82 Lord Liddle debates involving the Foreign, Commonwealth & Development Office

Europe Day

Lord Liddle Excerpts
Tuesday 28th June 2011

(12 years, 10 months ago)

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Lord Howell of Guildford Portrait Lord Howell of Guildford
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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 Portrait Lord Liddle
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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 Portrait Lord Howell of Guildford
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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.

European Union Bill

Lord Liddle Excerpts
Thursday 23rd June 2011

(12 years, 10 months ago)

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Finally, I will touch on the concern that Clause 18 will somehow weaken or dilute our continued support for further enlargement of the European Union. The Government believe that EU enlargement has helped to create stability, security and prosperity in EU-neighbouring countries, in part by spreading and encouraging a firm foundation for democracy, the rule of law and shared values. The Government, like their predecessors, believe that the prospect of European Union membership is the strongest incentive for aspirant countries to implement challenging reforms. In addition, the expansion of the internal market encourages trade between new and old member states, benefiting the whole of the European Union and preparing it for a very challenging future. I hope that I have provided the noble Lord, Lord Lea, with sufficient reassurance on this important point that he rightly raised in your Lordships' House, and welcome the fact that he has already stated that he intends to withdraw the amendment.
Lord Liddle Portrait Lord Liddle
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I will not make any comments on the amendment of my noble friend Lord Lea, which the Minister dealt with very clearly. We on this side of the House greatly appreciate the courtesy with which the Minister has dealt with the many points that we raised in the long debate on the Bill—as has the noble Lord, Lord Wallace of Saltaire. However, what I failed to hear in the Minister's summing-up was an acknowledgement that the Bill that leaves this House is very different from the Bill that arrived, and that on fundamental points the House has amended it in a way that we hope the other place will take due notice of. We have reduced the compulsory requirement for referenda on 56 issues—I know that this figure is disputed by the Government—to three; we have clarified the sovereignty clause in a way that satisfies former Lord Chancellors; we have introduced a 40 per cent turnout threshold for a referendum to be binding; and we have passed a sunset clause that will require a future Parliament by positive resolution to revive the Bill. These are very significant changes and I hope that on the Government’s side there is an acknowledgement that they must think seriously about the views that were expressed on all sides of the House in a very broad consensus that the Bill is badly flawed.

Lord Williamson of Horton Portrait Lord Williamson of Horton
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I did not intervene earlier because I got the impression that this was not only Third Reading but probably fourth, fifth and sixth reading, given the many points that were made that did not appear to relate in any way to Clause 18. I shall be extremely brief in saying that it is correct that the Bill that now goes to the House of Commons is different because we have fully considered it and made changes, and we look forward to a serious and positive response from the other House.

I will make only one further point. If the Bill becomes an Act, I share the view of the Government on one important point; I hope that it will seriously improve the possibility of a better connection between the people and the European Union. That is the primary intention of the Bill and, however much it has changed, it is still very important that we should seek to achieve that.

Turkey: EU Membership

Lord Liddle Excerpts
Wednesday 22nd June 2011

(12 years, 10 months ago)

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Lord Howell of Guildford Portrait Lord Howell of Guildford
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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 Portrait Lord Liddle
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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 Portrait Lord Howell of Guildford
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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

Lord Liddle Excerpts
Monday 13th June 2011

(12 years, 11 months ago)

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Lord Stoddart of Swindon Portrait Lord Stoddart of Swindon
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My Lords, I supported this amendment in Committee and we had quite a good debate about it. I am not going to repeat everything that I said at that stage but I want to say a couple of things. First, I regret that the noble Lord, Lord Willoughby de Broke, has reduced the amount of time from five years to three.

Secondly, second referendums have been quite common in Europe. When Governments do not like an outcome, they are quite prepared to hold a second referendum in order to get it changed. Second referendums per se are perfectly logical and legitimate in the European Union. Surely we should not arrive at the decision that once a referendum has been held on anything there should be no second referendum. That would be quite absurd. It would bring Governments in particular into disrepute, because it is usually they who call for second referendums, if they said to the electorate, “You have voted but I’m afraid we don’t like what you have told us. We must therefore ask you to vote again, and indeed again, until you provide the right answer for the Government”.

Lord Liddle Portrait Lord Liddle
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My Lords, the Opposition cannot support the amendment. The reasons why many have spoken against it are very true. I agree with what the noble Baroness, Lady Brinton, had to say. I agree with the noble Lord, Lord Hamilton, that in our political culture a precise repeat referendum would be extremely unlikely. However, we should not tie our hands. As the noble Lord, Lord Deben, said, you vote under a particular set of circumstances but circumstances can change at remarkable speed. We do not need these kinds of constraints on our politics.

