European Council

Lord Hannay of Chiswick Excerpts

Monday 22nd October 2012 Lords Chamber

[Lord Strathclyde]

My Lords, I am not quite sure what I am supposed to confirm or deny. I can confirm that there was a story on the front of the Financial Times, but I cannot confirm that it was right that Mrs Merkel has issued a threat. She may have done—I have absolutely no idea. But it must be in everybody’s interest to seek an agreement on the EU budget, and the Prime Minister is quite rightly standing up for British interests and has explained what his position is—and I think that it is a very sensible position.

[Lord Hannay of Chiswick]

Will the Leader of the House accept a warm welcome for the recognition in the Statement that he has just repeated that it is better to be there at the negotiating table in the European Union than to wield vetoes that are not really vetoes and absent yourself from the subsequent negotiations? It is a distinct improvement on what happened in December last year that the Prime Minister is working at the table and will continue to do so to make sure that the interests that he is quite rightly seeking to protect of the single market, and the way in which the banking union will interact with the single market, are defended by being at the table.

Secondly, on the budget in the Statement and in what he has subsequently said, the Leader has reiterated again and again that the British position, which incidentally is supported by your Lordships’ European Union Committee, is that there should be no increase in real terms. But those words never manage to get past the lips of the Downing Street spokesmen; they just talk about no increase. The Leader knows quite enough about these matters to know that between 2013 and 2020 no increase in real terms will mean considerably higher figures in nominal terms—that is, by the amount of inflation. It is really not sensible to give the impression that we are trying to keep the budget steady at nominal terms, when that is not what we are trying to do. All that does is to distance ourselves from the other members of the European Union that take very similar views to our own.

My own view is that we are heading towards a very satisfactory outcome to the budget negotiations if we play our cards right. There is a solid body of support for a very low outcome, way below what the Commission proposed, and I just hope that we are not going to snatch defeat from the jaws of victory.

[Lord Strathclyde]

I have two points on that question from the noble Lord. First, we have every intention of continuing to work at the table and to be part of the negotiation. There are some very important and crucial issues that need to be resolved over the next few weeks, and I will be back at this Dispatch Box discussing and debating them, as I have done over the past two and a half years. But it is important to get some sense of the economic reality, which is very different to when the last EU budget was negotiated. For example, the level of public debt across the 27 EU member states in 2012 will be 50% more than it was in 2007. Across the EU on average, countries are expected to see expenditure as a percentage of GDP fall by about 8% between 2010 and 2014, and more than 16% of Commission officials earn more than €100,000. At a time when we are trying to boost growth, it is hard to justify a budget in which 45% is spent on the common agricultural policy.

Let me deal head-on with noble Lord’s concern that when we talk about a nil increase we mean a nil nominal increase. We do not. We mean that we do not see the case for increases in spending that are above the rate of inflation.

EU Council

Lord Hannay of Chiswick Excerpts

Monday 2nd July 2012 Lords Chamber

[Lord Strathclyde]

My Lords, my noble friend’s last point is crucial. There was real concern at the European Council and suggestions from other countries that a European banking supervisory system would be precisely that—for all the banks in Europe, including those in the United Kingdom. My right honourable friend the Prime Minister and others said that that should not and could not be the case, and we ensured that the final terms of the agreement ensured that British banks would not be a part of that but would continue to be regulated by the Bank of England. Within the eurozone area, it is of course entirely appropriate that they look at ways to improve banking supervision, ensuring deposits and working more closely together. That, too, should be welcomed.

As for growth, we are all pointing in the same direction. We want deregulation. We want a clearer completion of the single market, particularly in digital and energy. That will have an important impact on the European economy and, in particular, on the United Kingdom economy.

[Lord Hannay of Chiswick]

My Lords, does the Leader of the House accept my welcome that the lessons of last December seem to have been learnt on this occasion and that the Prime Minister has recognised that the right way to protect British interests is to stay at the negotiating table, not to reject any participation in negotiations? In my view, that is highly welcome.

As the Prime Minister begins to dance with wolves on referendum issues, does the noble Lord agree that it does not make much sense to parody the situation and the choice before us by talking about more Europe or less Europe? If we read the European Council conclusions, which I am glad the Prime Minister subscribed to, we see a great deal of more Europe in them in relation to the single market. There are references to patents, to the digital single market and to the single market in services, all of which require more Europe. It makes no sense at all to say that the British position is in favour of less Europe.

