European Union Bill
Lord Stoddart of Swindon Excerpts(13 years ago)
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Lord Howell of Guildford
It does not alter the fact that the United Kingdom will continue to have a veto, as other countries will, unless we surrender positions of unanimity by abandoning our veto. That would be the position. It is perfectly true that there would be very marginal and small changes in the pattern of weighting, but there is no particular reason why they should involve a loss of power or a transfer of competence. They do not do so. The noble Lord, who is very experienced in these things, was talking about patterns in which all sorts of alliances are formed or not formed. All sorts of gatherings and countings of votes take place when Ministers go into these negotiations. That will continue as before. The accession of another country does not alter that pattern in any way.
The noble Lord, Lord Pearson, asked about the ways in which immigration or financial regulations might be affected by the arrival in the European Union of a new member state. He will recall that when Bulgaria and Romania joined the EU, we put transitional arrangements in place. We had the perfect power and legislative opportunity to do so, and we can do so again. Nothing in the treaty of accession prevents us from doing so and nothing has prevented us from doing so in the past.
I emphasise, as the noble Lord, Lord Triesman, and other noble Lords have asked me to, that, as with all previous Governments regardless of their political composition, we are strong supporters of future enlargement. Like some noble Lords, I remember the considerable uplift in spirits when first there was the fall of the Berlin wall and the Soviet empire and then when the processes of enlargement embraced one after another of its former satellite countries. We all worked, planned and hoped for these things. Some of us thought that we would never see them in our lifetime, but they did occur.
EU enlargement helps to create stability, security and prosperity across Europe—we have never disputed that—and serves to spread democracy, human rights, the rule of law and fair rules for workers and businesses. These standards are high although they are not always achieved. I am grateful to the noble Lord, Lord Pearson, for reminding us of a joke—which, frankly, I had heard before—about the standards of the EU itself. The EU is not, of course, a country; it is a vast confederal structure. It is a unique institution in the 20th and 21st centuries but it is not a country, and perhaps it is a little distorting to suggest that it should be judged in the same way as a nation state. However, that we favour enlargement in the way in which it has come about so far—and in the way in which it might come about in the future—should not raise one iota of doubt for a single minute.
Whenever a candidate country meets the EU accession criteria and it is decided that it is ready to join the EU, we will support its entry. The Government will present its case to Parliament through the introduction of a Bill that will be debated in both Houses and passed or not passed into an Act according to the will of Parliament.
I have little to add to the strong points that have been put by a number of noble Lords as to the fact that transfers of powers and competencies do not arise in the precise form in which we are dealing with them in the Bill; there is no competence or power transfer. The commitment in the coalition government programme for government is to have a referendum on treaties that change a power or competence from the UK to the EU. Treaties that merely allow a new country to accede do not meet this requirement. On that basis, I urge noble Lords to consider what I have said on this matter and to withdraw the amendment.
Lord Stoddart of Swindon
I thank all noble Lords who have taken part in the debate, particularly those who supported the amendment—the noble Lords, Lord Pearson and Lord Willoughby de Broke. I confess that I did not think there would be a debate of nearly an hour and a half on my amendments; I thought they would be dealt with very swiftly. I am pleased that I tabled the amendments because we have had a well considered and authoritative debate on the subject, whatever opinion we hold. That has been altogether good. I would like to reply to all the points that have been made but, including my own speech, there have been 15 speakers—the equivalent of the number of speakers in normal short debates that are two and a half hours long—and I am sure that the House would not welcome a long speech from me in these concluding remarks.
I say to the noble Lord, Lord Pearson, that I was interested in the way in which the Estonians were bribed, so to speak, to vote in the referendum with whisky and chocolates. I am sure that the Scots would be pleased that their product was being used in that way. I visited Estonia shortly after the referendum. It seemed, from the general view of the population, that they regretted the decision that they had made and wished that they could go back on it. That is by the by.
It has been a good debate with some important issues raised. Although the noble Lord, Lord Richard, does not support the amendment, he made a valid point that if we are going to have referendums on some rather less important things—public prosecutors and what have you—there is little merit in raising the question of having referendums on more major matters. That was taken up by several other noble Lords. It is clearly important that we realise that the Bill is deficient in many respects.
On the question of referendums, there appears to be a lot of opposition to referendums per se. That opposition is perhaps on the basis that those who do not want them believe that they cannot win them. That is a big mistake. We have referendums on all sorts of things such as mayors. The objective of having them is to give people a say on major items. I stress that it is on major items. We should not rule them out of our decision-making process.
