EU Referendum Rules

Debate between Lord Lilley and James Gray

Monday 5th September 2016 Westminster Hall

[Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

Does not the suggestion of a punishment Budget prove that the former Chancellor was a bluffer? He bluffed; he did not have a punishment Budget. By extension, his threat to Scotland of not sharing a currency was further evidence of yet another bluff.

[Mr James Gray (in the Chair)]

On the subject of a second referendum, Mr Peter Lilley.

[Mr Lilley]

The Scottish nationalists want to refer to the previous referendum, which they lost, but I will not be tempted down that path.

“Project Fear” could have become a self-fulfilling prophecy: I was rather afraid it might. In fact, in the month or two since the referendum, job listings are up 8% on last year; consumer spending is up 1.4%; manufacturing orders are at the highest they have been for 10 months; house builders have reported strong demand; and Moody’s is confident the UK will avoid a recession. That is clearly a disappointment to one or two Opposition Members, who were hoping for bad news to justify their “Project Fear”.

In one respect, they were right: sterling is, indeed, lower. However, the IMF—whose boss was famously once a member of the French national synchronised swimming team—joined in a synchronised campaign of gloom, saying that a leave vote would be bad to very, very bad. The IMF now welcomes the fact that the exchange rate move has removed some, but not all, of sterling’s previous overvaluation. Had the whole establishment of this country and of international unelected bureaucracies forecast what has occurred rather than what they predicted would occur, I cannot help feeling that the result would have been even more emphatically to leave than was the case.

The second argument for a second referendum is that the leave campaign had no plan for Brexit. That is a bit like saying that countries such as India, Canada, Australia and even the American colonies had no plan for independence. Of course they did, and we are the same. It is to take back control of our laws, our money and our borders. That is what countries do when they become independent. That is the purpose and that is the plan. By definition, that means we will not be part of the EU internal market. The precise trading arrangements we may have with the EU will depend on what it wants to arrange in its interests as well as ours.

There are only two realistic outcomes, both of which are perfectly acceptable to the UK. We could trade with the EU on WTO terms and the same basis as the EU’s three biggest trading partners—the US, China and Russia trade very successfully with the EU—which would mean facing tariffs averaging 4% on our exports, but that would be more than offset by the 12% improvement in competitiveness as a result of the change in sterling; or we could continue to trade on the current tariff-free basis. Neither option should require complex negotiations. To go from zero tariffs to zero tariffs is quite simple. To go from zero tariffs to WTO tariffs is quite simple. We should not be in for a prolonged and unnecessary delay in reaching agreement on one of those two options.

The final argument I want to deal with is that the referendum was only advisory. I debated daily with remainers—sometimes three times a day—but not once did a remain opponent say to the audience, “Oh by the way, this referendum is just advisory. If you give us the wrong advice we will ignore the result and remain in the EU anyway or perhaps call another referendum or vote against application of article 50 and the referendum result until we get the right result.” Did any Opposition Member say that to an audience and can they give me chapter and verse of them saying that they would treat the result as advisory and ignore it if they did not like it? Not one of them did. Now they are pretending that the whole thing was advisory. I forget which hon. Member said that was made clear during the debate.

On the contrary, the then Foreign Secretary, who introduced the Referendum Bill, said that it was giving the decision to the British people. When launching the campaign, the Prime Minister said:

“This is a straight democratic decision—staying in or leaving—and no Government can ignore that. Having a second renegotiation followed by a second referendum is not on the ballot paper. For a Prime Minister to ignore the express will of the British people to leave the EU would be not just wrong, but undemocratic.”—[Official Report, 22 February 2016; Vol. 606, c. 24.]

It was spelled out at the beginning of the referendum debate and again and again during it that this was a decisive choice for the British people. If we ignore that choice now and treat the British people with contempt, we will undermine their respect for democracy and prove how little faith we have in it.