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

Debate between Lord Liddle and Lord Owen

Wednesday 4th July 2012 Lords Chamber

[Lord Owen]

I do not wish to detain the House but, on the point that I raised on Report, the Minister with his customary kindness and courtesy has written me a letter. As I understand it, on that point, there will be no obstacle. In some circumstances, when there might be a crisis in the eurozone, the procedures adopted will allow the Government to use the unanimous procedures for amendment, which were part of the Lisbon treaty, in the European Council and to bring the matter to this House to declare that the amendments regarding a transfer of power are not significant in relation to the UK, while simultaneously, saying that there would be a referendum in this country to deal with other wider measures.

[Lord Liddle]

My Lords, I say on behalf of the Opposition that it is very necessary that the Bill should pass. It is more necessary in the light of the deepening of the euro crisis and last week’s European Council meeting, at which the role of the ESM was strengthened in both its ability to recapitalise the banks directly, which is the key to restructuring the banking system, and its ability to buy bonds where countries that are complying with their obligations are under pressure. Therefore, this facilitating measure is very necessary.

My fear about the question of a referendum, which was raised by the noble Lord, Lord Owen, is that when the Bill goes to the other place, many Back-Benchers who do not share his political views may use the opportunity of the Bill to make the case for holding a referendum on British membership of the European Union very soon. From the Opposition’s perspective, at this moment, this is a complete distraction. It is no answer to the economic problems on which this country should be focusing and no substitute for an effective policy on the European Union.

Those who demand a referendum do not even know what they are asking for a referendum on. They say that they joined a Europe that was in favour of free trade, but even on that question they are not clear about whether they want to take Britain out of the EU, so that we would then face protectionist barriers, or whether we would then be in the European Economic Area, where we would be bound by the rules but would still contribute to the budget. This is a complete distraction because of confusion and we should not go down this road. We want effective action from the Government to protect Britain’s interests in the light of the necessary measures to strengthen the eurozone. However, at the moment, we do not see in Brussels a Government who are engaging with and getting inside the discussions; they want to be outside, which is a disaster for the UK national interest.