Another point was raised by the noble Lord, Lord Triesman. I, too, welcome him to his new post on the opposition Front Bench. He may well be right to claim that the European Union has given us nothing but benefits. The noble Lord, Lord Pearson, and I have asked repeatedly for a cost-benefit analysis of our membership of the European Union. I hope that the noble Lord, Lord Triesman, might support the next Bill which asks for a referendum.
Another point was made by the noble Lord, Lord Howell, who suggested that we should not have referendums on the accession of new members because there are no new competencies. As I pointed out in my opening speech, the accession of new members has often if not mostly been the reason for new treaties transferring competencies to the European Union. In that respect, new accessions may well result in new competencies being given to the European Union and its institutions.
I again thank noble Lords for contributing to a good and essential debate. I do not intend to press the matter to a Division this afternoon but, after reading all the contributions to the debate, I might wish to bring the matter forward again on Report and perhaps even put it to a vote. In the mean time, I beg leave to withdraw the amendment.
Baroness Williams of Crosby
In the case of prostitution, quite a lot of the entries are from eastern Europe. Indeed, some of the more disagreeable people have exploited the fact that the eastern Europeans are not aware of where they are going. They are offered jobs in the catering trade—hotels and so on—and then find out that they have been sold into prostitution. They are not aware of how to deal with the situation or of the safeguards that should be open to them. However, that is not the case with the other two examples I gave of domestic slavery and agricultural exploitation. In those cases, most of them come into this country, rather amazingly, straight from third countries and not by way of other member states of the European Union.
Lord Stoddart of Swindon
On the first intervention, I got the impression that the noble Baroness thought that all five groups of amendments were being taken together. Is that correct? If we are taking all five groups together we will be here for a very long time and noble Lords will miss their dinner. Could we have clarification on this?
European Union Bill
Lord Stoddart of Swindon Excerpts(13 years ago)
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Lord Stoddart of Swindon
My Lords I had not intended to speak on whether Clause 3 should stand part. However, I wanted to follow the noble Lord, Lord Hamilton, but was not permitted to do so because the Minister got to his feet and obviously wanted to intervene. I was later unable to intervene on the noble Lord, Lord Liddle, who did not seem to want to hear what I had to say. The first thing I want to say is that I agree entirely with what the noble Lord, Lord Hamilton, said. Indeed, he got to the core of the matter. The reason we are in this difficulty today, the reason we have this Bill, and the reason we are talking about referendums is that Parliament, under the European Communities Act 1972, cannot do its job. That is why we have this difficulty.
Under normal circumstances, when great changes take place Parliament is able to discuss and amend. However, when Ministers and the Government agree to hand new powers to the European Union and make a treaty, we can discuss the treaty but we cannot amend its provisions. That is not how Parliament should work. If Parliament is to work properly, the European Communities Act needs amending so that Parliament can do its job. Then, when a treaty—or whatever means of handing further power to the European Union—happens, Parliament can properly discuss the Bill with some effect by moving amendments, voting on them and disagreeing if necessary with what has been agreed by Ministers. In particular there was great concern about Clause 3, which refers to Article 48(6), in another place and—as the noble Lord, Lord Howell, knows—in this place as well. He expressed his grave concern about the possible use of Article 48(6) of the Lisbon treaty.
The whole basis of the European Union is wrong as far as democracy is concerned. The problem is that the more power that is acceded to the institutions of the European Union, the less democratic it becomes. That has been shown. The noble Lord, Lord Pearson, referred earlier to setting aside the provisions of our own Select Committee as well as the Select Committee of the House of Commons. If the Government believe that something is urgent, they just ignore everything that has been said here. What is more, the discussions we have here are long and good; there is no question about that. The European Union Select Committee works extremely hard, takes a lot of evidence and brings forward good suggestions and reports. However, they are either set aside or ignored by the European Union itself. I do not believe that any recommendation made by this House through its Select Committee has been accepted. What on earth is the use of that? The Select Committee makes reasonable proposals which are discussed and accepted by this House but are then not accepted by the European Union. In spite of the fact that the Select Committee is a good committee doing hard work, in the last analysis it has no power.
Lord Grenfell
I am most grateful to the noble Lord for giving way. However, he has not quite grasped the purpose of the European Union Select Committee. The purpose is not to advise the European Union but to advise the Government. If, in their sovereignty, the Government choose not to accept our advice, there is nothing that we can do about it. However, I do not think you can say that we are not performing our function just because the institutions of the European Union might not accept what we have said.
Lord Stoddart of Swindon
That is precisely what I did not say. I said that the Select Committee was performing its function and doing it very well but—whether it is a case of what the Government will accept or what the European Union will accept—in the last analysis, its recommendations have not been accepted, which is a great pity. Some of the changed arrangements for the Select Committee might make it more effective, but I very much doubt it.
