European Council

Lord Strathclyde Excerpts

Monday 24th October 2011 Lords Chamber

[The Chancellor of the Duchy of Lancaster (Lord Strathclyde)]

My Lords, with the leave of the House, perhaps this might be an appropriate moment to repeat a Statement which has been made in another place by the Prime Minister on the European Council. The Statement is as follows.

“With permission, I would like to make a statement on recent developments in Libya, and yesterday’s European Council.

Yesterday in Libya, after 42 years of tyranny and seven months of fighting, the National Transitional Council declared the formal liberation of its country. Everyone will have been moved by the pictures of joy and relief that we saw on our television screens last night. From Tripoli to Benghazi, from Misurata to Zawiyah, Libyans now dare to look forward, safe in the knowledge that the Gaddafi era is truly behind them.

This was Libya’s revolution. But Britain can be proud of the role we played. Our aim throughout has been to fulfil the terms of the UN Security Council resolution, to protect civilians and to give the Libyan people the chance to determine their own political future. With the death of Gaddafi, they now have that chance.

The whole House will join me in paying tribute to our Armed Forces for the role they have played—over 3,000 missions, some 2,000 strike sorties, with one-fifth of the total strike sorties missions flown by NATO. As the Chief of the Defence Staff has written this morning, it has been,

‘one of the most successful operations NATO has conducted in its 62-year history’,

and I believe it is something the whole country can take pride in. The decision to intervene militarily, to place our brave servicemen and women in the line of fire, is never an easy one. We were determined from the outset to conduct this campaign in the right way, and to learn the lessons of recent interventions. So we made sure this House was provided immediately with a summary of the legal advice authorising the action. We held a debate and a vote in Parliament at the earliest opportunity. We made sure that decisions were taken properly throughout the campaign, with the right people present, and in an orderly way.

The National Security Council on Libya met 68 times, formulated our policy, and drove forward the military and diplomatic campaign. We took great care to ensure that targeting decisions minimised the number of civilian casualties, and I want to pay tribute to my right honourable friend the Member for North Somerset for his work on this. It is a mark of the skill of the RAF, the British Army and other coalition pilots that the number of civilian casualties of the air attacks has been so low.

The military mission is now coming to an end, and in the next few days, NATO’s Operation Unified Protector will formally be concluded. It will now be for Libyans to chart their own destiny, and this country will stand ready to support them as they do so.

Many learned commentators have written about the lessons that can be learnt from the last seven months. For our part, the Government are conducting a rapid exercise while memories are still fresh, and we will publish its key findings. For my part, I am wary of drawing some grand, overarching lesson, and still less to claim that Libya offers some new template that we can apply the world over. I believe it has shown the importance of weighing each situation on its merits and of thinking through carefully any decision to intervene in advance. But I hope it has also showed that this country has learnt not only the lessons of Iraq, but the lessons too of Bosnia. When it is necessary, legal and right to act, we should be ready to do so.

Let me turn to yesterday’s European Council. This European Council was about three things: sorting out the problems of the eurozone. promoting growth in the EU, and ensuring that as the eurozone develops new arrangements for governance, the interests of those outside the eurozone are protected. This latter point touches directly on the debate in the House of Commons later today, and I will say a word on this later in my Statement.

Resolving the problems in the eurozone is the urgent and overriding priority facing not only the eurozone members, but the EU as a whole, and indeed the rest of the world economy. Britain is playing a positive role proposing the three vital steps needed to deal with this crisis: the establishment of a financial firewall big enough to contain any contagion, the credible recapitalisation of European banks, and a decisive solution to the problems in Greece. We pushed this in the letter we co-ordinated to the G20 and in the video conference between me, Angela Merkel, Nicolas Sarkozy and President Obama last week. We did so again at the European Council this weekend and will continue to do so on Wednesday at an extra European Council meeting.

But ultimately the way to make the whole of the EU, including the eurozone, work better is to promote open markets, flexible economies and enterprise. This is an agenda which Britain has promoted under successive Governments and successive Prime Ministers, but it is now an agenda which the European Commission is promoting too. We have many differences with the European Commission, but the presentation made by the Commission at yesterday’s Council about economic growth was exactly what we have been pushing for. It drove home the importance of creating a single market in services, opening up our energy markets and scrapping the rules and bureaucracy that make it take so long to start a new business. Both coalition parties are pushing hard for these objectives. This may sound dry, but if we want to get Europe’s economies moving, to succeed in a competitive world, then these are the steps that are absolutely necessary. These are arguments which Margaret Thatcher made to drive through the single market in the first place, and which every Prime Minister since has tried to push. I am no exception. If the countries of the EU were as productive as the US, if we had the same proportion of women participating in the economy and were as fast and flexible at setting up new businesses, then we would have the same per capita GDP as the US.

