European Council

Lord Wallace of Tankerness Excerpts

Monday 22nd February 2016 Lords Chamber

[Baroness Smith of Basildon (Lab)]

My Lords, I thank the noble Baroness for repeating today’s Statement, which is hugely significant for the future of our country and its place in the world. I am also grateful to the Chief Whip for allowing some additional time for Back-Bench contributions and questions.

Clearly, anyone could be forgiven for thinking that the UK’s relationship with the EU was the only issue discussed at the European Council over the weekend. I am grateful that, in the Statement she repeated today, the noble Baroness made it clear that other issues were also debated. It must be immensely frustrating for other countries that issues such as migration, Syria and Libya have not received the same degree of interest as our referendum has. Perhaps that makes a profound point, because those are obviously issues where European and international co-operation are absolutely vital and crucial.

On our role within the EU, the Prime Minister is clearly relieved that a deal has been done and that he has been able to announce the date for the referendum, although at times over the weekend it was all looking slightly dodgy. We were told that, following the completion of negotiations, there would be an English breakfast on Friday morning where the deal would be finalised and then the PM would travel back for a Cabinet meeting in the evening. However, as that breakfast became brunch, brunch became lunch, and lunch became dinner, it was clear that there were still a few sticking points. When we saw Angela Merkel rushing out for a bag of chips as sustenance we knew there was still some way to go. Perhaps the Prime Minister thought that he could starve them into submission. Finally the deal was announced—not exactly what he had asked for but, as any experienced negotiator will confirm, that is the nature of negotiations. The deal had significant changes that certainly cannot be dismissed as unimportant, although some have tried. Then, for the first time since 1982 during the Falklands crisis, the Cabinet met on a Saturday.

There is an historical connection here, in that it was Harold Wilson, the first and until now the only Prime Minister to hold a referendum on the European issue, who is said to have once remarked:

“A week is a long time in politics”,

though his referendum campaign lasted just half the time of ours. If a week is a long time, the next four months of campaigning are going to seem like an absolute eternity. There will be discussions and deliberations and, as leaflet after leaflet extolling the views of one campaign or another is handed out and posted through letterboxes, recycling bins are going to be full to overflowing.

I predict some excellent debates and factually based communications that will inform and enlighten. I also predict nonsense, scaremongering and bad temper. We shall also have some moments of pure theatre. The “will he/won’t he” performance of Boris Johnson’s announcement last night was clearly designed to create the maximum spectacle and drama, and he succeeded in that. He was obviously aware of the deliberate impact that that would have on the Prime Minister.

However, for most of us this issue has to be more than just about personalities and theatrics. It has to be about more than who can shout the loudest or get the most celebrities signed up to their campaign. It is more—so much more—than Mr Cameron’s deal. Support for that view has come from surprising sources. It was almost incredible to hear Chris Grayling yesterday morning on the radio saying that it was a relief rather than difficult to declare his opposition because he, like many others, had made up his mind weeks ago, but had done the right thing and let the Prime Minister continue his negotiations. The right thing? Whatever the Prime Minister returned with was never going to get the support of the very people—his Cabinet and his party—he was trying to please. When, on 2 February, we had that previous Statement I expressed our view that too much of the Prime Minister’s negotiating position had been targeted at his own internal party problems, whereas the only objective must always be the national interest and the key issues that impact on people’s everyday lives.

I am not suggesting that the deal is not helpful. People will have their own views. However, there are so many other issues that are crucial to the UK and to Europe on which we should be taking a lead. We should be exerting our influence and trying to create the kind of EU in which we can take great pride. The Labour Party and the trade unions played a strong role in ensuring that issues such as employment rights, guaranteed paid holidays, paid maternity leave and protection for agency workers were kept out of any renegotiation. Those rights are far too important to be lost or weakened.