I remind the noble Lord, Lord Liddle, who would not allow me to intervene in his speech, that the peace in Europe has had nothing to do with the European Community or the European Union but has been kept by NATO. The greatest threat to Europe occurred in 1949 with the Berlin blockade. The treaty of Rome was not signed until 1957 although I think that it was thought of before then. The United States and Britain ensured that the Russian blockade was broken; it had nothing to do with any other European state, with the exception perhaps of France which gave a little help. Therefore, it is about time that we stopped talking about the European Community or the European Union being responsible for keeping the peace in Europe—NATO has kept the peace in Europe. I do not know what would have happened without NATO and the American deterrent, so please let us give credit where it is due.
Lord Pearson of Rannoch
My Lords, while the noble Lord is on this subject, would he care to comment on the European Union’s record in Yugoslavia?
Lord Stoddart of Swindon
That would take rather a long time. I think that perhaps Germany rather than the European Union had some strategic purpose in regard to the break-up of Yugoslavia, but I had better not go into that at this time. Time is getting on and I have no doubt that noble Lords want to get to dinner, so I shall sit down.
European Union Bill
Lord Stoddart of Swindon Excerpts(13 years ago)
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Lord Dykes
My Lords, I think that the Committee generally will very much welcome the Government’s suggestion.
Lord Stoddart of Swindon
My Lords, on the point that the noble Baroness raised, I do not think that I heard a loud voice saying that we should not debate Clause 3 stand part. So if anybody wishes to debate Clause 3 stand part, when the Question is put to the Committee, any Member can get up and speak to it. Is that not right?
Lord Dykes
The Committee can now benefit from the correction provided by the Independent Labour Member on the Cross Benches. It enables us to make progress because, in a way, the linkage between Clauses 3 and 4 is dangerous, to use the word of the noble Lord, Lord Kerr, and the more we think about it the more dangerous it becomes. It is quite astonishing to reflect on the fact that Clause 4—even if it was included and referred to the Article 48(6) differences—would have been better as a brief clause of perhaps five lines at the most, without the long and lethal list of possibilities for passerelles and other areas of quite routine procedure within the European institutions which have to be automatically referendable in this system.
We forgive the noble Lord, Lord Kerr, for the length of his speech on 5 April, because on that occasion he said some very pertinent and welcome things that will help us to improve this Bill if the Government accept that improvements are necessary, as I hope they will. Perhaps the noble Lord will forgive me for quoting his own material, but towards the end of the last but one paragraph in col. 1634, he put a question on which there has, as I understand it, been total silence despite a two and a half week Recess and time for the Government to give at least a provisional indication. I am ready to be corrected if it is not true that no answer has been given. Briefly, in that last but one paragraph, the noble Lord said:
“Therefore, it seems to me that the references to Article 48(6) and simplified revision procedure in the Bill are otiose. The only other explanation for them could be that the Government envisage referenda on EU issues where no transfer of powers or sovereignty is envisaged”.—[Official Report, 5/4/11; col. 1634.]
If that is so, are they doing it because of a small number of active anti-Europeans in this country who hate the European Union? There is no indication that the public in general are very excited except by the concept of the remoteness of Brussels. That is certainly an issue, but it is an issue that the European Union is trying to address through various measures such as the Lisbon treaty and other means which are gaining ground.
The number of visitors to the European Parliament is massive compared with the numbers visiting even those national parliaments, such as this one and the German Bundestag, which get the most visitors. The number of people visiting the European Parliament has increased massively over the past 10 years, and especially over the past 20 years, and the vast majority of responses from those visiting the European Parliament —from people of all political persuasions and orientations and from people of none, who visit for all sorts of reasons—show that people are gaining a greater understanding of how the institutions of the Union work in a complicated matrix. There are now 27 member states of the Union, as opposed to six when it first started, and complicated machinery is inevitably needed to deal with all the possibilities and ramifications.
It seems to me to be a pity that the Government are persisting obstinately in not entertaining the idea of any substantial or far-reaching amendments, particularly to Clause 4 and the end of Clause 3. I share what I perceive to be the general approbation for the amendments, including the two new additions at the beginning of this cluster proposed by the Labour Front Bench today. We need to spend some time on this, aware as I am that there is a Statement coming along about a very important subject—Libya and the Middle East.
