(5 years, 7 months ago)
Lords ChamberMy Lords, first, I associate myself with what my noble friend said about these absolutely scandalous leaks. Secondly, these reports, coming at a time when we are separating ourselves from our friends and allies in the European Union, seem to suggest that we are now separating ourselves from our friends and allies in the Five Eyes. It is impossible for those of us who have not been privy to the discussions to form a view, but a pattern is beginning to emerge. Another difficulty in interpreting what the Government are doing is that here we have them apparently going to invite the Chinese into this very sensitive sector, when they are already a nuclear power, but the Secretary of State for Defence is notable for his bellicose comments when he talks about sending our aircraft carrier to the South China Sea.
To pick up on one of my noble friend’s points, there is absolutely no question of inviting Huawei into this area; it is here already, and has been for 15 years. The issue is to look at how we mitigate the risks from Huawei—because there are risks, and we acknowledge that. I do not accept his slightly pessimistic view of how we are separating ourselves from the Five Eyes and other security partners in the way that he suggested. As I tried to explain, the Five Eyes approach to Huawei is much more nuanced. We are in exactly the same position as Canada, which is carrying out a review. The US has recently revoked its ban on ZTE and allows Huawei in public networks. New Zealand has suggested that one telecoms manufacturer should not be allowed but is also reviewing its position, so in many cases in the Five Eyes we are in exactly the same position as others. We understand that there is a risk; we have to do our best to mitigate it.
The noble Lord is absolutely correct that in the last resort we could do so, but these are democracies and we think it is better that they agree to do things rather than we dictate to them, which is a rather 19th century attitude. At the same time, we acknowledge that we would like to have public registers and we are trying to persuade them on that. As I say, 12 countries have agreed so far, so we are making progress.
My Lords, does my noble friend agree that it is slightly ungracious of the noble Lord opposite not to recognise the great progress that has been made under this Government by comparison with the complete lack of progress made under the previous Government? Does he also accept that while there is much that we can do, and no doubt more that we and other rich countries can do, there is a great burden of responsibility on poorer countries? If they would tighten up their regulations and clamp down more on corruption, this problem would be a great deal less great than it is.
I agree with my noble friend. It is important to make the point that we would like to help developing countries to facilitate this, and we are spending money and resources doing that. DfID, for example, and the HMRC are capacity-building, and we are spending more money. We agreed to double our expenditure on that under the Addis tax initiative.
My Lords, I acknowledge that the party opposite did support the new MFF, and I acknowledge the support given by the noble Lord personally to that well-attended debate on 8 July with one speaker. In terms of how we will keep Parliament informed, the Prime Minister made a Statement that was repeated in this House about his renegotiations and the outcome of the Council, and he did say that the issue would be addressed at the Council in December. I would expect the Prime Minister to make a further Statement following that EU Council, which is what he normally does. In addition, not only the European Scrutiny Committee of the House of Commons but the Select Committee of this House will scrutinise the budget, as they always do.
My Lords, I congratulate the Minister on his modesty as well as on his erudition. Would he not agree with me that the Prime Minister has set out his negotiating path and that it is always very unwise to deviate from a path almost immediately after one has set it out in public? Would it not be far better to seek changes that will benefit the whole of the European Union and not just the United Kingdom, and is not the best way to do that by seeking to control the budget and looking for ways of repatriating those functions that are suitable for that purpose?
I completely agree with my noble friend. In fact, the Prime Minister has been consistent. In the election he said that we would reform the EU: we would have renegotiation, reform and a referendum. That is what he promised and that is what we will deliver.
I can see the noble Lord’s problem, but I do not think that it is a problem for the UK Government. The referendum was instituted by Greece and it is up to them what the question should be, what they are trying to address and why they are trying to have one. I completely agree with the noble Lord that there are many scenarios resulting from that. The Treasury, the Government, the Bank of England and the Foreign Office are looking at this and working out contingency plans on a daily basis.
My Lords, the Minister said that the British Government would be preparing for the worst. I think it is quite widely thought that the worst that might come quite quickly is a humanitarian crisis within Greece. Once no cash is circulating, particularly in an economy that has such a substantial cash sector as in Greece, the difficulties for people in getting food and basic services will become very immediate. Are the British Government going to play a role, should that be required, in any EU humanitarian effort to mitigate suffering in Greece?
My Lords, I agree with my noble friend that in preparing for the worst—I alluded earlier to the sufferings of the Greek people—a humanitarian crisis would be very serious and possible. I am afraid that I am not in a position to commit today on how we would help in that situation. I would like to, but I just do not have the knowledge to do so, I am afraid.