European Union (Approval of Treaty Amendment Decision) Bill [HL]

Debate between Lord Howell of Guildford and Lord Liddle

Wednesday 13th June 2012 Lords Chamber

[Lord Liddle]

My Lords, I had better explain briefly the opposition Front Bench position on this amendment and some of the speeches we have heard. It was a great pity that my noble friend Lord Foulkes could not make Second Reading, because he would have made a strong pro-European speech in that debate. He was right that my noble friend Lord Radice made an excellent speech as well. However, from our perspective I do not think that we can support the thrust of his amendment. I see the logic of his position. In the European Union Act, which we debated over many hours last year, we got ourselves in a situation where, if it was decided to establish a European office of paperclips, we would have to have a referendum on it, because it would involve a transfer of sovereignty to Brussels.

For our part, we believe that referenda should take place only on issues of major constitutional significance, as the Lords Constitution Committee recommended, and that we should be consistent with that principle. As far as the Labour position in the Commons is concerned—and I say this with some trepidation because my dear noble friend Lord McAvoy has a great record as a party loyalist and defender of party discipline in the other place—the shadow Foreign Secretary, Douglas Alexander, in the Commons debate last autumn on the question of a referendum, said:

“I urge opposition to the motion because I do not believe that Britain’s national interest would be served by spending the coming months and years debating the case for Britain leaving the world’s largest single market”.—[Official Report, Commons, 24/10/11; col. 60.]

The leader of the Labour Party made it clear only last week or the week before that Labour’s position had not changed from that view in the mean time.

That is where we stand. The EU Act is a contradictory piece of legislation. The measure is not defined under the terms of that Act as a transfer of powers to Brussels, and we therefore do not have a referendum—but there is no point in reiterating our debates on that Act. Our view is that this is an emergency situation in Europe; the stability mechanism is a necessary part of tackling the problems of the eurozone, which is very much in the British national interest. Therefore, this legislation should go through in the speediest possible time.

[The Minister of State, Foreign and Commonwealth Office (Lord Howell of Guildford)]

My Lords, we all admire the lone role that the noble Lord, Lord Foulkes, has cast for himself in bringing forward these amendments, and his boldness in bringing forward an amendment with which he does not, in fact, agree. This is bravery on a high scale in this debating Chamber.

The amendment, as he pointed out, seeks to insert into the Bill a requirement for a favourable vote in a national referendum before the UK could approve the European Council decision amending Article 136 of the Treaty on the Functioning of the European Union. The European Council decision amends Article 136 of the TFEU. It was adopted in accordance with the simplified revision procedure in Article 48(6) of the Treaty on European Union. The decision added a paragraph to Article 136 which confirms that EU members whose currency is the euro may establish a financial stability mechanism. The provisions of Article 136 and the proposed new paragraph apply only—I repeat, only—to member states whose currency is the euro. They do not, therefore, apply to the United Kingdom.

The Bill is required under Section 3 of the 2011 Act, to which the noble Lord, Lord Liddle, referred, to give parliamentary approval to the decision. The other two requirements of that Act were, as noble Lords will recall, a statement by the Minister giving his opinion as to whether a referendum is required—I will come to the remarks of the noble Lord, Lord Foulkes, on that in a moment—and compliance with the so-called referendum condition, exemption condition or significance condition which we debated when we considered that Bill some time ago.

The 2011 Act makes it clear that decisions adopted under Article 48(6) of the TEU are not subject to a referendum under that Act if its provisions do not apply to the United Kingdom. The 2011 Act, to which the noble Lord, Lord Foulkes, rightly drew attention, provides:

“A treaty or Article 48(6) decision does not fall within this section merely”—

I come to that word—

“because it involves ... the making of any provision that applies only to member States other than the United Kingdom”.

The “merely” is intended to indicate that other conditions are also taken into account—for example, the exemption condition or the significance condition. It is not only the fact that it does not apply to the United Kingdom and is outside the application of the United Kingdom; it involves other conditions as well. The decision amending Article 136 therefore clearly falls within the exemption set out in Section 4(4)(b) of the 2011 Act.

The noble Lord, Lord Liddle, raised again the doubts of his own party and colleagues about that Act, which was vigorously debated. I do not think that it would be in order to debate the Act again, although I am always happy to reopen these great issues. I happen to think that it was an immensely important Act which has been a considerable reinforcement to the concerns of the British people that there will be no further transfer of competence to the European Union without a referendum. It is an important safeguard, and my right honourable and noble friends have drawn attention to its importance.

The Government have been clear that a referendum is not required under the 2011 Act right from the very beginning. On 13 October 2011, the Foreign Secretary laid a Statement before Parliament in accordance with Section 5 of the Act, in which he confirmed that in his opinion a referendum was not required under the Act. The Statement was open to judicial review but, as my right honourable friend pointed out, in the intervening eight months, no one has sought to challenge it in the courts. The noble Lord, Lord Stoddart, whose position is consistent and which he has put with admirable consistency over the years, said that in his view there was some practical implication of transfer of competence— although he did not put it in quite those words. But no judicial review to make that point has been launched. The noble Lord referred to the aspect, to which I will refer again in a moment, that in exchange for this going forward, the British liability to be exposed under the European financial stability mechanism is released, and the mechanism falls and is no longer in use. The noble Lord, Lord Stoddart, was concerned that that was just a political decision and not enshrined in law. He is perfectly correct, but it is a decision by all 27 members, and it is a firm commitment. To unravel the whole of that would be to throw the entire arrangement of the EFSM into complete chaos. It would be a total reversal of a firm commitment made in good faith by 27 members. We believe that it is a substantial and supported condition.

Eurozone

Debate between Lord Howell of Guildford and Lord Liddle

Wednesday 16th May 2012 Lords Chamber

[Lord Howell of Guildford]

My noble friend is quite right: youth unemployment is a blight and a very serious issue everywhere, not least in this country as well as throughout Europe and many economies in the Middle East. The problem is general. My noble friend raised two points. She mentioned the European Investment Bank and the possibility of expanding its activities. This is a possibility and may well be discussed. As a broader point, she posed the question of austerity versus growth, as though they were opposites. The reality is that this polarised choice is a complete myth. Unless we can control our budgets effectively and run them with fiscal discipline, there will be no growth. There will instead be still further inflation, undermining the very growth that we want to see. A balance must be struck. It is not a choice; it is a balance.

[Lord Liddle]

On this side of the House we welcome what the Minister said about being open to increased resources for the European Investment Bank. However, will he tell us whether the Government broadly agree with the growth agenda being pursued by the new French President, François Hollande? Does he draw from the spate of election results that we have seen the conclusion that austerity in the eurozone is reaching its limits? Given that growth in the eurozone was larger than ours in the past year, will he draw that lesson for economic policy at home?

[Lord Howell of Guildford]

Neither the noble Lord nor I know how the discussions between the new French President and the German Chancellor will work out. However, he has read the newspapers, as I have, and it is fairly clear that some aspects of both arguments will have to be taken into account. That will demonstrate the very point that I just made to my noble friend. The picture that has been painted of either austerity or growth is completely unrealistic. The reality is that there will have to be the discipline on which the German people and Government have led very strongly, and in which they believe for strong reasons connected to their history, combined with the necessity to erode youth unemployment and to create and restore confidence in investment. This is a balance that must be struck. We certainly hope that the leaders of France and Germany will, in their wisdom, strike the right balance and maybe convey to the people of Greece the necessity for this balance, from which there is no escape. There is no unrealistic choice between going one way or the other—you cannot.

EU: Treaties

Debate between Lord Howell of Guildford and Lord Liddle

Monday 30th January 2012 Lords Chamber

[Lord Liddle]

To ask Her Majesty’s Government whether the intergovernmental treaty presently under negotiation in Brussels will eventually become part of the structure of the European Union treaties.

[The Minister of State, Foreign and Commonwealth Office (Lord Howell of Guildford)]

My Lords, I think we can all cool down now. It is the prerogative of any member state to suggest additions to the European Union treaties. Any addition, including the proposed intergovernmental treaty, would need to have the agreement of all 27 member states.

[Lord Liddle]

I thank the Minister for doing his best in that reply. However, with all his experience of European matters stretching over five decades in politics, would he please explain to the House how the Prime Minister can one month take Britain out of the room, claiming that the proposed treaty is a threat to our vital national interests, and then the next month appear to want to wave it through, declaring that he does not mind at all if the intergovernmental treaty, of which we will not be part, makes full use of the EU institutional machinery? Is it not true, and does the Minister not agree, that really the only way to protect Britain’s vital national interests is always to be properly at the table in the room and not walk away, and that the only reason that the Prime Minister cannot do what is right for Britain is that his main concern is what he can get away with inside a divided coalition and a divided party?

[Lord Howell of Guildford]

I think that the noble Lord, in his enthusiasm for these matters, is getting a bit confused. This is an intergovernmental treaty; it is not going forward inside the European Union. The British Government are anxious that there should be orderly development of the eurozone and that obviously it should not collapse into chaos. Nevertheless, as I think the noble Lord himself has written, it has “design flaws” in it—I think those were his words—and therefore there has to be caution and care about the whole way in which it is carried forward. Certainly, the UK does not want to be involved in a treaty that supports a flawed system. We want to be supportive of a design for the future which is sustainable and which brings prosperity, not division, to Europe. That is the position. What is the role of the European Union institutions? We do not want to throw sand in the machine. If some of them can usefully be used in the aim of building a better euro system, we will support them, but we are reserving our position on exactly which institutions should be used and how they should be used. Our general attitude is supportive and constructive, and we are involved, as ever, in the machinery of building a prosperous and competitive Europe and a good single market. These remain our aims and we are taking a leading position on them.

Falkland Islands

Debate between Lord Howell of Guildford and Lord Liddle

Tuesday 24th January 2012 Lords Chamber

[Lord Howell of Guildford]

I think we have been a little ahead of the game. Obviously, the intention of Argentina was, sadly, to obstruct the movement of Falkland Islands shipping. Before that could happen we secured, for a start, the full assurance of Brazil, Chile and Uruguay that they would continue to welcome shipping flying the British ensign flag and would not interfere with trade. We have every reason to believe that the same attitude will prevail in all other ports where Falkland Islands shipping may call. However, we have taken action. Our ambassadors have moved very quickly and we are, as I say, ahead of the game.

[Lord Liddle]

My Lords, following the question of the noble Baroness, Lady Hooper, would the Minister agree that the best form of soft security for the Falkland Islands is very good, strong British relations with the South American neighbours of Argentina? Can he give us an update on what has happened to British relations with those countries and why this matter has come forward as it has in relation to Falkland Island flagged vessels? In particular, what has happened, since the present Government took office and since President Rousseff took office as the new president of Brazil, to the excellent relations that the British Government had with Brazil under the Labour Government and President Lula da Silva?

