EU Council

Lord Howarth of Newport Excerpts

Monday 17th December 2018 Lords Chamber

[Baroness Evans of Bowes Park]

I can say to my noble friend that the focus of the Government is to get through the deal that has been negotiated—a deal that delivers for the UK and the EU and a deal that both sides say is the best deal possible.

[Lord Howarth of Newport (Lab)]

My Lords, when the noble Baroness the Leader meets her Cabinet colleagues tomorrow to discuss preparations for no deal, will she encourage them not to waste their energies on trying to conjure political rabbits out of the House of Commons hat, to dismiss the lurid propaganda about cliff edges and catastrophes, to apply themselves vigorously to preparing for an orderly transition to WTO rules and to embark at the earliest possible moment on negotiations for a free trade agreement with the EU?

[Baroness Evans of Bowes Park]

As the noble Lord knows, and as I have said in response to earlier questions, we do not want no deal but it is only right that a prudent Government plan for one. He will also be aware of the extensive work that has already been under way to prepare for no deal over the past two years: the 106 technical notices, the various agreements that we have in place and the money that we have put into preparing for it. This is not a situation that we want to be in but we have to ensure for the British people that all contingencies are covered, and that is what we are doing.

Brexit: Withdrawal Agreement and Political Declaration

Lord Howarth of Newport Excerpts

Wednesday 5th December 2018 Lords Chamber

[Lord Howarth of Newport (Lab)]

My Lords, the Prime Minister has honourably striven to do the impossible: to find a compromise between remainers, for whom Brexit is above all a threat to our economy, and leavers, for whom what matters most is the recovery of our sovereignty. Remainers think that the economic cost of withdrawal on the terms she has negotiated is too great and see the deal as far inferior to remaining in the European Union. They think we should revoke our Article 50 declaration. The reckless among them seek a second referendum. A second referendum would do deep damage to the already battered faith in our politics and put paid to reconciliation in our country for a long time. For leavers, the deal fails to release us from the tentacles of the EU and from the democratic deficit that was built into it at its origins.

It is not only leavers who cannot accept that we should continue, perhaps indefinitely, to be subject, with no power of decision on our part, to rules determined by the EU governing swathes of our national life, including policy on the environment, employment, state aid, competition and even tax; to be subject to the continued jurisdiction of the CJEU as arbiter of the agreement and interpreter of EU laws by which we remain bound; with a separate regime for Northern Ireland; without the right to liberate ourselves at our own volition from the Irish backstop; and locked inside the customs union and the EU’s external tariff wall for as long as the EU wants, with no realistic chance of achieving an independent trade policy. How can we as democrats accept that?

Amid the passions of this debate, in your Lordships’ House we should seek to state the issues accurately. Let us dispose of the canard, as our French friends say, that the demand to take back control masks ugly attitudes towards immigration and a widespread vicious nativism at odds with liberal values and internationalism. Yes, there are racists and xenophobes among those who voted leave; their attitudes are odious. Nobody, however, can sensibly suggest that more than a minuscule proportion of the 17.4 million of our fellow countrymen who voted to leave were such bigots. It does not follow that, if you want to extricate your country from the undemocratic structures of the European Union, you are illiberal or insular.

The evidence published in April by the Nuffield Centre for Social Investigation confirms that the paramount concern of leavers is sovereignty: our right to make our own laws through our own representative institutions of government, accountable to our people, together with the supremacy of our own courts. We see this clearly now in the reaction of leavers to the withdrawal agreement. It ends free movement from the EU into the UK. If immigration was their key concern, leavers would be welcoming the agreement, but they are not. They are objecting that the withdrawal agreement does not allow us to take back control and to recover the sovereignty that we lent to the EU through the European Communities Act 1972.

