House Committee

Lord Wallace of Tankerness Excerpts

Thursday 21st July 2016 Lords Chamber

[Lord Balfe (Con)]

My Lords, I wish to make two brief points which I have made before but which I do not think find much favour in the House. I notice that sub-paragraph (2) of the implementation report states that the House of Lords Commission is responsible for supervising,

“the arrangements relating to financial support for members”.

However, if you look further into these recommendations, you do not find who is responsible for giving them something to supervise. I consider that the House needs a structure that can look at Members’ benefits and the way forward. I reflect particularly on the stories about regional imbalance. We appear incapable of devising a system whereby Members who live a long way outside London can claim for a hotel bill. That puts us out of line with the Civil Service and virtually every public body in Britain. I hope that we can look at this because we cannot for ever say, “We will never touch allowances. People will never trust us”. At some point, we must have a transparent procedure for looking at the way in which this House is run in that respect.

My second point is probably even less popular—namely, that we should introduce a little bit of democracy. All these committees will do extremely good work. However, not a single member of them is elected by the Members of this House. There is absolutely no opportunity for the ordinary Members of this House to have any representation through electing members of these committees by ballot. Therefore, I ask that we dispense with perhaps just a small portion of the “chumocracy” and replace it with a small portion of democracy.

[Lord Wallace of Tankerness (LD)]

My Lords, I, too, support the Motions moved by the noble Baroness the Leader of the House. The point made by the noble Lord, Lord Balfe, with regard to Members’ allowances will be very much on the agenda of the new House of Lords Commission, as it has been recently on the agenda of the House Committee.

With respect to the Procedure Committee report, I, too, welcome the fact that the pilot scheme for having ballots during recesses for Oral Question slots has now been put on a permanent basis. The pilot schemes have shown that this works and helps those who live outwith London. I also very much welcome the fact that we are to have Clocks showing seconds, as I think that will help to get us through debates. If noble Lords are given an advisory speaking time of seven minutes, there is a tendency—this is only natural—when we see seven minutes up on the Clock to think that we are still within the advisory time when, in fact, we have run over. The noble Baroness the Leader of the House mentioned the Clocks being replaced. Can she indicate when the Clocks are likely to be replaced and we will have Clocks showing seconds?

With regard to the recommendations of the Leader’s Group on Governance, I echo what has already been said. I pay tribute to and thank the noble Baroness, Lady Shephard, for the work that she and her group did on this matter, and, indeed, the previous Leader of the House the noble Baroness, Lady Stowell, who set all this in motion and gave it the impetus to see it through to the Motions before us today.

My noble friend Lady Maddock made an important point and I hope that, when she replies to the debate, the Lord Privy Seal will be able to offer some reassurance on it. My recollection of the governance report is that it indicated the intention that there should be a Speaker’s advisory committee. I think that continuity in that regard was anticipated. However, if the noble Baroness can offer reassurance on that point it would be very welcome.

If we are to perform our duties in this House in scrutinising the Executive, we need facilities and services to enable us to do it. Therefore, it is important that when we take decisions on how we administer these services and facilities they are taken in an open, transparent and accountable way, and they meet high professional standards.

During the consultations that were undertaken by members of the Leader’s Group, many people on the Back Benches in particular spoke of the need for some radical change. I believe that this is what the report came forward with and what we are now delivering. We have a strong senior committee and now two other very important committees, the Finance Committee and the Services Committee. It is important that they examine the culture of committees as well as basic administration and the way that it is undertaken.

I hope that all members of the new committees will embrace this philosophy and find new and innovative ways of working that engage more Members from right across the House in the decision-making processes. I know that my noble friend Lady Doocey—I am delighted that she will be chairing the Finance Committee—is keen to explore how to do things differently. I am also delighted that the noble Lord, Lord Laming, who has given such service in particular in the last year, will be chairing the Services Committee. I also congratulate the noble Lord, Lord McFall, of whom I have been a colleague in both Houses; I know that he will discharge his duties as Senior Deputy Speaker in a way that will engage colleagues. I therefore confirm my support for the recommendations from the Leader’s Group and for the Motions before the House today, which implement these much-needed reforms.

[Lord Hope of Craighead (CB)]

My Lords, I just add a word from these Benches in support of the Motions that the Leader of the House has moved and endorse all that she has said in introducing them. For my own part, I emphasise two points. First, on the identity of the two key people chairing the Commission and the Services Committee—and also the Finance Committee, because so much rests on its shoulders to progress into the new system—the fact that the noble Lord, Lord Laming, will chair the Services Committee is particularly important because he can carry through into the new system his knowledge and understanding of how the previous committees worked.

The other point that I stress is one that the noble Baroness made in her few remarks—that built into this approach is a commitment to reflect on its operation at the end of the forthcoming Session. It is important that we should have that amount of flexibility, so that we can assess exactly how things are working out. Inevitably with a new structure, one has to set up the structure first to see how it works in practice, given the personnel who make it work. I endorse exactly what the noble Baroness said about the reassurance that Members who may have some concerns should feel, given the willingness of everybody involved in these new structures to look again at whether they need any changes—they might not—and to see that everything is working as we would wish. Without repeating them, I also endorse the remarks made by the noble Baroness, Lady Smith of Basildon, and the noble and learned Lord, Lord Wallace of Tankerness.

