Outcome of the European Union Referendum

Lord Bruce of Bennachie Excerpts

Tuesday 5th July 2016 Lords Chamber

[Lord Bruce of Bennachie (LD)]

My Lords, I am delighted to follow the noble Baroness, and concur with her that we are living in very dangerously uncertain times. People talk about uncertainty, but there is real danger, not only here but across Europe. I want to address two specific issues in this debate, and just draw attention to my entry in the Register of Members’ Interests.

The first is the impact on the quality and delivery of UK development assistance, which I do not think has been mentioned in this debate. The UK is the second-biggest bilateral provider of official development assistance in the world, with our contribution totalling around £11.5 billion. We are the first G20 country to deliver 0.7% of gross national income in official development assistance, and we have legislation to focus on poverty reduction and gender issues. Thanks to my friend and colleague Michael Moore, we have legislation to maintain our commitment to that 0.7%.

There is a correlation between those who campaigned to leave the EU and those who want to cut the UK aid budget. However, nothing would give a more negative signal, or more positive proof that the UK was turning its back on international engagement, than for us to cut the amount of our national income we deliver in development assistance.

The UK has an imperial legacy which over the centuries has seen us intervene, not always nobly, in the affairs of most countries in the world. Like it or not, countries such as Pakistan and Nigeria were created by Britain: indeed, we shaped the map for most of our aid partners. Delivering aid in many of these countries may be challenging, but history has passed us a strong moral obligation to help poor people out of poverty in these areas.

David Cameron was the representative of the industrialised nations in the high-level panel to deliver the post-2015 agenda, which determined an aim of ending absolute poverty by 2030 and leaving no one behind. It would be a travesty and a tragedy if Britain turned its back on this commitment. A significant proportion of ODA is delivered through the EU, which the multilateral aid review identified as an effective means of delivering UK pro-poor aid objectives. We should therefore give priority in negotiations to continuing teamwork in partnership with the EU in delivering our development aims. It would put less pressure on DfID to find alternative outlets, which could never have the same reach as the EU, and it would maintain an area of co-operation with the EU that would engender a positive relationship and good will. I urge the Government to resist the siren voices that inevitably will be raised to cut the aid budget and transfer it to domestic priorities. By the way, those who claim that leaving the EU would free the UK to grow faster outside its constraints could hardly justify cutting the budget now.

The second issue I wish to raise is the future of the UK and Scotland’s position. It is true that voters in Scotland made clear their desire to remain in the EU, but it should not be forgotten that while 1.66 million Scottish voters chose remain, over 2 million in the previous referendum voted to stay in the UK. It was reported last week that the First Minister, Nicola Sturgeon, was minded to stage another referendum on independence before the negotiation for the UK’s leaving of the EU is completed, with the suggested question: “Do you want Scotland to remain in the EU or leave with the rest of the UK?”. If this is true, it is an absurd and wholly irresponsible proposition. It may be perfectly reasonable for Nicola Sturgeon to hold talks with sympathetic elements within the EU, but she knows perfectly well that there is little or no prospect of Scotland carrying on within the EU, let alone with the UK’s current opt-outs. When the Prime Minister of Spain made it clear that Scotland was part of the UK and there would be no separate talks—this was echoed by France—the First Minister said that this was no surprise. Of course not, but Spain, France and every other country holds a veto over Scotland.

I have no doubt that many within the EU will hold out warmth and sympathy towards Scotland in the light of the vote, but that is not enough to launch us into uncharted waters on the back of the prodigious uncertainty we all face right across the UK. Depending on the terms of the new UK relationship with the EU, Scotland should not put itself at risk—which it would be doing—of total isolation. Scotland cannot apply for membership of the EU before it becomes independent. It would then face the same obligations as every applicant state. Even the fast track would take years. We would have to establish a central bank, a currency and a fiscal and exchange-rate track record. This would be challenge enough, but if the UK is establishing itself outside the EU, and possibly outside the single market, free movement and all those other issues, then barriers would be going up between Scotland and the rest of the UK before they even begin to come down with the EU. Given all this, I contend the priority for those of us who care about Scotland, its relationship within the UK and between all parts of the UK and the EU, is to secure the best possible outcome that maintains as much as possible of the co-operation and partnership that we value so dearly currently as a member of the EU. Anything else would be to show that independence is an ideological obsession that transcends the economic, social, cultural and political interests of the people of Scotland. The SNP should not let its patriotism lead to a betrayal of the real interests of the people of Scotland. As a passionate home ruler and Europhile, I firmly believe we need to tread carefully and sensitively towards an outcome that maintains the best of the UK and the best of our relationship with the EU.