Let us also have a realistic debate about no deal, on which the Motion in the name of my noble friend invites us to focus. The Government are right to prepare for no deal, and in no spirit of trepidation. They would be right also to prepare to protect those in poverty who are at risk of particular suffering during the transition, a point that the most reverend Primate made very powerfully. But no deal certainly need not be a disaster or a catastrophe, as so many noble Lords insist. It need not mean crashing out or a cliff edge. There would be no need for aeroplanes to stop flying, for Kent to become a lorry park, for supply chains to seize up, for medicines to be unobtainable and for food to be rationed, as the litany goes. We would not face the Bank of England’s worst-case scenario of a disorderly exit, which is, as the former governor, the noble Lord, Lord King of Lothbury, has noted, based on entirely unrealistic assumptions.

Appendix A of the Bank’s response to the Treasury Committee, entitled “Impact on the UK economy of a transition to WTO”, offers a no-deal scenario that we can well live with. Philip Aldrick, economics editor of the Times, has helpfully translated the Bank’s technical prognostications into relatively plain English. In this scenario, he explains, we go to WTO rules after a smooth transition in January 2021, retaining for ourselves the EU’s existing 90 external trade deals; sterling falls by 8.5%; we welcome a net 85,000 immigrants—tens of thousands—into Britain annually; and our GDP is 5.25% less in 2023 than if we had remained in the EU. Under the Prime Minister’s deal GDP would be 3.75% less. The difference between the Prime Minister’s deal and an orderly no deal is just 1.5% of GDP.

Remainers assert that people did not vote to be poorer. With the orderly no deal projected by the Bank, they will not be poorer than they were; they will be somewhat less wealthier than they might have been. Leavers, who voted to leave despite the lurid warnings of the first project fear, will be happy to pay that price for the restoration of their sovereignty.

It is in the interests of the peoples and businesses of the EU to avoid chaos and agree an orderly no deal with us. The EU has already offered to reciprocate air traffic rights and aviation safety certificates, and in its own interests it will surely act sensibly in relation to road transport. Any additional checks would be very limited. There will be no legal requirement to inspect every vehicle or to carry out checks at the border itself, and anyway there will not be enough staff and equipment to check more than a minute proportion of vehicles. Indeed, new EU-imposed non-tariff barriers will be illegal under WTO rules so long as our products exported into the EU are still made to the same standards.

It is objected that under WTO rules and without the customs union, there must be a hard border within the island of Ireland. That problem has been greatly overstated and I do not believe that the Good Friday agreement would be in jeopardy. The Permanent Secretary at HMRC has made it clear that there is no need for the UK to erect a hard border in any scenario. Nor, as they have said, will the Republic or the EU impose one.

The US and China trade with the EU on WTO rules. We can do likewise. Better, of course, would be the rapid conclusion of a free trade deal with the EU. Given where we start from and based on the EU’s deal with Canada, that is entirely possible. EU countries that sell us £300 billion of exports will be impatient for the EU to reach a free trade deal with us. That is what the Government must now work for.

Leaving the European Union

Lord Howarth of Newport Excerpts

Monday 26th November 2018 Lords Chamber

[Baroness Evans of Bowes Park]

My noble and learned friend is right, and the political declaration sets out a clear vision for our future relationship, covering an economic partnership, a security partnership and specific agreements on cross-cutting co-operation. It will deliver economic benefits and shows that, in our relationship with the EU, we are not just another third country. This will be the most ambitious free trade agreement that the EU has with any other country, and it will allow us to develop our own independent free trade policy to ensure that we remain a global Britain.

[Lord Howarth of Newport (Lab)]

My Lords, do the Government accept that there has already been a people’s vote, in 2016, and that the major parties undertook to honour its result? Do they accept that to break faith with those undertakings and agree to hold a second referendum would be to intensify and perpetuate social division, political disaffection and economic uncertainty? Will the Minister confirm that, in the event of the House of Commons rejecting the withdrawal deal, the Government will not renege on their stated refusal to accept the calls for a second referendum?

[Baroness Evans of Bowes Park]

I thank the noble Lord for his comments. The Prime Minister has been repeatedly clear, as we in this House have been, that we have had a people’s vote—he is absolutely right—and the people voted to leave. We have now brought forward a deal to the House of Commons—we were told we would not be able to come to a deal, but we have—and it will make its decision. But we do not believe that there should or will be a second referendum.