The remainder of the Council was spent on the safeguards needed to protect the interests of all 27 Members of the EU. The Council agreed that all matters relating to the single market must remain decisions for all 27 member states and that the European Commission must,

“safeguard a level playing field among all member states including those not participating in the euro”.

This leads me directly to the debate we are having in this House later today. Members of my party fought the last election committed to three things: stopping the passage of further powers to the EU, instituting a referendum lock to require a referendum, by law, for any such transfer of powers from this House, and bringing back powers from Brussels to Westminster. All three remain Conservative Party policy. All three are in the national interest. In 17 months in government, we have already achieved two of the three: we have yielded no more powers to Brussels—indeed, the bailout power has actually been returned—and, of course, the referendum lock is in place. I remain firmly committed to achieving the third, which is bringing back more powers from Brussels.

The question tonight is whether to add to that by passing legislation in the next Session of this Parliament to provide for a referendum, which would include a question on whether Britain should leave the EU altogether. This was not our policy at the election and it is not our policy now. Let me say why I continue to believe that this approach would not be right, why the timing is wrong and how Britain can now best advance our national interests in Europe.

First, it is not right because our national interest is to be in the EU, helping to determine the rules governing the single market, our biggest export market, which consumes more than 50 per cent of our exports and which drives much of the investment into the UK. This is not an abstract, theoretical argument; it matters for millions of jobs and millions of families in our country. That is why successive Prime Ministers have advocated our membership of the EU.

Secondly, it is not the right time, at this moment of economic crisis, to launch legislation that includes an in/out referendum. When your neighbour's house is on fire, your first impulse should be to help him put out the flames, not least to stop the flames reaching your own house. This is not the time to argue about walking away, not just for their sakes but for ours. Legislating now for a referendum, including on whether Britain should leave the EU, could cause great uncertainty and would actually damage our prospects of growth.

Thirdly and crucially, there is a danger that by raising the prospect of a referendum, including an in/out option, we miss the real opportunity to further our national interest. Fundamental questions are being asked about the future of the eurozone, and therefore the shape of the EU itself. Opportunities to advance our national interest are clearly becoming more apparent. We should focus on how to make the most of this, not pursue a parliamentary process for a multiple-choice referendum.

Those are the reasons why I will not be supporting the Motion tonight. As yesterday's Council conclusions made clear, changes to the EU treaties need the agreement of all 27 member states. Every country can wield a veto until its needs are met. So I share the yearning for fundamental reform and I am determined to deliver it.

To those who are supporting today’s Motion but do not actually want to leave the EU, I say to you this: I respect your views. We disagree not about ends but about means. I support your aims. Like you, I want to see fundamental reform. Like you, I want to refashion our membership of the EU so that it better serves this nation's interest.

The time for reform is coming. That is the prize. Let us not be distracted from seizing it. I commend this Statement to the House”.

My Lords, that concludes the Statement.

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[Lord Strathclyde]

My Lords, I begin by thanking the noble Baroness for the tribute she paid to the people of Libya who have fought so bravely over the course of the last seven months, and some for far longer, against the tyranny and dictatorship represented by Colonel Gaddafi. I also thank the noble Baroness for what she said about our Armed Forces and for commending the Prime Minister. I very much agree with what she said. I also agree that embedding change will take time and that the process will be long and difficult. We, the European Union and many others will be involved in that. Libya is an important country and we have been much involved with it. It is right that we should continue to help and support the National Transitional Council and the new regime, whenever that comes, for as long as they want us.

On the European Union, the noble Baroness began by saying there was no need for this House to replicate the debate happening today in the House of Commons. I agree with that, although I am sure that there will be an opportunity in the next 20 minutes or so of Back-Bench time to deal with some of these issues. The noble Baroness reminded us that the Labour Party is opposed to leaving the EU. She did not tell us about its line on joining the euro, but I am sure that that was an omission. The noble Baroness shakes her head, so I presume that means the Labour Party would not join at the moment. That is a good thing indeed.

The noble Baroness said that we needed to act together. I agree with that. It is the same reason why we are opposed to an in/out referendum. We need to act together. Major decisions are being taken about the single market—both this weekend and again on Wednesday—which is something that successive British Governments and British Prime Ministers have been championing since the days of Margaret Thatcher. The single market is an immensely important mechanism for us. The fact that the single market is not yet complete is something that should concern us; the fact that the European Commission now wishes to complete it is something that we should welcome enormously. I also agree that these decisions should be taken by the 27 member countries and not by a small group. The noble Baroness fears that we may be sidelined during the course of this process if there is a core eurozone caucus, for want of a better word. We would very much like to avoid that, and we are doing everything we can to bring that about.

