Companion to the Standing Orders

Lord Stoddart of Swindon Excerpts

Tuesday 25th October 2011 Lords Chamber

[Lord Strathclyde]

My Lords, I am well aware of the situation that arose on Report of the Armed Forces Bill. The reason why an agreement took place was so as to allow the Health and Social Care Bill Second Reading to be postponed from Tuesday 4 October to Tuesday 11 October. I think the whole House would have approved of that decision. These decisions were made by the usual channels, as I made clear, so as to help the House as a whole. I do not think there was any detriment in taking that decision.

[Lord Stoddart of Swindon]

I speak as one who took part in the discussion about this. Was not the real reason for the decision on the Armed Forces Bill to accommodate the Conservative Party conference and the ability of Members of this House to attend that conference? Am I right in thinking that the same problem is going to arise next year, when this House will be recalled during the Tory Party conference? Will the noble Lord the Leader of the House look at the position for next year to ensure that the House’s business takes preference over that of the Conservative Party?

[Lord Strathclyde]

My Lords, I can assure the noble Lord from personal observation that there were very few Members of the House of Lords—of all parties— present at the Conservative Party conference. They were far more likely to be attending to their duties in your Lordships’ House. It is true that the Chief Whip has announced that the House will sit next year during the week of the Conservative Party conference, but this is in large part due to representations that have been made to me and others from all parts of the House that they would rather come back earlier in October than sit in September, as we did this year.

European Council

Lord Stoddart of Swindon Excerpts

Monday 24th October 2011 Lords Chamber

[Lord Cormack]

My Lords—

[Lord Stoddart of Swindon]

My Lords—

[Lord Wallace of Saltaire]

My Lords, we are out of time and we should move to Report.

[Lord Stoddart of Swindon]

We ought to have 40 minutes, not 20 minutes.

European Council

Lord Stoddart of Swindon Excerpts

Monday 27th June 2011 Lords Chamber

[Lord Foulkes of Cumnock]

My Lords—

[Lord Stoddart of Swindon]

My Lords, I am pleased that the Prime Minister has said that Article 122 will no longer be used in future for bailing out other countries. Is it not true, however, that Article 122 was used illegally? Indeed, Article 125 of the Lisbon treaty precludes Article 122 or any other article from being used to bail out other countries within the European Union. In that case, the Commission broke the law. Should not the Government in fact be referring that breach of the law to the European Court of Justice to see exactly what went wrong?

[Lord Strathclyde]

The noble Lord, Lord Stoddart of Swindon, is always first to pick holes in an argument of this kind and, rightly, to see when illegality is going on. We take no particular view on this. We know that some controversial decisions have been taken on the basis of these articles, but we are very glad with the results of this Council and the communiqué, which we believe has come up with the right solution.

European Council

Lord Stoddart of Swindon Excerpts

Monday 20th December 2010 Lords Chamber

[Lord Strathclyde]

My Lords, yes, we are in favour of stability in the eurozone, but we also feel that it is entirely right for nation states to stand up for their interests and to get together. That is in a way exactly what happened in this letter between Chancellor Merkel, President Sarkozy and others, who suggested—rightly, in my view—that it is time for the European budget to come under further control. That is not seeking to centralise power within Brussels; it is seeking to exert more pressure and more control from member states on the European Union. That is a very good direction of travel.

[Lord Stoddart of Swindon]

My Lords, the noble Lord has been under attack for trying to kowtow to his Eurosceptic Back-Benchers in the Tory Party. Some of us think that the Government kowtow far too much to the Europhiles, so there is a real difference of opinion. In all the latest opinion polls, a majority of the British people do not want any further powers to be ceded to Europe, and over half of them would like to leave the European Union.

Could I ask the noble Lord a question about the eurozone? In one part of the report, the statement is made that it could work only if there was fiscal union as well— saying that it did not want to tell the European Union this, but going on to do so anyway. Is the noble Lord aware that any reform with regard to the larger powers involves fiscal union? That is what France, Germany and, indeed, Italy want. Can I have the assurance that this would be opposed by the British Government and, perhaps, even by the British people through a referendum?

[Lord Strathclyde]

Yes, my Lords. The noble Lord says that we have been accused of kowtowing too much to Europhiles. We have certainly been accused of kowtowing to Eurosceptics. The main point of this, which the noble Lord has understood very well, is that we have said clearly that if there is to be a transfer of power from this Parliament to the European Union, it should be subject to a referendum. We hear what people are saying in various polls about their view that too much power has been ceded, that they are not consulted enough and it is all being done the wrong way. We will make this a matter of statute when later in this Session we get to the European Bill, which I hope the noble Lord and other noble Lords will support.