[Lord Howell of Guildford]

As far as relations with Latin America generally are concerned, I can safely say that where excellent relations existed before they have been built on and are even more excellent now. Considerable effort has been made in renewing and expanding our relations with Latin America. My right honourable friend the Foreign and Commonwealth Secretary was in Brazil the other day on a highly successful visit. My honourable friend Mr Jeremy Browne, the Minister of State, constantly visits Latin American countries, and visitors have come here with whom I and others have liaised very closely. We feel that we have a very good developing relationship, which includes the expansion of our embassy facilities and capabilities in the region.

There are many theories as to why agitation and tension have arisen over this matter. Many experts point to the possible discovery of commercial deposits of oil around the Falklands. It is a great pity that Argentina bowed out of the hydrocarbons declaration, which would have enabled it to benefit from these developments on the oil front. However, it decided to stand aside from this and, instead, to complain and apparently grow angry at what is happening. That may be one reason.

EU: December Council Meeting

Debate between Lord Howell of Guildford and Lord Liddle

Wednesday 11th January 2012 Lords Chamber

[Lord Howell of Guildford]

Of course, the European Court of Justice is applicable and is an instrument of the European Union treaties. Ad hoc arrangements and other co-operation arrangements that are not within the treaties would not be covered by the European Court of Justice. I was interested to see in the draft of the fiscal union treaty that is now circulating that the proposition that the ECJ should have precedence over national laws has been removed. I appreciate that my noble friend’s long-term considerations go much deeper, but it may be that here and now some of the concerns that he has expressed are being recognised.

[Lord Liddle]

Will the Minister bear with us as we continue with an old argument? Will he confirm that it is the clear policy of the Foreign Secretary and the coalition that there will be no attempt to repatriate powers from the European Union during this Parliament? Will he confirm that that is the Government’s policy and, if it is, how does he justify the Foreign Secretary permitting civil servants in his department to work with the new All-Party Group for European Reform to explore what powers might be repatriated? How is this Conservative initiative consistent with the policy of the coalition?

[Lord Howell of Guildford]

I do not want to play with words but I understood that in all parties, including the noble Lord’s party, and in the think tank with which he is closely associated, clear and forward-looking minds were looking at ways of rebalancing powers between Brussels and the member states as a whole—not just between Brussels and this country but between the European Commission, the European Council, the European institutions and the nation states. Again, there seems to be a very enlightened argument—of which I thought he was part, although he seems not to be so at the moment—that certain powers, particularly social powers and other detailed regulatory powers, would be far better administered close to the recipients, those in need of social care and those on the workshop floor, than by central organisations in Brussels. This is a sensible way forward and I am very glad that our officials are studying it closely.

Kosovo and Serbia

Debate between Lord Howell of Guildford and Lord Liddle

Thursday 8th December 2011 Lords Chamber

[Lord Howell of Guildford]

I am very glad that the noble Lord made it back from abroad to make those two very valid points. Of course, he is absolutely right that we must ensure that Serbia is not minded to retain the utterly destructive views of the partition of Kosovo, or indeed Bosnia—so yes, very much, to the first point that my noble friend makes. The Kosovar Government have made some progress in the protection of minorities but he is absolutely right that major challenges remain, notably with regard to Kosovo Serb communities in the north. We urge the Kosovar Government to do all they can to guarantee the rights, identity and culture of Kosovo’s minority communities and set out a comprehensive strategy for the north, where the difficulties are acute, as my noble friend knows, to cover areas such as health, education and employment. These are two areas where I totally accept what the noble Lord says.

[Lord Liddle]

My Lords, the Opposition thank the noble Earl for his timely question, and welcome the progress made in normalising relations. Will the Minister convey our congratulations to the distinguished British diplomat, Robert Cooper, on the role he is playing as EU mediator working to achieve integrated management of border crossings? Does the Minister agree with me that this demonstrates the value of the new External Action Service in strengthening the capabilities of the European Union? How does the recent progress affect the prospect of negotiations being opened for Serbia’s membership?

[Lord Howell of Guildford]

I hope the answer is that it will be positive. The noble Lord is right. Robert Cooper is an extremely able servant of the European Union and, indeed, citizen of this country. The role of the EAS is relevant, although I know that the noble Lord is the first to recognise that with a number of international organisations down there—the UN, the EAS, the ICO and so on—co-ordination is very important. I cannot give an estimate of the speed of progress. It will all come up at the European Council tomorrow. We may see some progress after that but I cannot predict it.

UNESCO

Debate between Lord Howell of Guildford and Lord Liddle

Wednesday 16th November 2011 Lords Chamber

[Lord Howell of Guildford]

It is early days for that. We will have to see whether the United States follows through on what appears to be its intention not merely to withdraw future funds but current funds as well. A very large number of countries—107—voted for Palestine's membership of UNESCO. There were 52 abstentions and 14 countries voted against. Therefore it was a fairly solid commitment to Palestinian membership. On the question of funding, we will have to wait and see how the matter turns out. Certainly there are major difficulties to be faced and resolved.

[Lord Liddle]

My Lords, noble Lords on this side of the House all share the concerns about the future of UNESCO and agree with the Minister’s comments. The fundamental issue behind this question is how strongly we are prepared to make clear to the United States our difference of view on the recognition of Palestinian statehood. While the Government’s position was sympathetic, it was ultimately a decision to have no position—to vote neither for nor against. How does this advance the peace process and the cause of a two-state solution, given the present stalemate and Israel's very recent decision to announce further settlements that will be deeply counterproductive? Should we not be more robust on these issues?

[Lord Howell of Guildford]

That is, of course, a broader question. The noble Lord is absolutely right that the question of Palestinian statehood lies behind the question of whether partial arrangements, as it were, for statehood should be made by Palestine applying to various UN organisations, of which UNESCO is one. It is the judgment and view of Her Majesty’s Government that the way forward must be by negotiation for the emergence of the Palestinian state. We reserve the right to recognise the Palestinian state at the moment of our choosing. We take the view that a fragmented application to UNSECO and other bodies is probably a mistake and will delay negotiation. We also take the view that, if the matter is to go to the Security Council—I say “if”—and if then, as is almost certain, the Americans vetoed it, that, too, would set back negotiation very substantially. It may be rather limited now but it is going to be even more limited—indeed, it will screw it up completely—if that course is followed. There are plenty of ifs and buts in the future. Beyond that, there is the possibility that it might go to the General Assembly as well, but all these matters have yet to be decided.

Indonesia: West Papua

Debate between Lord Howell of Guildford and Lord Liddle

Tuesday 19th July 2011 Lords Chamber

[Lord Howell of Guildford]

Yes. I described in my answer to the previous question that on 5 May there was an EU meeting that discussed a number of aspects of repression, including a matter that the noble Lord, Lord Avebury, quite often and rightly raises—the question of the apparent persecution of, and violence against, the Ahmadiyya community and other Christian communities. All these matters are indeed discussed and were discussed at that very helpful forum between the European Union and the Indonesian Government on 5 May.

[Lord Liddle]

The whole House will welcome the progress—uneven progress—being made on human rights in West Papua, and on human rights in the rest of Indonesia, and will welcome Indonesia’s joining of the UN Human Rights Council, but what positive progress is being made under the EU-Indonesia dialogue? What active support are the British Government giving, particularly in terms of ministerial visits such as that of Mr Jeremy Browne last year to Indonesia? How do the Government balance their proper concern for human rights with their present emphasis on expanding UK trade in emerging markets such as Indonesia?

[Lord Howell of Guildford]

The answer to the noble Lord’s general question is that we do balance. In many cases, one would argue that the two go together. If we can get expanded commercial and economic activity, effective inward investment and the expansion of trade, this will pave the way for a more open society and a more effective policing of human rights.

Results are a bit difficult to measure. All that can be said is that there is a human rights dialogue between the European Union and Indonesia. We support it fully. Our evidence in this increasingly transparent world is: first, that it is getting more difficult for any country that wishes to oppose and repress human rights to do so; secondly, that we intend to try to make it more difficult for them to do so; and thirdly, that the Indonesian state, whose territorial integrity we fully support, is anxious to carry forward and sensibly settle this and other human rights issues in a good and constructive way.

European Union Bill

Debate between Lord Howell of Guildford and Lord Liddle

Wednesday 13th July 2011 Lords Chamber

[Lord Howell of Guildford]

Ministerial decisions are open to judicial review. That is not a matter that we discussed much in Committee or one that we would necessarily want to see operate very fully in this or any other area of ministerial decisions on any aspect of policy. However, judicial review is there and ministerial decisions can be challenged.

The House of Commons has twice approved the scope and operation of Clause 6 following a clear exposition from the shadow Europe minister and his views on party policy on Amendments 6 to 13.

I do not want to take further time meeting the marginalisation argument. Frankly, it is a chestnut, as there is absolutely no impact on Ministers’ discretion and flexibility merely because they have sanctions behind them. Most European member states’ Ministers have sanctions of various sorts lying behind them on the decisions that they reach.

The plebiscitary democracy issue, frankly, belongs to the pre-internet age, before the web and the internet system. We see all around the world the wider public’s insistence on having a say where major issues about the transfers of power and competence away from their sovereign control are involved. That is exactly what would happen here. The idea that there would be 56 different referenda coming along is pure fantasy and does not relate to the actual way in which these issues would arise. There would be no great frequency of referenda; this is not the pattern for the future. It will not be the result of this Bill and it certainly would not be the outcome of the way in which the European Union has operated, is operating, or is likely to operate in the future. It is not in the interests of the 27—maybe soon 28—members to proceed in that way.

I think that the noble Lord would be wise to accept the Motion and the view taken in the other place. He would be wise to reject the amendment and therefore I ask him to withdraw it and accept the Motion so ably moved by my noble friend.

[Lord Liddle]

My Lords, we have had a full debate, and I do not want to take up the time of the House. I just want to make one comment on what the Minister has said. As you know, I believe in the noble Lord’s integrity in putting this Bill forward. I do not believe he is putting it forward for anti-European reasons. I do not think that that is what he thinks, but the truth is that the list of referendum locks contained in this Bill far exceed any reasonable person’s definition of issues of fundamental constitutional significance. On that basis, I would like to test the opinion of the House.

Sri Lanka

Debate between Lord Howell of Guildford and Lord Liddle

Monday 4th July 2011 Lords Chamber

[Lord Liddle]

Does the Minister agree that the recent decision of the UN Human Rights Council to block the recommendation of its commissioner to press for an international inquiry into Sri Lanka was disappointing if not shameful? Does he agree that we have a problem when so many of the world's most powerful emerging nations—here I am in contradiction to the noble Lord, Lord Tebbit—put protection of the principle of sovereignty above any state's duty to protect its citizens; and that we in the United Kingdom should use whatever influence we have as a nation to persuade these nations that sovereignty is not absolute and that all countries of the world share a common obligation of humanity to uphold human rights?