Outcome of the European Union Referendum

Lord Wallace of Tankerness Excerpts

Tuesday 5th July 2016 Lords Chamber

[Lord Wallace of Tankerness (LD)]

My Lords, I thank the noble Baroness the Leader of the House for the time set aside today and tomorrow to allow noble Lords to discuss the very profound outcome of the European Union referendum. As I expressed during our exchanges last week, I was devastated by the result of the referendum. Along with many of my noble friends and many Liberal Democrats, I have a profound and deep-rooted commitment to partnership with our European neighbours. Internationalism is in our very DNA. Our commitment is not to an institution in any particular form; rather, it is a commitment to the beliefs and ideals of the wider European undertaking of a peaceful, prosperous and united Europe, kindling a spirit of reconciliation and mutual co-operation among its members and promoting human rights and the rule of law. That is what I and many of my noble friends have striven for over our entire political lives, so the result of the referendum last week is felt very personally on these Benches.

We cannot be expected to give up these core beliefs, nor will we. We believe that Britain should be an outward-looking country that can thrive, innovate and lead in an open global economy, a country that works in partnership with those who share our values to overcome our common adversaries and sees the future benefits of close relations with neighbours and natural partners, investing in each other’s economies and sharing prosperity so that Britain can be even greater than it is now. The cry to “take back our country” is not one to which I can subscribe, because I do not believe that I ever lost my country. Reflecting on the words of my much-missed friend Charles Kennedy, I, too, have multiple identities—Scottish, British and European.

I am also a democrat, so I accept and respect the result of the referendum on 23 June, even if I am saddened by it. I also approach the result with some humility, for I know that I have to accept my share of responsibility not just for the result of the referendum but for the collective failure of politicians, institutions and the media to make the positive case over many years for the European Union and the benefits that it brings to this country. The referendum should give everyone in public life pause for thought. Too often the European Union has been used as a scapegoat or a distraction from failures in government. As my honourable friend the Member for Westmorland and Lonsdale, Tim Farron, has said:

“This vote has been a collective howl of frustration—at the political class, at big business, at a global elite”.

My deep concern is that, as we go forward, there is likely to be more dissatisfaction and frustration as people realise that much of what they were promised during the referendum campaign just will not be possible. The sad reality is that the alternatives offered by the Leave campaign will do nothing to help those in England’s poorer regions, not least because the Leave campaign offered very contradictory positions of what life outside the EU would look like.

That poses a fundamental question for liberal democracy and parliamentary democracy, which is based on attention to evidence, reasoned debate, a willingness to compromise and tolerance. Politics involves an endless conversation in which we learn about other people and see things from their point of view, trying to balance their needs against our own. You recognise the existence of different groups with different interests and opinions and try to balance and reconcile them. As Bernard Crick wrote in his book, In Defence of Politics:

“Politics is a way of ruling divided societies without undue violence”.

Yet we have seen some very troubling and violent scenes since 23 June. We have seen anger and frustration being translated into some nasty incidents of racism and xenophobia. Scores of racist encounters have been documented online, while over the weekend following the vote the National Police Chiefs’ Council revealed that hate crimes reported to our police had risen by 57% compared with the corresponding days four weeks previously. The careless and rash language of some Brexit campaigners seems to have legitimised the prejudice of some people to the point where they are targeting those who are visibly different. Of course it is only a small minority who perpetrate such outrages, but to the victims the impact is 100% and, in the communities from which the victims come, the fear is all too real. This is completely unacceptable and it must stop. This is not my Britain.

I believe that there are many layers and facets to why so many people voted to leave the European Union, some of which have already been mentioned. The vote was symbolic of a rejection of British multiculturalism; concerns about pressures on our schools, hospitals and GP surgeries; the housing crisis; the banking crisis; insecurities about employment; and the decline of our traditional industries. For me, the answers to these wider questions are both domestic and international. There is much that can be done in Westminster as well as much that could and should have been done standing shoulder to shoulder with our European neighbours.

If those who led the campaign to leave the EU have answers, we need to hear them now. Do they want to be in the single market or do they not? What level, if any, of freedom of movement do they wish to see? How will they retain the City’s passported access to European financial markets? Which taxes will go up and what spending will go down? How will they secure a bright future for our children and young people? One of the defining features of the reaction to the referendum outcome has been the utter dismay and even anger of young people, who believe that they have been deprived of the opportunities and freedoms that our post-war generation came to take for granted. Whichever side of the referendum divide we were on, we owe it to our young people to keep alive hope and establish co-operative links that will provide opportunity, of which the Erasmus programme is just one example.

There is a host of unanswered questions and during this debate a number of my noble friends will want to pose some of them from their particular areas of expertise. I hope that, when she comes to reply, the Minister will take them in the spirit in which they are intended, as some constructive suggestions to feed into the work of the unit being led by the right honourable Member for West Dorset, Mr Letwin.

Perhaps I may pose some further constitutional questions today, some of which have already been aired, in particular on the role of Parliament and of your Lordships’ House. First, last week during our exchanges I asked the Leader of the House about the process for triggering Article 50. I still await an answer. Let us remind ourselves that Article 50 states:

“Any Member State may decide to withdraw from the Union in accordance with its own constitutional requirements”.