Brexit: Negotiations

Lord Howarth of Newport Excerpts

Thursday 15th November 2018 Lords Chamber

[Baroness Evans of Bowes Park]

I am afraid that I do not agree with my noble friend’s assessment. We have agreed the principles of the UK’s smooth and orderly exit from the EU, as set out in the withdrawal agreement, and agreed the broad terms of our future relationship. We are delivering on the result of the referendum; we will be leaving the EU; and, going forward, we will be developing a strong partnership with the EU that will last for decades to come.

[Lord Howarth of Newport (Lab)]

My Lords, in the choice between democratic and material values in 2016, the people of this country voted by a clear majority to reclaim democratically accountable self-government. Is it not now incumbent on those who speak and vote on their behalf in Parliament to do likewise and to reject this deal, which fails to allow us the governmental autonomy that the people of our country ought to have?

[Baroness Evans of Bowes Park]

Again, I am afraid that I disagree with the noble Lord. This deal is bringing back autonomy to this country, and it should be supported.

European Union (Notification of Withdrawal) Bill

Lord Howarth of Newport Excerpts

Monday 20th February 2017 Lords Chamber

[Lord Howarth of Newport (Lab)]

My Lords, the remain campaign told the people that the decision to remain or to leave was theirs. All of us should respect their democratic decision to leave. If we do not, public disaffection from politics will become a crisis. Those who meditate a second referendum are playing with fire. Besides, the deal will not be a binary constitutional choice appropriate for a referendum but a complex set of policy proposals.

To take back control must mean Parliament asserting its right and duty to invigilate the process of withdrawal and to give or withhold consent—whether by resolution or by legislation—in good time to the Government’s proposals for new terms of our country’s relationship with the EU. The Government were foolish to try to bypass Parliament. It is even more regrettable that they appealed the High Court’s decision, depriving Parliament of proper time to debate this legislation before the March deadline. Ministers from now on should be as candid with Parliament as the state of negotiations permits, while Parliament should not seek to constrain Ministers unduly or jog their elbows.

All of us should be intent on healing the wounds opened up by the referendum. It is no way to reunite the country to introduce new grammar schools, slam the door in the face of child refugees, use EU residents as bargaining chips and threaten to turn Britain into an offshore tax haven.

The two great fears of remainers—that Brexit will be a disaster for liberal values and make our people poorer—are ill-founded. I voted for Brexit precisely because the EU is both undemocratic and failing economically. The twin faults of the democratic deficit and crassly constructed monetary union are fuelling public anger and revolt across Europe.

The structures of the communities created after the war and inherited by today’s EU were intended, if anything, to insulate decision-making from democracy, following the catastrophic perversions of democracy in the 1920s and 1930s. In our time, the democratic deficit is provoking extreme reactions among populations who are aggrieved by the depressed conditions of their lives and feel that they are not effectively represented in the political structures of the EU, and that they are ignored or disdained by unaccountable EU elites.

Democracy has been trampled upon by the hierarchs of the EU. In Greece the Syriza Government, elected on a platform of mitigating austerity, have been coerced by the eurogroup of Finance Ministers, the ECB and the IMF into abandoning their commitments to Greek electors and serious suffering has been inflicted on them. In Italy, the replacement of Berlusconi by a technocrat selected in Brussels, Mario Monti, led to the rise of the Five Star Movement and the defeat of Renzi in the constitutional referendum. The fiscal compact of Merkel and Sarkozy wrecked Hollande’s presidency of France and paved the way for the surge of the Front National. Reaction to an EU perceived as alien, undemocratic and overweening led to the rise of UKIP in Britain.

Outside the EU, we in Britain will be free to make our own policies on immigration, workers’ rights, the countryside—free to legislate on all matters as we judge fit. We will have the opportunity to re-engage our people in a revitalised parliamentary democracy.

The referendum was both a great exercise in democracy and a low point in politics. Both campaigns were conducted without scruple—weaponised disinformation on the one side, alternative facts on the other. No wonder people think politicians are all liars. We need to rehabilitate politics. May we hope that leavers will resolve to appeal to the better, rather than the baser, part of human nature, while remainers will forswear condescension and the identity politics of metropolitan liberalism?

