European Union (Referendum) Bill

Debate between Lord Grenfell and Lord Shipley

Friday 31st January 2014 Lords Chamber

[Lord Grenfell (Lab)]

My Lords, I put my name to this amendment because I believe its purpose to be profoundly important. I do not have much to add to the very persuasive argument of the mover of the amendment, the noble Lord, Lord Turnbull. I merely wish to endorse a lot of what he said and hope that noble Lords will strongly support the amendment.

I am afraid that the amendment, while I support it, is open to two different interpretations. Therefore, I slightly take issue with the noble Lord, Lord Kerr, and stand somewhere between him and the noble Lord, Lord Foulkes, on this one. The amendment refers to,

“an assessment of the United Kingdom’s intended relationship with the European Union in the event of withdrawal”.

I am not sure that you can really make that assessment on purely normative lines. It has to be descriptive as well. If this amendment is addressed not just to Parliament but to the people, we are asking that the people be informed of the Government’s view of that future relationship. There has to be an element of the descriptive in that. That is the line that I have clung to in my support for this amendment.

The Prime Minister has said over and over again—and to the discomfort, to put it mildly, of a substantial number of his Back-Benchers—that he wishes the United Kingdom to stay in the European Union. However, what if the people in an “in or out” referendum beg to disagree with him? It is inconceivable to me that, with eventual withdrawal a possibility, the people should vote without the benefit of knowing in advance what kind of relationship he would wish the UK to have with the Union that it is leaving. I would have thought that to so inform the electorate was a simple matter of common sense, not to mention courtesy. In other words, does the Prime Minister have a plan B? If he does not, he must construct one and, having done so, the Secretary of State must publish it and lay it before Parliament before making any order under Clause 1(6). That is what the amendment would be calling for.

At the heart of this assessment, or plan B, would presumably be the end product that the Government seek to gain by negotiation—the best terms that they can obtain for access to the single market, to take but one example. Will the Prime Minister opt for the kind of relationship enjoyed by current members of the European Economic Area and EFTA? Will he take the relationships enjoyed by Norway and Switzerland as his model? I use the word “enjoyed” with some hesitancy, since EEA and EFTA members suffer taxation without representation, having to contribute to the EU’s budget without getting any money back, a reality of which the public ought to be made aware before voting. Or will he be aiming for some other kind of association? What kind of associate status would he judge appropriate for one of the largest economies in Europe and, indeed, the world? Whatever his intentions or preferences, in the case of withdrawal they need to be put on the table for all to see and discuss before the referendum is called.

We on this side of the House are not alone in calling for an eventual impact assessment of the actual effects of withdrawal on the British economy and on the rights of British individuals living both within and outside the UK, as well as on EU citizens living here—the noble Lord, Lord Turnbull, referred to that. That assessment could show that things would turn out to be disastrous if a Government who had taken the UK out of the EU had failed before doing so to formulate a proper vision of the intended relationship. That would be inviting our erstwhile partners to do our thinking for us. I strongly support this eminently reasonable and crucial amendment.

[Lord Shipley (LD)]

My Lords, my name, too, is attached to Amendments 50A and 72. I start with the principles established by the Electoral Commission. A week ago we discussed in detail what the Electoral Commission said about the question and its wording. The document produced on this referendum by the Electoral Commission said that, in a referendum, voters should be able to “understand the question”—we covered that last week—“and its implications”. That is what this amendment would address. The Electoral Commission said that voters should be,

“informed about the possible outcomes, and”,

should be able to,

“easily understand the campaign arguments”.

I agree with the noble Lord, Lord Kerr: we should not pass a defective Bill, without the amendment, because it makes it clear at this stage of the progress of the Bill that these specific words are important.

I conclude from this that there has to be a document published that explains the implications clearly. However, there cannot be a document unless it is clear what the intended relationship with the European Union is going to be in the event of withdrawal. Otherwise, there will be serious confusion in the minds of voters as to what the implications of a referendum, and their vote in that referendum, might be, whichever way they cast it.

I noted a moment ago the words of the Leader of the House in commenting on the role of my noble friend Lady Warsi, the Minister. He said that she could respond on behalf of the Government, from advice given by Foreign Office officials, on the implications of a referendum. I therefore hope that, when we hear from my noble friend Lady Warsi, we will hear the views on the implications of this referendum being held.

I hope that there will be clarity at that stage about whether the supporters of the Bill want to follow in the steps of Norway. Norway is often cited publicly as a parallel for the United Kingdom. Inside the European Economic Area it may be, but it has no direct power in the EU, it has no seat at the table and it cannot vote. However, it still has to abide by directives just as full members do. Indeed, Norway has to implement three-quarters of all EU legislation, including the working time directive. It has to implement other employment laws—consumer protection, environmental policy and competition—and has to contribute to EU budgets. Norway’s per capita contribution is just over £100; the UK’s net per capita contribution is £128. If we join the EEA, there will be little saving in practice for us.

Switzerland is often cited as another example that we might emulate, but it has no right of access to the single market and it has to negotiate each and every case separately. Even Switzerland contributes to EU budgets at £53 per capita. If we left the EU, it is possible that we could operate with a most-favoured-nation status, but that would mean that 90% of UK exports to the EU by value would face tariffs. If we were in the EEA, trade would be tariff free and, as with Norway, the four freedoms relating to the movement of goods, services, labour and capital would apply, along with the implementation of three-quarters of EU legislation over which, as I have explained, we would have no say.

Advocates of EEA membership should remember that goods entering the EU via an EEA country cannot do so without implementing the rules of origin, a regulatory process that takes time and money. Goods imported into the EU via a full member of the EU can move freely.