However, there is currently little clarity as to what the UK’s “constitutional requirements” are in this regard. Will this be done by the Prime Minister acting alone, using the royal prerogative? Will there be consultation with Parliament in the form of a debate and vote in both Houses or just in the House of Commons? Does the Prime Minister need the consent of Parliament to act? Should there be legislation? There has been much legal and academic debate and discussion as to how Article 50 might be triggered, but to date there is no legal certainty. While I can see that there is a case for leaving to the new Prime Minister the issue of when to trigger Article 50, this Administration surely must have a view as to how it should be triggered. After all, in February we were blessed with a paper from this Administration on the process for withdrawing from the European Union. One would imagine that they will have given it some attention and thought. It would be to the benefit of Parliament and the country for the position to be clarified as soon as possible.

Secondly, what will be the role of Parliament and this House in particular in carrying out its scrutiny functions and its important constitutional duty of holding the Government to account during the process of negotiation with the other EU member states? What part can be played by the European Union Select Committee of this House and by the European Scrutiny Committee in the other place? It would be extremely helpful to have some indication from the Government of the principles that will underpin parliamentary scrutiny of this process. How do the Government intend to involve Parliament in deciding which laws and regulations that have derived from Europe we will keep and which we will replace? Once these decisions have been made, it is clear that much legislation will be needed to give effect to the process. Can the Minister confirm that Parliament will retain its important scrutiny function in this regard?

There are of course wider constitutional implications following the result of the referendum, bearing in mind that Scotland and Northern Ireland both voted strongly to remain in the EU. How will the Government consult the devolved institutions, by which I mean the Parliaments and the Assembly as well as the Administrations, to ensure that the needs of Scotland, Wales and Northern Ireland are properly reflected in the negotiations? Will Scottish, Welsh and Northern Ireland government officials be seconded to work in the special Cabinet Office unit? What role will there be for the London administration and for local and regional authorities in England to ensure that their diverse interests are taken on board? It would be helpful if the noble Baroness answered these questions when she comes to respond tomorrow evening, but I would welcome a commitment from her that, at least, the unit under Mr Letwin will give most thorough consideration to the issues raised in this debate, that she will return to this House periodically to ensure that noble Lords are kept well informed on the progress of negotiations and that the Government will make good use of the expertise in this House.

In the meantime, I am concerned by what already seems to be the abdication of responsibility by the Government in relation to several matters. This is only the sixth sitting day since the referendum, but I suspect that many noble Lords are already tiring of the expression, “The Prime Minister has been clear that decisions on issues relating to the UK’s exit will be for the new Prime Minister. I am therefore not in a position to make new policy statements in this area”. If there is one glimmer of reassurance, it is that at this time of great economic uncertainty and constitutional crisis, at least the noble Lord, Lord Ahmad of Wimbledon, has been prepared to step up to the plate to address the future of our bus services. How very British.

On one issue in particular, however, this Administration can and should take the lead and state openly and clearly that, come what may, European Union nationals settled in this country will continue to stay. The case for such an unequivocal commitment was eloquently made by the noble Lord, Lord Dobbs, yesterday during Questions. What kind of morality would make bargaining chips of the lives and livelihoods of people legally and responsibly settled here—their families, their livelihoods, their hopes and aspirations? It is not even a practical bargaining position. A Government who cannot even manage to deport foreign criminals with no right to remain are not credibly going to be able to deport up to 3 million EU citizens. In the dying days of this Government, surely the Prime Minister and his Ministers can show some moral fibre and pull something honourable, decent and fair out of the wreckage of their Government.

European Council

Lord Wallace of Tankerness Excerpts

Wednesday 29th June 2016 Lords Chamber

[Baroness Smith of Basildon (Lab)]

My Lords, I thank the noble Baroness for repeating that Statement, although I think it poses more questions than it answers. In the light of the comments made by the noble and learned Lord, Lord Keen of Elie—I see he has now left the Chamber—even more questions have been raised.

First, I want to express our horror at the appalling, evil attack on Istanbul airport last night. Yet again, we are shocked by the hatred that leads to such vicious, indiscriminate violence and murder. Our thoughts are with all those who have been affected, because such horror will never leave them.

Turning to the detail of the Statement, although it includes other issues, clearly, the one that affects us most is that of our leaving the EU. Nevertheless, I noted the comments on the agreement made with Turkey in March. I hope that the Prime Minister, in discussing that agreement, raised the issue of the shocking conditions in the camps in which refugees are being held in Turkey. Did he raise that issue, and if so what response did he receive?

What this Statement reinforces is the massive uncertainty that our country faces. It is clear that the first enemy of our stability and security as a nation is that uncertainty, which has many different forms. There is economic uncertainty for businesses large and small and for consumers. There is uncertainty about who will be the next Prime Minister and whether another general election is looming. There is uncertainty about the Brexit negotiations. At the same time there is uncertainty, now increased, for many local communities where those who do not look or sound British enough are now feeling very vulnerable.