The same applies to consumer and environmental protections that have a real and tangible impact on many if not all of us. That includes the cutting of data roaming costs for mobiles and for using the internet, the improvement of air passengers’ rights, clean beaches and bathing water—good for our well-being and a boost to local economies—and how we deal with and dispose of waste. Thanks to EU legislation, on those kind of issues we all benefit. Indeed, given that the air quality here in London and other parts of the UK continues to fall short of EU clean air standards, it would clearly have been more beneficial to the public health of our fellow citizens if the Government had engaged more proactively on this front.

I watched with incredulity yesterday as Iain Duncan Smith claimed that we would be safer out of the EU, as being part of it increased the threat of Paris-style terrorist attacks. Is this the same Iain Duncan Smith who supported the Government’s proposals to opt out of EU measures to deal with crime and policing, including terrorism, and then found out, along with the rest of his party, that they had to opt back in to everything because it actually worked? It worked because it made us safer.

For so long, Brexit campaigners have been telling us that EU citizens travel to the UK in order to get benefits. Then, when the Prime Minister reaches an agreement to cut these, the argument shifts to being that it will not make any difference. You cannot have both sides of the argument at the same time. As this campaign progresses, let us have the kind of debate that can make us proud as a country and as a Parliament. Let us try to recapture some of that vision and promise that was in the hearts and minds of those who first conceived that a way to peace and prosperity was a Europe—which was then divided and devastated by two wars—that would work together with common principles and values for the benefit of all citizens. Let us have a debate of vision and of facts. We should recall that in 1961, our application for membership was vetoed because it was felt that we would be too dominant and powerful through our relationship with the Commonwealth and the US. Yet today we maintain those strong and special relationships alongside our membership of the EU.

None of us would claim that the EU was perfect. We all recognise where it has been weak and where change is needed. But would it not benefit this country if we could again be seen as a powerful figure on the European stage—a powerful country that would take a lead within an EU that works better for working people, strengthens businesses small and large, and brings ongoing and better reform? Why should we not seek to build human rights, employment rights, consumer and environmental protections into future Europe-wide trade treaties? Taking on workers from other countries should never be used as an excuse to drive down wages or disadvantage local workers. Rather than merely seeking greater control for ourselves, why should we not seek to stop the pressure from Brussels to deregulate and sell off public services? That is a matter for national Governments. Why are we not pressing across the EU for a more humanitarian and strategic response to the thousands of refugees seeking asylum, with far too many losing their lives in the process?

Whatever the outcome of the referendum on 23 June, the EU is still going to exist just 21 miles from the shores of Dover and across the border in the Republic of Ireland. That is a fact of life. If we vote to leave, we will still have to manage that reality while our businesses, large and small, that want to trade within the EU will still have to abide by its regulations, which the United Kingdom will have no part in making. During this referendum we will hear a lot of talk about sovereignty, independence and what it means to be a nation state in the ever-changing world of the 21st century. We have already heard quite a bit about patriotism. I so hope that neither side in this debate will seek to claim ownership of patriotism or denigrate anyone else’s.

As I said earlier, and I am sure that I speak for many Members of your Lordships’ House, I hope that the debate will be more informative and enlightening than it is misleading and ill tempered. However, my plea is deeper than that. Already today, we have heard the news that the pound is falling in value, partly from the uncertainty of Brexit and partly because of a Government who are now seen as divided and preoccupied. This makes the need for a constructive, positive debate not just important but absolutely essential. Four months is a long time. The Government must not be so preoccupied with this debate that they lose focus on other issues. The debate has to be about the future of the UK and not that of the Conservative Party, as entertaining as that may be, because this is not about entertainment. This is a huge decision that faces each and every one of us. In the Statement which the noble Baroness repeated, there was the comment that this is not just a theoretical question but a real decision about people’s lives. We entirely concur with that statement.

The British people deserve a proper debate ahead of 23 June. My party has set out its position clearly and with conviction. We look forward to making the case for a stronger, open and confident Britain remaining as an engaged, challenging and leading member of the EU.

[Lord Wallace of Tankerness (LD)]

My Lords, I, too, thank the noble Baroness the Leader of the House for repeating the Prime Minister’s Statement. At the outset, I declare my registered interest as a member of the board of Britain Stronger in Europe. I say gently to the noble Baroness, Lady Smith of Basildon, that twice in her remarks she talked about four months being a long time. A number of us in your Lordships’ House who are veterans of three and a half years on the Scottish referendum would think four months a relative relief.