The countries of the eurozone need to sort out their own problems. No doubt some of us will have different views as to how that should be done but, if there was a move down the road towards a European-wide fiscal solution for European-wide economic problems, we would oppose it.

Parliamentary Voting System and Constituencies Bill

Lord Stoddart of Swindon Excerpts

Wednesday 8th December 2010 Lords Chamber

[Lord Snape]

My Lords, I fear that this is yet another amendment that may rouse the ire of the noble Lord, Lord Norton of Louth, because of its lack of suitability, but there is perhaps a more important point in this amendment than in the previous one. As I have said, and has been said from all quarters of the House, we are interested in increasing turnout at elections. This is one certain way to do that.

We are aware from previous debates that although only Fiji, Papua New Guinea and Australia have favoured the system of AV inherent in the Bill, lots more countries have a system of compulsory voting. Across all those countries, turnout has increased dramatically. One might argue that that is because of the punishments for those who fail to vote, but by and large those punishments are minimal, if they are enforced at all. Yet, in Australia, for example, which has the system of AV that we are going to wish on ourselves if this Bill is carried, turnout at general elections is consistently over 90 per cent, although the penalties for failure to vote are very small indeed.

My noble friend Lord Rooker pre-empted this amendment in his comments on the previous amendment by saying that he feels that compulsory voting is unacceptable in a democracy. Instead of having punitive punishments for those who fail to vote, why not have some sort of incentive if we are going to have compulsory voting? A voucher for £10, £15 or £20 off your rates bill, for example, would provide an incentive without the fear of punitive punishment if one fails to vote.

Interestingly enough, countries closer to us than Australia have compulsory voting. I had not realised until I researched this amendment that in France it is compulsory to vote in a Senate election, although I have no doubt that experts on these matters in other parts of your Lordships' House would have realised that. That compulsion is not enforced, but it is believed to bring about an increase in turnout for Senate elections. Although I have no doubt that the noble Lord, Lord Strathclyde, will say that this amendment is unsuitable in the Bill, I hope that it will bring about a dramatic increase in voter turnout at this and every other election for that reason in particular.

There is one other reason that I meant to mention: that additional voter participation in general elections would at least remove to some degree the exorbitant and enormous expenditure that political parties indulge in now at general elections. Something like £30 million was spent in advertising and promotional material at the recent general election. I will not go into the division of that money between the various parties. That money could be better spent elsewhere, and if we could guarantee a proper turnout under compulsion, that would be a better way of increasing turnout than throwing the sort of money that all the political parties have to throw at the moment in an attempt to bring about voter participation. I beg to move.

[Lord Stoddart of Swindon]

My Lords, unusually, I disagree completely with the noble Lord, Lord Snape. I believe that forcing people to vote is eminently undemocratic. In a democracy, people should have the opportunity to vote or not to vote. If you want to say to people, “You must indulge in this democracy and you must go to the polling station or put a cross on a ballot paper and post it”, you are taking away their freedom not to participate in an election to elect people who you perhaps do not like or perhaps dislike completely. I am not at all sure that this is a good amendment in any sense at all. Although more people may very well turn out to cast their ballot, you will have to persuade them in some way that they should do so, and the only way you can do that is by imposing a fine on them. Indeed, that is another argument against trying to force people to vote when they might not want to.

It might also be difficult for people to vote. Indeed, polling stations in some constituencies are getting further and further away these days from the voters than they used to be so that it may very well be inconvenient, to say the least, for some people to go to vote in person. However, I come back to the general position that in a democracy people should be allowed to vote for whom they wish and should make the decision themselves as to whether they should vote at all. Anything other than that smacks of autocracy rather than democracy. If this amendment is put to the vote, I should be delighted to vote against it.

--- Later in debate ---

[Lord Stoddart of Swindon]

My Lords, I am glad that the noble Lord has asked his question about compulsory registration because it is an important one. I well remember that the back of the registration document stated that if you failed to fill in the form, you could be fined £25. As far as I can see, that statement no longer appears on the form.

[Lord Bach]

I am grateful to the noble Lord for telling the Committee that, but my feeling is that it is, strictly speaking, something that a citizen is obliged to do.