Lord Wallace of Saltaire Portrait Lord Wallace of Saltaire
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My Lords, this is the second time that we have examined an amendment of this nature. It did not find much sympathy around the Chamber in Committee and it has not found much more now. The amendment stipulates a lesser period of three years rather than the original five but the principle remains the same.

In Committee I set out some of the Government’s objections to an amendment of this nature and I will recapitulate some of those now. First, were the British electorate to vote no in a referendum, it is clear that the Government would have to consider their future action carefully. It would be difficult to view the result as anything other than a firm rejection of a proposal for treaty change. If the Government wanted to hold another referendum for whatever reason, under the terms of this legislation, as my noble friend Lady Brinton said, they would first need to secure parliamentary approval to do so by Act. Primary legislation would be necessary to enable the referendum, so Parliament would have to consider that request very carefully and itself be persuaded to agree, which is not necessarily a given.

Secondly, the amendment reduces flexibility, a quality that has attracted a lot of support from all Benches. We do not know what will happen in the future, and as the noble Lord, Lord Liddle, has suggested, sometimes we do know what will happen in the short term future. As noble Lords have argued on a number of occasions, and in this case following the rejection of a proposal by the British people in a referendum, circumstances could change. There are “events, dear boy” and unexpected crises whether they be security crises, financial collapse, economic recession or even crises of energy supply or surges in immigration. All might conceivably transform the situation. So there could be previously unanticipated grounds for the Government and Parliament to believe that the treaty change on the table was in the national interest of this country. As a consequence, if both the Government and Parliament were to decide that there were good reasons for putting a question to the British people in a further referendum, Parliament should be able to do so without having to disapply an inflexible provision.

I have to say to the noble Lord that I would be surprised if any Government in the future would wish to hold a referendum in the hope that the people would be somehow persuaded to change their minds merely by the Government cajoling them rather than in response to a substantial change in circumstances. I agree with what the noble Lord, Lord Triesman, said in Committee. He pointed out that the people of Denmark, Ireland, France and the Netherlands,

“were perfectly capable of settling the first propositions put in front of them and they were perfectly capable of assessing the changes”.—[Official Report, 23/5/11; col. 1621.]

Those changes were any changes that had taken place or had been made to the treaty before them between the holding of the first and second referendums. People are clear in their own mind and will not easily be browbeaten into giving a different answer just because the Government—any Government—would like one. As the Minister for Europe made clear in the other place, it is a recipe not only for the public to say no again, just as firmly if not even more so, but also an invitation to be voted out of government at the next election for treating the public with contempt. But I reiterate that there might be circumstances where a repeat referendum may be in order before the three years suggested by the noble Lord had elapsed.

We were running through a most wonderful boom at the end of 2007. The recession hit us rapidly and sharply thereafter, with the financial collapse of a number of banks. We face a potential crisis in energy supply. At the moment there is a range of possibilities where crises might erupt that would affect us and our European partners. Therefore I see no reason for reducing flexibility, as this amendment would, and I urge the noble Lord to withdraw it.

European Union Bill

Lord Liddle Excerpts
Monday 13th June 2011

(12 years, 11 months ago)

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Lord Waddington Portrait Lord Waddington
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My Lords, the noble Lord, Lord Rowlands, was very eloquent, and I can well understand how he has reached the position that he has. Looking at just one of the amendments that we are considering, I must say that I find the wording of Amendment 15 really rather odd. It seems that, taken at its face value, all sorts of decisions could be made on a common European defence and no referendum would be required unless the intention was to permit a single, integrated military force. We could integrate our Navy with every other country’s navy and still be well short of creating a single, integrated military force, so there would not have to be a referendum. That seems very odd if you are going down the route of having referendums at all.

The noble Lord, Lord Hannay, was again rather beguiling. At one stage he said that he was putting forward these amendments in a spirit of compromise. It might look like an exercise in compromise to some people, but to others it might well look like part of a general strategy to whittle down the protection that the Bill is designed to afford. That is what I find so terribly depressing: that having gone all through Committee, and now on Report, not a word is spoken by the opponents of the Bill to suggest that they have a clue as to how disillusioned people feel and how necessary it is to give them some reassurance, or how necessary it is to show them that their views are not going to continue to be overridden and that we are not going to go on continually conceding powers so that eventually we finish up being no longer a sovereign, independent state. Never a word comes from opponents of the Bill to show that they have any realisation of the difficulties that we face at the present time.

