European Union Bill

Debate between Lord Pearson of Rannoch and Baroness Nicholson of Winterbourne

Wednesday 25th May 2011 Lords Chamber

[Baroness Nicholson of Winterbourne]

The sunset clause is inappropriate because, as I have said, this Bill attempts to do something quite unusual with regard to EU legislation and successive British Parliaments and Governments. Traditionally, British Governments, and to a lesser extent British Parliaments, had not involved themselves in EU legislation. Your Lordships’ House is very different from the other place. I am pleased to see that the noble Lord, Lord Roper, is in his usual place. It is known in the European Union—in the European Parliament particularly—that the reports from your Lordships’ House are unique, wonderful and vastly helpful. However, the fact is that given our particular position in this House—we are not elected and primacy rests with the other place—it is the other place that has let down the British people. EU Standing Committees A and B are deficient in their grasp of what is going through under EU legislation. They have not been briefed by successive Governments, which is why I believe that these referenda potentially give the British Parliament the opportunity to grasp again the power that somehow it has let slip.

It is all too true that there is an assumption now that EU legislation has primacy over the British Parliament. That is not the case. Parliament has let slip so much EU legislation in past decades that there is now an assumption that the primacy of European Union legislation overrules the primacy of what is passed through the British Parliament. It was not until I sat in the European Parliament that I realised that other Parliaments have not behaved like this. Other Members of the European Parliament from different member states did not have that perception. In other words, I am suggesting that we have undervalued the British Parliament’s authority over all EU legislation. That is because the British Parliament, particularly in the other place, has allowed so much legislation to slip by that an assumption has arisen that somehow we no longer control it. By we, I mean British parliamentarians. Therefore, I suggest that referenda offer one window into closing this gap of communication with the British public.

[Lord Pearson of Rannoch]

My Lords, would the noble Baroness care to comment on the Factortame case?

[Baroness Nicholson of Winterbourne]

I beg to continue, because although the noble Lord’s reasoning is always crystal clear—I often disagree with him entirely but I always respect the way in which he puts forward his views—in this case, I am not quite clear what his point is. I therefore conclude by asking the Government to assure us that if and when this Bill goes through without the sunset clauses, as I hope it will, Ministers will offer other openings through which the Parliament and the British public can be given a greater opportunity to be involved in all the EU debates that are reflected in our legislation. In other words, I see these referenda mechanisms as one step towards reconnecting the British public but not the final step. I am against the sunset clauses.

European Union Bill

Debate between Lord Pearson of Rannoch and Baroness Nicholson of Winterbourne

Tuesday 17th May 2011 Lords Chamber

[Lord Pearson of Rannoch]

I am sure we could collaborate with other nations that control their own waters. What we do not want to do is to go on with a common fisheries policy that ensures that hundreds of thousands of tonnes of fish are thrown back dead every year and which has removed a very valuable industry. I hope that is clear to the noble Lord. While on my statistics the fish that are thrown back dead every year would fill this Palace of Westminster and Whitehall several times over, I have to tell your Lordships that there are those outside the political class who think that that might be a rather better use for them than being thrown overboard to pollute the seabed.

This amendment does not require a referendum if we are so foolish as to stay in the common agricultural policy, which is estimated to cost each family in the land around £1,000 per annum in higher food costs, or some £26 billion. On the environment, this amendment does not address the £18 billion per annum which the Government say we are going to spend on their climate change initiative inspired by the European Union, complete with all those useless and ugly windmills, not to mention the closure of our coal-fired power stations. The amendment does not include the cost to our economy when the lights go out, nor does it cover the billion or so we send to Brussels for it to misspend on foreign aid.

Finally, the amendment does not include the huge costs of overregulation which the EU imposes on our whole economy. I dealt with this in minimal detail on 3 May at cols. 398 to 400, so I will not repeat it now, but we are talking about anything between 4 per cent and 10 per cent of GDP by most estimates. Our GDP now stands at around £1.5 trillion, so we are talking about anything between £60 billion and £150 billion. If any noble Lords want to challenge these figures, they can, of course, do so, but I trust they will join me in pressing the Government for an official cost-benefit analysis of our membership if they do.