--- Later in debate ---

[Lord Snape]

I am grateful to noble Lords on both sides of your Lordships’ House for their participation in the debate. I thought that the contribution of the noble Lord, Lord Tyler, was a little cynical. Of course there is provision under the compulsive system of voting for a person to make any mark that they like on a ballot paper. I noticed that he exempted both our former constituencies on the grounds that we were so enormously popular that that situation would not have arisen in either West Bromwich or in Cornwall in his former seat. According to my researches, as far as they go, there has not been a recorded instance of “None of the above” ever topping the poll. Although that is not quite the answer that the noble Lord wanted, it is the best that I can do at present.

The noble Lord, Lord Stoddart, deplored the idea that in a democracy we should, as he put it, force people to vote. I do not think that France, Belgium and Australia—to name but three—are any less democracies because they have some degree of compulsion about voting. Without wishing to embarrass the noble Lord, I should tell him that I have his picture, among others, on a wall in my home in Birmingham. The picture is of the Government Whips’ Office in 1976 and was taken in No. 10 Downing Street with Jim Callaghan, who was then Prime Minister. I always thought that we were paid to force people to vote in those days, so he was not quite as scrupulous then as he obviously is now.

I am grateful for the partial support of the noble Lords, Lord Hamilton and Lord Norton. They were both against compulsion, but both thought that there was some merit in the idea of a voucher towards people’s rates, or whatever. Perhaps, in withdrawing the amendment, I can point to some degree of unity.

[Lord Stoddart of Swindon]

The noble Lord is right about the happy times that we had together in the Whips’ Office in the House of Commons, but he will recall that we did not have compulsory voting. We wished, sometimes, that we did have compulsory voting, but very often, when I went round my little flock of MPs and told them that they must vote, they told me exactly where to go.

--- Later in debate ---

[Lord Hamilton of Epsom]

I totally agree with my noble friend. Indeed, you could argue that the coalition agreement drawn up immediately after the election was something that no one voted for. I thought that the Conservative commitment was to repatriating powers from Europe, but nothing much seems to have happened on that front, and I thought that we were going to repeal human rights legislation. A number of things have gone from the Conservative manifesto. I am rather surprised that the Liberal Democrats have been attacked in the way that they have been for binning commitments in their manifesto. That comes with coalition. If the country votes for coalition, which basically is what it has done, it must expect to end up with a Government who produce a number of policies for which no one has voted. That is why I am extremely unhappy about changing our electoral system to make coalition government more likely.

[Lord Stoddart of Swindon]

I agree absolutely with the noble Lord that coalitions are likely to arise almost inevitably from a proportional system. But I was interested to hear what he said about the coalition. In the light of his remarks, does he agree that what is happening is that the tail is wagging the dog?

[Lord Hamilton of Epsom]

Indeed, that is another argument. I have been agreeably surprised by the achievements of this coalition Government in terms of the fact that they seem to have grasped many issues, such as welfare reform and reforms in education which former Prime Minister Tony Blair used to dream about and which have been long overdue. I am a great supporter of much of what the coalition is doing, but that does not mean that I want to see coalition governments in perpetuity from hereon.

I was very interested in the remarks made by the noble Lord, Lord Campbell-Savours, about the YouGov poll on the alternative vote. In fact, there was a bare majority from a completely ill informed electorate—in fact, there was a no vote by 1 per cent. But when the implications of the alternative vote were spelt out a 33 per cent no vote went up to 38 per cent. I would say to any Conservative that that is very significant indeed. If you have time to explain to people how perfectly ghastly the alternative vote is, the chances of defeating it are greater. Under this Bill, however, we are insisting on cramming the referendum together with the local elections, a point we debated earlier on in this clause.

It worries me tremendously that, if we are not careful, this thing will get muddled through with the local elections. The issues will not be debated properly in the country because people will be much more concerned about whether they are winning or losing in the local elections, and they are not going to come to understand the appalling difficulties that the whole business of an alternative vote brings into the argument. I am deeply apprehensive about it. I keep hearing from people on my side of the House that they support the Bill and think it is a frightfully good idea. They all say, “Don’t worry. We are going to defeat it in the referendum”. But I notice that a lot of them are the same people who told me that we would get a commanding and overall majority at the general election.

None of us knows what the outcome of any referendum will be. It cannot be forecast with any accuracy because many other factors come into play. I do not have that deep feeling of assurance that we are going to defeat the idea of an alternative vote without any difficulty. Things could very easily go wrong, and if they do, I believe that it will put the Conservative Party at a permanent disadvantage.

