European Union (Approval of Treaty Amendment Decision) Bill [HL]

Lord Wallace of Saltaire Excerpts

Wednesday 13th June 2012 Lords Chamber

Let us take Moody’s as one example, although there are also Standard & Poor’s and Fitch. Moody’s, an American-based private company, recently made a statement about the United Kingdom and it can take it upon itself to rate not just other companies but sovereign countries too. As a result, the sovereign countries have to pay more for their borrowing. Therefore, the credit rating agencies helped to bring on the crisis. Look at who owns Moody’s and at who might benefit as a result of that speculation— it is Berkshire Hathaway, Capital World Investors, ValueAct Capital, Vanguard Group. The companies which own these credit rating agencies benefit by the decisions and the announcements made to downgrade the country concerned. It is, really, outrageous that this should happen.

[Lord Wallace of Saltaire]

My Lords, I see some puzzled faces around the Chamber and I think that others agree with me that this is rather wide of the amendment under discussion. Perhaps I may remind the noble Lord that we are at the Committee stage when we should address directly the amendments concerned.

[Lord Foulkes of Cumnock]

I have noticed that the noble Lord, Lord Wallace of Saltaire, has been up on his feet regularly in recent days and weeks keeping colleagues in order, so I know that he is not picking on me in any way. I accept that I had moved just a little wide of the amendment.

I was trying to say that if Greece were no longer a member of the eurozone, having been forced out because of all these speculators, the question would arise whether the treaty should go ahead as originally planned. That is the amendment and that is a valid point. People are concerned that countries such as Greece, Ireland and now Spain, which are in difficulties and suffering, might have to leave the eurozone because of the speculation taking place. If those countries were no longer members of the eurozone, why should a treaty which was drawn up at a time when they were members continue on that basis? I beg to move.