The noble Baroness asked some specific questions, particularly about the amount of recapitalisation that has taken place in the banks and whether it is enough to ensure future stability. That was exactly what the ECOFIN meeting was about on Saturday. The Chancellor of the Exchequer spent 10 hours in the meeting to ensure that the system in place was proper and correct. As far as whether lessons have been learnt from previous bailouts, decisive action has been taken and it was right to do so.

Where I agree most with the noble Baroness is on growth. This has slowed in Europe and there are a number of structural reasons for that, such as bureaucratic centralisation. We will not get to grips with many of the financial problems without addressing the growth issues. That is why we support what the European Commission is doing on growth, particularly on completing the single market. What is also required is real political leadership. I am pleased that in this country at least, in the Prime Minister and Deputy Prime Minister, the Foreign Secretary and the Chancellor, we have a united leadership developing the way forward.

I will not join the noble Baroness in her praise of the Social Chapter. I take the view that all those things that the noble Baroness thinks are important are important, too, but they could just as well be decided in a British Parliament by British Members of Parliament and, indeed, British Peers.

The noble Baroness finished by saying that these are serious questions, which is right. The issue of Europe is always taken immensely seriously, not least in this House. I like to think that we always put the national interest first; that is one of the reasons why I am a member of this Government. These are extremely difficult and complicated times, and it is vital that we put the national interest first to get the solutions that we need.

[Baroness Royall of Blaisdon]

My Lords, in answer to the noble Lord the Leader of the House’s question about the euro, I remind the House that it was my Government who decided not to go into the euro and that they did so in the national interest.

[Lord Hannay of Chiswick]

My Lords, will the noble Lord the Leader of the House accept my warm welcome for the extremely determined way in which the Prime Minister led this action with President Sarkozy? However, could he perhaps clear up one area that slightly baffles me—that is, the statement about not acting on the basis of any overarching principle? My understanding—perhaps the noble Lord will confirm this—is that we were in Libya, doing what we were, because we subscribed to the responsibility to protect people whose citizens cannot or will not be protected by their own Governments. That was something that we, with 191 other UN members, subscribed to in 2005. If that is correct but it is not an overarching principle, I am not sure that I would recognise one when I saw it.

Secondly, on Europe, it now sounds very likely—although the decision has not yet been formally taken—that there will be negotiations in an intergovernmental conference, and that this will probably be decided at the European Council in December. Is it not crucial that this country goes into such a conference with a positive agenda to secure all those points that the Prime Minister rightly made in his Statement about the primacy of the single market, the need to ensure that decisions are taken by the 27 member states and the need to protect our own position? A positive agenda will be needed to secure that, if action is also being taken to set up, for example, a restricted group of members in the eurozone to take certain decisions on economic and financial policy. Will the Minister confirm that the Government are now drawing up some positive points to make at that intergovernmental conference, and not focusing on a long list of the sort of points that, in 1974 and 1975, led to a pretty humiliating negotiation and not a single word being changed in any European treaty?

[Lord Strathclyde]

My Lords, I thank the noble Lord, Lord Hannay, for his warm welcome to the Prime Minister’s discussions with the President of France on Libya. One can look at what happened in Libya in a variety of ways, including seeing it as following a great principle of defending the interests of civilians, which I regard as a noble principle. However, in his Statement this afternoon my right honourable friend the Prime Minister said, “I am wary of drawing some grand, overarching lesson—still less to claim that Libya offers some new template that we can apply the world over. I believe it has shown the importance of weighing each situation on its merits; of thinking through carefully any decision to intervene in advance”. That is right. There were other important principles at work in Libya: the passing of the United Nations Security Council resolutions; the support of the Arab League and the neighbours of Libya; and the immediacy with which civilians were likely to be murdered on the streets of Benghazi. All played a part, so the Prime Minister is right not to see it as a template. The noble Lord is also right in saying that it is important that where civilian life is endangered, we should move swiftly to ensure that that is not the case.

I also agree with the noble Lord about the Government having a positive agenda on Europe. They do have a positive agenda, particularly as regards what he called the primacy of the single market, to complete all the provisions of the single market, of which there are directives outstanding that have a direct effect on and implication for British financial services, commerce and industry, particularly some of the financial directives, and to maintain these and many other things to be decided by the 27 member states. We are in a process of discussion and negotiation against a background of volatility—indeed, some financial turmoil—in the markets. It is important to get these decisions right.