Parliamentary Voting System and Constituencies Bill

Lord Stoddart of Swindon Excerpts

Monday 6th December 2010 Lords Chamber

[Lord Stoddart of Swindon]

I agree with the noble Baroness and wish to emphasise the fact that changing the system of election does away with a system that we have had for hundreds of years. The Bill proposes to sweep that all aside on the same day as holding local elections. It is an outrageous suggestion. Changing the electoral system is a one-off instrument that will change voting in this country forever. Yet we will be asked to have a discussion of this huge constitutional change in the midst of local elections.

I was a member of a county borough council for 18 years and leader of it for a number of years. We treated our elections seriously. We spent months preparing a manifesto for the elections and went out and fought the elections on the basis of the manifestos. We in the Labour Party, and in the Conservative Party, argued our case. We went around canvassing for our policies. We spoke through loudspeakers on corners of streets to convey our message to the electorate—although I do not think that they do that now. What will we do if, first of all, we have to convince electors that they should vote for our policies—whichever our party—and, at the same time, ask them to make a decision about a vital and profound alteration to our electoral system?

As I have said before, this is an outrageous proposal which treats the electorate with contempt. The electorate are being asked to change something that they have had for 100 years. They understand the system and have got used to it. In times gone by—certainly something has happened since—the electorate were producing electoral decisions based on a very high turnout, sometimes 75 or 80 per cent. Here we are asking them to change the system without a proper discussion. This system is complex—it is a change that people will not easily understand. People deserve to be informed of exactly what results will appertain from the change and be told exactly how it will work before they can make a decision. That cannot be mixed up with local elections.

I cannot understand why the coalition is bringing this forward. It has time to make a change. Although I do not agree with the AV system, it would probably do better if it had a separate referendum at a different time so that people could be asked to understand what is being proposed. If the Government are unable to change their mind on holding the referendum at the same time as other local and regional elections, they will regret it very much. I urge them to change their minds.

[Lord McAvoy]

My Lords, I support my noble friend’s amendment. It gives me, and others, another chance to state yet again that, apart from the occasional speech, I do not find any great resistance among the Labour ranks to the actual fact of holding a referendum. There will be people who are very principled against it and I respect that. However, it has to be judged against the majority. I do not think that my noble friend’s amendment is a destructive or wrecking amendment, designed to defeat the Bill and bring the Government into chaos—although it would not take much, right enough. However, that is another story. The timing of the Bill in relation to other matters this week might split this collaboration Government. Supporting this amendment does not necessarily mean being against the referendum. I would look forward to a referendum and would participate strongly against AV. That is everybody’s right if and when it happens. I make it clear again, especially for the benefit of the Liberal Benches, that I am not against the referendum. Let the people speak and I will do my best to influence them.

Mention has been made of Scotland. The noble Lord, Lord Tyler, yet again aggressively mentioned what happened in Scotland. Frankly, you would need to have been there to see the shambles. It has been indicated that this is a simple thing. There was a sly reference, suggesting that, by expressing doubt about the efficacy of the referendum, we are somehow casting aspersions on our own people. The Scots are pretty good at insulting other people; we are not too bad at insulting our own as well, but do not let anybody else insult us. One had to be there in May 2007. I spoke about this last week so I will not go into too much detail about it.

I find myself being tempted down the road of dealing with the Liberals again so I will spend just a minute on them. The noble Lord, Lord Tyler, uses the word “internal” about this debate. My God, this is only a very early stage. Last week, when we discussed the first group of amendments, the only Liberal who spoke was the noble Lord, Lord Rennard. The Liberal Benches were otherwise silent. There was no participation, scrutiny or involvement and there were no interventions—nothing. Is that what this House is here for? There might have been an occasional intervention but they were so fleeting that I do not remember them. I see the noble Lord, Lord Tyler, indicating disagreement. I did not hear or see much involvement from the Liberal Benches last week. I think there was one intervention from the Conservative Benches from the only noble Lord who happened to be there at the time—the noble Lord, Lord Hamilton. If this House is a revising Chamber, as I strongly believe it is, where was the participation? The Liberal Peers should look to their own house on that.

There was no consultation with the devolved Assemblies on holding the referendum on the same day. Before I am accused of repetition, that cannot be said often enough or sincerely enough to get across to the Government just how insulting that is held to be in Scotland. There was no consideration, no consultation and no involvement. Scotland was somehow tagged on as though it was a type of poodle at the end of Westminster. I say that although I am no Scot nat. It has been badly handled and it indicates what has been disregarded in the rush.