In these debates we are constantly told that the right to a referendum can be safely whittled down here, there and everywhere. We are constantly told that referendums are an affront to parliamentary democracy, but I am bound to say that people are asking me what Parliament has done so far to guarantee our independence and to protect our fundamental freedoms. They point to what happened over the Lisbon and all the rest of it, and, as I say, they are thoroughly disillusioned. I think that they, like me, will not be at all impressed by the suggestion that somehow or other we can meet most of these problems by making sure that Parliament does its work properly.

I remind my noble friends and noble Lords of some of the history. The noble Baroness, Lady Quin, said in a speech the other day that it was made clear in the 1975 referendum that we were joining not just a common market but an EEC. Let us leave aside for a moment the fact that the question on the ballot paper was:

“Do you think the UK should stay in the European Community (Common Market)?”.

Let us leave aside for a moment the fact that there was no mention of the EEC at all. In fact, Harold Wilson, as he then was, made a great speech in which he recommended a yes vote because the threat of monetary union had gone away. I distinctly remember him saying that. That is all part of the dismal history. “Stop worrying, it is not going to happen”. Then it happens. “Well, it is not so important after all and it certainly will not happen again. This is the end of the road”.

I came back from Bermuda in 1997 having looked somewhat askance at some of the developments during the years when I was away. The first thing that happened to me was that I was invited to a rather grand dinner party at which every other guest was a Whitehall mandarin. There were three ambassadors and one or two permanent officials from the Foreign Office, and they said, “Oh, what are you banging on about, David? Stop worrying”. These are the exact words that were used to me that night: “The high-water mark of European integration has been reached”. That is what they told me. Well, the next day the tide continued to come in and it has been coming in ever since.

We are constantly told that it is safe to leave all these matters in the hands of our elected politicians. We might not have much to thank Mr Gordon Brown for, but let us give credit when credit is due; but for Brown, Tony Blair might well have used his vast majority to take us into the euro at the end of the 1990s, and a fine mess we would be in now. Remember, he dreamt up the idea of a referendum only to get him through the 2001 election. There was no question of the need for a referendum on the euro prior to that.

Lord Liddle Portrait Lord Liddle
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If I am correct, Mr Blair made his referendum commitment in 1996.

Lord Waddington Portrait Lord Waddington
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I am sorry, will you please repeat that?

Lord Liddle Portrait Lord Liddle
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Mr Blair made a commitment to have a referendum on the euro well in advance of the 1997 general election, in 1996. Some of us thought that that was a mistake at the time, I hasten to add.

Lord Waddington Portrait Lord Waddington
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That had escaped my notice. By the end of the 1990s, he was certainly sending out messages that he thought the time might well be right to think about going into the euro. If Mr Blair were in office now—this would have been relevant on one of the amendments that was not moved—he would no doubt be advocating the need to have elections for a European president, which he would urge upon us as a not very significant matter that would only increase the powers of the people and was a thoroughly good idea, when we all know perfectly well that if a European president were elected that would be a dramatic step towards a United States of Europe. In fact, from the moment of such an election, the international community, whatever the constitutional niceties of the matter, would consider that Britain had turned itself into a United States of Europe.

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Lord Liddle Portrait Lord Liddle
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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.

Lord Howell of Guildford Portrait The Minister of State, Foreign and Commonwealth Office (Lord Howell of Guildford)
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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.

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In all honesty I do not really see the exchange rate and market uncertainty as an issue, given that we have a floating rate and that we would be proposing, if this ever happened, to move from a floating rate to a fixed rate. Even if it were known what the terms were, it could be within a range. I always listen to the noble Lord, Lord Kerr, but this could be done either way around. However, as I have said, the one thing that should not be on the ballot paper in the referendum, if there were ever to be one, is the actual exchange rate.
Lord Liddle Portrait Lord Liddle
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My Lords, from the Opposition’s point of view, exotic as it may seem that we should at this moment be debating the circumstances in which we might join the euro, this Bill is intended to bind future Parliaments for a long time. Indeed, that is one of our major difficulties with it, which is why we will be moving the sunset amendments on Wednesday. However, given that it is a Bill that is intended to bind Parliaments for the future, it is important to get this right. We have listened to our colleague the noble Lord, Lord Kerr, at great length on this subject and are persuaded that he is right. The Opposition will therefore be supporting his amendment.