Those of us on these Benches very much welcome the Prime Minister’s successful renegotiations in Europe last week. The hard work that he put in, not only last week but in the weeks leading up to it, was very evident and it is fair to say that what he came away with exceeded many people’s initial expectations. We also welcome the willingness of other EU member states to work with the United Kingdom to reach this compromise. That demonstrates the degree of good will towards the United Kingdom from other EU Governments, and their commitment to maintaining British membership. I was delighted yesterday to hear the Prime Minister setting out, at long last, the strategic case for the United Kingdom continuing its membership of the European Union. It was very welcome, too, that the Prime Minister took the opportunity in his Statement to knock on the head the fanciful idea that, in the event of an out vote, there could be a second renegotiation and a second referendum.

The referendum vote in June will be of the utmost significance. It will settle not only Britain’s relations with Europe, but our place in the world. We very much believe that the United Kingdom will derive strength from being seen as a team player and engaged in international affairs. It is an illusion of sovereignty to suggest that, if we come out, we will somehow get sovereignty back. Liberal Democrats are firmly committed to the United Kingdom’s place in the European Union. We are united in our belief that the United Kingdom is better when it is united with our colleagues in Europe. In an uncertain world of challenges and threats, I also believe that Europe is better and stronger for having the United Kingdom in it as a member state.

We have spoken from these Benches on a number of occasions about how we will use the campaign to speak about the positive case for Britain remaining within the EU. In the EU, Britain can thrive. Together, we will be a stronger and more prosperous nation, securing jobs and creating opportunity for our children and grandchildren. We have created together the world’s largest free trade area, we have delivered peace, and we have given the British people the opportunity to live, work and travel freely. History shows that Britain is better when it is united with our European partners. Together, we are stronger in the fight against the global problems that do not stop at borders. We can combat international crime, fight climate change, and together provide hope and opportunity for the future.

It is worth reflecting for a moment on the creation of the European Union and its lasting legacy. After decades of brutal conflict on the continent, European nations came together in co-operation. To this day, neighbours and allies support each other in what remains the world’s most successful project in peace. We remain stronger together in continuing the fight against terrorists who despise our liberal and modern way of life. Will the noble Baroness the Leader of the House take the opportunity to repudiate the alarmist comments made by her colleague, the Secretary of State for Work and Pensions, when he said that remaining in the EU exposes Britain to a Paris-style terrorist attack? Does she agree that it is only by working in co-operation with our international friends and neighbours that we can combat such threats to our security?

Britain is already stronger and better off trading and working with Europe. We are part of the world’s largest single market, allowing British businesses to grow and prosper. Our people have more opportunities to work, travel and learn than ever before. Staying in the EU gives our children and grandchildren greater prospects, and the best chance to succeed. Does the noble Baroness share my concerns, therefore, at the dramatic fall in sterling today—referred to by the noble Baroness, Lady Smith—which we believe was driven in great part by fear of Brexit? Does she agree that the threat of leaving the EU is already costing British businesses and that it would be much worse for British exporters if we were to withdraw from the world’s biggest single market? Can the noble Baroness indicate when we will get the Government’s report on EU membership under Section 7 of the European Referendum Act that Parliament passed towards the end of last year?

This country’s place in the world depends on our getting on well with our neighbours, who share our values and interests. Does the noble Baroness the Leader of the House agree that this referendum is about the kind of country we want to leave to our children and grandchildren, and about how we think of ourselves as a country? Does she agree that issues such as climate change and the natural environment are better tackled when we come together to think about the world we want to leave to future generations?

There has been speculation about a statement or an initiative on sovereignty, which was lacking from the Prime Minister’s Statement today. Before going down that particular road—it may just have been a ruse to try to bring Boris on board—will the noble Baroness reflect that in fact further piecemeal constitutional meddling of that kind may end up with consequences more damaging than the ones they seek to resolve? Will she give the House an indication of the Government’s thinking on that?