[Lord Howell of Guildford]

Those are very splendid sentiments with which I could not possibly disagree. There are a few practical issues to resolve before we can rise to those heights, but I fully appreciate what the noble Lord magnificently aspires to. The decision of the UN human rights commission was disappointing. The commission is not always able to meet the aspirations of those of us throughout the world who are concerned with human rights and the advance of civilisation.

Europe Day

Debate between Lord Howell of Guildford and Lord Liddle

Tuesday 28th June 2011 Lords Chamber

[Lord Howell of Guildford]

I am not too expert on the art of flags. Indeed, there is a complicated word that I have forgotten to describe the whole philosophy of flag flying. I am sure one of your Lordships will know it. As to flying flags upside down, I think I would recognise when the union jack is upside down but I am not sure I would recognise whether the round stars of the European Union were upside down or the right way up.

[Lord Liddle]

My Lords, the Minister assures us today, as he has throughout the passage of the European Union Bill in this House, that this is a pro-EU Government. Will he now persuade his Prime Minister to make for the first time a major speech explaining our interdependence with the European Union and the eurozone, and how the stability of our banks and our prospects for economic growth depend on it, instead of saying that we simply will not pay a penny? Is it not time that the Government started to fly the flag for our membership of the European Union in a real sense when they talk to the media in this country?

[Lord Howell of Guildford]

I do not know where the noble Lord has been these past few days. My right honourable friend the Prime Minister needs no persuading and has made his position absolutely clear. As he pointed out in the other place the other day, the conclusion statement from the last European Council meeting included, at his behest, the crucial words:

“All necessary measures fully consistent with international standards must be rapidly taken to address any possible banking vulnerabilities brought to light by these stress tests”,

and by the developments over the situation in Greece. My right honourable friend is perfectly well aware of the vital importance of maintaining economic stability in Europe and the recovery of the economies in difficulties. No persuasion is required.

Turkey: EU Membership

Debate between Lord Howell of Guildford and Lord Liddle

Wednesday 22nd June 2011 Lords Chamber

[Lord Howell of Guildford]

I am not sure that the noble Lord is entirely right in his assessment of public opinion generally. Certainly it is true that in France and Germany there are strong sentiments against Turkey joining the European Union, but I have not heard the same sort of sentiment in the United Kingdom. It seems to me that we are a strong country in supporting the reform of the European Union to make it fit for purpose in the 21st century. Part of that pattern of reform may well involve the integration of this very powerful and dynamic nation that Turkey is emerging as, with its own foreign policy agenda, which so far includes a closer and constructive relationship with, and indeed involvement in, the European Union.

[Lord Liddle]

While many of us on this side of the House agree strongly that the EU should adopt a more welcoming approach to Turkish membership, does the noble Lord not agree that the accession of such a large country as Turkey would inevitably weaken Britain’s voting strength in the European Union and have major implications for policy issues such as migration? Why is it that under the European Union Bill that we have been debating in this House, which requires referendums on 56 separate locks, the accession of Turkey would not be subject to a referendum? Does this not indicate the nonsense in the legislation that is before us?

[Lord Howell of Guildford]

I thought that the noble Lord might raise that matter in relation to accession. He is obviously exercised by it and has, indeed, made clear his concerns over aspects of the Bill, which we debated at enormous length. I think that the best thing I can do is to give a very brief reply and say, no, I do not agree.

European Union Bill

Debate between Lord Howell of Guildford and Lord Liddle

Monday 13th June 2011 Lords Chamber

[Lord Liddle]

My Lords, we have had a long debate on this set of amendments. We on the opposition Front Bench strongly support this group of amendments, spoken to by the noble Lord, Lord Hannay. I shall focus our debate on Report on the essence of these amendments, which is to reduce the 56 varieties of referendum lock that the Bill contains to referenda on new treaties and three major issues: joining the euro, joining Schengen and the setting up of a single European army or force, as my noble friend Lady Symons mentioned.

What people who accuse us of proposing a set of wrecking amendments have to take into account is that the Bill as amended would be a substantial step forward in public accountability as far as the European Union is concerned. There could be no major new treaties containing the kind of proposal that former Prime Minister Tony Blair floated last week—for an elected president of the European Union—without a referendum. We could not join the euro, which clearly might now mean significant steps towards a fiscal union, under the amendments in this group. We could not join Schengen, which would certainly mean abolishing our own border controls and replacing them with border controls at the EU frontier, a common set of asylum rules, burden sharing and so on. Under the amendments that we are proposing, that would be subject to a referendum, as would a major step towards common defence.

Therefore, these amendments do not wreck this Bill; they just make it more sensible and get rid of the huge number of referenda in it. That is wholly in line with the spirit of your Lordships’ Constitution Committee’s recommendation that referenda should be confined to matters of major constitutional significance. One of the curiosities of the many days of debate that we have had is that we have never heard why the Government think they can set aside in this way the recommendations of your Lordships’ committee on these specific matters when it comes to the European Union. On all these other matters—on which, if this amendment were passed, there would be no need for a referendum—there would still be a need for an Act of Parliament. That is an enormous change from the position that we are in now. We are not wrecking this Bill; we are trying to improve it. I hope that on that basis the Government might be prepared to show a flexibility that they have so far lacked in these debates.

One of the very wise contributions to this discussion was made by my noble friend Lord Rowlands. In a distinguished career in another place, he was a sceptic in the proper sense of the word and had to be convinced about the case for Britain’s membership of the European Union and the pooling of sovereignty that it involved. However, as he said, we are setting up a far too overcomplicated process of accountability with the plethora of referendums proposed. What I find difficult about this is why the presumed lack of legitimacy of the European Union is seen as being so peculiar and special compared with the huge problems that our democracy as a whole faces in today’s world.

I looked at the Eurobarometer opinion poll for October 2010—that poll asks people questions about trust on a regular basis—and found that a very depressing 64 per cent of the British people do not trust the European Union. That is why we accept that there is a legitimacy problem. However, it seems that 66 per cent do not trust the British Parliament, 67 per cent do not trust the UK Government and 82 per cent do not trust political parties in Britain, so what is so peculiar about the lack of legitimacy of the European Union compared with the rest of our democracy?

It is argued either that confidence in Europe has been destroyed by so-called competence creep or that we face lots of threats to our sovereignty in future. As my noble friend Lord Triesman has said many times, if you are in government and do not want to do something, you just say no. The noble Lord, Lord Lamont, made a very interesting speech in which he pointed out that there is a very distinctive issue about the irreversible nature of the surrenders of sovereignty that take place in the European Union and the problems of a Union that moves by a process of intergovernmental compromise. Many of us who are pro-Europeans have been worried about this issue for many years and have wanted to think of ways of closing that democratic deficit. Certainly, we should have a debate about the role of the European Parliament, which plays a much bigger role now than it did 15 years ago, largely because of the treaties that the noble Baroness, Lady Symons, when she was leading for the Government, put through this House. However, I presume that the noble Lord, Lord Lamont, would not regard those treaties or the strengthening of the European Parliament as being good things. I agree with him that we have to think of ways of addressing that democratic deficit, but I suspect that he is not prepared to accept these kinds of remedies.

There is a problem of legitimacy vis-à-vis Europe that is particular to Britain, because over decades we have failed to establish a cross-party consensus about our membership of the European Union and failed to argue the case for British membership with a united voice. Amendment 31—which we shall discuss later; the noble Lord, Lord Radice, moved it in Committee—will try to address that problem in part. However, there is another explanation of why the EU has run into problems. The explanation is, as I said at Second Reading, that there are two ways of looking at legitimacy. One is to think about it in terms of how decisions are approved, but the other is to think about whether the institution is effective at doing the job that it is supposed to do. One of the problems with Europe is that it is not as effective as it could be, and this causes public disillusion.

I looked at a poll carried out last November about attitudes to the European Union. If you ask a general question—do people think that we should co-operate more or do they want us to loosen the links with the European Union?—only 21 per cent want us to co-operate more, but 49 per cent would have us loosen the links. However, when you ask people questions about specific areas such as climate change, attacking terrorism and crime, regulating banks, minimum rights for workers, or minimum levels of tax on business, a strong majority in Britain want the European Union to do more. I therefore argue that it is not a question just of how decisions are taken, but of how we make Europe effective. That is what we ought to focus on in our debate.

Finally, in support of the amendment, perhaps I may say that we have had a good and long debate, but one of the depressing things about it is a tendency to be historical, to look back to the past, to take trips down memory lane, and to look at the debates in the 1950s, 1960s and 1970s. I am very prone to that tendency, and this is therefore a self-criticism. When we think about Europe, we really should remember that the world of which the European Union is part is transforming itself at enormous speed. Since the Maastricht treaty, communism has fallen and that aspect of the world has changed enormously, the Arab world is in revolution, China has risen enormously as a power, and the weight of the European Union in the world is decreasing at a rapid rate. Our weight in the world as the United Kingdom is decreasing at an even more rapid rate.

Yet, in response to these extraordinary developments of the past 20 years, this Government have come forward with a policy on Europe that is essentially, “Thus far and no further”. In other words, “We have no imagination about how the European Union might develop. We are saying there should be no change without a referendum”. This is a depressing attitude that destroys the flexibility that a British Government should have to respond to an unpredictable and unknowable future. I urge the House to support these amendments because they confine referendums to the really big issues on which the people ought to decide.

[The Minister of State, Foreign and Commonwealth Office (Lord Howell of Guildford)]

My Lords, we have had a rather amazing debate in which I found all kinds of echoes of agreement that did not seem to be there in the darker days of May when your Lordships first went into Committee to examine the details of the Bill. We have come a long way since then and there seems to be a greater appreciation—not necessarily combined with agreement—about some of the issues that the Bill seeks to address.

We have of course been down memory lane with the various comments by noble Lords who have been extremely experienced in European affairs over almost half a century. Edmund Burke featured again, although I must say that the more I think about that great man, the more I hear in my mind his remark, “Show me the man; show me the things”. In other words, he was interested in the situation as it actually was, rather than in the high theory of how it ought to be. I did not agree with the final remarks of the noble Lord, Lord Liddle. He should not be depressed because the possibilities for our leading in European reform are much greater than he accepts, although he is an expert in these matters. He is entirely right to say that the landscape has changed and that we are dealing with an entirely new situation.