Lord Wallace of Saltaire Portrait Lord Wallace of Saltaire
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My Lords, no Parliament can bind its successors. That is one of the principles of parliamentary sovereignty. I am grateful to the noble Lord, Lord Kerr of Kinlochard, for following up the previous Committee discussion with his letter of 19 May, in which he outlined his concerns in more detail: namely, that Clause 6(5)(e) of the Bill might be legally defective. We have therefore taken careful legal advice. The Government have now been able to reply to that letter and a copy has been sent to those of your Lordships who participated in the Committee debates. A copy of the letter has also been deposited in the Library of the House. On the basis of that legal advice, I hope to reassure your Lordships that we do not judge there to be a risk of more than one referendum on the euro being required and that the provision does what we and noble Lords on all sides of your Lordships’ House intend it to do.

Unlike other member states, the UK is not under an obligation to adopt the euro. Protocol 15 of the consolidated treaty begins with the clear statement that the United Kingdom,

“shall not be obliged or committed to adopt the euro without a separate decision to do so by its government and Parliament”.

That protocol, which needs to be read alongside Article 140 in the British case, sets out in detail the steps that must be satisfied before the UK could adopt the euro. Paragraph 9 of the protocol states that after the UK has notified,

“the Council … of its intention to adopt the euro”,

as its currency,

“decisions in accordance with the procedure laid down in Article 140(1) and (2)”,

of the TFEU must first be taken, to which protocol 13 is also relevant.

The process starts in practice by examining convergence criteria as set out in Article 140(2). That is bound to happen before the UK formally notifies, even if it is not part of the formal procedure. It might be helpful to consider what needs to be done following notification of our intention to join the euro. It is not a matter of negotiating terms of entry but of economic criteria being satisfied in terms of the treaty. The final step of the process is to take a decision in accordance with the procedure laid down in Article 140(3) of the TFEU. Paragraph 9(c) of Protocol 15 commits the Council,

“in accordance with the procedure laid down in Article 140(3)”,

to “take all other necessary” measures to enable the UK “to adopt the euro”.

Clause 6(5)(e) is designed to catch this final step in the process, thus ensuring that as much of the complex detail as possible is available to Parliament and the public in deciding whether to join, while giving the Government of the day the flexibility to set the timetable for when to seek approval from Parliament and the British people. If I may say so, the noble Lord, Lord Kerr, might almost be old enough to remember the first applications for Britain to join what was then the European Economic Community. Before formal application was made, a number of informal negotiations established the terms for potential negotiation. We envisage something of that in this situation. It will allow the Government to seek a referendum when sufficient detail is known about the circumstances and conditions of entry, but will allow the UK to seek approval from the people before the exact point at which the exchange rate between the euro and the pound would be set. We all recognise that the exact exchange rate will have to be set at the end of the process to avoid market turmoil and speculation against the rates declared.

In contrast, the amendment proposed by the noble Lord would require the referendum to be held and approval given before the UK could notify the EU that it intended to adopt the euro. The Bill nevertheless allows for matters to be arranged in this way if the Government so wished, again providing the degree of flexibility which noble Lords, including the noble Lord, Lord Kerr, have so often called for on this Bill. It would be open to the Government of the day to undertake negotiations with the EU in line with paragraph 9 of the protocol before the UK issued its notification. This would allow draft decisions under Article 140(3) on the rate at which the euro would be substituted for sterling and other measures necessary for its introduction to be prepared—with perhaps a range of rates being negotiated—before notifying our final intention to join the euro.

On that basis, I do not consider that the Bill would lead to what we all view as an unwelcome situation in which two referendums would have to be held on the euro: the first on the UK notifying that it wished to join; the second in a rushed weekend on determining the specific question of the exact rate at which the euro is to be exchanged for the pound. Instead, it is possible under the Bill for the Government to submit the question of adopting the euro to a single referendum.

European Union Bill

Lord Liddle Excerpts
Wednesday 8th June 2011

(12 years, 11 months ago)

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Moved by
1: Clause 1, page 2, line 4, leave out “supporting” and insert “permitting”
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Lord Liddle Portrait Lord Liddle
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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.

Lord Howell of Guildford Portrait The Minister of State, Foreign and Commonwealth Office (Lord Howell of Guildford)
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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.

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Lord Howell of Guildford Portrait Lord Howell of Guildford
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I am grateful for those remarks.