The noble Lord, Lord Fowler, made some points; frankly, they could be telling. I do not dismiss in any way what he said. They are relevant matters, worth discussing. However, they are made inoperable in this sense. I have here the business and minutes of proceedings for this House. The forward business for Monday 20 December of this year—not next year—says that it is expected that the Committee stage of the Parliamentary Voting System and Constituencies Bill will conclude. That is the rush to judgment, referred to by several of my noble friends, which we could all collectively regret, although I hope not. I do not want to cite the Dangerous Dogs Act, which many noble Lords will recall. However, in response to the noble Lord, Lord Fowler, the rush to judgment is dangerous and it should not continue.

My noble friend Lord Rooker has mentioned the lifeboat syndrome, and that is right, because this amendment would give the Government a chance to think again. I keep coming up against a brick wall in the sense that the logical, rational side of me cannot grasp why there is this rush to legislate—a 300-page Bill being rammed through the House of Lords in a matter of weeks. Then the politician in me asks, “Why? There’s got to be a reason”. And once again we come up against the reason: the reason is political expediency. The Conservative side of the collaboration Government are desperate to get their boundaries Bill, and the Liberal part of the collaboration Government are desperate to get a referendum Bill to save their party from destroying itself even more than it is going to do this week. That is political expediency and it is to be regretted. I hope there is a legitimate response to the amendment of my noble friend Lord Rooker.

Parliamentary Voting System and Constituencies Bill

Lord Stoddart of Swindon Excerpts

Tuesday 30th November 2010 Lords Chamber

[Lord Hunt of Wirral]

I want to know who is the uncle.

All I will say is that we have suddenly begun to embark on a number of procedural debates. That is all well and good, and it is part of the tradition of the House that we should do so. However, I question whether we need to explore the uncertain waters of hybridity, and whether we should ignore 99 years of tradition by questioning a money Bill. Now when we need to proceed to our normal function of revising and improving a Bill, I simply say to the Opposition that they should take time to think.

When I was opposing the noble Lord, Lord Mandelson, of Foy, on the Postal Services Bill, I was made aware that there were two or three procedural devices that I could have resorted to had I wanted to delay the Bill. I reached the conclusion that I should do my best from the Front Bench to enable this House to do what it always does well, which is to revise and improve. I would just say that reputations take generations to build, but they can be lost overnight by an irresponsible Opposition.

I know that my uncle, the noble and learned Lord, responds to Shakespeare. Perhaps I may just quote again:

“O! I have lost my reputation. I have lost the immortal part of myself, and what remains is bestial”.

They should think again.

[Lord Stoddart of Swindon]

My Lords, I cannot understand why the noble Lord, Lord Hunt, criticises the Opposition when in fact the noble and learned Lord, Lord Falconer, got up to say that he does not support the Motion and that—if it were put to vote, which it is not going to be—he would not vote for it. I really cannot understand why the noble Lord, Lord Hunt, started to put it about regarding the noble and learned Lord.

The problem arises—do not make any mistake about it—not because of this Motion but because the Government decided to put two separate matters together in a single Bill. That is the real problem. The noble Lord, Lord McNally, may laugh, but he knows perfectly well that if he had been sitting on those Benches he would have been doing exactly the same thing. He would be opposing the bringing together of two completely separate issues.

To make it even worse, the Bill presumes to hold a referendum on a very important constitutional issue—the method of voting—on the same day as the local elections and the Assembly elections. That has already been discussed at Second Reading but, nevertheless, it is a bad thing to do. The issue of AV voting is so constitutionally important that it should have been dealt with on a separate date, after proper examination and proper information to the people of this country.

[Baroness Hollis of Heigham]

My Lords, I take issue with the assumption of the noble Lord, Lord Hunt, that the House of Lords is not, as part of its responsibility, a guardian for the proprieties of passing legislation. It will not do for him to suggest that when we seek to establish whether a Bill is hybrid or whether it is proceeding properly or requires other forms, we are time-wasting, dithering or trying to delay. It is part of the task of the House to establish propriety. When I was a Minister, time and again Members opposite wished on Report to move back to Committee. I could have alleged, with the same force as the noble Lord, Lord Hunt, did today, that this was time-wasting and impeding of the Government, and that the party opposite was trying to use process to delay important legislation. I would not have dreamt of it, because it was proper and right that, if there was a concern about the propriety of how we were handling legislation, those views should be listened to and, even if it took extra weeks to get the legislation through, we should take that time—and we did. I take it very ill indeed, when the Opposition are rightly reminding the Government of their responsibility to observe the proprieties of legislation, to be accused of time-wasting and hindering the pace of the Government to succeed.