The EU is failing economically as well as democratically. The contractionary bias of the Maastricht criteria, perpetuated with the euro, has condemned the EU to weak growth, low investment and high unemployment. A combination of the global financial crisis, the crisis of the euro and neoliberal orthodoxy has devastated poorer areas and vulnerable social groups in the EU, with mass unemployment among young people in the Mediterranean countries. The protectionist policies of the EU keep prices higher and living standards lower in Europe than they need to be while discouraging innovation and economic dynamism. The single market is a sluggish, declining region of the global economy. It is no safe haven for us and we can flourish outside. Tim Cook, the CEO of Apple, said the other day:

“I’m not saying that there aren’t going to be some potholes in the short-term. There are. But if you look beyond those the UK is going to be just fine. Not just OK, but great”.


Since the referendum Apple has taken out a lease on a major new HQ in London.

If the negotiators for the EU truly care about the fortunes of those they should be championing, European workers whose livelihoods depend significantly on trade with the UK, more than they care about a grandiose political project which they fear electors in other European countries may also reject, they will want rapidly to conclude mutually favourable terms of trade with us. Beyond that, we must tackle our productivity inadequacies and seek new export markets, and we must take care to support those who will be most vulnerable during the transition. Blame not Brexit but George Osborne that fiscal austerity is forecast by the IFS to continue for another 10 years.

It amazes me that so many of my noble friends remain enchanted by the EU, apparently blind to its oligarchic character and to the humiliation and impoverishment of many millions of its citizens. The EU has not been the promised land to which Monsieur Delors was to lead us. On the contrary, a long series of directives and treaty amendments has entrenched a neoliberal and financial model of capitalism where once it was hoped that a social market and social democratic model would prevail. The dogma of employability and flexibility has transferred wealth from wage earners to owners of assets. It has been an illusion for the left in Britain to think that it can outflank a Conservative Government by contracting out responsibility for progressive social policy to Brussels. Increasingly, the European left is concluding that the only prospect of taming modern capitalism and averting the social ravages that it causes is at the level of the nation state.

Decent and determined political leadership in post-Brexit Britain will curb the excesses of finance, govern for all the people of the UK, decisively reject racism and insularity, and play a responsible part in the world. The choice will be open to us.

House of Lords: Size

Lord Howarth of Newport Excerpts

Monday 5th December 2016 Lords Chamber

[Lord Howarth of Newport (Lab)]

My Lords, a second Chamber of more than 800 is grossly excessive and is seen by the public to be so. The House of Lords needs, I would think, around 500 Peers committed to the work of the House if it is to do its job of holding the Government to account, providing close scrutiny of legislation, debating the great issues of the day and examining policy through its array of committees—in all this complementing the different emphasis of the House of Commons.

Aside from the partial removal of the hereditary Peers in 1999, successive Prime Ministers have casually increased the size of the House while failing to think carefully enough about their appointments. No party leader in my recollection has systematically sought to build a coherent and formidable party group with the range of experience and skills appropriate for a Chamber of the legislature. Why is this?

One reason is that neither the Executive nor the House of Commons wants an effective second Chamber. They seem not to understand that the role of the House of Lords as our constitution has evolved is now only advisory. The House of Lords does not make the law. It seeks to improve policy and proposes amendments—but, after offering its advice, sometimes indeed quite insistently, it always defers to the democratic authority of the elected House. Those at the other end have nothing to be frightened of so long as we do not have an elected second Chamber.

Of course, our advice sometimes extends to saving the Government from themselves and giving them time to think again when they set out to do something really misguided, such as bringing in super-casinos or taking away people’s tax credits. Naturally, Ministers resent having their poor judgment exposed; they get huffy and sometimes lash out, as with the Strathclyde review.

Another reason is confusion between peerages as honours or rewards and peerages as conferring membership of the legislature. When the public are persuaded by the media that a party leader is dishing out peerages just to cronies, courtiers and fat-cat funders, it intensifies cynicism about politics. People view our bloated House in an even more jaundiced light as a facility for giving political favours. However unfairly where individual appointments are concerned, Mr Cameron’s lists might have been designed to bring the House of Lords into terminal derision and disrepute. Some animadversions have also been made on Mr Blair’s lists—I was on one of them. Meanwhile, many former MPs, including senior Ministers, might give very valuable service to this House but, through the caprice of patronage, have not been appointed.