There are three conditions: the referendum condition, the exemption condition and the significance condition. The end of Clause 3 deals really with the significance condition but partly with the exemption one and Clause 4 gives an exhaustive and dangerous list of referendable items. By reversing the whole process and putting back into the list deliberately virtually all the Clause 4 list the Labour Front Bench and others who are in favour of these amendments, and Amendment 28 as well, can show the full absurdity by widening out fully ministerial discretion on everything so eventually nothing in Clause 4 would need to be subject to referendum apart from the very significant matters mentioned in one or two of those paragraphs—not very many of them, I hasten to add.
The clause does direct damage to the existing competences under the treaties and prevents any member state even responding within the powers already granted by treaty. That is the most extraordinary thing, hence the anxieties of the noble Lord, Lord Kerr, and of my noble friend in front of me who expressed fears about an Act of Parliament then being overturned by a referendum. My noble friend Lord Goodhart emphasised that in the first Committee sitting, and I hope that he will have a chance to emphasise it again as this one proceeds.
Such treaty competences or powers surely have the reverse effect of what the Tory antis, UKIP and the Independent Labour Cross-Bencher say. In my estimation they enhance the intrinsic sovereignty of both an individual member country and the union. These provisions emasculate this country in these crucial areas but not the other member states. A British Government would have an automatic and hugely burdensome disadvantage built in. A huge ball and chain would be attached to the Minister’s leg every time he or she appeared in the Council chamber, whatever ministerial Council it might be—not just the European Council and the Council of Ministers. It would be the beginning of us being marginalised in the European Union, with the other member states saying, “The United Kingdom already has more grumbling and whining about Europe, more derogations, offsets, excuses, opt-outs, exemptions than any other member state and now it is inflicting this absurd and, indeed, crazy Bill on the body politic of its own country and inflicting it on the Council of Ministers as well”.
The Government are therefore, I suggest, effectively abrogating existing treaty duties even by interposing a new interruption or cancellation procedure which directly damages the capacity of a sovereign member Government to deal with routine treaty additions or changes. Many items in the Clause 4 long list are capable of further rational development in coming years. If we exclude defence, which some people would want to do, and particularly because of the recent bilateral deal with France, then the loss of sovereignty of us doing a bilateral deal with France is axiomatic. It is bound to be, yet there is no objection from the anti-Europeans on that matter. There is no objection from them to us losing our sovereignty seemingly by being ordered by an American general to carry out bombing raids in Libya or a NATO senior commander giving us orders. Why is just the European Union singled out for these absurd and self-imagined fantasies about the loss of sovereignty? What does sovereignty mean in the interdependent modern European Union and the world community at large?
Lord Stoddart of Swindon
To assert that those of us who are a bit sceptical about the European Union are quite happy to accept defence arrangements with France and are prepared to take orders from the United States is simply not true. I do not want to take orders from the United States. We take far too many orders from the United States but certainly not with my consent as a European sceptic. There are and would be dangers of having too close an association with the French in matters of defence. What I want and what most Eurosceptics want is for this country to be free to make its own decisions.
Lord Dykes
I thank the noble Lord for intervening. I took a chance on including Independent Labour in these grumblings of mine and I should not have done so; he has a noble tradition of wanting us to be a solitary country on our own, making our own “sovereignty” decisions. That is a perfectly respectable view and I respect it. If people want to hark back to the past, however many hundred years ago it might be—maybe even only 50 or 100 years—they are entitled to do so.
Lord Stoddart of Swindon
I would not want the noble Lord to misrepresent me. I do not believe that this country should be on its own. I want it to be worldly and to make bilateral agreements; indeed, I want it to exploit the great Commonwealth of nations that we have built up over so many years.
Lord Dykes
That is an improvement, then. The noble Lord is now saying that this country should sign lots of treaties with other countries for all sorts of arrangements. Why can they not include the most sensible treaties of all—the treaties of European union and the two treaties listed in the Bill, which enable us to increase our own intrinsic sovereignty rather than reduce it?
European Union Bill
Lord Stoddart of Swindon Excerpts(13 years, 1 month ago)
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Lord Stoddart of Swindon
We have heard from the other side, so to speak. I feel very sorry for the noble Lords, Lord Howell and Lord Wallace, as they have been attacked not only by their enemies but by their friends as well. I ought to remind the Committee that before the general election the Conservative Party said that it would bring forward measures to ensure that no further powers would be transferred to the European Union without the consent of Parliament and the people. I believe that if there is a manifesto commitment to that effect, the Government should do their best to carry it out. Presumably, that is what the Government did when they promoted this Bill and brought it before Parliament.
I ought also to remind the Committee that this is a Bill of the House of Commons. The House of Commons—the elected representatives—had long discussions about this Bill. The Bill before us is the Bill which the House of Commons, as the representatives of the people, believes is right. We have a duty to scrutinise it. I do not think that the speeches so far have been so much about scrutiny as attacks on the whole concept of giving power to Parliament and the people. It has certainly been shown in this debate that there is a huge opposition to referendums. The noble Lord, Lord Goodhart, said that he did not agree with referendums.