I was going to say that at no point should we forget the uncertainty of British citizens living across Europe, but from the comments just made in Questions by the noble and learned Lord, Lord Keen, it appears that they are to be some kind of negotiating tool in discussions on whether EU citizens living and working in this country are to be allowed to remain. The degree of uncertainty that that will cause in those communities across the country is shocking. Given that negotiations could go on for years, we will have people living or working in this country who do not know what their future holds. We need an explanation or clarification from the Government as a matter of urgency.

The Prime Minister referred in the Statement to estimates of a slowdown in eurozone economic growth of between 0.3% and 0.5%, caused largely by a predicted slowdown in the UK economy because of our trade with the EU. If that is the predicted slowdown for the eurozone, what is the predicted slowdown for the UK economy? If the EU is able to predict such a slowdown across the whole eurozone, I am sure the Government have considered it and made predictions. Can the noble Baroness comment on the report in the business section of today’s Daily Telegraph—not my normal reading material, I confess—that Vodafone and easyJet are now considering moving their headquarters out of the UK, with thousands of jobs leaving these shores, and that Visa could also relocate hundreds of jobs to EU countries? The noble Lord, Lord Glentoran, laughs and suggests that I read the Daily Mirror. I can tell him that I do read the Daily Mirror and I commend to him an article from last Friday by the historian Dan Snow about our historic links with Europe and the dangers now presented to this country by this Prime Minister. On the question of jobs, rather than waiting for a new Prime Minister, can the noble Baroness tell me what action the Government are taking today to protect jobs here in the UK?

I welcome the section in the Statement about our relationship with our European partners and its importance over so many years; it is part of our history and part of their history. We should never forget the tremendous contribution of our European allies in the Second World War, particularly in the Battle of Britain, when the role of both Polish and Czechoslovakian aircrew was critical. Perhaps I may tell the noble Baroness about men such as Tony Liskutin. He was a true hero. He first fought with the Czech air force and then with the French. He then joined the RAF to fight on D-day—subsequently teaching our own noble Lord, Lord Tunnicliffe, to fly. However, today, their descendants and families are facing despicable attacks here in the UK. The Prime Minister said in his Statement:

“We are a proud, multi-faith, multi-ethnic society”,

and predicted that,

“we will stay that way”.

I say to the noble Baroness and to the Government that just saying something does not make it happen. You have to do more than that. So, again, rather than just waiting for a new Prime Minister, what practical steps are the Government taking today, and have Ministers discussed this wave of increased attacks?

In the section of the Statement headed “Next Steps”, the Prime Minister said:

“First, there was a … reassurance that until Britain leaves, we are a full member. That means that we are entitled to all the benefits of membership and full participation until the point at which we leave”.

I have to tell the noble Baroness that it does not feel like that. If that is the case, why was the Prime Minister not allowed to attend the most crucial session for the UK in which issues relating to the Brexit vote were discussed? Is the noble Baroness now able to answer two questions that she was unable to answer on Monday? Now that the noble Lord, Lord Hill, has resigned as the EU Commissioner for financial stability and services, when will he be replaced and can she provide an assurance that a new British commissioner will be appointed? Furthermore, if we are still entitled to full membership—as the Prime Minister was assured—is she confident that the UK will still hold next year’s EU presidency? Can she update us on that situation since Monday?

As a nation, we have been able to hold our heads high. We had a European and international outlook on our role in the world and the influence we could bring to bear for the greater good. However, today, not only do we face profound economic change but our long-held cultural and social cohesion faces enormous challenges and risks. We all have friends and neighbours who today feel more vulnerable. The only way we can deal with this is to unite around that common purpose of decency and tolerance. As I said on Monday, at times like this we have to rise to the challenge to ensure that what unites us is bigger, better and stronger than what divides us. That is the only way we can face and tackle these challenges.

The noble Baroness will understand that these risks and challenges can only be increased by uncertainty. I deeply regret that the noble and learned Lord, Lord Keen, in his answers today, has increased that uncertainty. I therefore hope that the noble Baroness will today be able to address these questions and tell us when the Government will clarify the comments made by the noble and learned Lord.

[Lord Wallace of Tankerness (LD)]

My Lords, I, too, thank the Leader of the House for repeating the Prime Minister’s Statement. I share the outrage expressed about the terrorist atrocity perpetrated in Istanbul yesterday. On behalf of these Benches, I offer condolences to the bereaved and say that our thoughts are very much with those suffering injury.

I do not intend to rehearse the sentiments I expressed on behalf of these Benches on Monday—people know the position of my party on the referendum and its result, which we respect—but the Prime Minister, I am sure, had a very difficult task at the Council yesterday. The result of the referendum was not what he had campaigned for and I am sure he would not be human if he did not feel some tinge of discomfort when he walked out the door, knowing that people were going to talk about him as soon as the door was closed. However, I suspect that whatever difficulties he had will pale into insignificance compared with the difficulty our next Prime Minister, whoever that may be, will have when he attends meetings to discuss Brexit.

[Noble Lords]

Or she.