On Syria, does the Minister recognise that the Russian situation may not be one that we can work our way around? I am not criticising for one minute the attempt made in Geneva to achieve common ground, but it is doubtful whether that achievement is real or just apparent. If it is not real, it will surely be necessary to go to the Security Council to table a resolution imposing measures on the Syrian regime if it does not observe and honour the provisions of the Annan plan and put it to a vote, come what may. The only way you can find things out in the Security Council is by eventually putting it to a vote. If the Russians wish to veto it, they will do so, and that will be their responsibility.

[Lord Strathclyde]

I shall take those points in order. The noble Lord welcomed the fact that the Prime Minister wants to work together with his European partners. Of course, that has always been the case, including last December, when my right honourable friend was ready to support treaty change for the 27 in return for specific and practical proposals, which we put forward to safeguard the integrity of the single market. These proposals were not an opt-out for the UK, as some have suggested; they would have applied to the EU as a whole. However, other countries blocked them, and without those protections it was entirely correct that my right honourable friend used his veto.

Of course, there are some vital parts of the EU that have a positive impact upon the United Kingdom, and we should seek to preserve these. Equally, it is right for the Government to conduct a national audit of what the EU does and what the implications are for this country. Extensive preparatory work is progressing, and when that is complete we shall make a further announcement to Parliament.

As for Syria, I see entirely the force of what the noble Lord has said about putting down a UN Security Council resolution. It is, of course, a delicate matter. I do not think that the issue has advanced as far as that, but the option must be open to the Security Council to put forward a resolution.

G20 Summit

Lord Hannay of Chiswick Excerpts

Monday 25th June 2012 Lords Chamber

[Lord Strathclyde]

My Lords, I do not agree with what the noble Lord, Lord Kinnock, has said. Neither do I accept his characterisation of what we are doing in the United Kingdom and what we are exhorting our colleagues in the eurozone to do. I take his point about a national investment bank in order to try to encourage growth, but our solution has always been to try to encourage the private sector—and private sector banks—to have the confidence to invest in British business.

The UK economy is recovering from the deepest recession in living memory. It was even deeper than was previously thought: over 7% was wiped off the economy. Inevitably, recovery will be choppy, and by historical standards subdued, because household business and government debt rose unsustainably. Naturally, the eurozone crisis is making the recovery even more difficult.

The main point is that we have managed to maintain the lowest interest rates that this country has seen in modern times; a one percentage point rise in our interest rates today would add £10 billion to family mortgage bills alone. You only have to look at the interest rates in Spain, Italy and of course in Greece, to see just how much better off we are today than those nations. Despite having a deficit similar in size to that of Greece, the UK has interest rates at historic lows, similar to those in Germany; France’s interest rates are more than 50% higher, and Italy’s interest rates more than three and a half times higher. We can have a philosophical debate—even an economic debate—as to whether or not austerity and growth go together, but our firm view is that they can.

[Lord Hannay of Chiswick]

My Lords, will the Minister accept my thanks for that Statement? I must say that I found it a trifle Panglossian, but I do not wish to take issue with what was in it.

Are the Government not concerned that these G20 meetings are becoming of rather waning relevance, and that as each meeting succeeds each other the hopes that the world placed in the G20 when it was set up at the height of the crisis are not really being realised? Are they not, increasingly, simply photo opportunities and things of threads and patches that make no overall effort to get to terms with the challenges that confront us? If the Government are concerned about that, do they have any thoughts about how the G20 machinery could be made to work a little bit better?

Perhaps as an illustration of that, the distinctly disappointing outcome of the Rio meeting on the environment, which was held only shortly after the G20 meeting, was perhaps highlighted by the fact that the G20—the economies that are responsible for between 80% and 90% of the world’s emissions, because they are responsible for 80% or 90% of the world’s economic activity—did not even find time to talk about this subject. No effort was made to prepare a position that might have provided the 193 countries that went to Rio—which could not possibly have produced, in one or two weeks, a very meaningful outcome—with some guidance and momentum. That, too, seems to be lacking from the G20’s present agenda.

[Lord Strathclyde]

My Lords, the noble Lord makes an interesting point, particularly with his background and experience, on the role of the G20 and, indeed, of the G8. The role of these organisations has changed, particularly over the course of the last five or six years, given the economic situation. However, there is a very important role in their meeting—both G8 and G20—to work through an agenda and come forward with conclusions. The important thing in those conclusions is that they make sure that there is a vibrant system that can check back to see who committed to doing what and to make them accountable. I am sure that the noble Lord, Lord Hannay, has views on how to streamline the secretariat, or indeed to make it more strategic, and I would encourage him to put those down on paper.

