European Union Referendum Bill

Debate between Lord Liddle and Lord Blencathra

Monday 2nd November 2015 Lords Chamber

[Lord Blencathra]

I thank my noble friend for his intervention. He has considerable experience in these matters and I agree with him entirely.

To conclude, we need the Government’s forecasts of the competitive position of the UK if we stay in, tied to a European economy that is becoming progressively uncompetitive in world markets. We know Herr Juncker wants more Europe and more of the social dimension, as he said to the European Parliament. That would be all very well if the USA, China and the Asian economies were also awarding themselves more pensions, more paternity leave, shorter working weeks, higher pay and more social benefits, but they are not and Europe is in slow decline against their economies.

[Lord Liddle]

Has not what the noble Lord just said shown the need for an objective analysis of the facts? Britain has a trade deficit of something between 5% and 6% of GDP, whereas the euro area has, I think, a small trade surplus with the rest of the world. Germany and the Netherlands have massive trade surpluses. Frankly, what the noble Lord is saying is nonsense.

[Lord Blencathra]

I thank the noble Lord for his support. We need a factual analysis of a whole range of things. However, I merely suggest to the Committee that if the Government are tempted to accept the amendment of the noble Lord, Lord Hannay, or a similar one, on producing a report on the consequences of leaving the EU—some of that would be speculative, as I have attempted to suggest—we also need a report on the consequences of staying in. In many ways that would be equally speculative, although no more so than the outcome of the amendment of the noble Lord, Lord Hannay. Therefore, we must have the Government’s analysis of the consequences for the UK if that decline in the European economy continues.

The five presidents’ report envisages competitiveness authorities taking over wage and work conditions. I will not quote from the Commission press release of 21 October, but it talks about deepening the EMU, getting social fairness and paying greater attention to new macroeconomic adjustment programmes, as it did in Greece. We all know that worked very well. Therefore, we need the Government’s view on that aspect of the report.

The report goes on to say that we need adequate access to,

“adequate education and … an effective social protection system … in place to protect the most vulnerable in society, including a ‘social protection floor’”.

I therefore suggest that we need a UK government analysis of the consequences of those proposals when they are incorporated into a treaty. It is no good for the BSE campaigners to say that they will apply to eurozone countries only. The Commission will use the excuse, justification and treaty base of the single market, as it usually does, to make them apply to us, and we will not be able to stop it since the eurozone countries will have an in-built majority.

[Lord Blencathra]

The Government will respond to the Select Committee’s report, but that is different from an analysis of what the situation would be in this country if it were to take place. There may be similarities in the report we would make, but we still need that analysis of staying in the European Union.

I am almost concluded, noble Lords will be pleased to hear; at least I have provoked a bit of controversy in this debate. The five presidents’ report also talks about harmonising insolvency law, company law and property rights. We need an analysis of the dangers of that point.

In his speech two weeks ago, the Governor of the Bank of England noted that being in the EU had benefited us in the past. However, in the referendum we will be voting not on the EU’s past record but on what it will do for us in the future. What was most interesting in Mr Carney’s speech was the clear warning over further eurozone integration and its impact on the UK economy. He noted that the five presidents’ report states that there is “unfinished business” over further fiscal and financial integration in the euro area. The Bank’s report cautioned that the “necessary deepening” of integration, coupled with the,

“weight of … the members of the single currency”,

would impair the ability of the Bank to,

“meet its financial stability objective”.

I trust that the noble Baroness will question the Governor of the Bank of England on that statement in the Bank’s report. I look forward to reading the analysis.

[Lord Liddle]

As I understand it, the Chancellor of the Exchequer is going to Berlin today to explain that Britain supports this increased integration in the euro area because we have a strong national interest in the eurozone being an area of more dynamic growth. I just do not understand where the noble Lord is coming from, because his own leadership is arguing for this integration.

[Lord Blencathra]

The leadership is entitled to do so. The Prime Minister and the Chancellor are negotiating hard for changes on behalf of the British people and the country. When the Government set out the deal they achieve, if the amendment of the noble Lord, Lord Hannay, is accepted and the Government set out the consequences of leaving, my amendment merely suggests that they should also set out as far as they can the consequences of staying in.

My very final point is that the EU has made it clear that there will be no treaty change before 2017 and possibly not before 2020. In that case, I should like to know how the Government will guarantee that the deal that the Prime Minister brings back will be incorporated into a binding treaty change. Any promises not in a treaty are not worth the wasted breath, in my opinion. So I want to see a section in the government report explaining how we can guarantee that we will actually get the changes that the Prime Minister secures.

