EU Council

Debate between Lord Davies of Stamford and Lord Strathclyde

Monday 17th December 2012 Lords Chamber

[Lord Strathclyde]

My Lords, the noble Lord, Lord Williamson of Horton, asks a straight question: how watertight is the agreement on the requirement to have a majority? If I may mix my metaphors, the agreement that was struck in this council is absolutely rock hard. I do not think that I can put it more strongly than that.

[Lord Davies of Stamford]

My Lords, can the noble Lord go a bit further into banking unions? A banking union must contain two things. One is a supervisory regime, and it is clear what has been agreed there; it is perfectly satisfactory. However, it must also contain provisions for bank resolution. Can the noble Lord tell us in greater detail how this will work? In particular, if the ECB has to bail out an institution in the future to prevent a systemic threat, where will the requisite funds come from and what arrangements have already been made to ensure that those funds will be available on the day they are required?

[Lord Strathclyde]

My Lords, that is a good question but I will not be tempted to get into the details of this, because they have not been finally agreed within the eurozone. Final conclusions on that will need to be come to over the course of the next few months.

European Council

Debate between Lord Davies of Stamford and Lord Strathclyde

Monday 26th November 2012 Lords Chamber

[Lord Strathclyde]

My noble friend reiterates a position that he has held for some time. Indeed, he has been very much in the vanguard of this thinking. I agree that there is a lot wrong with the centralised, bureaucratised and expensive European Commission and how it operates that needs to be sorted out. The EU itself faces its own internal crises, not least within the countries of the eurozone, but all that is an opportunity for those who think like my noble friend to come forward with proper modernisation, as he called it—proper reforms that I believe would command a great deal of support within both Houses of Parliament and throughout the rest of Europe. He is right in saying that my right honourable friend the Prime Minister is dealing with these negotiations in entirely the correct manner.

[Lord Davies of Stamford]

My Lords, has the noble Lord ever considered that our national influence in Brussels on this and other subjects would be enhanced—and therefore the national interest would be advanced—if the Government occasionally displayed some real, positive commitment towards our membership of the European Union, or even actual enthusiasm for it, rather than constantly carping, complaining and often threatening to leave? Would not such a more positive attitude better reflect the interests of the British people? Almost every subject on which the people of this country feel most strongly—whether it is prosperity within the single market, the future of world trade negotiations, our ability to respond to the challenge of climate change, our ability to cope with the threats of organised crime and terrorism, or the future peace and stability of our own region and regions around us on this planet—depends for its resolution on a cohesive and successful European Union. That must be part of the solution, not part of the problem, as the Government keep trying falsely to represent.

[Lord Strathclyde]

My Lords, I think that the noble Lord is unduly pessimistic and that he exaggerates. There is no threat to leave; not from the Prime Minister, not from the Foreign Secretary, not from me—

[Lord Davies of Stamford]

Mr Gove.

[Lord Strathclyde]

Nor from anybody else. There are those who suggest that at some stage there might need to be a referendum, and there may, but we will need to see what that will be about. On the contrary, I think that the noble Lord has completely misunderstood: we are very positive about the European Union, but a Europe which is cohesive and successful does not need to be bureaucratic, centralising and expensive. One needs only to hear my noble friend Lord Howell of Guildford talking with such enthusiasm about what a reformed Europe could look like to know the truth of that. I think that the noble Lord, Lord Davies, has exaggerated the position of the Government.

Royal Bank of Scotland: LIBOR

Debate between Lord Davies of Stamford and Lord Strathclyde

Wednesday 4th July 2012 Lords Chamber

[Lord Davies of Stamford]

I have already given way once. Tucker is saying one thing and Diamond is saying another, so one or other of them must be lying. On the outcome—

[The Chancellor of the Duchy of Lancaster (Lord Strathclyde)]

When two noble Lords are trying to speak at the same time one really ought to give way to the other. They are both from the Labour Party so perhaps they ought to decide among themselves.

