European Union Referendum Bill

Lord Pearson of Rannoch Excerpts

Wednesday 4th November 2015 Lords Chamber

[Lord Davies of Stamford]

I do not think that the noble Lord is a great expert on the views of the Labour Party. I would be delighted to take him to some party meetings in Lincolnshire where he would find enormous support for our membership of the European Union from people in all walks of life. The fact remains that the Labour Party supports our Members of Parliament in the other place who, by an overwhelming majority, have voted, and will continue to vote for our policy of believing that it is fundamentally in this country’s interests to remain part of the European Union.

I must move on to speak to Amendment 58. If there is a discordant element in my sudden change of subject, I say, in anticipation of someone rising to complain, that I am not responsible for the grouping of amendments.

[Lord Pearson of Rannoch (UKIP)]

Will the noble Lord enlighten your Lordships as to whether he would be taking the same attitude on the last amendment if the Labour Party was as split on this matter as the Conservative Party? UKIP got 8% of the electorate voting for it in the last general election, against 24% for the Conservatives—one third of their vote. We all know that the Conservative Party is pretty split on this issue. Would the noble Lord, Lord Davies, be taking the same attitude if his party was in the same position?

[Lord Davies of Stamford]

In relation to the principles of our public life and our constitution, I like to think that I take positions that are consistent. Therefore my answer to the question must be yes. Political parties have an essential part to play in our democracy and their position should be respected. They should not be in any way suffocated by being told that they cannot have any money for a campaign that they genuinely believe in and where their members are willing to support them financially.

As for the complaints that the noble Lord always makes about the treatment of UKIP, in this case he does not have the ground that he normally has for complaint, because the amount of money available to UKIP—

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[Lord Stoddart of Swindon]

Yes, I agree with that. I was only confirming that the noble Lord, Lord Davies, was correct in saying that there were three pamphlets. At the time, the Labour Party was in favour of coming out. Unfortunately, the Labour Government were in favour of staying in. We are almost getting into the same situation now, although in reverse, as we approach the next referendum. That is all I wish to say about it.

[Lord Pearson of Rannoch]

My Lords, as we are in Committee, I do not think that the noble Lord, Lord Davies, can prevent me from saying what I wanted to say at the end of the first part of his recent peroration. I would just like to confirm that I was not complaining about UKIP’s possible position, and I would like to correct the record. Of the votes cast at the last general election, the Conservatives got 36.9%, the Labour Party got 30.4%, UKIP got 12.6%—not a mere 10%, as the noble Lord, Lord Lamont, suggested—and the Liberal Democrats got all of 7.9%. Those are the correct figures.

Turning to the present amendment of the noble Lord, Lord Davies, I have to disagree with him in his suggestion that there should be a statement from the Government, not only for the reasons just put forward by my noble friend Lord Stoddart, but also, more generally, because I do not think that the British people are going to be able to trust the Government’s statement on this referendum any more than they could on the last one. I will add another example to the deception that my noble friend Lord Stoddart mentioned as regards the last referendum. In 1975, the Labour Prime Minister, Harold Wilson, made a promise that if we voted to stay in the then Common Market,

“there would be no loss of essential national sovereignty”.

Of course, we all thought that he meant that there would be no loss of sovereignty whatever, because we all thought that all sovereignty was essential. However, in a somewhat subtle—to put it politely—way, he did not mean that at all. What he meant was that there would be no loss of any sovereignty that he thought was essential. Since then, the British people have discovered that we have lost most of the sovereignty that he promised we would retain. So I really do not think that we want a statement from the Government, as in this amendment, but it would be perfectly in order to have a statement from each side.

[Lord Collins of Highbury]

I just want to correct a figure. It has been mentioned several times that the Labour Party will have the ability to spend £7 million, but, of course, the figures on the popular vote are slightly adjusted because of the Labour and Co-op Members, where there are joint parties standing. Therefore, the figure for Labour, according to the Electoral Commission, is 29.3%, which would give it £5.5 million. According to this, UKIP would have the ability to spend £4 million. Am I to understand that the noble Lord is in favour of his party, UKIP, being limited to spending £10,000?

[Lord Pearson of Rannoch]

My Lords, my party would like to spend as much money on this campaign as it can. I was looking at the suggestion that we should have 12.6%’s worth, that being our share of the votes cast in the last election. Personally, I am in favour of that, of course.

[Lord Kerr of Kinlochard (CB)]

I want to lower the temperature with a deeply nerdy amendment, Amendment 55, which concerns purdah. I apologise for not following the noble Lord, Lord Pearson—

[Noble Lords]

Wrong group!