[Lord Wallace of Tankerness]

Or she. The difficulty will be knowing what they are negotiating about, because the leave that Mr Nigel Farage campaigned for is not the leave that the honourable Member for Uxbridge and South Ruislip, Mr Johnson, campaigned for. Can the noble Baroness tell the House whether the new Whitehall unit she referred to will be preparing dossiers on all the varied positions, whether 57 varieties or more? Will it be putting those forward to the incoming Administration, setting out what the implications are for each of the leave varieties and addressing some of their fundamental contradictions?

I am also concerned that, as we go forward, there will be growing dissatisfaction and frustration as people realise that much of what they have been promised will not be possible. That must pose a threat to liberal democracy in this country, indeed, to parliamentary democracy, which is based on attention to evidence, reasoned debate, willingness to compromise and tolerance. I note that the Statement emphasised that we are not turning our back on Europe and that the European Union is not turning its back on us. This is important as we move forward, so we can demonstrate that there can be constructive discussions on the future.

We know that following this Statement there will be a Statement from the Home Office on hate crime. I share the deep concerns that have been expressed in your Lordships’ House about the surge of resentment, intimidation and blatant racism that we have seen in this country since last Thursday. This is not our Britain. We want a Britain which is a country of tolerance and acceptance. Words are not enough, we want some reassurances of increased police awareness and activity, not just in London but throughout the country.

I have some specific questions about our immediate relationship with the European Union, picking up on what the noble Baroness, Lady Smith of Basildon, said. The Prime Minister confirmed in the other place on Monday that he will appoint a new Commissioner to fill the vacancy. Can the Minister give us an indication of when the position will be filled and what the process will be for appointing a new Commissioner? Following questions on Monday, I wrote to her yesterday querying not when but how Article 50 might be triggered. What are the United Kingdom’s own constitutional requirements in terms of paragraph 1 of Article 50? If she cannot answer today, will she indicate that she will be in a position to do so when we debate these matters next Tuesday? Again, noting what the noble Baroness, Lady Smith, said about the presidency of the Council of the European Union, which we are due to take up a year this week, can the Minister give us an indication of the Government’s position on that? Indeed, does she think it wise for us to go down that road and, if so, what in the world would we be putting on the agenda? We need a real indication of the Government’s assessment and analysis of that situation.

Finally, it is clear that many people in English regions and in Wales felt let down and left behind, not just by Europe but by politicians and decision-makers at home. People in the north-east and south-west of England voted against London, I believe, as much as against the European Union. But the sad reality is that the alternatives offered by the leave campaign will do nothing much to help those in England’s poorer regions. Those who promised that we can spend the money we get back from Europe on the NHS and wider public services are also people who believe in shrinking the state. There seems to be a fundamental contradiction here. Will the Leader look again at disproportionate cuts in local authority budgets and public investment in places such as Cornwall, the north-east and the north-west? Will the Government address with more urgency investment in training, further education and skills? Will she say how we might be able to secure the hopes and aspirations of younger people, who voted in such numbers to remain in the European Union?

These are domestic issues. They do not have to await negotiation with 27 other EU countries, nor do we need negotiation with 27 other EU countries to determine whether European Union citizens currently living and working in the United Kingdom can stay here post-Brexit. This is something we can do ourselves and surely the Government must start addressing these issues now.

[Baroness Stowell of Beeston]

My Lords, it is clear that there are very strong views and feelings right now following the referendum result last week. I understand that. A very important event has taken place and a very important decision has been made. While I feel it is absolutely right that we follow this clear instruction that has come from the British people to leave the European Union, it is important, as the Prime Minister stressed in his Statement, that we are not turning our back on Europe or our European partners, and we must work together with Europe to ensure that we continue our shared security and that we do so in a way that promotes and protects the prosperity of the United Kingdom and all the people living in all parts of the United Kingdom.

As the Prime Minister has been at pains to say, the precise relationship between the United Kingdom and Europe in the future will be one for his successor to decide and is not one that he, in his remaining few weeks as Prime Minister, will be taking the lead on. It is very important that this Government make a big contribution to maintaining the stability of this country in a very uncertain time. I do not dispute that it is a very uncertain time for people, and that is reflected in different ways.

Picking up on the first point raised by the noble Baroness and the noble and learned Lord about the status of British people living in Europe and of European citizens living and working in this country, the first and most important thing to say is, whether you are a Brit living and working abroad or whether you are a European citizen living and working in this country, you are making a valuable contribution. Certainly, the EU citizens living and working in this country are making a vital contribution to our country. The Prime Minister has been at pains to stress that right now nothing is affected by the result of the referendum last week. I very much heard and understand the House’s anxiety about free movement between this country and other European Union member states. We are not trying to negotiate about people’s individual status in the way that some noble Lords are trying to interpret what was said previously. We are saying that although at this moment nothing has changed—all rights are protected—we are going to have to work through a period of deciding the impact of the referendum result. Some of the impacts will come from our negotiations and discussions with Europe in the future and some may sit outside these. Over the next weeks and months, it will be uncertain. We have got to work together to try to provide what reassurance we can that people’s rights are not changed at this time. That is very important.

