European Council

Lord Newby Excerpts

Monday 24th October 2011 Lords Chamber

[Lord Strathclyde]

My Lords, I thank the noble Lord, Lord Hannay, for his warm welcome to the Prime Minister’s discussions with the President of France on Libya. One can look at what happened in Libya in a variety of ways, including seeing it as following a great principle of defending the interests of civilians, which I regard as a noble principle. However, in his Statement this afternoon my right honourable friend the Prime Minister said, “I am wary of drawing some grand, overarching lesson—still less to claim that Libya offers some new template that we can apply the world over. I believe it has shown the importance of weighing each situation on its merits; of thinking through carefully any decision to intervene in advance”. That is right. There were other important principles at work in Libya: the passing of the United Nations Security Council resolutions; the support of the Arab League and the neighbours of Libya; and the immediacy with which civilians were likely to be murdered on the streets of Benghazi. All played a part, so the Prime Minister is right not to see it as a template. The noble Lord is also right in saying that it is important that where civilian life is endangered, we should move swiftly to ensure that that is not the case.

I also agree with the noble Lord about the Government having a positive agenda on Europe. They do have a positive agenda, particularly as regards what he called the primacy of the single market, to complete all the provisions of the single market, of which there are directives outstanding that have a direct effect on and implication for British financial services, commerce and industry, particularly some of the financial directives, and to maintain these and many other things to be decided by the 27 member states. We are in a process of discussion and negotiation against a background of volatility—indeed, some financial turmoil—in the markets. It is important to get these decisions right.

[Lord Newby]

My Lords, on Libya, does the Minister agree with the noble Baroness, Lady Royall, that the important thing now is to secure the peace? Will he give an assurance to the House that the Government will give whatever support the Westminster Foundation for Democracy and other bodies in the UK request in order to help the new Administration in Libya to draw up a new constitution and move towards elections? On the EU summit, does he agree with me that the most worrying event of the weekend was the spat between the Prime Minister and the French President, which demonstrated the danger to the UK of being seen as irrelevant to the major decisions being taken in the EU? Will he therefore give the House an assurance that the Government are giving systematic consideration to ensuring that any moves towards greater common activities in the eurozone which have an implication for the UK will take place with the UK at the very least sitting at the table during those discussions and when those decisions are being made?

[Lord Strathclyde]

My Lords, on my noble friend’s first question, of course we are delighted that we are seeing a semblance of peace in Libya, and long may that continue; and of course we will do everything we can to support the growth of that stability and, indeed, in the longer term, of democracy. I have answered questions before on the Westminster Foundation, whose aims and objectives we fully support. We wish to see that body continue to function and to work not just in Libya but in many other countries as well. As far as the EU and the French President are concerned, I am not sure whether “spat” is the right word, but we think that we are in a position to explain to some of our European colleagues our viewpoint on what is happening in the eurozone and to underline the seriousness of it. In fact, the Prime Minister and the Chancellor have said that it is not in our interests for the euro to founder; it is very much in our interests for it to succeed. I do not think that we are being sidelined. We are doing everything we can to explain and to get our colleagues to understand that we are playing a full part and—in the words of the noble Lord, Lord Hannay—a positive part in the development of the EU.

European Council

Lord Newby Excerpts

Monday 27th June 2011 Lords Chamber

[Lord Newby]

My Lords, with regard to the Prime Minister’s objective of supporting efforts to bring stability to the eurozone, the noble Lord the Leader of the House will be aware that over the weekend the Chinese Government made it clear that they are prepared to play a bigger part in supporting the euro and the eurozone. Do the Government support this initiative and did the Prime Minister raise the matter in his discussions with Premier Wen earlier today?

[Lord Strathclyde]

My Lords, I cannot help my noble friend in his extremely up-to-date question about what the Chinese premier said today to the Prime Minister. The Chinese Government have indicated that they would be willing to support the eurozone, which is very much to be welcomed. The Chinese population has as much of an interest in long-term financial stability in Europe as we have. We very much welcome their interest. I do not wish to overspeculate but I am sure that their help will be extremely useful in stabilising the eurozone.

Office for Budget Responsibility

Lord Newby Excerpts

Tuesday 6th July 2010 Lords Chamber

[Lord Sassoon]

My Lords, in answer to the first question, I am sorry to pour cold water on a newspaper story, but Sir Alan always planned to leave in the summer. He was appointed to provide forecasts for the emergency Budget and to advise on the establishment of a permanent OBR, which is exactly what he has done and will continue to do. The noble Lord, Lord Barnett, asked, secondly, about what he described as “uncertainty” around the forecast. The whole point about the way in which the OBR has presented its forecast is that it has given a transparent probability distribution. The Treasury has never done that before in its forecasts; it has simply given a line and not explained the variability around it. Forecasts are of course subject to probability distributions and the OBR has followed the best practice for forecasts that the Bank of England and others have used for many years. As to what will happen if the forecasts change, the Chancellor has set a fiscal mandate and it is the responsibility of the OBR following each Budget or other fiscal event to report on whether his latest announcement still sets a course that has a 50 per cent or greater probability of meeting the mandate.

[Lord Newby]

My Lords, does the Minister agree that it is vital for the OBR not just that it is independent but that it is seen to be independent? As the Government bring forward their detailed proposals for the OBR, will they ensure that, for example, it is housed outside the Treasury building and that all appointments to it are publicly advertised?

[Lord Sassoon]

I thank my noble friend for reminding us that independence is at the core of what the OBR is about and key to its permanent design. The Chancellor will shortly receive the advice of Sir Alan Budd on the setting-up of the OBR and I am sure that Sir Alan will consider the various factors that my noble friend mentioned.

Government Spending

Lord Newby Excerpts

Wednesday 26th May 2010 Lords Chamber

[Lord Newby]

My Lords—

[Noble Lords]

Order!

--- Later in debate ---

[Lord De Mauley]

My Lords, I thank the noble Lord, Lord Lea of Crondall, for his question. He quite rightly points to the huge size of the deficit. He suggests that the Government somehow imply that it is the fault of public sector workers. There is no question that that is the suggestion. We are all in this together. I take his point, but there is no suggestion that public sector workers should bear more than their fair share of the burden.

[Lord Newby]

My Lords, it might be the logical thing this afternoon for me simply to stand up, say “I agree with David Laws” and sit down again. However, although loyal members of this coalition, we do not intend to play quite such a supine role.

[Noble Lords]

Hear, hear!

[Lord Newby]

Over the next few weeks, we will meet to decide exactly how we intervene in debates and, indeed, exactly where we sit. For today, we agree that it was necessary for the Government, in the light of the European economic circumstances, to take quick action to demonstrate their resolve on the budget deficit. On a specific point, I urge the Minister to abolish quickly those regional development agencies that are to be abolished, and to confirm quickly the status of those that are to remain so that they can continue with their valuable work.

[Lord De Mauley]

My Lords, I thank my noble friend for his question. I am delighted that he said that he will be rigorous in his questioning. I thank him for his response on this point, and I will take back his point about RDAs to the department.