[Lord Newby]

My Lords, on Libya, does the Minister agree with the noble Baroness, Lady Royall, that the important thing now is to secure the peace? Will he give an assurance to the House that the Government will give whatever support the Westminster Foundation for Democracy and other bodies in the UK request in order to help the new Administration in Libya to draw up a new constitution and move towards elections? On the EU summit, does he agree with me that the most worrying event of the weekend was the spat between the Prime Minister and the French President, which demonstrated the danger to the UK of being seen as irrelevant to the major decisions being taken in the EU? Will he therefore give the House an assurance that the Government are giving systematic consideration to ensuring that any moves towards greater common activities in the eurozone which have an implication for the UK will take place with the UK at the very least sitting at the table during those discussions and when those decisions are being made?

[Lord Strathclyde]

My Lords, on my noble friend’s first question, of course we are delighted that we are seeing a semblance of peace in Libya, and long may that continue; and of course we will do everything we can to support the growth of that stability and, indeed, in the longer term, of democracy. I have answered questions before on the Westminster Foundation, whose aims and objectives we fully support. We wish to see that body continue to function and to work not just in Libya but in many other countries as well. As far as the EU and the French President are concerned, I am not sure whether “spat” is the right word, but we think that we are in a position to explain to some of our European colleagues our viewpoint on what is happening in the eurozone and to underline the seriousness of it. In fact, the Prime Minister and the Chancellor have said that it is not in our interests for the euro to founder; it is very much in our interests for it to succeed. I do not think that we are being sidelined. We are doing everything we can to explain and to get our colleagues to understand that we are playing a full part and—in the words of the noble Lord, Lord Hannay—a positive part in the development of the EU.

[Baroness Symons of Vernham Dean]

My Lords, I have just returned from the World Economic Forum in Jordan, where most of the Governments of the Arab League were represented. It is worth noting that they were all relieved and pleased that the Gaddafi era is over, as I am sure we all are. However, many of my interlocutors expressed concern—some publicly, some privately—about the way in which Gaddafi met his end. Their feeling was that if the changes in the Middle East are to become embedded, they have to be rooted in the rule of law. The rule of law would have meant that Gaddafi went on trial in an open trial which everybody could see, and was then subject to the sentence of a properly constituted court. Will the noble Lord the Leader of the House assure us that this is also the Government’s position and that extrajudicial killing—in the heat of the moment people in many parts of the world may at times have sympathy with it—is wrong in principle and that standing up for the rule of law is important, whoever is the victim?

[Lord Strathclyde]

My Lords, it is always good to hear from the noble Baroness first hand about her activities in Jordan and her discussing this with other Arab countries. I agree with the point that underlines her remarks. The UK was a strong supporter of the ICC and led the drive to refer the situation in Libya to the ICC in UNSCR 1970. We have always maintained that the ideal solution involved Gaddafi being arrested and standing trial in The Hague and getting to the truth of the many events that occurred over the course of the past 40 years. Ultimately, the fate of Gaddafi was in the hands of the Libyans. The process should have been rooted in the rule of law and we will certainly make sure that the NTC understands that. It is now for it to decide how it plans to investigate the events that led to Gaddafi’s death.

[Lord Tebbit]

My Lords, will my noble friend assure me that he is aware of the proposal that the 17 members of the eurozone should meet outside the Council of Ministers and decide among themselves by a majority upon economic policies that would affect this country, which they would then support as a bloc in the Council? Would such an arrangement constitute a substantial transfer of powers from this country such as to trigger a referendum?

[Lord Strathclyde]

My Lords, I do not think that, as my noble friend explained his scenario, it would, because it would not necessitate a treaty change. My noble friend raises a question that we would not necessarily like to face, and at this stage we are not sure that it is something that we necessarily need to beware of. On Wednesday there is another European Council—an emergency Council—which will draw conclusions, and we will be in a far better position to see the outcome of these talks at that stage.

[Lord Grocott]

My Lords, I speak as someone who is a little wary of parliamentary procedures that lead directly from a petition to an automatic debate in Parliament, and would not have supported those procedures had I been in the Commons when they were decided. None the less, does the noble Lord agree that if a petition asks one House of Parliament to debate something and to express Parliament’s view, it rather destroys the point for all three party leaders to insist that Parliament should respond in a particular way? I would not have thought that that is the best way of discovering Parliament’s view. Secondly, in respect of a part of the Statement that I fully support and endorse, where the noble Lord reminds us that Parliament held a debate on the proposed conflict in Libya at the earliest opportunity, what does he think would happen if this were an elected House? Would this House—in the event of a proposition for armed conflict—also be required to express a view?