EU Council

Debate between Lord Davies of Stamford and Lord Strathclyde

Tuesday 31st January 2012 Lords Chamber

[Lord Strathclyde]

My Lords, if those were his motivations, there would be nothing wrong in that. In fact, the Prime Minister made it entirely clear in response to questions and in his Statement on the December Council that his only aim was to preserve British interests. At the December Council, he asked for certain safeguards and those safeguards were not offered. Hence, we have got to the current position.

As the noble Lord knows extremely well, we have a number of legal concerns about the treaty, particularly on the use of the EU institutions, but, as I said, it is in our national interest for the eurozone to solve its problems. That is why we are reserving our position. I know that the noble Lord, Lord Hannay, asks my noble friend Lord Howell questions from time to time. He will have an opportunity to have another go in a couple of weeks’ time, when we are having an all-day debate on the European Union.

We will be watching developments very carefully over the next few weeks and months, and if there is any sign that they will encroach, particularly on the single market, we will seek to take appropriate action.

[Lord Davies of Stamford]

My Lords, it is at least reassuring that the Prime Minister now appears to be conducting our diplomacy in the EU in a cool, calm and reasoned fashion, although it is very worrying that we shall not, apparently, even be in the room as observers when the 25 meet regularly from now on.

However, I sincerely congratulate the Government on their contribution to the achievement of the single market conclusions of the Council, particularly in relation to energy. I hope that there will be follow-through and implementation.

If Greece defaults, which it may, there may be contagion. If there is contagion, there would be a very serious banking crisis. In those circumstances, it would be extremely expensive for us to bail out our banks. Would it not be much cheaper now to make a more modest contribution to the new financial stability fund, the IMF or otherwise to the firewall which we keep nagging our European partners that they should be putting together without us, up to now, being willing to contribute at all?

[Lord Strathclyde]

My Lords, it is not my role, nor that of the Government, nor is it appropriate to speculate on the position of Greece. Greece has to make its own decisions on that question. Our view is that it is important that all parties should stick to the deal agreed in October and that all the elements of that package, including the PSI, are finalised and implemented without further delay. We are not contributing directly to more bailouts of the eurozone, as the noble Lord knows. One thing that we agreed earlier through the new ESM is that we are extracting the United Kingdom from having to pay for eurozone bailouts in future. IMF payments are of course an entirely different matter, but we believe that the IMF is there to lend support to a country, not to a currency.

European Council

Debate between Lord Davies of Stamford and Lord Strathclyde

Monday 12th December 2011 Lords Chamber

[Lord Strathclyde]

My Lords, I spelt out in some detail what safeguards we asked for in reply to the noble Baroness the Leader of the Opposition, so I will not repeat them. However, the noble Lord has asked a good question to which people will want to know the answer: why did we exercise the veto at the start of the process? It is my understanding that the French made it absolutely plain that under no circumstances would they accept the safeguards that the Prime Minister was asking for. At that stage, the Prime Minister had absolutely no choice if he was going to continue in good faith. That is why he took the decision that he did.

[Lord Davies of Stamford]

My Lords—

--- Later in debate ---

[Lord Strathclyde]

My Lords, we very much want to retain goodwill and there is no reason why we should not do so. I say again that it is not yet entirely clear what role is being proposed for the EU institutions. We will want to look carefully at the details of what is proposed. No doubt we shall do so over the course of the next few months.

[Lord Davies of Stamford]

My Lords, does it not beggar belief to suppose that anybody could be so stupid or incompetent, if he really believed that there was a threat to national interests from a prospective change in financial service regulation in the EU, as to engineer a situation in which henceforth such regulation will be discussed and in practice decided in a context in which we will not even be in the room? Is it not absolutely clear that it was not national interests at all that drove the Prime Minister but party political interest and the desire to curry back the favour of the Tory Eurosceptics who gave him such a hard time last Wednesday? Does the Leader not think that the country is intelligent enough to see through the propaganda that they have heard this afternoon and to realise that the Prime Minister has played with the national interest for party political reasons?