This amendment is not triggered by any of the £100 billion or so per annum of waste which I have just mentioned that is notched up by these and other EU follies. The joy under this amendment is that a referendum would be triggered only when our net cash thrown down the drain in Brussels equals £10 billion per annum according to the Government’s own figures. Mark you, the Office for National Statistics has recently put our net contribution at around £9 billion already this year, and most people seem to agree that we are looking at £10 billion for next year, so we are nearly there. I can point out that the noble Lord, Lord Sassoon, in his Answer to my noble friend Lord Vinson yesterday put our net contribution as low as £4.7 billion, so there is room for clarity here. I have a feeling that the noble Lord, Lord Sassoon, was mentioning the figures put forward by the Treasury, which are very much lower than the figures put forward by the Pink Book, but that is perhaps an argument for the cost-benefit analysis when we get there.

We are talking about £10 billion per annum. This may not sound much to our Europhile political class, but it is an awful lot of money to real British people. Ten billion pounds per annum comes to some £27.39 million every day. That would pay for 900 nurses every day at a salary of £30,000 per year each—or teachers, or policemen, or other public servants. The amendment requires a referendum when the net cash that we send to Brussels would pay the annual salaries for 900 nurses every day, or for 328,500 nurses every year.

There is another way to understand the importance of £10 billion per annum, which comes to £400 per annum for each of our 26 million families. All these costs have to be seen against the perilous state of our economy and the sacrifices and difficulties in which many of our people now find themselves through no fault of their own. Current spending cuts, as I have mentioned, appear to be around £21 billion. Which would the British people prefer?

I am sure that the Government and your Europhile Lordships will say that the benefits of our EU membership are so wondrous and obvious and that they go far beyond its mere vulgar cost to our long-suffering taxpayers. I have never understood what those benefits really are; what benefits we get from our EU membership, which we could not get from free trade and friendly collaboration with our European friends; what benefits we get, for instance, that the Swiss do not enjoy from outside the EU.

Perhaps the Minister could be more precise today about these great benefits. This Government and the previous Government—and previous Governments for some time—have said that a cost-benefit analysis would be a waste of money. The Stern report on climate change, however, cost only £1.272 million on a subject at least as complex as our EU membership. Surely that tiny sum would be well worth spending to discover whether the colossal costs of our EU membership are justified or not.

We, of course, are told that we stand taller as a sovereign nation in meetings of the international conferencariat all over the planet—because we have diluted our sovereignty into the new form of supranational government in Brussels run by bureaucrats. If the Minister is going to advance this line again today, could he give some concrete examples of the great advantages and the successes? Does he think, for instance, that the EU did a good job when the lid came off Yugoslavia, or that it is doing a good job in north Africa? What confidence does he have in the EU’s new External Action Service?

I conclude by asking the Government, yet again, to settle these matters by ordering an objective, unbiased cost-benefit analysis of our EU membership. In the mean time, this amendment asks that the British people be given a referendum when our cash payments to Brussels exceed £10 billion to decide whether they want to go on paying it. I beg to move.

[Baroness Nicholson of Winterbourne]

My Lords, I am a little dazzled by the complexity of the millions and billions and almost trillions of pounds and euros that the noble Lord, Lord Pearson of Rannoch, has laid in front of us. Indeed, while I was listening to him most closely, I recalled a moment of great happiness when I was begging for charity recently and I received a cheque with so many zeros that they fell off the end of the cheque. I ran around saying to someone else who could add up more closely in the charity, “Look, look, look, we have done exactly what we want to do”. He pulled me down to earth and he said, “Do be careful—this is a cheque from Burkina Faso”. When it was added up, it came to about $5.

The arguments put forward by the noble Lord, Lord Pearson of Rannoch, while in no way impugning, by this comment, his grasp of finance and passionate loyalty to the European Union’s holding on to her old funds, make me wonder whether in fact this amendment does not belong in the Bill at all. In other words, is he offering us the king with no clothes? Surely this Bill is about the transfer of powers and competencies. It is not about the transfer of finance, which should enable the European Union to carry out the powers and competencies it already has. In other words, this is not a Bill that enables us successfully to argue various different figures about financing of the European Union. My suggestion is that this most interesting amendment does not in fact belong here at all. It is correct and proper, incidentally, that the European Union should be suitably funded for the competencies that the member states have authorised it to carry out.