Lord Goodhart
I wanted to say that I do not agree with the referendums in this Bill with the exception of the one about the euro. However, that does not mean that I disagree with referendums altogether.
Lord Stoddart of Swindon
I am glad that the noble Lord has clarified that because I well remember that when the Lisbon treaty was going through the House of Commons an amendment was moved by the Liberal Democrats to the effect that we should have a referendum on whether we should stay in or get out of the European Union. If I am not mistaken, the Liberal Democrats walked out of a Sitting of Parliament on that very issue. Therefore, we have to get this into perspective. I know that some people are against referendums.
Lord Hannay of Chiswick
The noble Lord raised two issues that he will recognise, after listening to the debate, are not very apposite. First, it is slightly ironic that he is nailing himself to the mast of the Conservative manifesto. Still, I suppose that there have been stranger bedfellows. The point that we are discussing in the amendment moved by my noble friend is about an article in the treaty that precludes the transfer of powers. The noble Lord’s argument is therefore irrelevant. Secondly, the noble Lord joined together everyone who spoke in favour of the amendment as people who are resisting the giving of powers to Parliament or a referendum. I am sorry to disappoint the noble Lord, but I am, as regards the amendments that I shall move, entirely content to give more powers to Parliament in this matter than were given at the ratification of the Lisbon treaty. There is no question of some of us opposing the giving of powers to Parliament. The difficulty is over giving powers through a referendum on matters that are pretty trivial and, frankly, on which it will be very difficult to carry out a reasonable consultation.
Lord Stoddart of Swindon
I hear what the noble Lord says. His career and mine have been perfectly different. I am in favour of a certain number of referendums on very important issues. He says that the Bill will allow referendums on trivialities. I do not see that in the Bill at all and I am quite sure that any referendums would be on major matters that would involve the transfer of significant powers to the European Union.
Lord Tomlinson
The noble Lord is missing the fundamental point that the noble Lord, Lord Hannay, is making. We are not discussing all those wider issues; we are discussing referenda that arise from Article 48(6), relating to issues that are already specified as requiring unanimity, with the precondition that there is no further transfer of power. Those are the limited areas that we are discussing.
Lord Stoddart of Swindon
It really would be nice if I were allowed to answer one question before I was asked another. I was going to say to the noble Lord, Lord Hannay, who seems to object to me taking up the issue of referendums, that the whole debate has been about referendums and whether noble Lords agree with them. I am trying to show that referendums are a perfectly legitimate way of testing people’s opinions. We have had lots of referendums. We had them about devolution in Wales, Scotland and Northern Ireland. We have had all sorts of referendums and the voices of the people have been heard. We seem to have been having a second Second Reading debate, at least until now. Incidentally, I mentioned the noble Lord, Lord Howell, not because he is a Conservative but merely because, if a party puts forward a policy before the election and tries to carry it out, that is the essence of democracy. It would be undemocratic for a Government not to put that policy into operation.
Allow me to carry on for a moment. I shall not speak at great length, although I should like to. However, we have been considering the amendment for an hour and 36 minutes so far. I want to say this: if we had had a referendum, as promised, on the Lisbon treaty, this Bill would probably not be before Parliament now. It is because so many people were so offended that a referendum on that Bill was not agreed and carried out that we are now seeing a great deal of public anger about the European Union. It is a great pity. When the issue was put to this House and to the House of Commons, the fundamental changes in that Bill were such that it needed the consent of the people. The fact that that was not sought has caused a great deal of difficulty throughout the country. That is why we have this Bill.
I will not go any further. I am sure that the opposition Front Bench will want to say a word, because if I remember rightly it was the noble Baroness who took through the Lisbon treaty. No, it was not; it was the noble Baroness, Lady Ashton. Nevertheless, I know that the noble Baroness will want her say and I am sure that it will be worth hearing. I doubt whether there will be a vote but, if there is, I am afraid that I shall certainly vote against the amendment moved by the noble Lord, Lord Kerr.
Lord Tomlinson
Will the noble Lord clarify one point? He said clearly that there was a promise to have a referendum on the Lisbon treaty. That was never the case. The promise was for a referendum on the draft constitution. If the noble Lord has not understood by now the difference between the draft constitution and what became the Lisbon treaty, he does not have the perception that I believe he has on these matters.
Lord Stoddart of Swindon
I must say that I read the constitution and the Lisbon treaty and could find no fundamental difference between the two. That is why the people of this country believe that they were cheated when a referendum was not given to them.
