European Union Referendum Bill

Debate between Lord Green of Deddington and Lord Davies of Stamford

Monday 23rd November 2015 Lords Chamber

[Lord Davies of Stamford]

Everybody would be a loser in this game. I do not hide in any sense my conviction that we would all be losers. It would be a very sad day if we broke up the European Union or moved out of it. Therefore my point is that the Germans would lose, but we would lose more.

[Lord Green of Deddington]

Does the noble Lord recognise that if the UK were to withdraw from the European Union, the Germans could then find themselves quite frequently outvoted by QMV by the southern members of the union, who have very different interests?

[Lord Davies of Stamford]

It is quite obvious. The Germans have made it very clear indeed, from the Chancellor downwards, that they do not want us to leave the EU, and that is one of the reasons why. In fact, in many cases we have very much the same view about markets as the Germans have, and on deregulation, an entrepreneurial economy, labour market reform and what have you. We have undergone the same kind of supply-side changes, they with the Hartz reforms, we with the Thatcher reforms in the 1980s. All of that is true and is appreciated in Germany. I repeat: the Germans think that it would be a great disaster if we left. However, it would be an even greater disaster for us than it would be for them. It would be a disaster for everybody. Sometimes you break up a relationship and all parties lose. It is an extraordinary idea to think that if you break up a relationship, some parties are bound to win. That simply does not happen. Therefore that is the logical situation.

When I talk about exposure, let me put it this way—I have used this analogy once before. If Micronesia had $1 million-worth of trade with China, and it sold the Chinese $100,000-worth of products every year and bought $900,000-worth from the Chinese, they would have a massive balance of payments deficit with China, which would have a proportionate very substantial balance of payments surplus with Micronesia. Would that mean that Micronesia would have the slightest leverage on China? Of course not. It is not, in fact, the deficit that counts but the extent of the exposure of exports, and the relevant dependence on exports is very simple. I repeat: our leverage—if you like to put it in mathematical terms—would be a positive function of their dependence on us and a negative function of our dependence on them. Our dependence on them is about 14% or 15% of our GDP, which is accounted for by exports of goods and services to other members of the European Union. If you look at it the other way round, there is no member state in the European Union other than ourselves, except for the Republic of Ireland, for whom that figure is higher than 3%. That literally means that there is a 500% greater degree of dependence on our part towards them than on their part towards us. That is an extraordinarily bad basis for going into a negotiation. I do not say that there would not be a negotiation or a conclusion to a negotiation, but I am quite certain that the terms we would get would not at all be the ones we had hoped to get when we started out.

European Union Referendum Bill

Debate between Lord Green of Deddington and Lord Davies of Stamford

Wednesday 28th October 2015 Lords Chamber

[Lord Davies of Stamford]

My Lords, I think that it is completely improper for anyone, anywhere, at any time, to make an assumption about how a fellow citizen or group of fellow citizens will cast their votes. It is particularly improper for us to do it here, where we are legislating on the franchise for a very important vote, and discussing the general principles on which the franchise should be based for referenda and elections in this country. So I shall not go down that road at all.

I take my position on the basis of first principles. This involves the same first principle from which I argued on the last group of amendments—the central principle of coherence. At present the regime is utterly incoherent. We face the prospect of a referendum which, if we make no changes in the course of these debates in Parliament, will result in citizens of three members of the European Union present in this country having the vote, and not the rest. That is a thoroughly anomalous position. One is the Republic of Ireland, which is said to be a special case because of our historical relationship. The other two are Malta and Cyprus. They are said to be a special case because they are members of the Commonwealth.

What is so special about the Commonwealth? The Commonwealth is a group of countries with which we have had a happy historical relationship and a good relationship at present; it is something of a club. But surely we have at least that degree of close intimate relations and common interest—and probably far more in the way of common interest and connections—with the other members of the European Union. It seems utterly anomalous not to extend the vote to citizens of other EU countries who happen to be resident in this country.

Perhaps I could forestall the noble Lord, Lord Green, intervening to say that other EU countries do not give our citizens resident there the vote in their referenda, by saying that—apart from the issue of the different types of referendum we have already touched on—members of the Commonwealth do not do that either. I cannot go and vote in India or Australia if I become a resident of one of those two countries—unless, of course, I take nationality of one of them, and that is a different matter altogether. There is a real anomaly here.

I gather that Fiji has just rejoined the Commonwealth. Are we seriously saying that we have closer connections with Fiji than we have with, say, France, or that we should make more favourable arrangements for Fiji’s citizens to take part in British elections than we should for people from France? What an extraordinary notion.

[Lord Green of Deddington]

The noble Lord will be aware that I have an amendment in the next group that would deal with his problem.

[Lord Davies of Stamford]

If it deals with my problem in a satisfactory way I may support it. I look forward to the noble Lord introducing it in due course.