Do we believe that the G20 has made no difference at all on climate change? No; all G20 countries were committed to implementing the outcomes of the COP 17 in Durban, and we made it clear that we wanted a successful outcome to the COP 18 in Qatar later on this year. As far as Rio is concerned, the deal delivers much of what the UK wanted and worked hard to achieve, and it puts the sustainable development agenda very firmly back on the map.

Procedure of the House

Lord Hannay of Chiswick Excerpts

Monday 26th March 2012 Lords Chamber

[Lord Strathclyde]

My Lords, I wrote to many of the participants and all those to whom I wrote without exception said how well they thought that it had gone. Allowances were made by the House authorities to make the Committee Room more acceptable to those Members in wheelchairs. The point about the presumption is that it would give us the flexibility to make that sort of judgment again in future.

If the report is agreed to, the House would remain the arbiter of which Bills and what proportion of the Bills were sent to Grand Committee. In my view, the House is the best judge of which Bill should be sent where, and that decision should be made case by case.

[Lord Hannay of Chiswick]

I am most grateful to the noble Lord and I thank him for the good humour with which he has handled the debate, in which he has found himself without a huge amount of support. However, could he perhaps skate a little less rapidly over the point that the proposal in the Procedure Committee actually enhances the power of the Government? The two parts of the sentence in question—the presumption, and the fact that if there is no agreement between the usual channels, the matter will be taken in Grand Committee—give the Government a complete lock, apart from the nuclear option of coming to the House at the end of Second Reading and asking for a vote. That is a substantial increase in the power of the Executive, because the Government can always instruct their Chief Whip to refuse to agree to the matter being taken in the House. I would be grateful if he could address a little bit more that enhancement of the power of the Executive, which I hope was not his intention—and, if it was not, either of the two amendments that have been moved would be preferable.

Liaison Committee: Third Report

Lord Hannay of Chiswick Excerpts

Monday 26th March 2012 Lords Chamber

[Lord Pearson of Rannoch]

My Lords, I understand that the decision of the European Commission to review the common fisheries policy is due more to the series on television by Mr Fearnley-Whittingstall than to your Lordships’ Select Committee. And anyway, we await reform of the common fisheries policy, as we have for the past 30 years.

I do not want to turn this into a debate on the pluses and minuses of the European Union, but I want to explain to your Lordships why seven European committees is still far too many. I referred to the series of Questions from the noble Lords, Lord Tebbit and Lord Vinson, the answers to which show that the Select Committee has had virtually no influence on legislation coming to us from Brussels. That is not surprising. Your Lordships may be aware of the process of European legislation, which is proposed in secret by the Commission, negotiated in secret in COREPER and passed in secret in the Council. There is nothing that your Lordships’ House or the other place can do when it has gone through that process.

[Lord Hannay of Chiswick]

I hesitate to interrupt the noble Lord when he is in full flight on one of his well chosen paths, but I wonder how on earth he thinks that a government reply to another Member of this House can demonstrate that the influence of the committee and its sub-committees is nil. Of course, the noble Lord wants that to be the answer; of course, he wants there to be a reduction in the sub-committees and the committee to ensure that we do not scrutinise the European Union properly, because he wants to strengthen the argument to leave the European Union. However, it would be quite nice if we could address the subject before the House, which is the matter of the Liaison Committee’s report, and could above all face the fact that the European Committee deals with a core function that is not dealt with by any other committee or by the House as a whole. If you reduce that core function, you reduce the effectiveness of how we scrutinise this work. I wish that the noble Lord would take account of that instead of arguing the contrary.

[Lord Pearson of Rannoch]

My Lords, I was about to explain to your Lordships why that core function is pointless compared to the work that the other Select Committees do in this House—and we have heard of powerful examples from the Science and Technology Committee. All the other committees are taken very seriously in this country and worldwide, whereas the debates of the European Committee in your Lordships’ House are ill attended and do nothing to inform public opinion about how the European Union works—and its membership, as I have said again and again, is solidly Europhile. We have just had two interventions to prove that.

The noble Lord, Lord Roper, has told us that the committee scrutinises very effectively European legislation. It writes to Ministers. But your Lordships will be aware of the scrutiny reserve, an agreement whereby successive Governments have given an assurance, although it is not a legal assurance, to both Houses of Parliament that if a piece of legislation is under scrutiny the Government of the day will not sign up to it in Brussels unless that committee agrees. Written Answers from the Government show that that has been overridden hundreds of times in the past 10 years—I think it is 343 times in the past five years.

I mention all this only to show that we put all this effort into the European Union committees and get very little out of them. I am sorry to offend noble and Europhile Lords, and I hope that the House does not think that I am banging on again about Europe. But hearing the comments about the eminent scientists in this Room who have spoken only for the Science and Technology Committee, and looking at the other committees, which are full of expertise and widely respected in the country and internationally, I fear that we have the balance wrong. Two or three European committees, including the main one, would be quite enough. We should redirect those energies into committees that will serve the House and the country well.