Lord Davies of Stamford
If the noble Lord reads the constitution and the Lisbon treaty, he will find that the whole of Part 3 of the draft constitution is not in the treaty.
Lord Stoddart of Swindon
I cannot confirm that now, but I will certainly check on it. However, there is little if any difference between what the constitution proposed and what was agreed in the Lisbon treaty.
Lord Taverne
My Lords, I apologise for speaking, but I have to leave at 5.50 pm. I thought that this debate would be over before then. I will briefly answer a point raised by the noble Lords, Lord Deben and Lord Davies. They asked why the Liberal Democrats had consented to this. One could also ask why some of the former Cabinet colleagues of the noble Lord, Lord Deben, who are now in the present Cabinet, have also consented to this. There is only one explanation: Homer nods. I have great respect for the other place, but in the deliberations there on the Bill the question of Article 48(6) was never raised. I have studied this; it was never properly debated. Many aspects of the Bill will be properly considered only when people outside the House read our proceedings. I trust that when my Liberal Democrat colleagues see the force of the arguments, they will recognise that there is no obligation under the coalition agreement to support legislation that is full of constitutional improprieties. When they realise that, I hope and trust that they will take the appropriate action.
Baroness Anelay of St Johns
My Lords, my noble friend has sat down and there has been an agreement through the usual channels that this might be a convenient moment for the noble Lord who moved the amendment to respond and for us to move on after that. There have been a considerable number of interventions. My noble friend the Minister has been extremely generous with his responses. I invite the Committee to move on and the mover of the amendment to speak.
Lord Stoddart of Swindon
My Lords, I really cannot agree with that. The Chief Whip is suggesting that there should be a limit on Committee stages. This is Committee and it is open to any Member at any time, until there is closure or we are all fed up with speaking, to continue the debate. The noble Baroness should not introduce new rules without the consent of the House.
Baroness Anelay of St Johns
My Lords, of course I do not seek closure. I know that my noble friend has been very generous in his winding-up remarks and that noble Lords have been keen to intervene to achieve elucidation. These are indeed very important matters. I appreciate that we are now reaching two hours, 48 minutes. We do not have anything by way of a guillotine in this House, but we have self-regulation. I believe that it is the sense of the Committee that it would be right for the mover of the amendment to respond now to the position put by my noble friend Lord Howell.
European Union Bill
Lord Stoddart of Swindon Excerpts(13 years, 1 month ago)
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Lord Tomlinson
Further to that point, if that was widespread concern across the House, perhaps it would have been better raised by someone who was in attendance at the debate.
Lord Stoddart of Swindon
My Lords, I was in attendance at the debate and was concerned at the way in which the noble Lord, Lord Pearson, was treated. The fact that he was able to take it with his usual good nature should not detract from the fact that some remarks were made in a spiteful way. That is not in accordance with the traditions of the House, and nor should it be. I am sure that the little debate this afternoon will be taken note of, and that future debates on European Union matters will be a little less vicious.
European Council Decision: EUC Report
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Lord Newby
My Lords, I apologise to the noble Lord. I misheard him. I distinctly wrote down that he said that a donation was involved in this process.
My one question to the Minister springs from my concern about the way in which the eurozone is developing, which is simply that the UK’s role in relation to it is extremely strange. We are obviously not part of it, so we are not in many of the meetings. Yet from time to time we are allowed to have a say. What worries me is that with the passage of time that say gets less and less over a whole raft of economic decisions across the EU. In the current exercise, we were allowed to help in the design of the ESM, which presumably means that Treasury officials went to meetings to talk about how it was going to work. What worries me is that, once it is established, those Treasury officials will be told that they have been extremely helpful, that their advice has been most valuable and that they can now go back to London and let the rest of the eurozone implement the policy. As the noble Lord, Lord Lamont, has pointed out, there are a whole raft of secondary consequences for the competitiveness pact, which will undoubtedly have an impact on the UK and on which, as far as I understand it, we will have no say at all in the future.
Will the Minister explain whether, once the ESM is established, there will be any further role for the UK Government and their officials in the design of the conditions that might be required or suggested from time to time to apply in particular cases when member states are being bailed out? These changes could be extremely worrying, not necessarily because they or the conditions are bad in themselves but because, although we are affected by them, we will have had no say in the way in which they are put together.
Lord Stoddart of Swindon
I suppose I could just say that I agree with everything that the noble Lord, Lord Pearson, has said and sit down, but I will not do that.