The noble Baroness also referred to uncertainty around the impact of the result of the referendum on the economy and jobs. To repeat what I have said, and I say this as someone who campaigned for us to remain in the European Union, it is vital for us in getting as soon as we can to that point of greater stability that we focus our energies on our negotiations for the future of this country in terms of its relationship with Europe. We cannot ignore the fact that there is a significant effect from that referendum decision that will lead ultimately to us leaving the European Union. The Government were of course leading the remain camp. We did forecast that there would be potential economic difficulties as a result of any decision to leave. However, in the light of this decision we must now ensure that we mitigate any immediate volatility arising. Over the weekend we have seen from the steps that were taken by the Bank of England and its work in co-operation with other institutions that its contingency planning has had a good impact on the markets in terms of providing some reassurance.

In the weeks that follow we clearly need to prepare for the new Prime Minister being in place and outlining what kind of relationship we want in the future with Europe and how that relationship will work, particularly in respect of the single market and whether we are going to be in it. Between now and then, the Prime Minister, the Secretary of State for Business, Innovation and Skills, the Chancellor and others will continue to have meetings with business leaders. The fact that we have a strong economy and are able to withstand this period of uncertainty is also helping stability. The unit that the Prime Minister has set up in Whitehall is there to make sure that at the point at which the new Prime Minister is in place they have at their disposal as much factual information as possible so that when they have got a clear vision of what kind of relationship the UK will have with Europe in the future they can move swiftly to the point of triggering Article 50.

The noble Baroness raised questions about the increase in hate crimes or demonstrations of racism against people. As I said on Monday, these are wholly and utterly abhorrent. Together we must make it clear to anybody who is trying to use the referendum result to promote racism that we reject that—we in the United Kingdom have not given up on our values. The fact that a majority of people in this country has decided not to be a member of the European Union any more does not mean that we should stop promoting the important values of this country. My noble friend Lord Ahmad will say more in the Statement that follows.

The noble Lord, Lord Campbell-Savours, is pointing to the clock. The Companion makes it clear that, if necessary, I can go beyond 20 minutes in order to respond to some of the points that have been raised. I will respond to them, but that will not in any way reduce the time allocated for Back-Benchers.

The noble Baroness and the noble and learned Lord asked some specific questions about the UK Commissioner in the European Union. The Prime Minister has made it absolutely clear that we are a fully paid-up member of the European Union until we stop being a fully paid-up member of the European Union and therefore have some entitlements, which include a Commissioner. He has raised this with the President of the Commission and we hope very soon to come forward with a nominee for that post. As for questions about next year’s EU presidency, I understand clearly that we need to get that resolved soon. I expect it will be done in short order, but I do not have any further information to offer at this time.

The noble and learned Lord asked about Article 50. Article 50 is the legal route we will follow in order to exit from the European Union, and I think we have all become familiar with the idea that triggering Article 50 will start that process formally. The Prime Minister has made it clear that he will not be triggering it and that it will be a matter for his successor. But in his view it is important that they are clear, at the point at which they trigger Article 50, about the kind of relationship the United Kingdom should have with the European Union. That will assist in the negotiations.

As for Parliament’s role in that process, as noble Lords heard me say on Monday, I am very keen to ensure that this House plays an important part between now and the start of any Article 50 process. Neither I nor the current Prime Minister can prescribe what role there might be for Parliament in deciding what the next Prime Minister will come forward with to take to Brussels in terms of the specifics of that process, but as I said on Monday, this House in particular has a wealth of knowledge, experience, expertise and wisdom, and I want to ensure that we use that as best we can. However, I want us to use it and channel it to secure a long-term successful future for the United Kingdom, while recognising that the people of this country have decided that our future will not be as a full member of the European Union.

Outcome of the EU Referendum

Lord Wallace of Tankerness Excerpts

Monday 27th June 2016 Lords Chamber

[Baroness Smith of Basildon]

Wait and see, because I do not absolve my party leadership from this either. There is a serious issue about the quality of political leadership in our country as a whole. My party is also dealing with internal political problems, largely due to fallout from this result, and our country is crying out for strong, decent, decisive, caring and competent leadership from both Government and Opposition. Our country is entitled to demand such leadership from us at such a challenging time.

So what can we do? Individually and as a House as a whole, we have a responsibility. I believe—the noble Baroness emphasised this point as well—that we have the expertise, judgment and experience in this House to assist and lead in finding a way through. The role of your Lordships’ House in working through the referendum decision and in examining the detail will be essential. As we have already shown, the tone in which we conduct our debates and our deliberations must stay as it is, and we should show the way in being measured and honest.

Our excellent European Union Committee, chaired by the noble Lord, Lord Boswell, has already considered and reported on the process and difficulties of withdrawal, referred to by Sir David Edward, a leading—or probably the leading—expert in EU law as the,

“long-term ghastliness of the legal complications”,

which he described as “unimaginable”. However, we have to imagine them and to work through them.

There are many questions not yet answered and many may not have even been considered, so I shall ask the noble Baroness just three which I think are the most urgent. Today, we are debating the Investigatory Powers Bill. Obviously, the practical implications of such legislation are linked to our co-operation with other EU countries. Given that we shall at some point disengage and have to create a new, separate framework for those countries, what consideration has been given to this and are a rethink and further consideration required?