A further factor in the disproportionate growth of the House has been the misconception that the Government are entitled to a majority in the House of Lords. That is to misunderstand the nature and value of this House. The practice of packing the House to stack up party numbers not only compromises the ability of the House to perform its advisory role by passing amendments but leaves only meagre room for appointment of the Cross-Benchers, who give special distinction and independence to the House.

The Government, after barking so futilely up the wrong tree in their attempt to create an elected second Chamber, and with Brexit as well as Scottish nationalism on their hands, now have no appetite for Lords reform. They have, however, given us to understand that, in what they perhaps see as the unlikely event of the Lords reaching consensus on desirable reforms, they will consider them. Let us startle them by reaching that consensus.

How are we to do so? The House has gone round and round in circles for years, agreeing on the easy proposition that its size should be reduced, but all over the place when it comes to specific, painful choices. Should there be a cap on numbers? If so, what should it be? What principles should determine the respective sizes of the parties and other groups within the House? How should departing Peers be identified? Should there be an age limit or a limit on tenure? How do we deal fairly with Peers who joined the House when relatively young, sacrificing another career? Should there be renewable terms? Should we finally end the hereditary principle for membership of the legislature? Over what timescale should the existing membership be reduced? Should new appointments be made in future to two classes of Peers: honorary Peers with the title but not sitting in the House, and legislative or working Peers? Should there be a limitation on prime ministerial patronage? If so, how should it be effected? Should there be a statutory appointments commission? What should be its duties and powers?

We could continue to talk interminably about these and other such difficult questions. In the absence of a government Bill which puts a pistol to our collective head, how can we bring ourselves actually to answer them? I agree that a Select Committee should be set up to examine the issues. This committee should, I suggest, formulate a series of questions about options—precise questions with no wriggle room—to be put to the House. The usual channels should then arrange for debates and votes on all the questions, in government time. In that way, the House could reach its conclusions and could present its consensus—or at least its decisively expressed majority view—to the Government. After that, if the Government do want reform—a big if—and if reform is not seen as threatening by the House of Commons, the Government could introduce legislation. We can do some things ourselves but legislation will be needed—and they could introduce it with a real prospect of carrying it.

European Union and Canada: Comprehensive Economic and Trade Agreement

Lord Howarth of Newport Excerpts

Thursday 27th October 2016 Lords Chamber

[Lord Howarth of Newport (Lab)]

My Lords, will the Minister not accept that CETA was cooked up all too secretively between officials and corporate lobbyists; that it is no less objectionable than TTIP; that giving power to corporations to sue Governments in an international tribunal when they think that their anticipated profits might be jeopardised by new laws is not compatible with our parliamentary and judicial traditions; that this House ought to record its gratitude to the stout Walloons for blocking it; and that we should be extremely wary of the General Agreement on the Trade in Services, which is the next one looming?

[Baroness Mobarik]

In terms of scrutiny, we are not going against procedures; we followed the usual procedure and responded in detail to the concerns raised by the scrutiny committees in both Houses. There will be debates, such as this afternoon’s debate on global free trade, votes on the great repeal Bill and, very likely, votes on any new arrangements and consequential legislation. We want to offer maximum transparency and scrutiny as long as we do not compromise our negotiating strategy.

European Council

Lord Howarth of Newport Excerpts

Monday 24th October 2016 Lords Chamber

[Baroness Evans of Bowes Park]

As I mentioned, our discussion of Brexit and the UK’s position was not a formal agenda item, so it was not discussed with all the other member states. Obviously issues like the City of London and the Irish border show that there are a lot of key issues that we need to think about. We have seen in responses that I have made here and that other Ministers have made that we want to ensure that all these issues are talked about, and that we come to the best outcome that we can.