European Union Bill

Debate between Lord Howell of Guildford and Lord Liddle

Wednesday 8th June 2011 Lords Chamber

[Lord Howell of Guildford]

I think that we are arguing in a circle because the Bill provides the significance test and matters in paragraphs (i) and (j) of Clause 4(1), which I have described, might well be ruled by Ministers not to be significant, and therefore there would be no referendum. Furthermore, in Clause 4(1) there is a whole string of exempt conditions where no referendum will occur. Therefore, I do not see what the noble Lord is worried about. As regards issues that are deemed to be insignificant, or issues that are deemed to fall under Clause 4(4)—sorry, I said Clause 4(1), whereas I meant Clause 4(4)—Clause 4(4) states that:

“A treaty or Article 48(6) decision does not fall within this section merely because it involves one or more of the following”.

There is your list. There are the things that are not significant which will not attract a referendum. The noble Lord was speaking with great feeling and fervour but I cannot see that his worry is well founded. I am clear that this amendment would not assist the purposes of the Bill and would undermine certain values and aims of the coalition’s European policy. On that basis, I strongly urge the noble Lord to withdraw it.

[Lord Liddle]

My Lords, I will withdraw the amendment, but the Government are making a major mistake in not listening to the points made not just from the opposition Benches but from the Cross Benches as well about the necessity to keep open some flexibility to deal with the unforeseen. If the United Kingdom wants to resist major treaty change, we will almost certainly have to propose minor changes which would demonstrate a willingness to deal with the practical realities of the situation that the EU would be facing. It is the Government who are not living in the real world and not facing up to what it is necessary to do if we are to be an effective member of the European Union in the years ahead. I regret very much having to say that, but with that I beg leave to withdraw the amendment.

European Union Bill

Debate between Lord Howell of Guildford and Lord Liddle

Wednesday 8th June 2011 Lords Chamber

[Lord Liddle]

My Lords, I rise to move this amendment in a purely formal way. I anticipate that, in speaking to Amendment 2, the noble Lord, Lord Howell, will give us assurances that will enable us to withdraw this amendment, but without further ado I would like to hear what he has to say.

[The Minister of State, Foreign and Commonwealth Office (Lord Howell of Guildford)]

My Lords, I am grateful to those noble Lords who have sought, through the tabling of these amendments and in Committee, to clarify the spirit of the provisions in the relevant clauses of the Bill by tabling all but one of the amendments before us in this group. I am also grateful to the noble Lord, Lord Liddle, who has just indicated that he is moving his amendment formally in order, quite rightly, to elicit from the Government our case for the amendment that we have tabled within the group.

As my noble friend Lord Wallace made clear in Committee, it has not been and nor should it be the Government’s intention to tie the hands of Ministers and their officials who negotiate assiduously in the development of European Union legislation in order to protect and maximise the UK’s interests and priorities. The fact is that Ministers and officials have participated constructively for many years in the earlier stages of the development and negotiation of various EU measures, and nothing in this Bill will prevent that from continuing in the same way. When it comes to the point at which the final decision is taken in the European Council or the Council, what the provisions of the Bill are designed to do is to prevent a Minister from voting in favour of a treaty or other measure specified in Part 1 at this final stage, or otherwise allow the adoption of a treaty or measure to happen, unless and until he or she has the approval specified in the relevant clause of the Bill. As we know, this may be an Act of Parliament or it may be an Act and a referendum where there is a transfer of competence or power. The Bill does not prevent the Government from signing up finally to and participating in anything at the EU level, but Ministers would first have to have the support of Parliament and, where necessary, of the British people before doing so.

The amendment tabled in my name in the Marshalled List makes the position crystal clear, and I hope to the satisfaction of noble Lords. The effect of the amendment will of course govern the use of the phraseology we are concerned with throughout the whole Bill, and therefore not oblige us to table a series of consequential amendments because this change to Clause 1, which is interpretive, will govern the whole Bill.

As my noble friend Lord Wallace explained in Committee, the words we are concerned with, “or otherwise supporting”, are included to make clear that, at the point of the final and formal decision in Council or the European Council, a Minister would be unable to allow a measure to be adopted in Council or the European Council through means other than a positive vote, which under this Bill would have to be preceded by the necessary national procedures—namely, an Act and a referendum, if required. Articles 235(1) of the Treaty on the Functioning of the European Union and Article 238(4) make clear that abstentions at the point of final and formal decision in Council do not serve to block, but rather are treated as support for the adoption of a proposal requiring unanimity. Therefore, letting a measure through by abstention in the Council and then claiming by way of excuse or explanation, as it were, that although it transferred competences or powers and should have had national approval somehow it slipped through and Ministers could not help it, would not be allowed.

In addition, as many of your Lordships know, in Brussels matters often do not proceed to a formal vote. The chairman may just seek the sense of the room, and if no one dissents, take it that the proposal has been finally agreed unanimously. It is then ticked and it goes through. That could happen only after national procedures, which would require parliamentary approval, while if competences and powers are being transferred, it would of course require a referendum. So the phrase “or otherwise supporting” seeks to ensure that Parliament and the British people can be confident that there is no possibility that any inaction on the part of the Government of the day could allow a measure to be finally decided and agreed without the proper approval of Parliament or the people or, indeed, both. To allow a measure to be adopted in such a way would represent a sleight of hand that would cheat both this Parliament and the public out of their rightful say.

My noble friend also made the point that, in this way, the Government were replicating the phrase used by the 2008 Act, which was introduced by the previous Government when Parliament was approving the ratification of the Lisbon treaty. However, we accept the point—made, I think, by the noble Lord, Lord Davies of Stamford—that, although that was the position before, there is no reason why we cannot improve the drafting of provisions from the past, as indeed we can improve on much else that went on during the past Government and seek to do so.

We have reflected further on this point, as we have on all the amendments tabled in Committee, as we should. For the reasons I have given, we have tabled a government amendment to spell out, in the interpretation in Clause 1, exactly what is meant by “or otherwise supporting” and to explain when and where it applies: to wit, that it is only at the final and formal stage in the Council, or the European Council, that the bar on voting for or abstaining on—in other words, otherwise supporting—measures applies, unless or until there is parliamentary and, where necessary, public approval, in which case of course the support could go forward.

We feel that providing this amendment to the definition provides the clarity that noble Lords were seeking in their amendments. It spells out unambiguously the limitations on Ministers and in doing so makes clear—and I make clear now—that this and future Governments may negotiate proposals in future in the same way as they do now and they should seek the views of the scrutiny committees of both Houses in the same way as they do now and undertake any other existing national approval procedures that are required before finally agreeing to a proposal in the European Council or the Council.

That is the position. I hope noble Lords will accept that clarifies the concerns we all had in Committee on this matter and therefore I will beg to move the Government’s amendment. This will confirm to noble Lords that we have heard and addressed their concerns. I ask the noble Lord to withdraw his amendment, which seeks an exactly similar effect.

--- Later in debate ---

[Lord Howell of Guildford]

I am grateful for those remarks.

[Lord Liddle]

My Lords, I would not go as far as the noble Baroness in describing this as a major concession in the Bill. However, in the spirit of good will in the consideration of the Bill on Report, we are prepared to withdraw the amendments in my name in the light of what the noble Lord, Lord Howell, has said, subject only to two points of clarification: first, that his letter to the noble Lord, Lord Hannay, will be deposited in the Library; and, secondly, that we are absolutely clear that the amendment to the interpretative clause, Clause 1(7), does therefore govern all the other references to “otherwise support” in the rest of the Bill, and that no one is going to turn around at a later stage and say that a Minister cannot publicly advocate a position, either in the Council or in a wider forum, until the point at which a formal decision has to be taken, so it is possible for Ministers publicly to advocate their support for a position, subject to the final decision having passed all the requirements of this eventual Act.

[Lord Howell of Guildford]

My Lords, as a final word I repeat that the definition will apply to any use of this wording elsewhere in the Bill. That is the definitive statement I am making, and that applies.

[Lord Liddle]

On that understanding, I withdraw the amendment.

European Union Bill

Debate between Lord Howell of Guildford and Lord Liddle

Wednesday 25th May 2011 Lords Chamber

[Lord Liddle]

I think we should thank the noble Lord for that, so that we can get on to our quick lunch and then to President Obama.

This debate on sunset clauses has been important. Amendment 63 is in my name. Frankly, I would happily support any of the amendments, because in this long Committee stage the Government have failed to make the case for the detail of the Bill as it stands. Because they have not done so, we are legitimate in proposing a sunset arrangement. Of course, on this side of the House we accept that there is a genuine issue about the popular legitimacy of the European Union. That is a matter for regret from our perspective, but it has to be addressed. The best way in which it could be addressed in this country is by establishing a cross-party consensus in favour of our membership of the European Union and for all parties to speak in that way. I do not think that the Bill is going to do much to establish that cross-party consensus, but it is an opportunity to address anti-Europeanism in our country. The rise of populist parties in other parts of Europe is also a matter of great concern. Britain is not alone in facing this legitimacy question.

We need to do something to strengthen the EU’s legitimacy, but do we need this Bill? There are features of the Bill that the Government have put forward that we are prepared to accept. They represent a strengthening of parliamentary accountability and of the circumstances in which referenda might be held. We now accept, which was not the case when the Lisbon treaty was ratified, that most of the things that come under passerelles and other consequentials of the Lisbon treaty should require a full Act of Parliament. I say to the noble Viscount, Lord Trenchard, that this side supports strengthening parliamentary accountability over what decisions the Government take in Europe. On that, we are agreed. We also accept the codification in statute of the political consensus that we would have to have a referendum to join the euro and that referenda should be considered on issues of major constitutional significance. As I said earlier in Committee, a major constitutional treaty that, for instance, led to the direct election of the president of Europe would be that kind of constitutional change that would require a referendum. There is also a strong case to be considered for referenda should we wish at some stage in our national interest to surrender our border controls or to establish a common defence force. These are very big issues which could be suitable for referenda.

This Bill does not do that. It does not focus on the simple, straightforward case that in most issues you should strengthen parliamentary accountability and then on really big issues you should accommodate the possibility of referenda. Instead, it puts in place multiple referendum locks. We count 56, although I am not quite sure whether that number is right. This is a wholly new constitutional innovation on which many Members on all sides of the Committee have expressed severe reservations. In the course of the Committee, we have tried to reduce the number of referendum locks. We have argued, again with the support of a broad range of opinion in this Committee, that Ministers should be able to exercise judgment about which matters are significant on many of the minor changes and minor treaty revisions on which this Bill imposes a referendum lock. We have argued for a parliamentary process—a Joint Committee of both Houses—to consider where referenda might be necessary. We have supported amendments that would simplify Clause 6 and boil down the number of referendum locks to the really big issues.