[Lord Strathclyde]

My Lords, only the noble Lord could come out with that particular quip. Of course we feared the dangers to our national interests or we would not have said what we did. It takes two to agree but it also takes two to disagree. The other 26 could have wholly accepted that we had a deep concern about our national interest and agreed with us. Then there would have been a treaty of the 27.

Phone Hacking

Debate between Lord Davies of Stamford and Lord Strathclyde

Wednesday 13th July 2011 Lords Chamber

[Lord Strathclyde]

My Lords, I join the noble and learned Baroness in applauding consensus on this matter and many others. If we have come up with the right decision and an inquiry that everyone can support that must be the right way to go. One of the good things that has come out this afternoon is how everybody has welcomed the appointment of Lord Justice Leveson.

The terms of reference are widely drawn—they will look at the culture, practice and ethics of all the press; their relationship with the police; the failure of the current system of regulation; the contacts made between national newspapers and politicians, and so on. That must include newspaper groups other than News International.

As far as the second point the noble and learned Baroness made about the PCC, everyone can see that the current system has failed and broken down. The inquiry will rightly wish to look at why that happened—what the causes were, perhaps over a very long time—and what measures are needed to put it right.

[Lord Davies of Stamford]

My Lords—

--- Later in debate ---

[Lord Strathclyde]

My Lords, that is an extremely good question and a good point. The intention of the police is simply to advise those whose numbers have clearly been hacked into. If I may, I should like to pass on what the noble Baroness has said. It is an important point that more anxiety and upset are not caused by the revelation that their numbers were hacked into.

[Lord Davies of Stamford]

My Lords, could the Leader of the House go a little further than he went in his answer to the noble Lord, Lord Fowler, a few moments ago? Is it within the terms of reference of this judicial inquiry to advise on and recommend the proper limits of the media’s intrusion into the private lives of individuals by whatever means where there is no public interest? Obviously, the position is different where there is a public interest.

[Lord Strathclyde]

My Lords, my understanding is that these will be matters for the inquiry to look at. It is entirely right that it should do so.

Afghanistan

Debate between Lord Davies of Stamford and Lord Strathclyde

Wednesday 6th July 2011 Lords Chamber

[Lord Davies of Stamford]

My Lords, no one wishes to keep British troops in Afghanistan for a moment longer than is necessary. Nevertheless, I am very disturbed by the Statement that the noble Lord the Leader of the House has read out today. Surely it makes no sense to engage in negotiations with the Taliban while announcing in advance a deadline for withdrawal, irrespective of progress in those negotiations. Of course it is necessary to keep the Afghan national army and police up to the mark by continuing to confer additional responsibilities and duties on them to see how they cope with those and to keep them challenged, but that could be done without making what I fear is going to be a very fundamental mistake in these negotiations.

[Lord Strathclyde]

My Lords, I understand the noble Lord’s point but, with the deepest respect, his is an outdated view of the negotiation process. I also understand why he holds it. What has changed in the last couple of years is that the Afghan armed forces and police are in a much better position to take over the role currently held by different European, American and NATO forces in Afghanistan. That is the first point. The second point is that there has been a growing realisation that to some extent the Taliban is motivated by the fear that foreign troops will remain in the country indefinitely. We wanted to send a signal that that was not the case. These things are always hard to forecast but we believe this is the right way, not just for Britain but for Afghanistan. It will encourage Afghanistan to negotiate seriously and to raise the professionalism of its armed forces and police. If we get it right, we will have achieved our aim of providing long-term stability for the people of Afghanistan.