[The Earl of Courtown (Con)]

It is in the next grouping.

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[Lord Collins of Highbury]

I do not know that I strongly expressed my support for caps. I said I thought they had a function and a role. Actually, what the public demand of our political parties is greater transparency. The noble Lords opposite constantly refer to the trade union movement supporting the Labour Party. Every single penny of that money is properly accounted for under a range of legislation, including the trade union Acts that cover the establishment of political funds, but I am not so sure that is clear in the case of some company donations, the origins of which can be obscure and unclear. For me, the most important thing in funding is transparency.

I am a strong advocate of capping donations, which is far more effective than having a cap on spending. Caps on spending have not been particularly effective. As we have seen in every general election since PPERA was enacted, no political party has got anywhere near the spending cap. But capping donations—limiting how people might influence policy—is much more effective. When the Committee on Standards in Public Life held an inquiry into the funding of political parties, I argued that we should have a cap of £500 on political donations because members of the public would understand that amount. Most members of the public would find it incredibly difficult to raise £50,000, which was the amount suggested by the Conservative Party. Not many members of the public would be able to donate that amount. But if you had a cap of £500, most members of the public would say, “Yes, that is a reasonable amount”. But that is the debate: it is more effective to have caps on donations than on spending. No doubt we will return to that debate some other time.

[Lord Pearson of Rannoch]

My Lords, I think I heard the noble Lord say that he assumed UKIP would want to take part in the referendum campaign, and of course it will, but I should just confirm what my great leader Nigel Farage has said: he sees UKIP as an important but cohesive part of the eventual campaign to leave the European Union. That is where UKIP is on that one.

[Lord Collins of Highbury]

I am glad to hear that but at the moment it does not look as though there is a single campaign. If the Conservative Party and UKIP unite as one, so be it. The public will no doubt take account of that. But the business currently before this House is an amendment that says to UKIP, “If you register as a political party, you will limited to £10,000”. I am not sure that would cover Nigel Farage’s flights around the country, so I think he will be concerned about that.

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[Lord Forsyth of Drumlean]

My Lords, I should like to speak to Amendments 53, 56, 61A and 61D, in my name. First, I say thank you to my noble friend the Minister for her decision to abandon making regulations under Clause 6(2). That is a fantastic step forward. Many of us expressed concern about that at Second Reading. It makes my Amendment 53, which simply required notice of any change, look a bit feeble, so I am extremely grateful. Given that my noble friend has undertaken not to make any regulations modifying Section 125 for the purposes of the referendum, I wonder whether she might be amenable to removing it from the Bill altogether, so there is no ambiguity about the position, thus ending the concerns which have been expressed. I commend the notes prepared on the PPERA, which makes it clear that Section 125, as my noble friend Lord Lamont pointed out, is concerned with promotional material. Although I have tried very hard to support the amendment of the noble Lord, Lord Kerr, I do not think it is necessary, given that the Government are not planning to make regulations under Section 125, the fear having been that it would be used as a back-door route to get round purdah. That is a great step forward.

The noble Lord, Lord Hannay, referred to the Scottish referendum campaign. In considering the amendment proposed by the noble Lord, Lord Kerr, one thing that I recalled was extremely irritating in the Scottish referendum campaign was how, in the last few days, the Government suddenly published, in concert with the other political parties, a vow, which has caused us endless difficulties subsequently. An amendment such as that of the noble Lord, Lord Kerr, would open the door to that kind of activity, which is thoroughly unhelpful. The noble Lord is groaning, but I am sure he takes the point.

At Second Reading, I asked whether the restrictions and purdah imposed under Section 125 would apply to the Scottish, Welsh and Northern Ireland Governments and to the European Commission. My noble friend said that, yes, they would apply to any person and there was no cause for concern. As my noble friend will see, I have tabled Amendment 56, which restricts the promotion of promotional material by the Scottish and Welsh Governments, the Northern Ireland Executive and the European Commission. That is not because I thought my noble friend was wrong in the assurances she gave, but because it relates to Amendment 61A, which introduces a personal surcharge on anyone who incurs expenditure in breach of these rules. This may not be the best way to do it, but I tabled the amendment because I was astonished to discover that, although Section 125 imposes purdah and restrictions, if anyone chooses to breach that purdah there is absolutely no penalty for doing so. Therefore, we have a paper tiger. All that can be done is to seek judicial review of that action, by which time the train will have left the station. The notion that a referendum could be rerun because there was a breach of purdah is stretching credulity to the point of fantasy. We had this great argument about purdah and Section 125—it has been through the other place and come here—but there is actually no penalty.

