European Council

Lord Stoddart of Swindon Excerpts

Monday 21st June 2010 Lords Chamber

[Lord Strathclyde]

My noble friend raises a point that we could debate and discuss for a very long time. He is right to mention the Bretton Woods arrangements. As to whether there should be an automatic mechanism to adjust for competitiveness, that is a matter not for the Government but the European Bank. It must take into account all the needs of all the economies within the eurozone and it is one of the reasons—only one—why we supported the view of the then Government that we should not join the euro in 1999.

[Lord Stoddart of Swindon]

I want to make two points. First, with regard to the reference to budget surveillance on page 4 of the Statement, this does not go far enough. It says that,

“the UK Budget will be shown to this House first—and not to the Commission”.

It is not a question of showing the Budget to the House; it is a question of the House of Commons agreeing the Budget before the Commission has its way. Surely that is right.

Secondly, why on earth do the Government continue to harp on about 40 per cent of our trade being with the European Union? The world is a much bigger place than that these days, so would it not be better if we expanded our trade with China, South America, India and indeed the Commonwealth, instead of concentrating on the backyard of Europe?

[Lord Strathclyde]

My Lords, on the question of the Budget, the noble Lord is in danger of tilting at windmills. We are not playing any verbal gymnastics that somehow when we say that it will be presented to Parliament first it means that round at the back door we are busily presenting it to the Commission. We are not. Tomorrow there will be a British Budget which will be presented to the British Parliament first. After it has been presented it will be a matter of public record and knowledge. I dare say that the Commission may be interested; it may indeed be very interested in looking at it before it is finally agreed by Parliament. Therefore, I do not think that there is a fundamental difference between the two of us on this issue. Neither, incidentally, is there about what the noble Lord Stoddart of Swindon, said about trade with the rest of the world. It is an important plank of British foreign policy to expand our trade beyond Europe. That is vital to our long-term prosperity and the creation of jobs in this country. We are using all the natural advantages that this country has built up over many decades—centuries even—with countries whose economies are growing extremely quickly. To ignore them would be an enormous mistake. So I hope that I can put a smile on the face of the noble Lord, Lord Stoddart, by saying that I very much agree with what he said.