G20

Lord Stoddart of Swindon Excerpts

Monday 15th November 2010 Lords Chamber

[Lord Strathclyde]

My Lords, I cannot say what the answer was because a wide range of issues was covered in the discussion between my right honourable friend and the leadership in China, but that included an in-depth discussion on human rights. As I said earlier, no subjects were off limits. My right honourable friend the Foreign Secretary said at the time of the announcement of the Nobel Peace Prize that the decision to award the prize to Liu Xiaobo,

“shines a spotlight on the situation of human rights defenders worldwide”.—[Official Report, 20/10/10, Commons, col. 727W.]

[Lord Stoddart of Swindon]

My Lords, can I ask the noble Lord two questions? In the first place, I applaud the Prime Minister for taking a large delegation to China and for his dealing with the wider aspects of our relationship with China. After all, China is an emerging superpower and we should look after it. In regard to trade with China, and indeed with the rest of the world, our manufacturing industry has fallen as a proportion of GDP, from 32 per cent in 1973 to 10 per cent in 2008. Are the Government going to do anything to resuscitate and revive our manufacturing industry, especially in the north-west and north-east of this country?

My second question is about the discussions at Seoul on trade, particularly with emerging countries. Is the noble Lord aware that the greatest barrier to trade with those countries is the CAP? Will the Government do something about that? Unless it is reformed, people in Africa will find it particularly difficult to export their goods to Europe.

Parliamentary Voting System and Constituencies Bill

Lord Stoddart of Swindon Excerpts

Monday 15th November 2010 Lords Chamber

[Lord Strathclyde]

My Lords, years have gone by when we have not discussed these issues, either of hybridity or special Select Committees. It seems extraordinary that within six months of the Labour Party going into opposition we have had to debate them on three separate occasions. I do not think that anyone in this place outside a few zealots in Labour’s back room wants to see the kind of opposition and government politics that we have seen develop over the course of the past few months.

[Lord Stoddart of Swindon]

I wonder whether the Leader of the House has made an assessment of how long the Examiners would take. Is it weeks or months or days?

[Lord Strathclyde]

My Lords, that would be up to the Examiners, but, based on the precedent set earlier this summer, it would be between a week and 10 days. Everybody knows that this Bill is on a tight timetable, which is precisely why we are discussing this Motion today. Six years ago, the noble and learned Lord, Lord Lloyd of Berwick, submitted from the Cross Benches that the Constitutional Reform Bill, a Bill profoundly affecting this House, which ended centuries of this House’s judicial role, be referred to a Select Committee. The noble and learned Lord, Lord Falconer of Thoroton, condemned that as political mischief-making and strongly urged the House to resist it. Now on a Bill that has nothing to do with this House at all and has been approved by another place—

European Council

Lord Stoddart of Swindon Excerpts

Tuesday 2nd November 2010 Lords Chamber

[Lord Strathclyde]

My Lords, my noble friend said he had a short question, but it is a huge subject. I look forward to his debate. It is completely unacceptable that the European Court of Auditors has not been able to sign off the EU accounts. I understand that the majority of the errors are not due to fraud but to the sheer complexity of the rules and regulations. We need to address the root cause and press for simplification of EU financial management alongside reform of the budget itself.

[Lord Stoddart of Swindon]

My Lords, I wish to ask the noble Lord about economic governance and the German Chancellor’s proposal to revise the treaty. Why are the Government agreeing to that? Can any country now propose changes to the treaty? Will he assure me that the Government will indeed have a referendum if there is any change in the treaty at all?

[Lord Strathclyde]

My Lords, on economic governance, we take very seriously the stability of the eurozone. Some 40 per cent of our exports go into the eurozone and 50 per cent of our exports go to the EU, so it is a massively important market to us and financial stability is important. However, we maintain two things: first, we would rather not see a change in the treaty; and, secondly, we would rather not see any change involving a transfer of powers from the UK to the EU. We are not certain that a treaty amendment is required, but if it is and we are assured that there is no such transfer of powers, a referendum in this country would be unnecessary. If there were a transfer of powers, we would not agree to it.