European Union Bill

Debate between Lord Lamont of Lerwick and Lord Willoughby de Broke

Monday 16th May 2011 Lords Chamber

[Lord Lamont of Lerwick]

My Lords, I do not want to follow my noble friend Lord Dykes too far as I am not sure that his remarks were strictly in order. We have tended to have rather a lot of general remarks. I am sure that the Daily Express is highly flattered by the amount of time that has been devoted to it in these debates. Listening to my noble friend Lord Dykes, I remembered Enoch Powell’s remark that politicians who complain about the newspapers are rather like fishermen complaining about the weather. It is not the Daily Express that has caused the rise of the True Finns party. It is not the Daily Express that has caused the Germans to become more sceptical about the euro. It is not the Daily Express that has caused a very considerable dramatic change in opinion in Holland about the European Union generally. If my noble friend wishes to understand why the Daily Express manages to get people to sign these petitions, he ought to read his own speech because it is exactly remarks such as his, abusing the feelings of ordinary people, which increase the number of people supporting these petitions. To seek to deny that there is concern among ordinary people about overcentralisation in the European Union is to neglect public opinion in a rather cavalier way, if I may dare say so.

I want to ask about two points that the noble Lord, Lord Kerr, made in his extremely interesting speech. The first concerns the point about Clause 6(5)(j). If what the noble Lord said was right, this was not about powers but about a policy. He instanced a policy decision and the hypothesis whereby, under enhanced co-operation, the Germans, while not participating in it, might wish to make a financial contribution to it. That is rather an important point because one of the fears one would have in Britain, as a country unlikely to participate in some of the enhanced co-operation projects, is that we might end up paying the bill. That would be one of our natural instinctive reactions. It would be extraordinary if, in fact, Germany wanted to pay part of the bill and that was not allowed without a referendum in this country. I cannot believe that the situation is quite like that, but I very much hope that my noble friend can clarify that point.

Secondly, I wanted my noble friend to comment on the remarks of the noble Lord, Lord Kerr, about whether one would have to have a referendum on the exchange rate as well as the decision to join the euro. Normally, when I was a Minister, distinguished civil servants such as the noble Lord and his noble friend Lord Hannay, and people of their ability, talent and knowledge, had ingenious ways of solving problems and they could always refer to some obscure part of the treaty to enable us to decide what to do. On this occasion, I regret to say that the noble Lord, Lord Kerr, seemed to be using his ingenuity to make things more difficult, rather than to consider this matter more seriously, which is what he normally does.

I do not believe that it would be possible to put the rate and the decision in principle to join the euro together. I certainly do not believe that the referendum would be about the rate. No one would be remotely interested in that. The referendum would be about whether or not we joined the euro. I do not see, as the noble Lord seems to do, some tremendous market problem because the rate announced on one day would be implemented on another. There was no such problem when the rates for all the individual currencies that formed the euro were announced well in advance—a year or more in advance—of the date on which the currency was set up. It was announced that there would be a date on which the currencies would be irrevocably linked together in a grid. Naturally, the market adjusted to the decision that had been made, rather than the other way round. I do not see the problem that the noble Lord, Lord Kerr, outlined, but I should be grateful if the Minister could reassure me that my understanding and conclusions on that matter are correct.

More generally, I obviously could not support the amendment because in essence, under a disguise, it tries to get rid of the lock imposed by the Bill. While we hear a lot of criticism of the vetoes that will be subject to the referendum provisions, we never hear anything about the 50 vetoes that are left intact, in the sense that they can be abolished without a referendum. There are 50 areas under the Bill where unanimity is still required, and a referendum will not be required if they are removed by whatever procedure. A degree of judgment and selectivity has thereby been exercised by the Government.

We tend to forget in these debates that after Maastricht, Lisbon and Nice unanimity remains on certain articles. They remain there for a very good reason. Many countries, not just Britain, have wanted unanimity to remain and they do not want easily to surrender it, which is one reason why the idea that you will get a multiplicity of referenda on what the Opposition consider to be minor subjects will not actually happen.

[Lord Willoughby de Broke]

My Lords, I should like briefly to return to what the noble Lord, Lord Dykes, said when he saw fit to expatiate on the Daily Express’s anti-euro campaign. At an earlier stage in our debates, he said that he had examples of 125 anti-euro headlines in the hated, Murdoch-ite, Barclay-ite and Desmond-ite press that some eminent think tank had proved to be wrong in every respect. He promised to let us have those figures and the factual debunking of those 125 stories. I wrote to the noble Lord about 10 days ago and asked for those figures, and still I have not received them. Can he provide them to the House or just to UKIP Members?

European Union Bill

Debate between Lord Lamont of Lerwick and Lord Willoughby de Broke

Tuesday 3rd May 2011 Lords Chamber

[Lord Willoughby de Broke]

Surely it could be up to the nation member states to impose their own minimum gas storage obligation. Why do we have to do it through the European Union? It is perfectly ridiculous. This unhealthy EU obsession, which is what it is—I am very sorry that the previous Government and this Government seem to have signed up to it—of using wind power to keep our lights on is one of the most damaging fantasies of our time. I oppose the amendment and I hope that it will be dealt with accordingly.

[Lord Lamont of Lerwick]

My Lords, I want to make one simple and brief point, but before I do that perhaps I may respond partly to what the noble Lord, Lord Taverne, said because I was a little puzzled by it. He is a former Treasury Minister and chairman of a think tank in the City. He was referring to the two aspects of the banking system in crisis being capital and liquidity, with which I totally agree. But he was, I think, arguing that perhaps we need more European attention to capital. That was quite a surprising thing to suggest because, as he will remember, not long before the Irish banking crisis struck and the Irish banks were revealed as hopelessly undercapitalised, we had stress tests carried out on the European banks—a separate exercise in the European Union and in Britain. The European Union banking tests revealed that no bank had a problem with capital other than one bank in Germany. That was shortly before the crisis was fully revealed in all its horror in Ireland.

I agree with the noble Lord that there is a separate aspect of liquidity which the European Central Bank has, in a skilful and constructive way, provided to the European banking system. Equally, the Bank of England has also exercised its national function well. He did not make the case for further European competence or the transfer of power or competence from this country to Europe by merit of that alone.

The noble Lord went on to make the familiar point about the eurozone and whether we were marginalised by not being in it. It is of course true that eurozone Ministers may make certain decisions affecting themselves in which we do not participate. We do not participate in meetings of the Federal Reserve Bank, although its decisions affect us. However, anything that eurozone Ministers decide to do that is governed by the rules of the single market or competition law continues to be governed by the rules of the single market and competition policy. He was careful to say that issues would arise if we were proposing to join the euro but the implication of his argument was that in order to gain influence we should join the euro, which I am sure he does not really subscribe to. Very few people will own up to arguing that we should join the euro today.