I am sorry that I have taken so long. Again, I agree with the noble Lord, Lord Hannay. His amendment is important. I think that all the amendments in this area are important, and I look forward to hearing the Minister’s response.

European Union Referendum Bill

Debate between Lord Liddle and Lord Blencathra

Wednesday 28th October 2015 Lords Chamber

[Lord Liddle]

No, I do not agree. Britain should not push unreasonable demands in the next 12 months on top of the very real issues the European Union has to deal with: resolving the long-term issues arising from the euro crisis—the short term has been resolved—and putting together the more Europe that we need effectively to tackle the migration crisis. Those are very serious problems, and Britain is getting in the way of solving them. That is an added reason for the Government to be honest with the people about the feasibility of the fundamental reforms that some noble Lords appear to think are possible—they are not.

[Lord Blencathra (Con)]

I support my noble friend’s amendment because I do not believe that the British public should be bounced into a snap poll. There has been talk by some spin doctors—probably around the edges of the staying-in campaign—that a quick poll in 2016 would be advantageous. They seem to feel that the longer the electorate has to consider whatever deal the Prime Minister brings back from Brussels, the more likely it is that the electorate will vote against it. I suggest that some people may perceive that there is an incentive for the Government to try to rush the poll as soon the Prime Minister says that he has a deal that we can sell to the British people and we should stay in.

Everyone rightly says that this is the most important vote in 40 years—and maybe for the next 40 years. Therefore, the pros and cons must be given very careful consideration. The Government will have to set out their case. There are amendments on the Order Paper asking for a White Paper-type document which sets out not only the facts of the deal that the Prime Minister has achieved but the consequences of staying in and the consequences of leaving.

That document will not be like party-political manifestos, which set out the already well-known policies of the political parties. Manifestos may have a few nuggets of new information but no real surprises on the political direction of each party. Thus, one can get away with publishing a political manifesto two or three weeks before an election and the public are not really kept in the dark by that short timescale. The document that the Government will publish on the EU referendum will not be like a party-political manifesto. It crosses all party boundaries and there is no clear policy decision known in advance of the deal that the Prime Minister will get.

We have no idea what the deal will be. There may be big concessions or there may be small, trivial, cosmetic ones. The consequences of staying in or leaving will be immense, and both campaigns will have to issue their own views on the deal and conduct big public debates on it. That process cannot be rushed; we would be doing a huge disservice to the public. Nor does my noble friend’s amendment call for an indefinite delay. Announcing a date 10 weeks hence seems to be a reasonable period of time for all the relevant documents to be published and the debates to be held. It does not hold up any poll indefinitely.

We have all been discussing the possibility of a referendum on Europe for years. When this Bill becomes an Act, we might just be a minimum of six months away from a poll, and it may possibly be on a date two years from now; so in relation to that long timescale that we have been discussing and that we might face, a period of 10 weeks to give proper consideration to the deal and its consequences is nothing in comparison. I support my noble friend’s amendment.

--- Later in debate ---

[Lord Blencathra]

If Britain votes to leave, a whole range of things would need to be decided and negotiated. No one is suggesting that on the day or within a couple of years of Britain voting to leave, all EU nationals working here would be slung out and not allowed to work. A British Government would make a determination by looking at each case of employment and refugee status—at a range of issues that could be decided on individually. It is not right to say that we are back at square one and that if we vote to leave, all the rules related to other people working in this country go back to 1973.

[Lord Liddle]

If decisions are taken individually, that implies that some EU nationals will be thrown out. Is it the Government’s position that if we vote to leave the EU, some EU nationals may be thrown out?

[Lord Blencathra]

I do not want to get totally bogged down in this argument. I was asked a hypothetical question: what would happen to those people if we voted to leave? I was given a hypothetical answer: it would be up the Government of the day to decide the rules on employment in this country for people from any other country. I was not suggesting that the Government would throw people out. They may decide unilaterally that all 1.8 million should stay and maybe we should add a couple of million more. It is a totally hypothetical issue but it does not detract from the argument that no other country allows non-nationals to vote in important national referenda. We should follow that example.

[Lord Liddle]

It is not a totally hypothetical issue. If you listened to Mrs May’s speech at the Conservative Party speech, you might have thought that there was a certain desire to throw out people who were not British citizens. There is a real question: what is the future for EU nationals in this country if we vote to leave? If the Government are not prepared to give an honest answer, of course people are going to demand a right to vote in this referendum.