Finally, will the noble Baroness confirm that this is, indeed, a once-in-a-generation decision and that there is only one opportunity to show that the United Kingdom is not a country that is isolated and sidelined but one that is open, outward-facing and proud of its place in the international community, and that an out vote means taking the United Kingdom back and an in vote means taking the United Kingdom forward?

[Baroness Stowell of Beeston]

My Lords, I am grateful to the noble Baroness, Lady Smith, and the noble and learned Lord, Lord Wallace of Tankerness, for their remarks and their support for what the Prime Minister has negotiated in Europe this weekend.

I shall start by reflecting on the significance of the events at the end of last week. On Friday my right honourable friend the Prime Minister did something that many people had predicted was not possible: he delivered a legally binding, irreversible renegotiation of our relationship with the European Union. In doing so he secured a new settlement, carving out a special status for this country that gives us the best of both worlds and means that we remain in the parts of Europe that work for us—the noble Lords have talked about some of them—around making sure that we are stronger and safer. That most definitely includes security: although we retain our responsibility to national security, we benefit from the co-operation of our partners in Europe in terms of protecting ourselves from terrorism. Through his renegotiation my right honourable friend has secured terms that mean we will be better off because of increasing competitiveness and the securing of the completion of the single market. He has also made sure that we stay out of the parts that are not in our best interests and have frustrated us for too long.

Having secured all that, we now need to get on with our other commitment to deliver to the British people the opportunity that they have long waited for to have their say on whether Britain should remain in or leave the European Union. The noble Baroness made reference to four months and the time between now and the referendum taking place. I note what the noble and learned Lord said about the length of time of the Scottish referendum campaign. I say to noble Lords that the reason why it is four months is that we are reflecting the proper processes and steps that it was agreed in the European Union Referendum Act should take place between now and the referendum happening. That process has started today: the statutory instrument confirming the date has been laid. That will be debated in both Houses and is subject to an affirmative resolution. Today we have also published the White Paper, which meets one of the requirements of the referendum Act regarding the other information that we as a Government are required to produce. That will happen, in line with the Bill, 10 weeks before the referendum takes place. So that is all in train.

With regard to other points raised by the noble Lords, I say to the noble Baroness, who talked about wanting to see the UK remaining a powerful figure within Europe as a result of the referendum, that I agree with her. We are a powerful player in Europe now and that is what we want to remain. She made the point that the European Union would continue to exist even if the United Kingdom voted to leave. She is absolutely right: if this country decided to come out, the European Union would still be there. As my right honourable friend the Prime Minister said when he was being interviewed yesterday, one of my Cabinet colleagues said on Saturday when we were discussing his renegotiation, “This utopia might sound fantastic but I bet that when you got there, there would still be a European Union”. It is a place that will exist because other people would be members of it even if we were not.

The noble Baroness said it would be important that between now and the referendum taking place the Government continued to govern, and that there are other matters of greater importance to the people of this country. I agree with her about that; we have important business to conduct and will continue to do so.

The noble and learned Lord made reference to the effect on the currency markets. In my view, such an effect between now and the referendum taking place would be about uncertainty: we are now in a state where there is a debate going on and there is some uncertainty about the result of that referendum. What I, the Prime Minister and the Government are arguing is that, by voting to remain in the European Union, we would provide certainty for the future of this country. If this country decides to leave the European Union, it would create a long period of uncertainty.

As to the noble and learned Lord’s question about the sovereignty of Parliament, we have already, in the last few years, protected the sovereignty of this Parliament by passing that Act in 2011, which means that never again can any Prime Minister give away powers to the European Union without coming back to this country and giving the people a say. The very fact that we are having a referendum later this year, in June, is also an act of sovereignty. It also means that the people of this country are in charge of their own destiny. I very much believe and hope that the result of the referendum will see that we remain strong and secure in our future, having the best of both worlds, which means being part of a reformed Europe, but also being in charge of our own destiny and taking advantage of the changes that the Prime Minister has been able to negotiate.