EU Council

Lord Hannay of Chiswick Excerpts

Tuesday 31st January 2012 Lords Chamber

[Lord Clinton-Davis]

My Lords—

[Lord Hannay of Chiswick]

My Lords—

[Lord Wallace of Saltaire]

Shall we hear from the Cross Benches and then Labour? We have not yet heard from the Liberal Democrats. We may go around the Benches and there is plenty of time.

[Lord Hannay of Chiswick]

I join the noble Lord, Lord Brittan, in saying that the Prime Minister was extremely well advised not to contest the use of the institutions in the context of this intergovernmental agreement. I would only add, gently, that you cannot reserve your position on a decision that you are not a party to.

Can the Minister now answer a question that I have been asking with a certain persistence without getting any answers: what provisions in the intergovernmental agreement are objectionable to the British Government? He has just spoken warmly about Article 2, and I imagine that he could speak quite warmly about most of the other articles, so why are we not joining the agreement? It is a little difficult to understand. Perhaps the Prime Minister let the cat out of the bag when, with a look of some relief on his face—at least it looked like that on my television set—he said, “Nothing to sign. Nothing to ratify”—and, he might have added, “Nothing to make me run the gauntlet of my Back-Benchers”.

[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.

European Council

Lord Hannay of Chiswick Excerpts

Monday 12th December 2011 Lords Chamber

[Lord Strathclyde]

My Lords, I cannot agree with my noble friend. We believe that we are very firmly in the game. Our voice is not diminished. It is strong. We have defended vital British interests and we will continue to do so in the single market at the level of 27.

[Lord Hannay of Chiswick]

My Lords, would the Minister confirm that, had the texts before the Council in Brussels been agreed by 27, not one word would have applied to this country because they solely concerned tighter arrangements for the eurozone countries? If that is so, it is a little hard to see why they were contrary to our interests. Would he also now perhaps answer the question that has been put to him quite a lot of times? There was a tried and trusted route used by the noble Baroness, Lady Thatcher. In 1985, when she was voted down on the procedural issue of starting a treaty-changing negotiation, she nevertheless decided that her Government would participate in that negotiation. She stated that if it did not come out in a way that safeguarded British interests, she would have no hesitation in vetoing it at the end. In the end it came out for British interests. Why on earth did we not do that this time?

[Lord Strathclyde]

My Lords, my right honourable friend the Prime Minister made an entirely appropriate and sensible decision on Friday night not to agree with the treaty that was going forward. He did so because he believed that vital British interests were at stake. Contrary to what the noble Lord said, our view is that the new treaty would have completely reshaped the whole basis of the EU treaties. We would have been dragged into a whole series of changes and evolutions that would not have served our interests well. That is why we vetoed it.

European Council

Lord Hannay of Chiswick Excerpts

Monday 24th October 2011 Lords Chamber

[Lord Hannay of Chiswick]

My Lords, will the noble Lord the Leader of the House accept my warm welcome for the extremely determined way in which the Prime Minister led this action with President Sarkozy? However, could he perhaps clear up one area that slightly baffles me—that is, the statement about not acting on the basis of any overarching principle? My understanding—perhaps the noble Lord will confirm this—is that we were in Libya, doing what we were, because we subscribed to the responsibility to protect people whose citizens cannot or will not be protected by their own Governments. That was something that we, with 191 other UN members, subscribed to in 2005. If that is correct but it is not an overarching principle, I am not sure that I would recognise one when I saw it.

Secondly, on Europe, it now sounds very likely—although the decision has not yet been formally taken—that there will be negotiations in an intergovernmental conference, and that this will probably be decided at the European Council in December. Is it not crucial that this country goes into such a conference with a positive agenda to secure all those points that the Prime Minister rightly made in his Statement about the primacy of the single market, the need to ensure that decisions are taken by the 27 member states and the need to protect our own position? A positive agenda will be needed to secure that, if action is also being taken to set up, for example, a restricted group of members in the eurozone to take certain decisions on economic and financial policy. Will the Minister confirm that the Government are now drawing up some positive points to make at that intergovernmental conference, and not focusing on a long list of the sort of points that, in 1974 and 1975, led to a pretty humiliating negotiation and not a single word being changed in any European treaty?