The Electoral Commission thinks that my amendment might go a bit far. However, there are precedents; I remember Dame Shirley Porter being personally fined no less than £20 million. The surcharge rules have since been taken out of local government legislation, but they certainly existed—and it would certainly concentrate the minds of the Scottish Government or anyone else tempted to breach purdah if there was some kind of sanction. I propose this in the hope that my noble friend will respond to the concerns expressed by the Electoral Commission—if not by me and others—and consider what sanction could be put in place to ensure that the purdah rules are observed.

Then, of course, we have the European Union and its institutions. It is difficult to see how we could have any sanction as, of course, we are mere vassals of the European Union. How could we possibly punish it for, or indeed prevent it, breaching purdah? Amendment 61D is an attempt to reach a negotiation—an approach that I know the Prime Minister is keen on to deal with the difficulties we have with the European Union. It proposes that there should be a negotiation now to,

“conclude an agreement between the Government and the institutions of the European Union, to the effect that the institutions will … abide by the provisions of section 125”,

and not be tempted to take on a promotional or campaigning role during the referendum.

My noble friend will no doubt tell me that that is very unlikely. However, I happened to read a piece in a newspaper a fortnight ago—I assumed it was some kind of joke—suggesting that in Scotland, the European Union was going to require farmers to put up in their fields posters indicating that they were supported by the European Union, and that the size of the posters would be determined by the amount of subsidy they received. The prospect of all the fields in Scotland being adorned with European flags and messages telling the public how generous the European Union had been in spending the money which we gave them in the first place, while we were in the sensitive period of a referendum campaign, seemed rather chilling. That makes my Amendment 61D rather important, because I would interpret suddenly providing new publicity to mislead the public about the extent of the support provided by the European Union to those farmers as an example of exactly the thing I am concerned about—and, of course, something the Government can do nothing about.

Even if my noble friend does not accept the substance of these amendments, I hope she will take them away and consider how we can strengthen the position in respect of Section 125—and perhaps even consider removing Clause 6(2) from the Bill altogether, or even Clause 6 itself, although she has said that that would be a step too far. I am most grateful to my noble friend, who has responded to the concerns expressed in the other place and delivered what it wanted, and responded to the concerns expressed by many noble Lords on Second Reading.

[Lord Pearson of Rannoch]

The noble Lord referred to the notices that our masters in Brussels have required to be erected all over the countryside. I have an idea for the farmers in question. Alongside the notice that gives the great news that our masters in Brussels have given us so much money, they could put up a notice saying, “PS. Of course, for every pound they give us, we will have given them £2.66”—which I think is the present amount. Perhaps that would put those notices into perspective, because there is no such thing as European aid to this country, as I am sure all noble Lords will agree.

[Lord Hamilton of Epsom]

Does the noble Lord not agree, though, that if somebody did something as impudent as that, measures would be taken to take their grant away?

[Lord Pearson of Rannoch]

I do not think they would be in a position to do that. If farmers were forced to do that, it would be a very good thing for those of us who wish to leave the European Union.

On Amendment 61D, tabled by the noble Lord, Lord Forsyth, he worries about the provision not having enough teeth to ensure that the European Commission behaves itself—which, of course, I forecast it will not. One could add on Report a clause which says that any money the European Union does spend in this regard can be deducted from the £12.5 billion net that we are sending to Brussels at the moment. Perhaps we can get the money back that way.

[Lord Forsyth of Drumlean]

I was concerned not about the money but about the expenditure taking place within the campaign, which was breaching the rules of purdah—that is, the use of the money, rather than the actual amount.

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[Lord Pearson of Rannoch]

I accept that; but if they knew they were going to lose the money if they spent it, they might be less inclined to spend it.

[Lord Collins of Highbury]

Of course, in the other place the Opposition resisted strongly the disapplication of purdah provisions and the other place agreed with that. Therefore, our position is quite clear. Obviously, however, Clause 6 was agreed to in the other place. I hear what the noble Lord, Lord Forsyth, is saying, but I am not sure that I quite understood his interpretation of the noble Baroness’s remarks. There is clear indication that there is no intention to lay regulations. There may be a risk, but we do not know: there are unforeseen circumstances. I am assuming that Clause 6 will be retained, and we would support that if it enables the Government to respond to something unforeseen. I assume that is what the noble Baroness is saying, and that is why we would support that. I am certainly sympathetic to the views expressed by the noble Lord, Lord Kerr.