Lord Liddle Portrait Lord Liddle
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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 Portrait Lord Howell of Guildford
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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 Portrait Lord Liddle
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On that understanding, I withdraw the amendment.

Amendment 1 withdrawn.
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Moved by
5A: Clause 2, page 2, line 24, after “that” insert—
“(a) a referendum does not need to be held in accordance with section (Process for determining the necessity of referendums); or(b) ”
Lord Liddle Portrait Lord Liddle
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My Lords, after that great victory for Parliament—let us thank the noble Lord, Lord Williamson, for moving the amendment and being the moving spirit behind it, with other Cross-Benchers—I now speak to the amendments in my name and that of my noble friend Lord Triesman, which are also about the role of Parliament, about strengthening Parliament and substituting the discretion of Parliament for the automaticity of the referendum locks that the Bill contains.

The amendments do not drive a coach and horses through the basic principle of the Bill, which is a requirement for referendums on the big issues affecting Europe's future, but they set up a special Joint Committee of Parliament: the European Referendum Scrutiny Committee. In cases where Parliament had passed an Act under this legislation, that committee would be there to consider whether it was necessary to have a referendum on that Act. In making those judgments it would take account of the criteria in subsection (4) of Amendment 5B. Those criteria include whether the matter was significant, whether it was urgent and where the national interest would lie. It would come to a judgment on whether it felt that a referendum was justified. If a referendum was justified, it would be up to each House, in a Motion, to approve that recommendation. It is important to emphasise—because this is a change in the amendment that we moved in Committee, perhaps to make it more acceptable to sceptics in the House—that if there was not to be a referendum, it would require both Houses to say no to the recommendation of the Joint Committee that there should not be a referendum. In other words, it would meet the point that the noble Lord, Lord Howell, makes that with executive control over the Commons, it would be possible for a whipped vote to defeat the idea of a referendum, because they would have to go against the recommendation of the committee and win that position in our Chamber as well.

What is the point of putting in place this proposal? It is to inject proportionality into the Bill. The Bill contains no proportionality whatever. It is a “thus far and no further” Bill as far as the European Union is concerned. It assumes—and it is an extraordinary assumption—that a Government can today foresee all the circumstances in which change in the European Union might be necessary over the coming years. The noble Lord, Lord Howell, keeps telling us that he sees very little prospect of a referendum occurring in the near future. However, within two years of the approval of the Lisbon treaty we have already had a proposal for a revision of that treaty, under the simplified revision procedure, to create a European stability mechanism, which is necessary to deal with the crisis in the euro area. That is not the result of an attempt to deceive people after it was thought that there would be no treaty changes immediately after Lisbon. That is not the reason. The reason is that, due to the crisis in the euro, circumstances have occurred which no one foresaw and it is necessary to make this minor amendment to the treaty.

As it happens, that does not affect us. However, if there was a change which in a similar set of circumstances did affect us, it would require a referendum. Yet it is hardly the kind of major issue about the nation’s destiny that would justify having a referendum. It would therefore be up to the Joint Committee that we would establish to decide on the proportionality of these questions as to whether a referendum was necessary. It is a strengthening—an affirmation—of the rights of Parliament, just as we have voted for a few moments ago, and an important one to make.

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My Lords, I have to confess that I am staggered by the Minister’s reply. He misrepresents the position of the Opposition, and I do not think he understands the content of the Bill that he is putting before this House. Let me briefly say why. He goes on at length about allowing people to vote on decisions that affect their daily lives. Is he putting this forward as a general principle? Do the Government think that there should be a vote on the merits of their health reforms and the changes to their health reforms? How many people in the country do they think would vote for that? The idea that this Government stand for a general principle of giving people the right to have a say over decisions that affect their own lives is a nonsense.

Why is it that this principle should simply be applied to the European Union and be applied in a way in which the Government do not appear to understand what they are doing? The Minister says that we are saying that this Bill will require referenda on anything or everything. In the case of the European Union, there are 56 instances where this Bill requires a referendum. Is it seriously being suggested that there are 56 issues of profound importance affecting Britain’s future in Europe which would require a referendum? I suggest not. We know what those major issues are. We will have amendments later to confine the referenda to those major issues. It is a nonsense to suggest that we should have referenda on 56 issues. As far as Europe is concerned, that is anything or everything.