[Lord Strathclyde]

My Lords, I thank the noble Lord, Lord Hannay, for his warm welcome to the Prime Minister’s discussions with the President of France on Libya. One can look at what happened in Libya in a variety of ways, including seeing it as following a great principle of defending the interests of civilians, which I regard as a noble principle. However, in his Statement this afternoon my right honourable friend the Prime Minister said, “I am wary of drawing some grand, overarching lesson—still less to claim that Libya offers some new template that we can apply the world over. I believe it has shown the importance of weighing each situation on its merits; of thinking through carefully any decision to intervene in advance”. That is right. There were other important principles at work in Libya: the passing of the United Nations Security Council resolutions; the support of the Arab League and the neighbours of Libya; and the immediacy with which civilians were likely to be murdered on the streets of Benghazi. All played a part, so the Prime Minister is right not to see it as a template. The noble Lord is also right in saying that it is important that where civilian life is endangered, we should move swiftly to ensure that that is not the case.

I also agree with the noble Lord about the Government having a positive agenda on Europe. They do have a positive agenda, particularly as regards what he called the primacy of the single market, to complete all the provisions of the single market, of which there are directives outstanding that have a direct effect on and implication for British financial services, commerce and industry, particularly some of the financial directives, and to maintain these and many other things to be decided by the 27 member states. We are in a process of discussion and negotiation against a background of volatility—indeed, some financial turmoil—in the markets. It is important to get these decisions right.

Osama bin Laden

Lord Hannay of Chiswick Excerpts

Tuesday 3rd May 2011 Lords Chamber

[Lord Strathclyde]

I thank my noble friend for what he has said. I agree with his words about Osama bin Laden and al-Qaeda promoting hate. I also agree with his comment that the Government of Pakistan need to be encouraged to take all steps to deal with terrorism, terrorist education and terrorist camps. Above all, the Pakistani Government are aware of the damage that terrorism has inflicted on their own country and on their own people—their civilians and their armed forces—who have worked extremely hard over the past few years and have suffered terribly.

There is an opportunity today and in the next few months for the Pakistani Government to use the death of Osama bin Laden to turn the page on the past, redouble their steps to eradicate terrorism and co-operate with international organisations and with neighbouring countries to remove this scourge from the region.

[Lord Hannay of Chiswick]

My Lords, will the Minister accept my welcome for the Statement, which indicates that there could be an opportunity now to bring the Taliban into a political process, which will be valuable for all concerned in Afghanistan? In that context, will he give some study to a panel report from Mr Brahimi— he helped to set up the present Government of Afghanistan—and Ambassador Thomas Pickering, which was submitted in the United States a few weeks ago? It suggested that a key element in a political process could be appointing a facilitator who was not NATO, the US military or President Karzai, and who could help to move the process forward, perhaps under the aegis of the United Nations. I think that that is a genuinely sensible idea; it is one which Mr David Miliband has supported on a number of occasions. I hope that the Government will give that some consideration in the phase ahead.

Libya

Lord Hannay of Chiswick Excerpts

Monday 21st March 2011 Lords Chamber

[Lord Hannay of Chiswick]

My Lords, will the Minister accept my thanks for the way that the Government have acted by putting down that resolution at the Security Council at the key moment? Will the Government give some consideration to getting the Security Council to authorise putting Libya’s oil resources into an escrow account and making a proportion of that account roughly proportionate to the size of the part of Libya that is under the control of the insurgents available to them for civil purposes? That, as the noble Lord will remember, was what happened in Iraq in 1991. It successfully supported the survival of the Kurdish part of Iraq, without in any way altering our respect for the territorial integrity and sovereignty of that country. That would be a way in which the insurgents could be helped. When dealing with some Governments around the world who have expressed doubts or even criticism of what we have done, will the Minister remind them that every single one of them subscribed in 2005 to the doctrine of the responsibility to protect? Will he ask them fairly robustly what they would do now to protect the civilians of Libya?

[Lord Strathclyde]

My Lords, I have noted previously that the noble Lord, Lord Hannay, brings his considerable experience and knowledge to bear in this House. It is immensely useful that he does so at this time. I very much welcome his words about the United Kingdom and France putting down the key resolution, and doing so at the right time—some would say in the nick of time. Certainly, if it had happened 24 hours later, we might have faced a very different situation in Libya.

The noble Lord makes an interesting suggestion—one that is based on precedent—about the oil resources and an escrow account. All these matters are under consideration in the United Nations and, of course, in the Security Council and in individual member states. As the noble Lord points out, such a measure would respect the integrity of international borders.

On the criticism of some countries, the words of the noble Lord stand. They will be read and should be repeated to those countries that have sat by while so many others have done the work. In due course, the world will re-evaluate those who stood by and would have let a cataclysm occur in Benghazi.