There is also the problem that this figure simply does not take into account our contribution from the United Kingdom to the EU budget in terms of inflation. How would the noble Lord react if, for example, the UK goes over the £10 billion mark, but proportionately our contribution is in fact smaller? That could be the case with the growth of Germany and other economies: our proportion—our net contribution—could be proportionately smaller but might be larger than £10 billion. In the calculation of our UK contribution—the net versus the gross—the timing of the UK’s actual contribution needs to be taken into account. This amendment is impractical on timing grounds alone, because our contribution generally comes in after the event.

It is, of course, natural that I would be likely to disagree with the noble Lord, Lord Pearson of Rannoch, on his comments that we have diluted sovereignty from the United Kingdom in joining the European Union. I will disregard the temptation to go down that channel, otherwise we will not make any progress on this amendment—save to say that in foreign affairs and defence and security, if I could dare tempt him with that wicked phrase, we have greater strength, power, and a wider outreach with our European Union member state partners than we could possibly ever have standing, talking and trying to influence alone.

In fact, I suggest that this matter is in complete contrast to the measures that we, and other member states, have already introduced to make significant savings in domestic budgets. Of course, I agree with the noble Lord profoundly that we should empower our Ministers, our civil servants and our diplomats to argue as forcefully as possible against the sorts of increases that, sadly, the European Commission and the European Parliament have recently demonstrated that they want. That argument is, without question, right and proper, but to do that we need to empower our Ministers and diplomats. We cannot do that if we bring this type of amendment forward and claim that the mere transfer of money transfers competencies to the EU. It does not. That is why I suggest this amendment should be discussed in another Bill, at another time and in another place.

European Union Bill

Debate between Lord Pearson of Rannoch and Baroness Nicholson of Winterbourne

Monday 9th May 2011 Lords Chamber

[Baroness Nicholson of Winterbourne]

Noble Lords on all sides of the House must now surely recognise that this amendment is a mistake. I feel absolutely sure that it is an honest mistake, but it is a mistake based on a misunderstanding of the rules in the European Union. In order to work well in the European Union, you have to recognise that members come from many different states—as they have always done. In order to draw the members together so that they come to the meetings and all the rest of it, the European Union has different sorts of rules that are designed to attract them, to make absolutely sure that they come to the meetings. There are some very tough rules indeed if you do not turn up, and that is why this amendment is such a mistake. We cannot pass it because it would so gravely handicap United Kingdom Ministers in the Council of Ministers.

This way of working is commonplace throughout the European Union. If you do not turn up when it is a unanimous vote—and many votes are unanimous in different European Union institutions—you will be deemed to have agreed. That is what forces people to come from so many different nations. It is an enormous effort and very expensive for the Union and so on, so there are a number of rules that act like a magnet. This is one of them. Therefore, with the greatest respect, I suggest to noble Lords opposite—to the noble Lord, Lord Davies of Stamford, for example, and others—that they should rapidly withdraw this amendment. It is a little embarrassing. If it were to go through, we would be the laughing-stock of the Council of Ministers.

[Lord Pearson of Rannoch]

I have a slightly more general question to put about a thread which is running through all our amendments and proceedings. It concerns the Government’s attitude to enhanced co-operation. We have heard much about the general position of Ministers who would find themselves isolated in the Council of Ministers because, although they might support a proposal, they would have to take it to a referendum that they might lose. That is why I ask: how serious is that, really? If nine or more countries wanted to go ahead with a proposal—it used to be eight, but I think it is now nine under the Lisbon treaty—what would be the Government’s attitude to it? How worrying is enhanced co-operation? I imagine that the Government may say that they do not particularly want a two-speed Europe. Of course, some of us would prefer a third speed or gear—a reverse gear. But it would be nice at some point during our proceedings to understand how the Government view enhanced co-operation generally.