There is a point-blank refusal on the part of Ministers to understand the need for some flexibility when we are dealing with the future. I do not think that the government Benches understand the point of an Article 48(6) simplified revision procedure, which is under Clause 3. It is to deal with circumstances which we cannot foretell, yet in every circumstance, apart from very limited exceptions, this legislation says that such an amendment would require a referendum. It is the view of every expert on the European Union that that is going to inhibit greatly Britain’s ability in future years to play a leading role in the European Union.

As for the Minister’s remarks about how parliamentary committees are all fixes and you cannot trust what they say, I thought that he had respect for the workings of Parliament and for the workings of the Constitution Committee of this House, for instance, which puts forward very objective reports, despite the party composition of its membership. I would have thought that if we agreed, as this amendment proposes, to a parliamentary process for deciding what was proportional, such a parliamentary committee would do its job independent of the Executive in such a way that we could all respect its judgment.

I am afraid I am unconvinced by the Government. I am not prepared to withdraw the amendment, and I wish to test the opinion of the House.

European Union Bill

Lord Liddle Excerpts
Wednesday 8th June 2011

(12 years, 11 months ago)

Lords Chamber
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Moved by
9: Clause 3, page 3, line 4, leave out “(1)(i) or (j)” and insert “(1)”
Lord Liddle Portrait Lord Liddle
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My Lords, I hope not to detain the House long on this. In a sense, with this amendment we are trying to skin the same cat in a different way. It is designed to extend the scope of the significance clause in order precisely to give our Government, because we want to support them and make them effective in the European Union, the flexibility to cope with the unforeseen. We have made this point many times in these debates. Basically, the Government point-blank refuse to accept its validity. They argue, first, that all the red lines and every issue in the Bill is of constitutional significance, including the full list of issues in Schedule 1, and that therefore any move on these issues should require a referendum. That is the Government’s position on my first point.

Secondly, they would argue that the EU has plenty of competences to act already in most situations, which is true, but that does not cover any potential new situations which we cannot foresee, to which my noble friend Lord Triesman referred. Thirdly, they argue that when we talk about circumstances that might occur which would require action, we cannot name any of these circumstances and that it is all hypothetical and nonsensical.

This amendment is on the assumption that it is not hypothetical and nonsensical. We can already see brewing in the European Union the makings of another big step forward towards fiscal federalism being considered at a senior level within the Union. One just has to read the—in many ways wonderful—parting speech made by Jean-Claude Trichet last week when he received the Karlspreis in Aachen. It was about the achievements of the European Union and all Members of the House should read it. He said that as a result of the present crisis, not today but the day after tomorrow, there would be a need for the creation of a European finance ministry and for member states to concede sovereignty over economic questions, particularly when they were in difficulties and failing to conform to European rules. I can understand his frustration in dealing with the situations in Greece, Portugal and Ireland.

If I was still an adviser in No. 10 Downing Street, my reaction would be to say, “Gosh, there’s something potentially quite big here coming down the track. We may well have changes of Government in France and Germany in the next couple of years. We have got to do some hard thinking ourselves about how we anticipate the situation”. I would say to the British Prime Minister that if he wants to avoid another big treaty, he has to think about how, on all the relevant issues—economic governance, supervision of the banks, the structural reforms necessary to make the European economy competitive and the advance of the single market—we can make Europe more effective. If necessary we have to be prepared to look at small changes in the treaties which we could make under the simplified revision procedure that would convince our partners that serious action could be taken that would not require another big leap forward. Therefore, that is what I would be doing.

These issues are likely to be right at the top of the agenda in the next two or three years. On page 14 of this wretched Bill, in Schedule 1, we see how it would inhibit any British Government from considering even the slightest change in decision-making processes in these crucial areas. In Schedule 1(2) we see that referenda would be required on any changes in the approximation of national laws affecting the internal market, any changes in the broad guidelines of economic policies, any changes in the adoption of provisions replacing the protocol on the excessive deficit procedure and any changes in the role of the European Central Bank on prudential supervision. These are precisely the issues that are going to be at the top of the agenda in European Union policy-making in the next few years, yet we are putting a ball and chain around the feet of our Ministers, because we know that Ministers are not going to put forward anything that would require a referendum, and we are preventing Britain from playing the role it should be playing in the next few years on these issues.

Some noble Lords may argue that these issues are nothing to do with Britain because we are not in the euro. I think that that is completely wrong. Although we are not in the euro, the success of the Government’s economic and political strategy very largely depends on the success of the euro area to which a huge proportion of our exports goes. If we are going to get a rebalancing of the British economy into exports and investment, we have to put forward policies for the success of the euro area, because we will not succeed in those ambitions unless we engage constructively in that debate. Yet we are hampered completely from engaging constructively in it because of the conditions of this Bill. So let us be pragmatic. Let us give ourselves the ability to act in our national interests.

