks about the codification of practice under an existing competence. It does not talk about the codification of an existing competence but the codification of practice. As my noble friend Lord Waddington said, the EU has a history of stretching the practice of exercises of competence to take on ways of applying it that may not have originally been envisaged by those who agreed to the competence in the treaty. The example burnt in my mind is the notorious use of the health and safety provision to legislate from the EU on UK employment law a decade or so ago.

[Lord Brittan of Spennithorne]

I assure my noble friend that whether or not that is a good thing or a bad thing—I have a lot of sympathy with the view that excesses happened there—by no wild stretch of the imagination could that be described in English law, and we are in the process of creating a British statute, as codification. It might be wonderful; it might be disastrous; it might be neither; but it is not codification and therefore the provision would not apply.

[Lord Blackwell]

I said that I had some sympathy with the amendment, and I very much hope that the Minister will be able to reassure me. To my mind, that was an example of a practice coming into effect which could then be claimed was an existing practice that simply needed to be codified. I am not a lawyer, but if something can be done under an existing competence, why does it need to be codified? The EU already has the power to do what it needs. If something is then codified, the danger is that it creates a new base, or ratchets up the base, from which we can then have further ingenious development in practices. I am therefore very nervous about allowing codification of this sort to take place when, if the EU is already doing it, codification does not seem to be needed. I would very much welcome the Minister explaining and perhaps thinking again about whether that exemption is required in the Bill.

[Lord Hannay of Chiswick]

My Lords, I will now argue against the amendment on substance, having dealt with the ancient history to which we were all subjected previously; I do not want to go back on that.

A common-sense application to the amendment would lead one to regard it as bizarre. The object appears to be to ensure that if the European Union, with the agreement of the British Government—which is required under unanimity—conducted an act of genuine codification, we would have a jolly referendum about it. All I can say is that if noble Lords really want to go around this country stirring up apathy about the codification of some obscure piece of European law, common sense has flown out of the window.

The amendment is being moved, and support for it being given, on the basis of fear that a British Government will not know enough about the process to distinguish between a real codification and—in the parlance of noble Lords who support the amendment—competence creep. It is not sensible to add to the 56 other matters, to increase the number of referendums on a subject on which it is frankly just not credible that you could have a sensible political campaign involving the whole electorate of this country. I am not in favour of that.

--- Later in debate ---

[Lord Triesman]

My Lords, the intention of the amendment is to provide the scope for further adjustments to the trade arrangements and the powers of the Commissioner dealing with trade arrangements, given that Commissioners who have dealt with trade arrangements have expressed their anxiety about the limitations that have been placed on them during the negotiations in these trade rounds. It is entirely possible—it may be part of the noble Lord’s point—that these powers exist in any case and can be handled in any case. However, the experience of the difficulty in making progress leads me to believe that there may on occasions be adjustments that would make the process easier, more helpful and capable of moving faster.

My point is not that these are all world-shattering changes—they may be small changes. The scope to make those changes, to respond to circumstances, seems to me to be a power that would strengthen the people of the United Kingdom and strengthen the EU rather than weaken the people of the United Kingdom.

[Lord Blackwell]

I confess that I am having some difficulty following the noble Lord’s argument on this point and I wonder whether he can help me. As my noble friend Lord Lamont has said, the EU already has exclusive competence in the area of international agreements. It has competence over the single market. It has competence over regulation. It can legislate in these areas using the normal provisions of the EU—that is what the competence gives it; that is under the existing treaty—so we are not talking about stopping it legislating. I am trying to understand what it is the noble Lord thinks might require treaty change to enable the EU to do something; and why, if it requires treaty change, that will not in any case take several years to accomplish, in the way that treaty changes normally do. I fail to understand what is the restriction to act in areas where the EU already has competence.

Queen's Speech

Lord Blackwell Excerpts

Wednesday 26th May 2010 Lords Chamber

[Lord Blackwell]

My Lords, before contributing to this debate I should mention my business interests and their international operations set out in the register. It is a great privilege to speak in this important debate at the start of a new Government. Like others, I am delighted to follow on from the opening speech of my noble friend Lord Howell, who brings great experience and wisdom to his resumed role as a Minister and whose speeches and writings on this topic I have greatly admired over the years.

I am conscious that much of what I have said in this House over recent years on foreign affairs has focused on our relationships with Europe. I hope that the House will forgive me if I say very little about that today because my message is that we risk being overly fixated on Europe at the expense of looking outward to the exciting opportunities in the wider world. We are, of course, a European civilisation. Europe is the family home in which Britain has been shaped and grown, but while Europe is our past, it does not define and should not constrain our future. Our future lies beyond Europe in the global opportunities in the wider world.