Secondly, the legislative programme cannot just be business as usual. Paragraph 67 of the EU Committee report states that the Government would need to enact in law everything that they wanted to keep in law which had come from treaties or a directive. Clearly, this cannot be done overnight, but our relationship with the EU is deteriorating by the hour and there is real urgency here. Have the Government considered a timescale for such legislation and will it mean a new Queen’s Speech, so that the legislative programme can be withdrawn?

Thirdly, the Statement referred to the devolved Administrations, but there was more about the role of the Civil Service than about the role of Parliament. Parliamentary oversight of the negotiations will be essential and, clearly, we will want to play our part in scrutiny and policy formulation. Can the noble Baroness give an assurance not just on debates but on parliamentary oversight of negotiations?

These past weeks have been challenging. That so many people took part and voted shows real interest and engagement, yet with such a binary choice it was harder to make the case for the complexities of what was involved and what could follow. Many who voted still wonder and worry whether they have made the right decision. There is no route map for what comes next. There is no long-term certainty for our economy or our society, and it is at times such as this that we have to rise to the challenge and ensure that what unites us is bigger, better and stronger than what divides us.

[Lord Wallace of Tankerness (LD)]

My Lords, I, too, thank the Leader of the House for repeating the Prime Minister’s Statement and welcome the words she added in respect of what your Lordships’ House may be able to contribute. I declare my interest as a Britain Stronger In Europe board member.

As a democrat, I respect the outcome of Thursday’s referendum, but—I suspect like many colleagues across the House—I am profoundly saddened by the result. I have a deep anxiety about what the future holds for our country. I am worried about the divisions that have been laid bare across the country during this campaign and echo many of the concerns expressed by the noble Baroness, Lady Smith of Basildon, about the tone of much of the debate and the campaigning. I am fearful for what this means for our outward-looking and tolerant country as well as for the future integrity of the United Kingdom. Many on these Benches are angry that notwithstanding his fine words in the Statement about his vision for Britain, this Prime Minister put party interest before national interest, complacently believing that he could win a referendum primarily designed to settle internal Tory divisions.

The European Union is an institution to which we have belonged and contributed for the past four decades. It has delivered peace, promoted equality, kept us safe and opened the doors of opportunity, but it will no longer be a part of Britain’s future. I think too that the leave campaigners do not appear to have any plausible strategy. We have already seen that they are backtracking on many of the promises they made during the campaign. So the result will change not only the very fabric of our country, it will change Europe and our relationship with the wider international community. Regrettably, the United Kingdom has on many occasions failed to provide leadership in the European Union. As a result, the people of this country have seen Governments play a half-hearted role at best. There has been a failure domestically to make the positive case for the European Union and the benefits it brings. In some ways, therefore, it is not unsurprising that when faced with years of the EU being blamed for everything that is wrong in this country, a majority of people voted to leave.

But I fear that we are only just beginning to realise the adverse impact the vote will have. Since Friday morning we have seen the value of sterling plummet. Some £120 billion was wiped off the markets in the first 10 minutes of trading on Friday, while this morning sterling slipped another 2.6% against the dollar and the pound is at a 31-year low. Surely the leaders of the leave campaign owe it to us to tell us what they think is negotiable with other members of the European Union, what is not negotiable in spite of their many promises, and what the likely consequences will be for the British economy. I welcome the fact that the Chancellor of the Exchequer and the Governor of the Bank of England have tried to steady the markets this morning, but fundamentally it is the uncertainty of the United Kingdom’s position which will continue to cause nervousness in the economy. Businesses and the markets like certainty, but certainty would appear to be the last thing we have in the wake of the referendum.

I have a number of questions for the noble Baroness. Can she indicate what the present Government would wish to achieve in negotiations with the European Union? Do they believe that we should seek complete access for the United Kingdom to the single market? Do the Government even have a view? Given that younger voters overwhelmingly voted to remain in, what hope can the noble Baroness and the Conservative Party offer future generations that they will have the same access to jobs across Europe as previous generations?

Of course it is not just the economy that is uncertain, but the very fabric of our constitution. Article 50 states:

“Any Member State may decide to withdraw from the Union in accordance with its own constitutional requirements”.

I think that the House will be interested to know what the Government’s view is as to what our own constitutional requirements are. Are they an Act of Parliament, a resolution of the House of Commons, a resolution of both Houses or an executive decision by Members? That is an important question for the noble Baroness to answer.

Scotland and Northern Ireland both voted strongly to remain in the European Union and the Secretary of State for Scotland has said that, if the people of Scotland ultimately determine that they want a second Scottish independence referendum, there will be one. Can the noble Baroness confirm that that is the position of the United Kingdom Government? Does it mean that if the Scottish Parliament asks for a further referendum, the Government will bring forward an order under Section 30 of the Scotland Act 1998 to transfer the necessary powers for a referendum to take place?

Northern Ireland as we know shares a land border with another EU country. Thousands of people cross it every day in both directions visiting friends and family, while the economy of Northern Ireland relies heavily on the European Union as a pull factor for internal investment, and directly in the form of research and development grants and peace grants. Can the noble Baroness set out the Government’s understanding of the operation of the common travel area where one country is an EU member and the other country is not? Can she also say something about mandate—the mandate of a future Prime Minister elected not by the country but by members of the Conservative Party, and what that means in terms of taking back control?

