European Union Referendum Bill

Lord Wallace of Saltaire Excerpts

Monday 23rd November 2015 Lords Chamber

[Lord Pearson of Rannoch]

My Lords, no, of course not. If the noble Lord would care to read my peroration on this subject on 15 September, he will see that I opined that our first past the post system no longer produces a vibrant democracy in this country. The system which sends Members of Parliament to the House of Commons should be changed. Then one might find that the UK Independence Party would get one or two more seats.

As I was saying, Europhiles still try to frighten us that jobs would be lost if we left the EU. However, we would keep our free trade with the single market because we are its largest client. We have some 3 million jobs selling things to clients there, but it has 4.5 million jobs selling things to its clients here. Our Europhile friends then conveniently forget that only about 9% of our economy goes in trade with the single market, declining and in deficit; some 11% goes to the rest of the world, expanding and in surplus; but 80% stays in our domestic economy. Yet Brussels overregulation strangles all 100% of our economy.

Another Europhile silly one is to point out that we would still have to obey single market rules if we left the EU.

[Lord Wallace of Saltaire (LD)]

My Lords, we are on Report. I have heard the noble Lord, Lord Pearson of Rannoch, repeat these familiar arguments many times in the House, but I am not entirely sure that we are addressing the amendment under discussion.

[Lord Pearson of Rannoch]

My Lords, I think I am addressing it. I am going into the fundamental reasons why the amendment is misguided. I will continue, if I may. Only 9% of our economy goes to the single market and this is the percentage of our exports and economy for which we would have to follow EU rules. Of course we would, just as it pays to put the steering wheel on the left if you are selling a car to the United States.

Talking of cars, Europhiles give our car industry as one which would suffer if we left the EU. Once again, I remind noble Lords of Global Britain’s briefing note No. 96, which shows why that is nonsense. We import twice as many cars from the single market as we export to it—1.4 million in and 0.6 million out. EU manufacturers actually own 53% of our domestic car market. Why would they want to impose a tariff against their own profitable business? Indeed, I can go further and recommend that Europhiles particularly, and our civil servants, should take a little time to read the Global Britain briefing notes, which briefly but comprehensively destroy the economic case for staying in the EU.

In conclusion, the amendment makes the basic Europhile mistake of thinking that any area of our national life is funded by the EU, whereas of course for every £1 it sends us at the moment we have sent it £2.63. According to the latest Pink Book figures for 2014, we sent £19.994 billion gross in 2014 and the EU sent us back £7.665 billion for things such as our research budget, structural funds, farmers and so forth, as covered by the amendment. That leaves our net contribution at £12.329 billion per annum. That is £34 million a day, which goes down the drain in Brussels. Or we could look at it as the annual salaries of 352,257 policemen—of whom we could do with a few more right now—or nurses or any other public servant your Lordships may care to mention, at £35,000 a year each.

I would rather welcome the amendment if it were honestly fulfilled because the voters would understand better what a complete disaster is our membership of the European Union and they might even start to ask what is the point of the European Union itself. They might start to see it for what it is. It is an emperor whose clothes have long since fallen off.

--- Later in debate ---

[Lord Lamont of Lerwick]

Yes, Parliament has voted for it—but if we are having a referendum, everything is up for argument. The public have been given the right to dispute and to vote. Equally, paragraph (f) of the noble Lord’s amendment refers to,

“those regions of the United Kingdom that qualify for structural funds”.

I imagine that that would have a big impact in certain regions of the north of England, but other people in the south might attach equal importance to the fact that we did not have to make a budget contribution across the exchanges any longer.

The point that I am trying to make is that these things cannot all be reduced to black and white. The truth is grey: there is no such thing as complete impartiality in all these arguments. That comes back to a very important point made by the noble Lord, Lord Owen, who quite rightly and with tremendous force reminded the House that we may be in danger of overstepping the mark. As I think he was hinting—although he had the graciousness not to say so—I suspect that a lot of these amendments are being put forward for rather self-interested motives from the side that people find themselves on in this argument.

So rather than seeking after some elusive impartiality that does not exist, let both sides slog it out in argument. Let the Government, as they have said, publish a White Paper saying what they think is the result of the negotiations and why they think we should stay in, if that is what they think—and they probably will—but let us not go beyond that into an area that is highly disputable. Each side can put its case best, rather than the Government trying to argue a case that they are fundamentally opposed to.

[Lord Wallace of Saltaire]

My Lords, let me simply add to what the noble Lord said. The last Government produced 32 reports on the EU balance of competences; I have painful memories of it. We covered the European arrest warrant. It was a process where we asked the opinions of experts and stakeholders throughout the country. We were as impartial as possible in that respect: civil servants reviewed the results and made an assessment of the balance of comments that had come back. So it is possible to be relatively impartial on all this. If we are to have a referendum, it is important that the people are as well informed as possible on the evidence that is provided.

[Lord Green of Deddington]

Before the noble Lord sits down, is he aware that the balance of competences review did not include the word “population”?

[Lord Wallace of Saltaire]

I have not checked all 2,500 pages of the report, but I cannot guarantee that I will do so as quickly as I read the speech in 2002 by the noble Lord, Lord Pearson of Rannoch, when he reminded me that I had not referred to it. I have to say that I found it rather thin.

[Lord Willoughby de Broke (UKIP)]

My Lords, like my noble friend Lord Pearson I welcome this group of amendments—perhaps, rather surprisingly—because it gives us the chance to get some facts out in this report. I hope that the noble Baroness will listen to the other side of the argument. Having listened to what the noble Lord, Lord Grocott, said, I will try to confine myself to facts. Amendment 24C states:

“The report shall cover the possible consequences of withdrawal … upon … the United Kingdom’s economy”.

I think that on the whole that could be rather beneficial. We could get £20 billion back that otherwise we would send to the European Union. That £20 billion may not seem an awful lot of money to some noble Lords who tabled the amendment, but it is a substantial sum of money and would be Britain’s to spend as it sees fit. That is a fact. According to the Pink Book published at the end of October this year, £20 billion was our contribution in 2014.

When we talk about the economy, I know that behind this is the idea that if we were to leave the European Union our industry, the City and other sectors of our productive economy would be acted against and discriminated against by our erstwhile partners. I find that very unlikely. Again, according to the recent Pink Book, we have an annual trade imbalance with the EU of £107 billion. That is a Pink Book fact. What is also a fact is that Britain is the eurozone’s biggest single trading partner—bigger than the United States. We are Germany’s biggest single export market—bigger than the United States. I therefore find it really hard to believe that our trading partners, who have such a promising trade balance with us as their best market, would possibly want to destroy the interests of their best customer.

Going on down the list, I think that the noble Lord, Lord Grocott, has already dealt with the rights of the individual. That of course is entirely up to the United Kingdom Parliament to decide, and no longer a matter for the European Union.

We move on down to law enforcement—new subsection (e) on law enforcement, security and justice. Again, I do not know whether the European arrest warrant is actually the best way to deal with matters. Obviously, we need some way of getting criminals back to face justice, but a prima facie case should be made in front of a magistrate in England before people are sent back to face systems of justice that are very different from ours—so I do not agree with the noble Lord, Lord Hannay, on that.

As for security, of course, were we to leave the European Union we would have control of our borders again. That is arguably the most important thing of all when it comes to security at the moment. We see the chaos in Europe, with barbed-wire fences being erected and France putting up border controls. All over Europe now, people are debating whether free movement of people in and out of the EU is actually possible.