We have had no give from the Government on any of those issues through this long Committee. That is why we come back to say that the Government have not been prepared in any way to consider the wide range of opinion in this House that the Bill needs substantial amendment, so it is right to suggest that if it is to stay as it is, the whole thing should be sunsetted. I do not blame the Minister for that; I think he has very little freedom to make concessions in this House. The only time we will get concessions from the Government is if, in voting on Report, we can make changes to the Bill. We have no intention of pressing the issues to a vote today. The whole Bill rests on the misjudgment that the leadership of the coalition has made that Europe is somehow a dead issue in our national politics; that the Lisbon treaty was, as it were, Europe's last gasp in terms of changes in its constitutional architecture; and that the Bill is therefore a cheap bone that can be thrown to the many Eurosceptics on the Benches supporting the coalition in the House of Commons.

That is a great shame for a couple of reasons. First, as the noble Lord, Lord Kerr, said, no one can precisely foretell now how the European Union might have to adapt in future. Therefore, the warning of the Council’s former legal adviser, Jean-Claude Piris, that Britain might find that others go ahead and Britain is marginalised, is likely to prove correct were the Bill to last for the longer term. It could have that very damaging long-term effect on Britain's position in Europe. That is a shame, because the coalition Government, in their day-to-day policy on Europe, are trying to be positive. They present the Janus-faced stance of appealing to the anti-Europeans with this disgraceful piece of legislation on the one hand; and yet, when they go to Brussels, they try to present a positive picture of Britain's role in Europe. They signed up for the defence treaty with France. They have argued for deepening the single market. I would not disagree with a word of the speech to be made today by David Lidington, the Europe Minister, which was trailed in the Financial Times this morning. The Government are being positive, but the truth is that, were the coalition to stay in power—of course I would not wish for that—or the Conservatives to be in power for the longer term, if they wish to pursue a positive European policy, because there will need to be adjustments to the rules over time as well as to decisions, they will find their Bill increasingly an albatross. I think that it was my noble friend Lord Davies who described it as the handcuffs of the multiple referenda.

That is a great pity, because far from Europe being a dead issue, we are at a turning point in our national affairs where, in economics, we have in this country to search for a new economic model. We have to rebalance our economy, which can be done only through rebuilding our export strength. Nothing is more important for that than our full engagement in the European single market, and therefore we have to be as co-operative and positive as we can. In terms of our role in the world, we should heed what the noble and learned Lord, Lord Howe, said in his speeches both today and a couple of days ago. As Asia emerges ever stronger, Britain is more dependent on the influence it can multiply through the European Union to have a role in the world. These are big reasons for showing our full commitment to Europe and why we have to be prepared to be flexible in our dealings with our partners rather than lock ourselves out, which is what the impact of this Bill will be.

In conclusion, like the noble Lord, Lord Kerr, who quoted from A Midsummer Night’s Dream, on this side of the Chamber we believe that the European Union is a lasting dream, but this Bill is a nightmare and should be sunsetted at the Report stage.

[The Minister of State, Foreign and Commonwealth Office (Lord Howell of Guildford)]

My Lords, I thank all noble Lords who have participated in this debate, sometimes colourfully. There have been a lot of references to William Shakespeare, which I was rather glad about, having spent many years as a director of the Globe Theatre. I have sat through some Shakespeare which, frankly, I could not understand, but in other plays I have heard some wonderful, inner-illuminating phrases, so I am glad they have come into our debate. The noble Lord, Lord Kerr, has led the way in that. As to whether he is Prospero doing such things as cannot be described, whether he is King Lear, or whether he remains in his midsummer night’s dream, I do not know. Perhaps I should leave Shakespeare there.

I thank the noble Lord, Lord Liddle, for his presentation of his party’s position. I listened carefully to him, and if I may put this in a non-derogatory way, I would say that his speech was constructive in parts. He is right that we are at a turning point in the European Union. Indeed, one of my criticisms of some of the comments made during this long Committee stage is that we seem to be discussing the EU of yesteryear, a sort of pre-Lisbon world. Not only are we in a post-Lisbon world, we are moving into an entirely new international landscape where power is distributed in different ways. We have all said this to each other, and I know that your Lordships are acutely aware of it, possibly more than other bodies are.

There is a new international scene that requires new policies and approaches by both the member states and the European Union itself. The noble Lord was therefore right to say that we need to build a new consensus in support of the European Union and our role in it, but I must say that he has failed utterly to convince me in his various interventions, including this one, that the flexibility which Her Majesty’s Opposition seem so keen on and so anxious to see, would not turn out to fill the Bill with holes and undermine all our efforts to create consensus and restore the confidence and trust of the people so that they do not feel that the political class—Governments and Parliament—was not undermining their position in a stealthy way. This seems to me to be a contradiction that is not yet clear.

We will come to Report after the Recess. A great many wise and useful things have been said by Members on all sides in our Committee debates, and of course the Government will consider everything that has been said. My colleagues and I shall certainly do so before we reach the next stage. That almost goes without saying. For the moment, however, I must address the amendments before us, all four of them, about the idea of a sunset clause. It will not be much of a surprise to your Lordships when I say that the coalition Government, for which I am the mouthpiece today, oppose the proposal for a sunset clause. Although I know I shall not get full agreement, I shall try to set out as precisely and as clearly as I can why we do so.

Let us start with the general proposition of including a sunset clause, and why it would be absolutely unprecedented and extraordinary to include one in this kind of legislation, which is constitutional legislation—there is no disguising that—and intended to build a consensus to improve and enlarge our democracy in the modern world, in the midst of this informational revolution that has transformed the whole nature of public domain and decision-making, and to give the British people a greater say, which they clearly want, over important decisions on the future direction of the EU.

I do not at all share the view that these are obscure and arcane issues that no one discusses. On the contrary, particularly the much-maligned Schedule 1 issues, and indeed many others in Clause 6, are highly contentious so-called red-line issues which both Parliament and the public have stormed over—and the media have often joined in in ways that some of us find unattractive and not suitably calibrated. However, these are red-hot issues. The idea that they are not absolutely central to the concerns of the British people—to how we govern ourselves, position ourselves in the European Union and conduct our domestic affairs—seems to me not to be of the real world.

These are very serious and central issues. The truth is that a sunset clause of the kind proposed—we are dealing with a number of different aspects, which of course I want to come to—would seriously undermine our attempts to reconnect the British people with the European Union in its changing form and the decisions taken in their name. Here I would say that I do not think that the noble Lord, Lord Pearson, will accept—but I ask him to accept—that I am very tempted to have a lovely debate on the eurozone in all its aspects, but I do not think that this is quite the opportunity or even the time to do so.

Let me return to this general idea that there should be a sunset clause in a Bill such as this. There were no sunset clauses, of course, in the Constitutional Reform and Governance Act 2010 or, indeed, the European Communities Act 1972, and there is a very good reason for that. Such clauses would be a recipe for uncertainty where certainty is most needed, namely in the framework by which our democracy works. This Bill belongs to the family of certainty-building and not to the family of those who wish to experiment and say, “Let’s just try this measure once and then close it down again”. It would hamper our efforts to rebuild the trust of the people that has been lost in recent years. Why? It would hamper them because we as a Parliament, and the Government as well, would be saying to the British people, “You can have a say on future transfers of competence or power from Britain to the EU, but sorry, it’s only for a limited period unless the Government decide in their wisdom that the right should continue”. That seems to me to be completely the wrong way to go about the purposes, which even the noble Lord, Lord Liddle, seemed to share to some extent, behind the Bill. It would of course also absolutely guarantee the further alienation of Government and Parliament from the people whom we are supposed to serve and whose support and understanding of the values of our effective membership of the European Union we want to increase. It would be a retrograde step in the whole battle—

European Union Bill

Debate between Lord Howell of Guildford and Lord Liddle

Monday 23rd May 2011 Lords Chamber

[Lord Liddle]

I will say something on this, prompted by the Minister’s speech, just to oppose that Clause 18 should stand part of the Bill. We have had an excellent discussion—civilised, expert, well argued and showing the real quality of the House of Lords. The noble Lord, Lord Howell, at the end did his best to explain why the Government think that the inclusion of this clause is necessary. I am no lawyer—one comes to these matters as a bird of little brain—but we will have to give what he said in his speech a lot of thought over the Recess. I am glad that we have the Recess to think about it.

The fundamental question at the back of my mind on this clause—and at the back of the minds of many Members who have moved amendments to it—which the Government have failed to answer, is: why is this clause required now? We have been members of the European Union satisfactorily for nearly 40 years. Why do we need to introduce this clause at this stage? How will it improve our relationship with the EU? I have not come across a good, objective answer to that question. I am sorry to lower the tone and talk about crude politics but I think the reason why this clause is included is because it is intended to satisfy and appease some of the worst elements—from our point of view—of feeling about Europe in this country.

I have always believed in something that I call the Dora Gaitskell principle of politics. This is based on the story that when Hugh Gaitskell made his great “thousand years of British history” speech at the Labour conference in 1962, and it was a tremendous success and the hall rose—the noble Baroness, Lady Williams, was probably there—Dora turned to Hugh and said, “But Hugh, all the wrong people are cheering”. I wonder who is cheering this sovereignty clause. Why are the Government doing this? The whole idea of introducing some sort of sovereignty clause goes back a long way. I was not at the Labour conference in 1962 but I had to listen to the comments of the Common Market Safeguards Campaign and the Labour Common Market Safeguards Committee in the 1970s. I remember Peter Shore, for whom I had the greatest respect as an individual, strongly putting forward the argument that we should renege on Section 2 of the European Communities Act. For the past 20 years we have had the redoubtable and indefatigable William Cash making these kind of arguments in the other place.

The Government have to explain to us why, after 40 years of membership, we need this clause now. My fear is that anything we do in this area will be misinterpreted and will be an invitation to the courts to change what has been a relatively clear position up to now. That is why we must come back to this issue with all seriousness on Report. With that, I withdraw my opposition at this stage to Clause 18 standing part of the Bill.

[Lord Howell of Guildford]

My Lords, the noble Lord has touched on a number of the issues that we have already covered. He asks yet again why the clause is there. The noble Lord, Lord Hannay, slightly mocks the coalition, and mocks me, by suggesting that this all turns on the prosecution’s line in a particular case. It does not, of course; it turns on a very wide number of views. I do not know whether he has studied all the academic views submitted to the scrutiny committee in the other place, but they were substantial. They reflect a substantial body of thought which asserts that EU law is autonomous and independent. This measure is in line with the practice of other member states. Germany’s Federal Constitutional Court, the Bundesverfassungsgericht, ruled in 1993 in the case of Brunner v the European Union Treaty—this was in the Common Market Law Reports 57—that Community law applies in Germany only because laws passed by the German Parliament say that it does. Therefore, although the noble Lord, Lord Lea of Crondall, put it extremely kindly when he said that we are raising the bar above others, I am not sure that that is so. In some cases, we are actually catching up with others. We are simply moving to a position of declaring that the will of Parliament is supreme in all our laws in this kingdom, but that Parliament has willed that EU law should have supremacy. That is and has been the position since we passed the 1972 Act all those long nights and years ago, as my noble and learned friend Lord Howe reminded us.