Parliamentary Voting System and Constituencies Bill

Debate between Lord Davies of Stamford and Lord Strathclyde

Tuesday 1st February 2011 Lords Chamber

[Lord Davies of Stamford]

I hope that, by whatever means, the Electoral Commission will address the issue raised by these two incidents, which hardly look as if they are purely coincidence. If noble Lords cannot get an answer from the Electoral Commission, what are the chances of an ordinary member of the public doing so? I suspect that that is a matter of concern not just to me but to the whole House.

[The Chancellor of the Duchy of Lancaster (Lord Strathclyde)]

My Lords, it may be helpful if I deal with this issue because I understand that the Electoral Commission has just moved offices. That is why the old phone number does not work. The new phone numbers should be available in the normal way and we can make them available. If anybody wants them, they can call my office and we can get them to them. I am assured that the Electoral Commission takes great care and notice of what happens here.

--- Later in debate ---

[Lord Strathclyde]

My Lords, that is an immensely good suggestion and of course that will be a decision for the Electoral Commission.

It is not clear from the current legislative framework under the Political Parties, Elections and Referendums Act 2000—specifically Section 13—whether the commission has the power to publish information about the voting systems for public awareness purposes in this particular referendum. Therefore the Government considered it best to make the position absolutely clear and accordingly, we tabled an amendment to insert paragraph 9(2) into Schedule 1 in Committee in the other place, which was passed and is now reflected in the Bill.

We do not see that it is necessary, or desirable, to mandate that the commission must issue information, as amendments tabled by the noble Lords, Lord Rooker and Lord Low, aim to do. Rather, it is the commission’s prerogative. The commission has indicated that it would like this power and that it clearly intends to exercise it but we do not think that the Bill should go further than that and oblige it to do so. Moreover, it is simply unnecessary to legally obligate the commission in this respect. The commission has already publicly indicated its intention to produce this information, and has published the draft text that will form the basis of public information leaflets on its website. I am glad that some noble Lords have seen it. It is important that those who take a real interest in these matters should look at it and send their comments to the Electoral Commission regarding this information before the leaflets are published.

The same point, concerning the appropriateness of imposing a legal mandate on the commission in this area, also applies to the amendments tabled by the noble Lord, Lord Lipsey. These would obligate the commission to provide a leaflet summarising the meaning of the question, together with the main arguments for and against first past the post and alternative vote. The amendments also specify that the leaflet must be impartial and unbiased, and distributed to every household in the UK, so far as possible.

The commission is clear that the leaflets will contain factual information; that this information will be impartial and unbiased—it would go against the commission's regulations to promote one particular outcome or be anything other than unbiased—and that it will go to every household in the UK. For this reason we do not think it appropriate that the information includes arguments for and against each voting system. The information will be factual, whereas the pros and cons are subjective. These arguments will naturally be for the campaigns. It is hard to see how the commission could be expected reasonably to summarise all of the arguments for and against in a way that is commonly accepted to be impartial and unbiased. This is an inherently partial subject, and the more the commission is drawn in to trying to describe the pros and cons, the more open it would become to allegations of partiality. It is important that the commission is neutral. Therefore, the arguments for and against should be left to the campaigns.

[Lord Davies of Stamford]

The Leader of the House is making exactly the point that I made, namely that it would be quite wrong and inappropriate for the commission to try to summarise the arguments for and against. Will he deal with the proposal that I made, with some support from my colleagues, that if there are two coherent campaigns, one on each side, the two organisations concerned should be invited to produce a leaflet that would be sent free to every household with the information pack from the Electoral Commission, as happened in 1975?

[Lord Strathclyde]

My Lords, the noble Lord is quite right, and therefore he and I are in agreement on this. As far as concerns the two campaigns, their material will not be part of the same leaflet pack. The campaigns, too, will get a free post, so that every voter will be left in no doubt about the information. Of course, we expect the media to play a full part in the campaign in the run-up to the referendum.