[Lord Strathclyde]

My Lords, the noble Lord, Lord Grocott, says that he is suspicious—he did not quite use the words “new-fangled parliamentary processes”, but he might have done—of the role of e-petitions and of the Back-Bench committee of the other place that decided on what should be debated. I do not think that there is any real tension between that and the three party leaders taking a view. It may be that the Back-Bench committee thought that something was important to debate and the three party leaders took a different view. It is certainly a less tidy process, but it may be that people feel that by joining in these petitions they have debates brought to the Floor of the House. Those who signed up to this e-petition will no doubt be very pleased with its results—at least I hope they will be.

It is very tempting to get into long debates with the noble Lord about the role of a directly elected second House. I have no view as to whether a directly elected senate would wish to vote on whether we went to war. What the noble Lord did not ask, but what he meant, was about what would happen if those two bodies disagreed in some fundamental way. Many of these questions would be ironed out once an elected senate were in place and in a position to negotiate these matters with the House of Commons.

[Lord Elystan-Morgan]

Can the Leader of the House say whether Colonel Gaddafi’s second son and nominated heir is still alive and, if so, whether every effort will be made to capture him alive and to make him stand trial? Such a trial might cast a flood of light upon both the Lockerbie bombing and the murder of WPC Fletcher.

[Lord Strathclyde]

My Lords, I do not know whether he is still alive but, on the basis that he is, our role would be to stick to UN Security Council Resolution 1973 and to protect civilians in Libya. We would certainly expect the Libyan regime—the NTC—to work within the rule of law; and if he were arrested he should be brought to trial so that we could find the answers to these questions.

[Lord Pearson of Rannoch]

My Lords—

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[Lord Lamont of Lerwick]

My Lords, will the Leader of the House possibly correct the attempts of the noble Baroness, Lady Royall, to rewrite history? Will he perhaps remind her that the decisions on which countries joined the euro, and at which parities, were made well before the 1997 election? At that time, the decision by the Conservative Government not to join the euro was severely criticised by both John Smith and Gordon Brown.

[Lord Strathclyde]

My Lords, it is always good to hear my noble friend, and he has of course put the record entirely right.

[Lord Pearson of Rannoch]

My Lords, does the noble Lord accept that the talk in the Statement about scrapping EU rules and bureaucracy, bringing back powers to Westminster and reforming the EU generally is all just a dishonest red herring, because he will be aware of the requirement for unanimity among all 27 member states before a single comma can be retrieved from the treaties? Secondly, why does he yet again come up with the often-repeated propaganda that somehow millions of British jobs depend on our membership of the European Union? Can he tell us why a single job would be lost if we left the political construct of the EU? After all, EU countries sell us much more than we sell them, and Switzerland and 62 other countries have free-trade agreements with the European Union. If we are to continue these debates, can we please drop this obvious propaganda?

[Lord Strathclyde]

My Lords, I usually admire the noble Lord’s questions but I cannot follow him on this occasion. On repatriating powers, we believe that an opportunity for the British Government to negotiate may well arise in a positive way. I say in the presence of the noble Lord, Lord Hannay, that repatriating powers to the United Kingdom may well strengthen the whole EU. There is a clear role for the nation state. However, at the moment, we are at a very early stage and we do not know whether there will be a treaty change and, if there is, how big it will be, exactly what it will refer to and so on. I do not think that anyone should get overexcited about this, but any future treaty change will—partly because of the rule of unanimity—give us the opportunity to advance our national interests, which is of course what the Prime Minister and the Government will always wish to do.

Secondly, I cannot join the noble Lord in his attack on what he called propaganda about the single market. The single market is an immensely important part of British interests and the British economy. I will not list all the figures now. One reason to be on the inside is that all the countries that he mentioned did not have a say in writing the rules of the single market. One of the greatest advantages of being a member of the EU is that we are part of the process under which these rules are made.

[Lord Cormack]

My Lords—

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[Lord Lea of Crondall]

The Prime Minister stated only a couple weeks ago, much to the annoyance of President Sarkozy, about the crisis that they—presumably, the eurozone—ought to sort it out. In a sense, I am responding to the question raised by the noble Lord, Lord Tebbit. Does the noble Lord the Leader of the House think that that is what the Prime Minister meant?

[Lord Strathclyde]

My Lords, I must say that I am not entirely certain that I followed the noble Lord’s views. The eurozone is in an immensely difficult situation. There is a huge problem which will impact not just on eurozone countries but on our economy and perhaps even wider than that. It is up to them, I suppose, to sort it out, but we can all play a part in sorting it out because it is so important to all of us.

[Lord Cormack]

My Lords—