I thank the noble Lord, Lord Howell, for explaining very complicated legislation to us. I think I understand it a bit better now that he has explained it. Nevertheless, I believe that it is a serious matter that we are discussing. I think I am right in saying that, during debates on the Lisbon treaty, the then Official Opposition considered Article 48(6)to be an unnecessary and perhaps dangerous measure that could be used to extend European Union power without proper parliamentary scrutiny. I feel that that was their position at the time. Now, even though they have been in power for only 10 months, they are using this provision to extend the power of the eurozone. I do not know what has happened. Perhaps the Liberal part of the coalition is having more influence than it should.
There has not been an IGC, which has been pointed out already. The Motion received only one and a half hour’s debate in the House of Commons and a dinner hour debate in this House. We are not really having the sort of discussion that we should have before the Prime Minister goes to Europe to make a decision. It may be that we will have further discussions in due course but this Motion is to give the Prime Minister the power to act under Article 48(6). It is the first time that that has been done and it is therefore a serious matter. Although we are not at present members of the eurozone and ESM will not affect us, it will nevertheless become part of the European Union’s powers across the board. If this country should join the eurozone, this provision would automatically apply to us. That surely is right. If it is not right, perhaps the noble Lord will say that it is not right and why it is not right.
Furthermore, this first use of the simplified revision procedures is likely to be the thin end of the wedge. This will not be the first time that it will be used. Once a provision is used, it sets a precedent and it will be much easier to use it on other occasions in the future. It is claimed that when the European Union Bill, which we will discuss tomorrow, becomes law, it will prevent Article 48(6) from being misused. But can we be certain of that? Will the noble Lord say that there will never be any conditions under which Article 48(6) cannot be used without parliamentary procedure or perhaps even a referendum? Since the measure has to be agreed by a unanimous vote, the United Kingdom at present has a veto.
During the election, the Conservatives said that they wanted to repatriate to this country a range of measures which they believed were inimical to the best interests of the United Kingdom. Why then are the Government not using this factor—the fact that they have a veto over this provision being discussed tonight—to renegotiate parts of the treaties which are inimical to British interests, especially those relating to industry and commerce? I am also puzzled as to why the eurozone nations cannot agree a system of control that does not involve a treaty change. Is it perhaps because Germany wishes to use this procedure to strengthen its position as leader of the European Union?
The Government state that maintaining the eurozone as a stable and fully functioning entity is in the United Kingdom’s interest and the European Union Committee endorses that view. I do not believe that that is necessarily so. I am not at all sure that the eurozone is necessary for this country to prosper. Indeed, I could probably, if there was time, produce an argument to show that the eurozone works against this country’s interests. It should be no part of this country’s policy to maintain the eurozone in being no matter what the circumstances are.
Let us not forget that the experience of the eurozone so far has not been a happy one. At least four of its members are in dire financial and economic trouble, needing massive tranches—that is what this debate is about—of bail-out money. Interest rates in the eurozone have been kept at an artificially high rate, thus resulting in lower growth in many of its member states and very high unemployment. That is something this country should deplore, wherever it occurs.
Being in the eurozone does not affect our trade in the way that the Minister outlined. The fact is that we are in Europe and we are part of the single market, and whether the eurozone exists or not, the single market will still be there, as it was there before we joined the eurozone. What I believe is that being within the European Union and within the single market in fact damages our ability to export to the much wider world than the European Union represents. Already we see the Chinese and the Indians making great inroads into markets in Africa and elsewhere which, untrammelled by the European Union, this country could be exploiting. I have some doubts about this measure, although I suppose it is going to go through. But I hope that the assurances which have been given by the Minister will be carried out.
Lord Liddle
This debate has been a curious experience for me because, having listened to the contributions of the noble Lords, Lord Pearson of Rannoch and Lord Stoddart of Swindon, I am perhaps a much stronger supporter of what the Government are doing than I think I ought to be. I believe that the Government are right to support this measure and I think that both noble Lords are completely wrong in thinking that somehow it would be in the British national interest to pull the house of the euro down, causing currency chaos and economic disruption on a huge scale in order to pursue their own hatred and fanaticism in their opposition to the European Union.
Lord Stoddart of Swindon
My suggestion was not that we should pull the eurozone down but that it is not necessary for us to take these measures to bolster the eurozone at all.
Lord Liddle
Of course I accept what the noble Lord says, but the implication was that the euro would come tumbling down, and I think that the economic consequences for us, with our trade and economic links to Europe, would be very serious. Further, the instability that would be created by a German mark soaring and a Greek drachma plunging would be too horrendous to contemplate.