There it is. I have clearly listened carefully to this excellent and learned debate. I owed it to the House and to your Lordships to explain why the coalition reached the view that a clause of this kind, after careful consideration, should be worded in this way. That is particularly important because I hope that the clause now carries a little more support from my noble and learned friend Lord Mackay of Clashfern, the noble Lord, Lord Armstrong, and others. I tried to explain the position as clearly as possible. We have a good and valuable case that reinforces our stance vis-à-vis Europe, which is, as I said, positive and constructive in the dangerous and fluid world where new and positive thoughts are urgently required.

European Union Bill

Debate between Lord Howell of Guildford and Lord Liddle

Monday 16th May 2011 Lords Chamber

[Lord Howell of Guildford]

My difficulty in answering that question is due to the difficulty that the Opposition have in stating why they want particular treaty amendments and expansions of the powers and competences of the European Union. When we have pressed on this matter, it has been a bit like “King Lear”: the Opposition seem to want to do “such things” and there will be uncertain futures in which new powers will somehow be needed for the European Union. Therefore, they want to amend the Bill by removing areas where the Bill would prevent the surrender of the veto. That would not prevent activity, because a huge range of competences accorded to the European Union allow it to be highly active in all these areas. However, the Opposition want to remove the vetoes on the big decisions. I think that they want a referendum on the euro, although I am not at all sure about the others and I want to go through them as we discuss these matters. The Opposition have not answered that. Why do they want these huge treaty changes, and why do they want the vetoes removed? It seems to me beyond understanding that they should want vetoes removed when so many powers and competences are now accorded to the European Union, and they can do all sorts of things to achieve the kind of Europe that we want in the future. If the Opposition have some new ideas for expanding the powers of the European Union, let them state them, otherwise we are left with a kind of “King Lear” situation—they will do “such things” as it is too difficult to mention at this time.

I want to turn to the 12 decisions in Clause 6, which cover highly sensitive areas. When I heard the noble Lord, Lord Liddle, call some of them trivial, it made me, in the words of Hilaire Belloc, gasp and stretch my eyes. When one looks at the reality of them—their real-world implications—they are anything but trivial. The big five decisions under Clause 6 include joining the eurozone, and there seems to be a general consensus that there should be a referendum on that. Incidentally, I reassure my noble friend Lord Lamont that there is not really a problem there at all. The referendum would take place before the UK took the decision, and the exchange rate would then be struck at a certain point in the middle of the night or whenever it was technically advisable to do so. I think that my noble friend put that in perfect perspective.

On the provisions relating to EU common defence, I think I heard the noble Lord, Lord Liddle, say such decisions could not necessarily lead to anything too serious—I do not want to parody him—because it was a complex issue and it might be desirable, I suppose he was saying, to give up the veto or decide to join without a referendum because not too much harm could come from it. That is miles from reality. In fact, under an EU common defence policy—on which we would urge there should be a referendum—we would no longer be able to decide independently which situations and developments we should respond to and which situations represented a threat to our national security, we would lose our ability to decide unilaterally which operations we would mount and it would no longer be our choice alone whether we should act independently or with whom we should act in concert. Of course, in this modern world we will always be acting in concert, but we decide. To say that is in the trivial category seems to me to be taking off to another planet.

[Lord Liddle]

I cannot recollect using the word “trivial”, to be quite honest. The key point we were trying to make is that, when he talks about a common defence as though we were going to pool all our military and have a common air force and a common army and all the rest, that is a complete straw man. That is not what anyone on the continent is proposing. The real issues in European defence are ones such as why we have—I cannot remember the precise figure—400,000 people under arms yet we can manage to mobilise only 5,000 for a particular operation and why, in terms of bang for the buck, Europe is so unbelievably inefficient, given all the different national procurement systems. When we are up against it on the defence budget, the Government are saying they are not interested in common procurement and how we make that work. What we are talking about is very small-scale, step-by-step, gradual changes that would be useful, not suddenly deciding that we want to have a common army and a common air force. It is ludicrous to say that the Opposition are in favour of that.

[Lord Howell of Guildford]

The Maastricht treaty and other treaties make clear that common defence means common control and common finance. There may be all sorts of arrangements short of that with some aspects of existing competencies already available to the European Union for all kinds of co-operation. I am going to come particularly to the question of enhanced co-operation and other military aspects in a moment. The noble Lord is splitting hairs. In the treaty it is perfectly clear what this step would involve. He says that there might be just one small step and it will be all right because we can have adjustments later on; that is not how it really works and certainly not how it works in law and under the treaties.

Let me move on, as I have plenty more to say on the other areas that were apparently described as trivial. Those included abolishing border controls—I feel it absolutely extraordinary to put that in the trivial category, as it is a major issue. Joining the European public prosecutor system, which is already in the treaty, or extending its powers when we had joined it is a very serious issue affecting the whole of our judicial system. Then we come to—

European Union Bill

Debate between Lord Howell of Guildford and Lord Liddle

Tuesday 3rd May 2011 Lords Chamber

[Lord Howell of Guildford]

I certainly do not want to make a habit of too many interruptions, as we all know that debate in this place goes more smoothly without, but the noble Lord has made a number of statements which jar so strongly with the reality that I have to ask him what he means by them. He says that the passerelle and other arrangements in the Lisbon treaty would enable rapid changes to be made but we all know that any treaty, including the one now going through, takes 21 months. How can 21 months possibly be described as rapid? Furthermore, he seems to assume that the efficient and effective operation of the European Union demands all kinds of new treaties and to ignore the fact that within the vast range of competences that it has, a great deal can, must and will be done. Countries throughout the European Union are extremely reluctant to embark upon the complex, long process of European treaty change. These are all facts and they contrast completely with what the noble Lord has said in the past five minutes.

[Lord Liddle]

The Minister has misunderstood what I have been trying to say. I apologise to the Committee if I have been giving a false impression but this amendment’s subject encapsulates fully the point that I am trying to make. What concerns us is: why tie up all the flexibilities that are within the existing, ratified structure of the Lisbon treaty, which were discussed in this House in the previous Parliament? Why tie all of those up in referendum locks that could have a very negative effect on Britain's power to act in its own interests within the European Union? That is the point and this amendment looks at one of those specific and unnecessary locks. Let me try and explain its point.

Clause 4(1)(m), which we debated last week, requires an automatic referendum if any amendment is moved to the Lisbon treaty, as it could be within the terms of that treaty, to alter the right of member states to ensure suspension of the legislative procedure. In Euro-speak, this is called the emergency brake and covers three areas of EU activity: social security, judicial co-operation and cross-border crime. It is the right of a member state to refer a matter where legislation is proposed in those areas to the European Council before the legislation can proceed any further. Britain supported emergency brakes in these areas in the passage of the Lisbon treaty. It did so because the previous Government thought that as regards social security, judicial co-operation and cross-border crime there might well be an argument in principle for more Europe. Indeed, there were compelling arguments for more Europe in this area but as a safeguard, just in case we did not like the look of the way things were going, we wanted to see how it worked. Therefore there was a need for an emergency brake.

The logic of this very pragmatic position is that if we find in future years that the European Community is doing a good job in these fields, we will be prepared to rid ourselves of that emergency brake provision. Those who are disposed by nature to see everything that the EU does as a threat will never believe that anything can work, but those of us who think that it can be an opportunity should be open-minded about the possibility of the changes that are provided for in the Lisbon treaty.

I argue that these three areas are issues that are not of the highest national importance, like whether we join the euro, but are of significant importance where change might be necessary in processes that the Government might want to agree to. However, the Bill will require an automatic referendum. Look at them: first, social security legislation, which, as we know, is tied up with the right to work, study, and settle for retirement wherever you want in the EU, which is one of its most appealing citizenship rights; secondly, judicial co-operation, which is essential if we are going to effectively tackle the terrorist threats of the kind that the noble Lord, Lord Strathclyde, talked about earlier in his Statement on Osama bin Laden; and thirdly, cross-border crime, in terms of which we are all aware of the increasing problems of criminal gangs operated from outside the EU but often on its borders, in countries like Russia and some parts of the Balkans.

Surely we want to retain the flexibility to make Europe effective in those areas. That may require changes in these so-called emergency-brake provisions but, on a narrow but significant point, the Government are saying, “Oh no, we can’t do anything for at least seven years or so because we have to have a referendum and we are certainly not going to do anything about that this Parliament”. The argument from this side of the House is a different one: let us not tie ourselves up in these knots but have the confidence that in a representative democracy Parliament should deal with these questions; there is no place for a referendum on them.

EU and NATO: Peace in Europe

Debate between Lord Howell of Guildford and Lord Liddle

Thursday 28th April 2011 Lords Chamber

[Lord Howell of Guildford]

I think I heard a bit of immoderation the other way at that point. There is reason and sense in all these points of view and if anyone strives to go too far in claiming perfection for one organisation over the other it is bound to produce a reaction, which is just what we are hearing today.

[Lord Liddle]

Does the Minister agree that instead of this raking over the past of whether NATO or the EU made the biggest contribution to peace we should be looking to the future? Does he accept that this is a future where our great ally the United States, the anchor of NATO, is looking to Europe to step up to the plate and live up to its responsibilities in Libya and north Africa and that there is a huge responsibility on the British Government, with our French allies, to persuade the rest of Europe to live up to those responsibilities? We will be successful in doing this only if we have a British Government who are fully committed to and not semi-detached from the European Union. Will he persuade the Prime Minister to make a strong case for a bigger role for Europe in accepting these wider responsibilities?

[Lord Howell of Guildford]

The noble Lord makes a number of points. It is certainly true that the United States is expecting the European Union to contribute more to the overall NATO scene as we are doing. This explains why the original worries of the United States about duplication and overlapping have evaporated and the EU and NATO are working very effectively together. The coalition Government believe that we should have a very positive role in the present European structure, in its reform and in meeting its future problems. However, there is a wider world as well, with which we have to connect, and many of these issues are not just American responsibilities or European responsibilities but global responsibilities requiring a global partnership.

