European Union (Referendum) Bill

Debate between Lord Taverne and Baroness Quin

Friday 24th January 2014 Lords Chamber

[Baroness Quin]

My Lords, as a signatory to the amendment, which has been so well moved by the noble Lord, Lord Roper, I should like to say a few words in support of it.

Given that the House has just decided to amend the Bill, I hope that this amendment in particular will be looked at very sympathetically because it is designed to improve the circumstances surrounding the referendum for the benefit of Parliament and our citizens, if that referendum takes place. The amendment would ensure that Parliament and the public get the best possible amount of information about the consequences of their vote either for or against. It is a principle on which we should all be able to unite, and I am glad that the amendment has attracted support from around the House.

As the noble Lord, Lord Roper, has said, the amendment relates to getting information to Parliament and the public on a variety of issues that will be crucial during the referendum campaign. The first relates to the possible effects on the economy of staying in or withdrawing from the European Union, and we know that there is a good deal of discussion about this issue. We all know that businesses have expressed a great deal of concern about the prospects of withdrawal from the EU. I was interested to see only yesterday, for example, it was reported in the newspapers that concerns had been expressed by JP Morgan, BAE Systems, the British Bankers’ Association and Unilever, which is quite a cross-section of economic interests.

Concerns on economic grounds have been expressed in many parts of the country, including the City of London. I am sure that the noble Lord, Lord Dobbs, is very much aware of City publications expressing concern about the uncertainty surrounding Britain’s future membership of the EU. Concerns have also been expressed in my part of the country, the north-east, where, as I mentioned in previous debates, we have large, successful firms such as Nissan exporting to the EU. The people who work in those firms will be concerned to make sure that their future will be as guaranteed as much as it can be, following any referendum. I think economic information is going to be vital for those reasons.

The noble Lord, Lord Roper, also mentioned—and indeed the amendments contain—references to other aspects of our membership of the European Union where we need to be fully informed about the consequences of either staying in or withdrawing. That is particularly vital for citizens’ rights. The noble Lord, Lord Roper, quite rightly mentioned the freedom of movement provisions, which many citizens in the UK benefit from on a day-to-day basis. Indeed, it is interesting that in consideration of this Bill I, and I am sure other Members of the House, have been lobbied a great deal by European Union citizens living in Britain and also British citizens living in other parts of the European Union wondering if they are going to be able to take part in this vote and what the future means for them and their rights as citizens. These are important matters that we need to take into account.

We know that the rights of citizens and, indeed, the rights of people in employment have been affected very considerably by membership of the European Union. A large number of European directives have been brought in to guarantee, for example, paid holidays, increased maternity benefits, paternity leave and so forth. People will want to know what the future holds on those issues following a referendum vote.

Although this is a straightforward amendment and is reasonable in asking for full information before such an important decision is made, it actually says a lot. Indeed, we could have days of debate on each of the matters mentioned in the amendment, but that is not what we are trying to do today. We are trying to make progress with the scrutiny of this Bill. I hope that my few comments have explained why I so strongly support what I believe is a very reasonable and sensible amendment to the Bill.

[Lord Taverne (LD)]

My Lords, I support the amendment for slightly different reasons. If there is to be a meaningful decision, the choice must be clear. Unfortunately, I think it is extremely likely that if the 2017 date survives in this Bill the choice will be anything but clear because, for reasons that I shall advance later when we come to Amendment 10, it is extremely unlikely that the negotiations that Mr Cameron wishes to enter on, which he has not entered on so far, will be concluded by 2017. There are many reasons why fixing a date is the last way of getting effective negotiations.

What could be the result? We do not know. We will not know in 2017 what kind of choice we are facing. What sort of Europe will we be invited to stay in or to leave? What sort of eurozone will there be? Personally, I believe the eurozone will survive but this is by no means certain. However, suppose it does survive, how big will the eurozone be? How tightly knit will it be? What will be the relations between that eurozone and the single market? There may be several countries which do not wish to support the British expansion of the single market.

There may also be several countries in the eurozone which may not wish to come to an agreement that will be favourable to the City. Certain forces in Germany would like Frankfurt to be the financial centre of the eurozone while others in France will want Paris to be it. All sorts of problems will exist and we will need some sort of knowledge about the assessment. There is a great danger that the City would be sidelined and that is something to which the impact assessment would have to draw attention.

What would happen if, as seems possible but not certain, the banking union will then be complete? What will be the relations between the banking union and British banks? I certainly get the impression that there is a growing movement among bankers that they would rather like to join the banking union. They are not as afraid of the new regulations because our regulations are tighter than theirs and they fear being excluded from these vital decisions.

I think that we will face a very difficult decision if we have a referendum in 2017. Negotiations should take place first and then there should be a referendum, rather than facing a decision at a time when it is very unlikely that negotiations will be complete. The whole question of whether to stay in or leave will need a very careful impact assessment, certainly if the date of 2017 is preserved.