What I want to do in my brief remarks is to declare that I support what is being proposed, but with two qualifications. First, what we have seen tonight is an excellent example of parliamentary accountability. This motion has been put to the House and, before it is approved by the European Council, we have an opportunity to say whether we agree with it or not. If I may anticipate the debate tomorrow on the EU Bill, this is in sharp contrast to what will be proposed under the new arrangements. What we are going to have there is a requirement for the Government somehow to argue that, under the proposed criteria, a referendum would not be justified for this measure. I am totally opposed to multiple referenda and will be arguing that tomorrow, but on the basis that the Government are arguing, it seems extraordinary to suggest that what we have before us with the European stability mechanism is somehow not a big extension of competence and is not significant. It is extremely significant.
Indeed, I would argue that what is happening in the eurozone at the moment is as significant a development for the strengthening of its governance as we have had since the establishment of the single currency and the single market in the 1980s. It is a far more significant development than the Treaty of Lisbon or the constitutional treaty that preceded it. It is for European integration very significant.
One cannot argue that this is of no relevance to Britain. For one thing, the ESM will be one pillar of a new regime of economic governance that includes macroeconomic surveillance and a competiveness pact. I do not argue that these measures are perfect; in fact, they are far less than ideal and this should be very much work in progress. However, integration of economic governance is certainly proceeding.
The Government make the crucial error of thinking of this question in terms of a transfer of power to Brussels from the United Kingdom. They argue that, because Britain is not in the eurozone, there is no transfer of power. However, what in fact is going on within the whole of the European Union at the moment is a very big shift in the balance of power, with the likely creation of a eurozone bloc that has a much bigger influence on the economic policies of the whole of the EU. It is about this important change in the balance of power that we should really be concerned, instead of going on about transfers of power.
Perhaps I may cite one example that is directly related to the subject of the ESM: the issue of financial regulation. If we have a sovereign debt crisis in a eurozone member country and it is necessary for there to be a restructuring of the debt, it will logically lead to problems in the banks which own the bonds that have lost much of their face value. That will in turn require new rules on the capital adequacy of banks and on banking mergers. If there are to be in future stages restructurings of Greek and Irish sovereign debt, there will also be grave consequences for financial regulation and the banking system. We are exposing ourselves to real loss of influence on these matters, because it will be a eurozone bloc that decides in terms of its own interests what those regulations should be. We will turn up at the Council of Finance Ministers with that decision in practice having been taken, with majority voting there in the Council of Finance Ministers, and with very little opportunity for us to influence it. When one thinks that the City of London is one of our key interests, one realises that this is quite a serious threat to us.
Of course, the new regime is not ideal and it is work in progress—I dare say that my noble friend Lord Eatwell will say something about this. My strong view is that if something is not ideal we should use our maximum influence to try to change it. Obviously, there is no immediate prospect of us joining the euro and becoming part of the ESM, but we should try to involve ourselves intimately in the discussions that are taking place. I am worried that the Government, as far as I can see, are not doing that. Mrs Merkel, as I understand it, made an offer to the British Government whereby they could be part of the competitiveness pact that she was trying to negotiate. Apparently the British Government have said that they do not wish to be part of that pact, whereas Poland, which is equally not a member of the euro area, is anxious not to be excluded from these decisions on economic governance questions which go wider than the eurozone.
There is a significant problem here for the United Kingdom and the Government ought to recognise this. They should also recognise that something of fundamental importance to our economic future and, indeed, to our sovereignty is happening here.
EU: Hungarian Presidency
Lord Stoddart of Swindon Excerpts(13 years, 4 months ago)
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Lord Stoddart of Swindon
My Lords, it is the turn of a Cross-Bencher—and independent thinker. As noble Lords are aware, our net contribution to the EU this year will be some £8.3 billion. However, I noted from the Minister’s Answer yesterday to a Written Question that we are also paying about £3 billion to accession countries. Bearing in mind what is happening in Hungary, I would have thought that we could ensure that all those countries that are allowed to join the EU will be democratic at least after they have joined if not before.
Lord Howell of Guildford
I am sure that that is right. One of the core principles of the European Union is a commitment to democratic values, good governance, human rights and the rule of law. That is obviously in the minds of all those considering accession countries, and in the minds of those who govern the accession fund to which I think the noble Lord refers. I have no disagreement with the desire to see democracy spread in the best possible ways throughout the eurozone, and indeed in the wider world.
EU: Repatriation of Powers
Lord Stoddart of Swindon Excerpts(13 years, 5 months ago)
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Lord Campbell of Alloway
My Lords, will my noble friend confirm that we retain our residual sovereignty and that the Lisbon treaty—
Baroness Anelay of St Johns
My Lords, we appreciate that this has been a very popular Question, but we are now in the eighth minute. I think that we should move on to the next Question.