European Union Bill

Debate between Lord Howell of Guildford and Lord Liddle

Tuesday 5th April 2011 Lords Chamber

[Lord Liddle]

With the greatest respect, I think that the noble Lord is confusing two things. I am looking in the direction of the noble Lord, Lord Kerr. I think that Article 48(6) deals with cases where there is a clear competence—for instance, in the case that I was talking about of the single market in financial services and in the previous case about the euro, the establishment of economic and monetary union and of a single currency. I think that the noble Lord is talking about the general clauses which are now subject, under the Lisbon treaty, to considerable constraints. I will look into that and perhaps we can have a discussion.

[The Minister of State, Foreign and Commonwealth Office (Lord Howell of Guildford)]

My Lords, it would be an implausible exaggeration to say that I have enjoyed this debate, but it is a privilege to hear the fine minds of many of your Lordships playing on these issues, which are undoubtedly complex. I do not make any apology for that, because much of the EU legislative scene is extremely complex, as are our relations with it. I strongly agree with the point made by the noble Lord, Lord Hannay, that although this seems to be an abstruse issue, which I shall address in great detail in a moment, it is also central and raises fundamental points about the whole nature and purpose of the Bill. I should also put in a good word for my Belgian friends, who came in for criticism of the kind that, frankly, I do not like. I will let that pass for the moment.

As the debate has ranged a little beyond the central point, to which the noble Lord, Lord Tomlinson, rightly urged we return, I hope that I will be allowed a few paragraphs trying to explain the context in which we come both to adherence to the central issue of the amendment and to the Bill.

We believe that there has been disaffection among the British electorate in recent years. I think that it is a mistake for the most enthusiastic supporters and builders of the European Union and our membership of it to ignore that fact, because it has led, through the successive handing over of powers to the EU—often for excellent reasons but without consultation with or the consent of the British people—to a good deal of distrust. That works totally against good Europeanism and an effective development and strengthening of the European Union, which are certainly required today.

The competences and powers have been handed over, in many cases—this is an argument that we have heard buzzing across the Floor of your Lordships’ House this afternoon—for good reasons. As my noble friend Lord Deben said, great things can be and have been gained by the handing over of competences and powers, whether or not you call it pooling of sovereignty. Others would argue, as we have heard today and often before, that the handing over of those powers has not been for the good. That wider debate has gone on and will continue in future.

Of course, the Bill does not concern what has been handed over in the past. I know that that is a matter of criticism for some of my noble friends and others in the other place, where there was considerable criticism that the Bill did not try to wind things back into the past, although it is worth reminding ourselves, as the noble Lord, Lord Stoddart, did, that the House of Commons passed the Bill and gave it to us for scrutiny, which we must perform in detail.

However, that fact of dissatisfaction cannot be dismissed or pushed aside by those who seek to understand the disquiet not just in the media and in the so-called anti-European or Eurosceptic papers but among a wide number of people and organisations, including some extremely learned people and leading lights in the legal profession. That is why the coalition’s programme for government gives the undertaking:

“The Government believes that Britain should play a leading role in an enlarged European Union, but that no further powers should be transferred”.

--- Later in debate ---

[Lord Howell of Guildford]

It is certainly true that in your Lordships’ House there has been a notable weight of criticism against the Bill. I fully accept that. I have to remind the noble Lord that the House of Commons passed this Bill without the opposition of his party. This is a House of Commons Bill, as the noble Lord, Lord Stoddart, reminded us. It could be that those who feel strongly and are most expert in aspects of it or feel most strongly about broader issues are those who come forward to speak.

[Lord Liddle]

The Minister said this at Second Reading. Labour put down a reasoned amendment in the other place which expressed many reservations about the Bill. It is not true to say that Labour did not oppose it.

[Lord Howell of Guildford]

Labour did not oppose the Bill overall, but it certainly urged that we should scrutinise it and that, by heavens, is what we are doing. No doubt we will be doing a good deal more of that.

With this legislation, we are, in our view, plainly acting in the spirit of the Laeken declaration, which noble Lords will remember urged that we should seek to find ways, which are widely recognised throughout the whole of the European Union, not just in this country, to bring the processes of the Union and its legislative procedures closer to the people. That was 10 years ago. It urged us to act on that basis. It seems to me timely—if anything, a little tardy—and certainly appropriate for the era in which we now live that we should bring forward legislation on which, we hope, we can build an architecture of faith and commitment to the European Union for the future and a building that we hope will last although, obviously, we would not like to see—we will be debating this later—future Governments remove the foundation stones from that architecture and destroy it. That would be a pity, but it will again be a matter of opinion and debate. The Bill is put forward with that kind of faith and intention in our minds. Frankly, calling it a fraud on the public is a deeply regrettable statement—deplorable, in my view—and not at all in line with the tone of debates in this House of Lords. I think that it is a pity that people should speak in that way.

I want to come to the core issue in the debate. The simplified revision procedure allows the European Council to decide to make amendments to the part of the Treaty on the Functioning of the European Union that concerns internal policies. That is what the noble Lord, Lord Kerr, stated quite clearly. This is the Article 48(6) issue. The noble Lord said that the treaty changes under the simplified revision procedure are not allowed to transfer further competence from the UK to the EU. Here I hesitate, because I am going to challenge the viewpoint and authority of the noble Lord, Lord Kerr, and many others, but certainly the noble Lord, Lord Kerr, who is a great expert. After all, he was, I understand, rapporteur of the European constitution, which came to, I am afraid, a sticky end, but he has vast expertise. However, it is possible to transfer further powers from this country to the institutions of the EU. The potential for a substantial amendment to be made under this mechanism means that we should treat, logically, changes under the simplified revision procedure in the same way as we would treat other types of change. I was challenged again and again about what sort of things are involved. I have a long list of powers in the past, present and future that will be affected by the transfer of powers.

--- Later in debate ---

[Lord Howell of Guildford]

I was just about to make points on the question raised. It would have been reasonable—I would not put it higher than that—for the noble Lord, whose wisdom I respect, to have allowed me to go ahead with what I was saying rather than interrupt me to say something that I was about to say and so lengthen the whole business: we have already been on this debate for two and a quarter hours. I plead with your Lordships that if we could just restrain ourselves a little we would make some progress.

I was turning to the important point about what other countries do when they are trying to get through treaty changes. That seemed to be absent from the attitude of many of the understandable critics among your Lordships about what is going on in the European Union. We heard speeches at Second Reading and in this debate implying that we were stepping out alone and marginalising Britain, that this was a completely different pattern and that we would cause the fury of other European member states. Incidentally, I am not sure that I can answer fully the noble Lord’s perfectly justifiable question on the consultations we have had and at what level with our European partners but I can assure noble Lords that all our posts in Europe have been fully briefed on this and have discussed it with their opposite numbers.

Let me just go through some of the immense hurdles, some of which are higher than anything we are proposing here, which many other member states already practise. In Austria, the President must certify that treaty changes are in conformity with the Austrian constitution. If changes are judged to be a revision of the federal constitution, a referendum is required. In Denmark, a referendum is constitutionally required if the treaty transfers competences to the EU and is not voted on by five-sixths of the majority in Parliament. In France, a referendum is required if a treaty change necessitates a constitutional amendment, and incidentally I notice that the French require a referendum on future accession treaties, which of course do not arise in this Bill. That may be to the dismay of some, and we can debate it later. In Ireland, a referendum is required if a treaty is thought to alter the scope and objectives of the European Union, as we know. In Lithuania, a referendum is mandatory according to the constitution if treaty changes involve the partial transfer of competences of government bodies to the institutions of the European Union. In Slovakia, a referendum would be held on a treaty which relinquished sovereignty to the European Union, although there is a rider that the Slovakian constitutional court can also consider the case. Similar referendums may be required in the Czech Republic, Greece and the Netherlands. I suspect that that is not the end of the list because I do not think I have mentioned the German position.

[Lord Liddle]

My Lords—

[Lord Howell of Guildford]

If I may just finish my sentence. The list builds up a picture of sensible attempts by member states who are enthusiastic supporters of the European Union to make sure that their people are closely involved in the processes wherever there is any transfer of competence or power.

If I must have another interruption, I will take it, but I only plead with your Lordships that we are getting to the point of completely unreasonable interruptions in what I am trying to say.

[Lord Liddle]

I am deeply sorry, but I think that there is a fundamental point to be made here. There is a confusion which should not be allowed to enter this discussion. What the Minister has read out are the constitutional requirements of member states for full treaty ratification, whereas in this set of amendments we are talking about what is required for the simplified revision procedure. It is there precisely to avoid this full rigmarole. Why are we putting this in the treaty?

[Lord Howell of Guildford]

It is simply because the simplified revision procedure involves changes in the treaty. In many cases I have described, particularly where the significant test is applied and is not satisfied under paragraphs (i) and (j) in Clause 4, there would not be referenda here or in many other countries. But in other areas, through the simplified revision procedure and part of what we called the passerelle in our impassioned debates on this issue in the House at the time of the Lisbon treaty, it is possible to generate either transfers of competence or transfers of power. These are things on which there would be a natural incentive for the better use of existing powers in order to achieve certain objectives, like better co-operation over civil nuclear power or one of the other things that has been raised. They would also be matters where a real effort would be made by all countries because of the complexity they all face in pushing through treaty changes of any kind; even some quite small changes would trigger elaborate procedures in other countries. There will be a natural and sensible tendency to avoid changes and developments that involve treaty changes.

We simply do not accept that there is an appetite in the European Union for a further round of treaty change, given the arduousness of the ratification process, let alone one that would transfer further power from the UK to the EU. We certainly do not subscribe to the view that the addition of the simplified revision procedure will launch a new culture of regular treaty changes that seek to transfer power on a single issue. That is not the way the system has worked or will work in the future, as those who have been involved in it will know. My last involvement was many decades ago, but I had my share of it back in the 1970s and 1980s. Nations will know that when they come to deal with these issues, they have political capital to spend and they will spend it carefully, not rush into treaty changes at every opportunity. It is highly improbable that all 27 member states will push to agree a treaty change unless it was considered both urgent and important, such as the European financial stability mechanism, which the noble Lord rightly mentioned. But even then, that urgent treaty is expected to take two years—I repeat, two years—to be approved by all member states. The proposition that tiny little treaty changes would somehow be pushed through and promote a referendum here when they take two years for any country to get through is an absurdity.

I know that this is complex but it is a comprehensive approach to the whole question of the transfer of competences and powers. I beg noble Lords to understand that that is the reality of the position. Otherwise, individual issues are bound to be deferred—this is going to be the natural way; it has worked in the past and it will work again—until a whole raft of issues requiring attention can be wrapped up and packaged. That would ensure one treaty change which would cover a multitude of issues and one ratification process and, where relevant, one vote, as was the case with the Lisbon treaty. We recognise the kind of creature that comes along—it is the Lisbon treaty. That is just the sort of amalgamation of small and large issues, some of which under this Bill would certainly require a referendum, that should be and should have been put to a referendum.