Lord Dykes Portrait Lord Dykes
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I am most grateful to the noble Lord for giving way. Is not that point even more relevant when one thinks of the very helpful and positive Answer of the noble Lord, Lord Sassoon, answering Questions on Monday, when he said how important it was to maintain the solidarity of the UK with the eurozone through all the common work that we are doing together? Is that not even more important now that we are going to have the pan-European financial supervisory agency based in London? What if a crisis emerges that needs to be dealt with precipitately by all national Governments together?

Lord Liddle Portrait Lord Liddle
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The noble Lord, Lord Dykes, is so right. I actually congratulate the Government in many respects on their attitude. The Chancellor of the Exchequer made a speech in Paris earlier this year in which he said, “We are not in the euro but by gosh we want the euro to succeed. It is absolutely essential to our interests”. This was what Mr Osborne said. Some Members on the Conservative Benches may not recognise that point but that is where Britain’s national interests lie and we have to have the flexibility to deal with these situations. I do not know what precise flexibilities would be required but we have to have that.

In terms of historical parallels, I am reminded of Harold Macmillan’s wonderful quote, “Events, dear boy, events”. Of course it was Harold Macmillan as Chancellor of the Exchequer who had failed to realise the significance of what was happening at Messina and then woke up later to the reality of the treaty of Rome and the threat that this presented to Britain’s position in the European Union.

Harold Macmillan wrote in his diary—using the language of a man who had fought in the First World War and lived through those experiences in a different age from that in which, thankfully, we are living in—that, “If we were to allow the French and the Germans together to create a united Europe with Britain not being a part of it, we would be sacrificing everything that our men had fought for in two world wars”. That was his view in the 1950s. Our view today should be decided on the basis of a proper calculation of our national interest. We need to be fully engaged in all the questions affecting the European Union. We ought not to have this ball and chain, and we should have some flexibility. That is why I urge the Government, even at this late stage in the consideration of the Bill, to think about how it could be amended to give Ministers the pragmatic flexibility they need in order to represent our national interests effectively in Brussels and in order that Britain can live up to its role as one of the leading partners in the European Union. I beg to move.

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Lord Howell of Guildford Portrait Lord Howell of Guildford
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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 Portrait Lord Liddle
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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.

Amendment 9 withdrawn.

European Union Bill

Lord Liddle Excerpts
Wednesday 25th May 2011

(12 years, 11 months ago)

Lords Chamber
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Lord Dobbs Portrait Lord Dobbs
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My Lords, I had intended to intervene for the very first time on the Bill to make a passionate denunciation of the idea of a sunset clause—on its inappropriateness—and I understand that if I do not intervene today I might have trouble intervening at a later stage. Given the pressures of time, I hope that the House will give me leave to not make that intervention today, but perhaps to intervene at a later stage.

Lord Liddle Portrait Lord Liddle
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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.

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

Lord Liddle Excerpts
Monday 23rd May 2011

(12 years, 11 months ago)

Lords Chamber
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Debate on whether Clause 18 should stand part of the Bill.
Lord Liddle Portrait Lord Liddle
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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 Portrait Lord Howell of Guildford
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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

Lord Liddle Excerpts
Monday 23rd May 2011

(12 years, 11 months ago)

Lords Chamber
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Lord Liddle Portrait Lord Liddle
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Whatever the specifics of the point raised by the noble Lord, Lord Bowness, does it not illustrate the need to include in this clause some equivalent of the significance test provided in Clause 6? I wonder whether, in the spirit of co-operation and willingness to consider things in a flexible way, the Government might take away and consider—for all of these later clauses that require an Act of Parliament rather than a referendum—some flexibility that would allow a significance test to be applied by a Minister. That would require a lower level of parliamentary approval in cases where we are dealing with technicalities rather than important issues of policy.

Lord Wallace of Saltaire Portrait Lord Wallace of Saltaire
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Of course we will reflect on that, but I remind noble Lords that the purpose of this Act is to improve parliamentary scrutiny and oversight of the procedures of the EU.