Important as Europe is, we need to recognise that it is now the continent that over the next few decades will experience some of the slowest growth—slowest economic growth, slowest population growth and slowest wealth creation. That will be exacerbated if old Europe clings to its attachment to inflexible social and economic policies and inward-looking protectionism. The growth, excitement and innovation over the next century lie elsewhere in the world. Britain, with its historic trading skills and global connections is almost uniquely placed to benefit from that new world order. We are still, in our own right, one of top five global trading nations. We must build on our huge advantages, inspire young people with the vision of Britain as not only one of the premier global trading nations but as a huge force for freedom, common understanding and partnership around the world.

The statistics speak for themselves. The growth rates in India and China mean that by 2050 those two countries together are likely to account for roughly half of the world’s GDP. We should welcome that. Just as the development of North America drove world growth in the 19th and 20th centuries, these countries will lead the development of world prosperity in the century to come. Both India and China now produce more graduates in science and engineering than either the US or Europe and the gap is widening. Their investment in research and innovation is rapidly catching up and is likely to outstrip the US and Europe in the next few years, fuelling their own knowledge-based economies. It is the same picture with many of the other fast emerging economies around the globe.

During the past two decades, some two-thirds of the increase in the world’s GDP came from growth in the existing industrialised nations. Over the next decade two-thirds of the world’s growth will come from the newly developing economies. It is those markets that provide our prime opportunity for growing trade and investment. Sharing in this growth must be top of the UK’s priorities. Fortunately it is an opportunity for which Britain is particularly well placed. We only have to travel the world in a business context to appreciate the advantages that come naturally to us.

First and foremost is the English language. Because of that and our historic links there is often a shared base of English education. There is respect for our legal traditions and our democracy, and of course, for the BBC World Service. We are blessed with a strong band of skilled and respected expatriates, often from families with a history of overseas service. Here in Britain we have skills, talent and reputation in many global service industries, such as financial services, of course, but also in arts and culture, biotechnology, engineering, law, and many others. These may seem soft benefits but their impact on the real world of trade and commerce should not be underestimated. These same factors have made Britain still the primary European destination for inward investment from India, China and other developing nations. That makes another invaluable linkage.

Yet in most of our post-war period, in particular the previous decade, it has seemed as if we have been turning our back on our historic connections, letting our reputation and influence decay, while other nations have jostled to take our place. We need to cast off the prejudices and myopia of the post-war generation and look at the world through a new prism. An important part of that is to reset our national mindset to see the Commonwealth not so much as our past but as a core part of our future. The world has changed from the days of huge power blocs. The fundamental building blocks of a prosperous and peaceful world order in the 21st century are stable and secure nation states at ease with themselves and able to forge links and co-operation from a position of self-confidence and recognition of common interests. The 21st century, with global internet communication and economies built on trading knowledge, lends itself to a global network of co-operating nation states that share values, language and common interests. It is the era for which the Commonwealth could have been purpose-built, encompassing one-third of the world’s population and already more than a quarter of the world’s GDP, including many of the developing economies such as India, Malaysia and Singapore, with the fastest economic growth, and countries such as Canada and Australia which are rich with natural resources—a 21st century club of co-operation, partnership and mutual respect

Yet it has been treated almost as an embarrassment and a reminder of a colonial past rather than as a gateway to the future. When the Foreign and Commonwealth Office—despite it name—last set out its priorities in the 2006 White Paper, it included just one passing reference to the Commonwealth on page 23, but the Commonwealth appeared nowhere in the nine government priorities. Spending on embassies and representation around the world has been squeezed to focus resources on Europe. At the same time as cutting back, we are committed to funding a massive expansion of the EU’s own diplomatic service which aims to build representation in 136 countries and employ thousands of staff. Co-operation between friendly nations to look after each others’ interests in far flung locations is always sensible, but this goes much further and it is inevitable that Britain’s commercial interests will at best be diluted if not pushed down the queue. Equally, the BBC World Service has been treated as an easy target for cuts, instead of valued as one of Britain's most powerful and envied assets.

By contrast, the post-war vision of creating an integrated regional power bloc in Europe is an idea whose time has passed. Indeed, the attempt to force the nations of Europe into a centralised political and monetary union built in its own tensions, and the cracks are now showing. That is why I support the Government’s clear stance against shifting any further powers from the UK to Brussels. We need a constructive relationship with a stable Europe in our back yard, but Europe needs a different model for changed times, and the UK needs a fresh start.

I welcome the statement in the coalition programme that, alongside a strong relationship with United States, we will strengthen the Commonwealth as a focus for democratic values and development, will work to develop a special relationship with India and closer engagement with China and intensify our cultural, educational, commercial and diplomatic links with other nations beyond Europe and North America. Those are targets which the Government should see as core to their purpose.

I end by citing briefly from a paper published by the Centre for Policy Studies in 2006, the author of which was none other than my noble friend Lord Howell of Guildford. In that paper, he stated:

“Britain badly needs a new foreign policy appropriate to the twenty-first century. Specifically, our international stance must become less narrowly Eurocentric and be adapted to make much more use of the more modern and far more adaptable Commonwealth network which is at our disposal”.

I could not have put it better and I look forward to supporting my noble friend in pursuing those aims in government.