We disagree most strongly with the proposition—this House disagreed with it and I think we carried sensible public opinion with us in doing so—that the Lisbon treaty should be somehow brushed aside and not put to a referendum because of the arguments about whether it did or did not parallel the European constitution beforehand. The noble Lord, Lord Tomlinson, said it would not but he remembers, because he was a doughty campaigner in all those Lisbon debates, that there was a very strong sentiment the other way which remains to this day, enlivened and reinforced by the fact that if you actually read the words in the two documents, the constitution and the Lisbon treaty, they turn out over a broad stage, as the noble Lord, Lord Stoddart, knows very well, to be identical. We are not fools, and nor are the public when they are told about this matter.

I see that the noble Lord wants to intervene again.

Inter-parliamentary Scrutiny: EUC Report

Debate between Lord Howell of Guildford and Lord Liddle

Thursday 31st March 2011 Lords Chamber

[Lord Liddle]

My Lords, on behalf of the Opposition, I welcome this Motion from the noble Lord, Lord Roper. We support the recommendations for the establishment of an EU Inter-parliamentary Conference on Foreign Affairs and Defence and Security. We have had interesting contributions from my noble friend Lord Davies of Stamford and the noble Lords, Lord Dykes and Lord Jopling.

I could hardly do otherwise than support the committee recommendation, given that I was on the committee when the recommendation was formulated, but it seems to be a wise set of recommendations. As an historian I share in the nostalgia of the noble Lord, Lord Jopling, for the Western European Union, but the WEU was rather a long time dying, if I may put it like that. I first remember this coming up when the noble Lord, Lord Robertson of Port Ellen, was Secretary of State for Defence in 1998. We had a discussion between the Ministry of Defence and No. 10 and the Foreign Office when I was an adviser in No. 10 about folding the WEU into the existing NATO and EU structures. It has been a long time since Britain first put forward that proposal.

The recommendations that we now have are right. We need a body made up of national parliamentarians to maintain some form of parliamentary accountability in the area of EU defence and foreign policy. The EU is a complex hybrid of supranationalism and intergovernmentalism. It has become an even more complex one with the passage of the Lisbon treaty and the setting up of the double-hatted high representative who has both a responsibility in the Commission and is accountable to the Foreign Ministers’ Council. It is very important that, because the intergovernmental nature of these things remains crucial, there is a body made up of national parliaments which can question the high representative. It also seems to me that there is a very strong political case for this type of body. I am sure that the European role in these questions is going to grow greatly in the years ahead in response to the pressures of globalisation and the insistence of the US, as we see in the events in north Africa, that we live up to our responsibilities as Europeans. It is inevitable that Europe’s role will grow, but it is also inevitable that these matters, at least in the first instance, will be handled intergovernmentally, I suspect for quite a period. Therefore, it is very important that such a mechanism as proposed exists.

We support the committee’s recommendations on structure. They seem to provide for an efficient and cost-effective body. We welcome the efforts of the noble Lord, Lord Roper, to achieve consensus on these matters. I would say that the essence of the position should be that, first, this should be an EU-led body. That does not preclude having observers, but the primary focus should be the European Union, and I agree with the noble Lord, Lord Davies of Stamford, on that point. Secondly, the primacy within the body of national parliamentarians should be absolutely clear-cut. Thirdly—and here I agree with the noble Lord, Lord Jopling—the meetings should be in Brussels, because that is where we are most likely to get engagement with the key people. There should not be some fancy gallivanting off to the Azores, or elsewhere. Fourthly, because the meetings should be in Brussels, I think one has to be careful about how many Members of the European Parliament one tolerates within this new institution. I spent a lot of time rather enjoyably in the convention that was set up to discuss the EU constitutional treaty. It was a great innovation in that convention that there were representatives of national parliaments there, but they got rather quickly overwhelmed by the Brussels bubble. You have to watch that something that meets in Brussels does not become dominated by those who are based in Brussels.

Those are the principles on which I hope that the noble Lord, Lord Roper, will represent us in the meetings next week. We support this recommendation. This new body should be more than mere tokenism; we want it to be effective and serious. We hope that he will be able to come up with a consensus that meets our concerns.

[The Minister of State, Foreign and Commonwealth Office (Lord Howell of Guildford)]

My Lords, I join in the congratulations to the noble Lord, Lord Roper, on both bringing forward this Motion and for presiding over this excellent report and, indeed, if I may say so more widely, for the way that he administers his very influential and effective duties in the EU Committee structure, which are of enormous benefit not only to this House but to general debate on the pattern and development of all European Union affairs.

I also find myself ready to endorse almost everything that the noble Lord, Lord Liddle, said. He rightly emphasised the intergovernmental nature and how crucial it was that it should be preserved in this vital area. The only point where things slightly jarred was when he mentioned his work on the constitutional treaty. A shadow passed through my memory as I recalled that unhappy episode that, alas, did not lead to fruitful results. For the rest, the noble Lord has rightly endorsed some sensible proposals.

The Government attach significant importance to the issue of parliamentary scrutiny of the EU’s common security and defence policy and want to ensure that the cross-European parliamentary debate on European defence issues, performed currently—and for the next few months—by the WEU Assembly, continues. Inter-parliamentary discussion serves to enhance and enlighten the national scrutiny work of Parliaments and complements the breadth of knowledge that already exists in this House. This can only be a good thing; I am unambiguous about that.

Let me be clear to your Lordships about the Government’s role in this process. In March last year, Governments decided to close up the Western European Union, the bulk of its functions having already transferred to the European Union. I share my noble friend Lord Jopling’s tinge of nostalgia, since it seems to me that the WEU was part of our lives in at least the last three or four decades of the previous century. Many of us regard it as a familiar part of the European Union landscape, but times pass and the decision to close it up has been taken.

In doing so, we recognised the value of the continuing inter-parliamentary debate on European defence and security so, to ensure that a future forum could be established to facilitate that, we have worked to help discussion with interested parliamentarians on how this might be taken forward. During those discussions, we set out the Government's preferences for such a body, but it is obviously for national European parliamentarians to decide the form that future scrutiny arrangements should take. It is certainly not for the Government to dictate the terms; that would be quite wrong.

The Government's priorities in this process are clear. First, we believe in the primacy of national parliamentary scrutiny of the EU’s common foreign security policy. That reflects the policy’s intergovernmental nature, which we have all emphasised, and within it, the common security and defence policy. These are intergovernmental matters and, given the role played by national parliaments, there is no need for any new arrangements to involve expanding the European Parliament’s competence to scrutinise CFSP. While the European Parliament has a role, as is recognised in the report, we believe that an inter-parliamentary body better reflects the intergovernmental nature of CFSP.

Secondly, we believe that any new arrangements should be better suited to supporting and informing the national security process. They should capitalise on the expertise of relevant parliamentarians in this policy area and allow for a free and open exchange of information among European states.

Thirdly, new arrangements need to demonstrate value for money to the taxpayer, as many of your Lordships have emphasised. Given the current financial pressures facing Europe and all its member states, we support the proposal in the EU Committee report that any future mechanism for inter-parliamentary dialogue on CSDP should operate with the minimum possible cost and bureaucracy. The UK’s current annual subscription to the WEU is €2.3 million. While the WEU Assembly played a useful role in engaging views from across Europe, we and other WEU council members believe that this inter-parliamentary debating function can be delivered much more efficiently outside the WEU structures. The new body, as envisaged in the EU Committee report, will operate at a fraction of the current cost and, more appropriately, will be paid for by national parliaments, not Governments.

The Government believe that the new arrangements should include third states outside the 27 members of the European Union, as the noble Lord, Lord Jopling, and others have referred to. One of the major strengths of the CSDP is its ability to draw support from outside the EU. The report acknowledges that. We welcome that it extends a standing invitation to EU candidate countries, of which there are five at the moment—including, as the noble Lord, Lord Roper, says, the important candidate country of Turkey—but we remain convinced that non-EU European NATO members such as Norway should also receive a standing invitation. European defence policy and NATO share common political and security interests. Norway in particular has provided valuable contributions to EU operations and is currently an associate member of the WEU. We can see no reason why its inclusion in future arrangements should be anything other than permanent, and we hope that the decision that the noble Lord mentioned will go forward. We ask: why slam down the door so dismissively on good friends and a valuable contributor to European defence?

In this policy area we see a real value in inter-parliamentary collective debate that informs the national security process of EU member states. The European Union Committee report is an important and valuable step towards developing practical, low-cost and inclusive arrangements that will benefit parliamentarians across Europe, and I urge your Lordships’ House to back it fully.

European Council Decision: EUC Report

Debate between Lord Howell of Guildford and Lord Liddle

Monday 21st March 2011 Lords Chamber

[Lord Howell of Guildford]

All I can say is that this is how the debate has gone and these are the decisions that have been taken by those in the eurozone, which does not include us, who decided to go ahead and move from the EFSM to the ESM. The noble Lord has a different opinion of the financial aspects and is a financial expert of no small degree, so he may be right. However, that is not the view taken by the German Government or by the other Governments of the eurozone area.

My noble friend Lord Lamont also asked about the competitiveness pact. I can tell him that the latest draft of the pact makes it clear that:

“The Pact will fully respect the integrity of the Single Market”.

I am then advised that non-eurozone countries—such as us, among others—have been invited to join the pact and that we are assessing whether we should do so. I add that many of these points tonight point in the same direction and that we are really getting into the issues which we will be discussing on the new EU Bill tomorrow, when we shall have its Second Reading.

[Lord Liddle]

The noble Lord said that the Government were still considering whether to join the competitiveness pact. Is that the position: that this matter is still open?

[Lord Howell of Guildford]

That is different from what the noble Lord said, so he is not quite right that that is the position. I was going on to say that under the provisions of the EU Bill, which has its Second Reading tomorrow, any question of a movement of competence or powers from the UK to the European Union arising from any of these things is subject to the most rigorous procedures—in many cases, a referendum procedure but certainly an Act of primary legislation—which make it more or less impossible for them to be, as it were, slipped by or to be involved in any kind of competence creep. That is the position in answer to my noble friend Lord Lamont.

The noble Lord, Lord Pearson, took a familiar position and did not think that we should be propping up the eurozone at all. I admire his concern for the German taxpayer, as he is clearly worried about our German friends and the amount of tax that they might have to pay if liabilities arise. He asked if we were setting up a transfer union. My judgment—this is from outside because we are not a member—would be that the eurozone members are not setting up a transfer union because that would require a far bigger budget at the centre than anything that operates under the present European Union organisation and rules. I think that the answer is no, but really that is a question that was posed by German Bundestag Members and answered by the German Government.