Mozambique is also a member of the Commonwealth. Let me take that as an example. Do we have especially close relationships with the people and the state of Mozambique? Can it be said that we share the fate of Mozambique to a greater extent than that of most other countries? Do we have common interests that need to be debated and considered together? Hardly so. Is Mozambique more important to this country than, say, the Netherlands, Spain, Denmark or other friendly countries very close to our shores? It is an extraordinary insult to those countries to suggest that that might be so.

The Spanish ambassador told me the other day that there are 15 million visits by British citizens to Spain every year. Some people go more than once, of course, but that is still an extraordinary number. It shows the degree of human interchange—and of course, behind that there is a great deal of economic interchange—that we have with our fellow members of the EU. We all face similar problems and we will all be impacted by a British withdrawal from the EU, if that takes place. So there is an immense logic in extending the franchise on this occasion to EU citizens resident here. There is no logic whatever in extending that franchise to Commonwealth citizens but not to EU citizens. I repeat that in terms of reciprocity, the position is exactly the same, so that argument cannot be used. Again, we need some clear coherence here—some way of justifying the choices we make objectively. Otherwise we will lose legitimacy, and I totally agree with the noble Lord, Lord Hamilton, that we need that.

--- Later in debate ---

[Lord Green of Deddington]

Well, what the noble and learned Lord said is that it should be phased out. His view was clearly, as in the bit that I quoted, that those who are not British citizens should not continue to have the vote.

Of the three reasons, the first is the importance of the decision for Britain’s long-term future—that is obvious. Secondly, there is the issue of reciprocity, since no EU Government permits British citizens to vote in their general elections, let alone in a referendum, and no Commonwealth country, except New Zealand, permits foreign citizens to vote in referenda. Thirdly, and lastly, there is the need for clarity. This proposal would remove the anomaly that citizens in Malta and Cyprus, as has been mentioned, can vote not as EU citizens but as Commonwealth citizens. With this amendment, they would not vote as either.

There is a further anomaly in that Commonwealth citizens are able to vote very shortly after they arrive in Britain. For example, a Commonwealth student could be on the electoral register in a matter of weeks. There are no formal checks on his or her nationality, or even on his or her right to be in Britain. An electoral registration officer has the right to ask further questions if he believes that that is justified and he needs it before making a determination. However, in practice, it very seldom happens because of the risk of appearing to discriminate. So that of itself amounts to a significant loophole, which is surely unacceptable in a matter of such importance. I should mention in passing that Gibraltarians are not affected because they are British citizens under the British Nationality Act and therefore will get the vote in any case.

There has been some discussion as to whether the various groups proposed for the vote are likely to affect the outcome. As far as I know, there has not been any effective polling to tell us how these people might vote, or how many of them would do so. I suggest that that is a further reason to have the franchise on a clear and defensible criterion.

I close by pointing to the need that is bound to arise for reconciliation. As noble Lords will have noticed this evening, there are certain differences between Members of this House, and of course there are very strong differences in the public. Sadly, one side in this argument will have to face a future for this country which is deeply unwelcome to it. That makes it even more important that arrangements for this historic referendum should be above reproach, as the Minister said, in respect of the question, which I think is now settled, of the franchise, which we are debating today and involves millions of voters, and in the use of government resources, which we will discuss later in this Bill.

As the Minister said, any suspicion that the franchise has been manipulated to achieve a particular result would be deeply harmful for many years to come, as the noble Lord, Lord Blencathra, also said. That is why we need a crystal-clear principle for this franchise, and I suggest it should be the following: only British citizens, of whatever origin—it is not a question of xenophobia or racism—should decide Britain’s future. I beg to move.

[Lord Davies of Stamford]

My Lords, I concede very happily that the noble Lord has introduced an amendment, the effect of which—

[Lord Davies of Stamford]

It is normally the case that we switch sides in debates here. We use alternative sides, I think.

There is no doubt that the noble Lord’s amendment restores symmetry and what I called earlier on, in a different context, coherence. He invited me in advance, in the course of the previous debate, to agree to it and to support it. I could not possibly support it. I have no idea whether the noble Lord realises this—I hope he does not realise it because he did not mention it—but his amendment would have the most perniciously destructive effect on our relations with the Republic of Ireland. It would be a breach of the arrangements we have had in place with the Republic of Ireland since 1921, since the time of the treaty, and it would be an explicit breach of the Belfast agreement, which lays down that all citizens of Northern Ireland, who are British citizens, of course, and British subjects, can enjoy full civil rights whether they declare themselves to be Irish or British. This would have a devastating effect. If the noble Lord wants to restore symmetry and coherence, he needs to do what was suggested by the noble Lord, Lord Hannay, and turn the thing around, enfranchise EU citizens who are resident in this country and put them on the same footing as citizens of Commonwealth countries.

[Lord Green of Deddington]

In that case, will the noble Lord explain why British citizens are not able to vote in a referendum in Ireland?