[Lord Howarth of Newport (Lab)]

My Lords, are we not in an unsustainable situation in which a majority of Members of the House of Commons, not to mention a majority of Members of your Lordships’ House, are in favour of remaining whereas a majority of people in this country voted in a referendum in favour of Brexit? In these circumstances, would the best course not be, following a full national debate in which the issues associated with Brexit were clarified and options defined, to have a general election early next year, following which a new Government could proceed with full democratic authority and Parliament would be free to play its part in scrutinising government strategy? Can we expect the Prime Minister to become less adamant about there being no election before 2020?

[Baroness Evans of Bowes Park]

The noble Lord will have to ask the Prime Minister for her personal view, but I get no sense that she is thinking about an early election. It is absolutely right that we have parliamentary scrutiny but Parliament will also be aware that we legislated for a referendum, with cross-party support, to put the decision to remain in or leave the EU in the hands of the people, which is what we have done. It is now beholden on us to ensure we get the best deal we can, and beholden on both Houses to ensure that they scrutinise it properly and aid that process.

Outcome of the European Union Referendum

Lord Howarth of Newport Excerpts

Tuesday 5th July 2016 Lords Chamber

[Lord Howarth of Newport (Lab)]

My Lords, the fractures in the United Kingdom by region, education, class, age and race that have been so searingly exposed by the referendum are paralleled across the European Union. The referendum precipitated a crisis in Britain which has been long in the making. Identical pressures have also been building across the EU. The EU is blighted by the socially polarising effects of market forces, compounded by the deflationary effects of the single currency and the democratic deficit in its governing institutions. The EU cannot last as it is, but there is no prospect of fundamental reform. The far right is on the rise across Europe. The EU is not a safe haven. We are right to leave and to take full responsibility for ourselves.

The remain campaign urged the British people to vote for the status quo. It should not have been a surprise that a majority refused to do so. In the years since we joined the EU, people in former industrial communities have seen the destruction of their way of life. Jobs for life have been replaced for many by intermittent, precarious employment. Unskilled migrants have depressed wages. Training opportunities have been withdrawn. Homes for many have become unaffordable, while unearned wealth has piled up for others fortunate enough already to own assets. Steeply tapering benefits have blocked the way out of poverty. Those reliant on social security—social solidarity—have been jeered at as skivers and scroungers. The public realm—social services, libraries, parks—has withered. People now struggle to get an appointment to see their doctor. Mental health services have collapsed. The Resolution Foundation tells us that 11 million households have seen their living standards stagnate since 2002. In his powerful speech, the most reverend Primate spoke of the shocking extent of child poverty. Approaching a million 16-24 year-olds are not in employment, education or training. Many fear that their children and grandchildren will be worse off than they are.

This is not all, of course, the fault of the EU; we have made damaging policy choices in Britain. But the EU is inextricably associated with the ravages of market forces and globalisation, which have been among the deeper causes, along with the disruptions of the digital economy. The slogan “take back control” was profoundly appealing to people who feel victims of forces they are powerless against and that the politicians who should look after them have done too little to control. The referendum was a vote of no confidence in the powers that be—in the major political parties as well as Brussels.

What should we learn from the referendum? What are the implications for British politics? The neoliberal orthodoxy that has prevailed since the mid-1970s, in Britain and in the EU, has run its course economically and politically. Weakly regulated and greedy bankers led us deeply into debt, both private and public, wrecked the public finances and the Government’s capacity to ameliorate social conditions, and left the people to pick up the tab. The extreme inequalities and excessive rewards for the few generated by global capitalism have weakened consumption and investment. The centre-right may try to persist with this toxic orthodoxy, though even the Chancellor seems to be in retreat. The centre-left must now reinvent social democracy, as the SNP, subsidised by English taxpayers, has done with political success in Scotland. This will be difficult to do with the overhang of debt, but the lesson of the referendum is that we must share wealth and opportunity more equitably. We must rebalance the economy away from financial services and away from London. Policy must sustain demand and investment where the market shies away. An interventionist state must provide security, addressing the sources of poverty. The damaging dichotomy between public and private must be put behind us.