--- Later in debate ---
Lord Willoughby de Broke Portrait Lord Willoughby de Broke
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Unlike the majority of amendments that we have discussed at some length so far, this amendment is intended to be helpful to the Government, and I hope that they will take it in that spirit. It is in my name as well as that of my noble friend Lord Pearson and the noble Lord, Lord Stoddart, and it is simplicity itself. It would ensure that a future Government, who may be even more Euro-enthusiastic than this one, will not be able to reverse the effect of referendums held under Clause 6 by immediately calling another referendum to try to get a different result.

Noble Lords may say that this is completely unnecessary and that a referendum is a referendum and the result must stand, but we must bear in mind the unsavoury precedents set by the EU when referendums that give the so-called wrong answer are deemed inoperative by the Euro-elite. In 1993, Denmark voted against the Maastricht treaty, for example. It was tossed a few concessions and told to vote again and do better this time. In 2001, Ireland voted against the Nice treaty; similarly, there were more concessions and another referendum. In May 2005, France voted by a large majority against the constitutional treaty, followed three days later by an equally emphatic rejection by the Dutch electorate of that constitutional treaty. So what happened then? Let us bring on the Euro-clowns. First up is President of Luxembourg, Jean-Claude Juncker, who said after the two referendums:

“I really believe the French and Dutch did not vote no to the Constitutional Treaty. Unfortunately the electorate did not realise that the Constitutional Treaty was specifically aimed at meeting their concerns and that’s why we need to have a period of explanation”—

or perhaps now a period of reprofiling.

Next in the ring is Monsieur Giscard d'Estaing, the ex-President of France, one of the hapless fathers of the constitutional treaty, who said:

“It is not France that has said no. It is 55 per cent of the French people”.

Work that one out. He went on to say:

“The rejection of the Constitution was a mistake which will have to be corrected ... It was a mistake to use the referendum process, but when you make a mistake you can correct it”.

In other words, do not use the referendum process and do not ask people what they think—just tell them what is good for them.

Clown number three was the Italian Foreign Minister at the time, Giuliano Amato, whose considered opinion was that the no votes were,

“a request for more Europe not less”.

In the words of one of the most respected correspondents, or columnists, “You couldn’t make it up, could you?”.

Lord Liddle Portrait Lord Liddle
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For the sake of accuracy about what happened, is the noble Lord not aware of the fact that in France a major part of the no vote on the constitutional treaty was because of the argument that that treaty was not sufficiently social? People like Laurent Fabius made it part of their campaign that, “It’s not that we’re against Europe, it’s that this isn’t for a sufficiently social Europe”. In that sense, the argument was right; this was a vote not against Europe but against a particular view of Europe.

Lord Willoughby de Broke Portrait Lord Willoughby de Broke
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My Lords, I am very familiar with that argument, which was wheeled out after the constitutional referendum by numerous pro-Europe commentators—they said that it was about the colour of Monsieur Chirac’s socks or something; it was not about the constitution at all—but I know, because I was in France at the time of the referendum, that people were very engaged in the debate. So whatever the noble Lord on the Front Bench may say, there was a rejection by the French people by a 55 per cent majority of the constitutional treaty. I do not think that his arguments hold water.

--- Later in debate ---
Lord Waddington Portrait Lord Waddington
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My Lords, few things have done more harm to the reputation of the European Union than the telling of countries that have voted against new treaties or treaty changes that they should carry on voting until they come up with what the other members or the Commission consider the right answer. Behaviour of that sort is a denial of the right to say, “Change cannot take place unless we all agree and, as we don’t all agree, you and I must put up with the status quo”. That is what signing a treaty is all about. I submit that what happened over Denmark in the early 1990s, after the Danish people voted no to Maastricht in June 1992, was an abuse of power. It was also a terrible lost opportunity, which was responsible for much of the trouble and strife that hit the Major Government.

My noble friend Lord Spicer wrote a very perceptive article on this in Total Politics in March of this year. I hope Governments have learnt from what then happened. The Conservative Government were not happy about many aspects of Maastricht, particularly the removal from sovereign states of the power to manage their own economies. While we had opted out of the euro, there was a nagging fear that the European Court might even find that our opt-out was illegal.

Lord Liddle Portrait Lord Liddle
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If the Conservative Party had such objections to the Maastricht treaty, why did the Prime Minister of the time, John Major, on the day of the negotiation of the treaty describe it as “Game, set and match for Britain”?

Lord Waddington Portrait Lord Waddington
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I was referring to the opt-out and am describing what happened subsequently. I am not here to defend the Major Government, of which I was a member at that time, although not later when it came to ratifying the treaty. I am just describing the history of the matter.