Parliamentary Voting System and Constituencies Bill

Debate between Lord Davies of Stamford and Lord Strathclyde

Monday 31st January 2011 Lords Chamber

[Lord Strathclyde]

One of the most interesting facts that I have learnt today is just how many noble Lords opposite read the blog of my noble friend Lord Rennard. He should be immensely pleased and impressed that he has elicited such a reaction from noble Lords. I hope that at some stage he will commercialise it in an appropriate manner.

The noble Lord, Lord Foulkes, asked questions about the Scottish association of returning officers. I will certainly look into the questions that he has raised. Earlier in Committee we discussed this and the information we had at that time was that there would be no problem in Scotland. It will be interesting to see whether that has changed.

The view of the noble Lord, Lord Rooker, was that people are not prepared. Interestingly, he said a number of things in support of the amendment. The amendment provides a three-month delay, as though they would not be prepared now but they would be prepared if there were a three-month delay. I am not sure that is right. I think people have a perception about AV and I am not sure that there will be an enormous difference between the 10-week limit that we have at the moment and three months. The Government see no compelling reason to fix the length of the period for this referendum to a minimum of three months.

It is worth reminding noble Lords opposite that the previous Government worked to swift timetables in organising the 1998 devolution referendums. This referendum was announced as far back as June or July. The Bill was introduced in July in the House of Commons. Of course, as has been recognised, I do not know when the noble Lord, Lord Lipsey, tabled the amendment but it would mean that a target date of 5 February would have to be set, and that is later this week. If that target were not met, the provision would need to be given retrospective effect so that the referendum period could still begin three months from the date of the poll; for example, on a date before the Bill receives Royal Assent, and neither is desirable or necessary.

Practical arrangements by the Electoral Commission have been well under way for months, ensuring that the referendum can take place on 5 May under the current referendum period timeframe. The Electoral Commission expanded on that in its briefing on 7 December and said:

“We have been working with local Counting Officers and Returning Officers to prepare plans on the basis of a referendum on 5 May 2011, alongside the other polls planned for that day, and in our most recent assessment we said that sufficient progress has been made for us to be confident they will be well run. Similarly, those intending to campaign at the referendum will have been developing their plans for the date specified in the Bill as introduced”.

So a good deal of work has already been done by the registration officers and those who wish to run the campaigns have been working on their material. For those reasons we do not think that there is a need to extend the referendum period, as everything points to those involved being well prepared.

[Lord Davies of Stamford]

Can the noble Lord remind the House of the rules governing the ability of the Electoral Commission or any other agency to spend public money on planning implementation of a Bill which has not yet passed through Parliament?

[Lord Strathclyde]

I think the bodies that will need to spend money as a result of the Bill can do so once Second Reading has taken place in the first House. I will check that for the noble Lord but, under these circumstances, I do not think that there is any problem with the Electoral Commission spending money. For those reasons, we think the campaigns are well prepared. A lot of organisation has continued and I urge the noble Lord to withdraw his amendment.

Comprehensive Spending Review

Debate between Lord Davies of Stamford and Lord Strathclyde

Wednesday 20th October 2010 Lords Chamber

[Noble Lords]

My Lords—

[The Chancellor of the Duchy of Lancaster (Lord Strathclyde)]

My Lords, we have agreed to extra time for this Statement, but perhaps we should, as a matter of courtesy, give priority to those noble Lords who sat through the reading of the Statement, rather than those wandering in five minutes before the end.

[Lord Davies of Stamford]

I take it that the Government themselves acknowledge that the recovery is fragile and that, by reducing planned public expenditure and increasing taxes so drastically—the Statement rather skated over the taxes aspect—thereby taking demand out of the economy, they are taking some risk, at the very least, with that fragile recovery. In that context, was it sensible to announce the reduction of public sector jobs by 490,000 before publishing the detailed departmental plans from which, presumably, that figure was derived? As a result, not merely the holders of the 490,000 jobs but the whole public sector—millions of people and their families—will be deeply anxious about their future and will be reducing, perhaps drastically, household expenditure. That will take more demand out of the economy quite unnecessarily in a context where we require the reverse of that.