New politics as well as new policies are needed. The campaigns on both sides were ruthless and angry. Many found in the referendum that their sense of personal identity was inseparable from their sense of national or European identity. The result was anguish for the losers. Some of them have lashed out in demeaning, snobbish contempt for those they see as ignorant, bigoted, selfish leavers. It also produced vicious racism from some of the winners. There was a moment, however, during the campaign, after the murder of Jo Cox, when everyone paused and people realised that crude antagonism, abuse and threats will not do. We need to nurture that recognition. The challenge for the new political leadership is to appeal to our better nature, abate the politics of anger, reconcile our people and heal our national psyche.

We have to start by demonstrating respect for those with whom we disagree. Like it or not, the decision to leave the EU was an expression of sovereignty by the people to whom Parliament had referred back this great constitutional issue, and it must be accepted without demur. Any other course would disastrously intensify disaffection from Parliament, deepen the gulfs in our society and stir up street and mob politics.

After the parties have resolved their leadership issues, and after we have held a thorough debate about the options for establishing new relationships with Europe and the world, there should be an early general election. A new Parliament is needed, predicated on the new reality. A new Government need to be equipped with a mandate for the negotiation.

At the election, the parties should also explain how they plan to renew our politics, to rehabilitate democracy across the UK. We must fund politics differently, so that the parties are not seen to be beholden to sectional and remote interests and the aura of corruption is removed from Westminster. Real decentralisation of power and resources is needed throughout Britain. The Scots can be won back for the union. Opinion is far from monolithic in Scotland and the economic prospects for an independent Scotland would be dire.

This is a critical turning point. We must build confidence among both remainers and leavers in our future outside the EU. We must remake our politics and democracy. We must find ways to uphold democratic values and authority in a global economy so that markets are servants, not masters. We must recreate our international friendships and trading partnerships and cherish our cultural links with Europe and the world. We must attract investment and talent, raise skills and transform our productivity. We must convince people who are fearful and pessimistic that politics will work for them and that prosperity will be fairly shared. We must support vulnerable communities and instil confidence within them that immigration is not to be feared; and, among minorities, that they are welcome fellow citizens. We must find shared principles and ideals. Britain can be liberal and kindly, purged of xenophobia and hate crime. With leadership, all these things are possible. If politicians, spiritual leaders, community leaders, social activists, journalists, opinion formers and citizens fail in this, we will see the debilitation of parliamentary government, insurgent fascisms of the left and the right, a crumbling of our society and a disintegration of the United Kingdom.

Panama Papers

Lord Howarth of Newport Excerpts

Monday 11th April 2016 Lords Chamber

[Lord Howarth of Newport (Lab)]

My Lords, on the question of international corruption, will the Government now abolish the tier 1 visa system, established in its present form by the coalition? It is effectively an arrangement for selling passports to wealthy foreigners with such due diligence as is performed carried out by banks, which the National Crime Agency tells us are laundering billions of dollars every year. For a loan to the Government of as little as £2 million invested in gilts, a so-called international investor can acquire the right to reside in Britain. Is the noble Baroness aware that this is a charter for money laundering while, in the words of the Migration Advisory Committee, bringing “absolutely no gain” to Britain in terms of the kind of international investment that we ought to be seeking? The largest number of tier 1 visas have been granted to wealthy individuals from Russia and China, many of whom have used their money to force up the price of homes in London, with the cascade of misery that follows from that. Will Russia and China be attending the anti-corruption summit in May?

[Baroness Stowell of Beeston]

I am not able to provide a full guest list of those who are going to be at the anti-corruption summit in May. On the noble Lord’s question about tier 1 visas, that is a matter that I will have to follow up with him in writing: it is not one that I have information on right now. I can say to him that part of the action that this Government have been taking over the past few years and will continue to take is about tackling money laundering. What we are trying to do here is tackle crimes. We want to eradicate corruption. We want to go after the criminals and do everything that we can. If there are avenues open to us that we have not yet pursued, we will be pursuing them with great vigour because that is what we want to achieve. All I can do is reassure the noble Lord that a lot has been done, but clearly there is more. If there is more that we can do, we will not be shy in coming forward with further steps.