The leave campaigners have now admitted that they cannot do much to reduce immigration, so we need a serious and informed public debate about the long-term challenge of immigration. However, the anti-immigration rhetoric we have seen during the campaign has encouraged a surge of right-wing resentment. Perhaps the noble Baroness will wish to elaborate more on what the Government intend to do to tackle that. Finally, although I very much respect the decision of the noble Lord, Lord Hill of Oareford, to resign his position as a European Union Commissioner, we are still members of the European Union. Can she give an indication of the timescale for Britain to nominate another EU Commissioner so that we do not actually have an empty seat at the table?

We on these Benches firmly believe that it is in the United Kingdom’s best interest to stay as closely engaged in European networks of co-operation and joint operation as possible. We will continue to make the case for Britain’s future with Europe and to fight for an open, optimistic, hopeful, diverse and tolerant United Kingdom.

[Baroness Stowell of Beeston]

My Lords, as always I am grateful to the noble Baroness and the noble and learned Lord for their responses and I will seek to provide answers to some of the questions they have put forward this afternoon. I must start by saying that the British people have decided that we should leave the European Union and our priority now must be making this decision work for everybody in the UK, whatever side of the debate we were on. I am proud that this Government promised a referendum and delivered it and that we trusted the people with this very important decision. I voted and campaigned for remain, but a decision has been made, it is a clear one and it is very important that we get on now with implementing that decision and doing so in a successful way for the benefit of everybody who lives here.

I turn to some of the comments and questions put forward by the noble Baroness and the noble and learned Lord. As the noble Baroness knows, I was very shocked, like everybody else, by the death of Jo Cox. On the points she made about racism and some of the things that have been said and done in recent times, I do not want to debate again the way the campaigns were conducted, but I want to make some important points. The first is that whatever the result of this referendum and our decision to leave the European Union, this country has not given up on its values. We are still the United Kingdom and our values remain exactly as they were. I would condemn anybody who used the result of this referendum as an opportunity to promote racism. If there is any evidence of that, we should all work together to stamp it out. I certainly urge anybody who has experienced any kind of hate crime or racism to alert the police to that straightaway and to know that they do so with the full support of every decent person who lives in this country.

The noble Baroness referred to the role of this House and to political leadership in this country. As I said in my initial remarks as I concluded the Prime Minister’s Statement, this House has an important role to play. It is important for us to demonstrate our value to the democratic process by offering something that is a bit different from the House of Commons. One of the ways I hope we are able to achieve this, through our debates over the next few weeks as we consider the way forward on leaving the European Union, is that we are a little less political than the other House. That is one thing that is important about us, for which we attract a lot of positive response.

On the noble Baroness’s question about our current legislative programme—she referred to the Investigatory Powers Bill—the Government were elected on our manifesto commitments. We have a clear mandate and an important legislative programme that we have to continue to deliver. The Investigatory Powers Bill is one of the very important pieces of legislation that will safeguard the security and safety of people here in the United Kingdom. As for the impact on any of our legislation, we are in the European Union until we are out of the European Union and we have not yet triggered the Article 50 process that will put that process in train. We must very much continue with our programme and we have a mandate for that programme from the election of only one year ago.

The noble Baroness asked about the devolved Administrations and the role of Parliament in overseeing the process over the coming weeks and months. The noble and learned Lord also asked about Parliament’s role and what opportunity it will have to contribute to the decisions before final exit is made. It is too early for me to say what that might be, but as I hope I have indicated, I see it as an important part of the process that Parliament has a serious opportunity in this House to debate and express its views, and there is a role for our European Union Committee and its sub-committees to play in this process.

The noble and learned Lord asked about a couple of things in addition to the topics that the noble Baroness raised, the main one being Scotland and Northern Ireland. The people of Scotland made a very clear decision only two years ago that Scotland should remain in the United Kingdom. The Prime Minister has made it clear today—I very much echo the point—that in the way we proceed from here, we must work closely with the devolved Administrations. We will continue to do that, because we want to ensure that the way we exit from the European Union is to the benefit of all parts of the United Kingdom and all its people, so our constructive discussions will be a very big part of how we move forward from here.

Jo Cox MP

Lord Wallace of Tankerness Excerpts

Monday 20th June 2016 Lords Chamber

[Lord Wallace of Tankerness (LD)]

My Lords, at this time of terrible shock and profound loss, I wish on behalf of the Liberal Democrat Benches to extend our heartfelt sympathy to Jo Cox’s constituents, her colleagues on the Labour Benches and above all to her husband, children, parents, sister and wider family. I am sure that, like many in your Lordships’ House, I never had the privilege of meeting Jo Cox, but as I have listened to the outpouring of tributes we have heard since the tragic event of Thursday afternoon, I realise that part of my sense of loss is that I did not have the opportunity to know such an incredible person.

Jo Cox was a humanitarian and a deeply committed public servant. In her role as an aid worker, she spent time working with victims of rape in Darfur, dealing with child soldiers in Uganda and tribal elders in Afghanistan. She reached out across the world and touched the lives of many. Her knowledge and experience came together with her empathy and compassion and gave the voiceless a strong and powerful voice in Parliament, where she showed vision and courage in standing up for refugees and for Syria. Jo Cox was a woman of courage and conviction. She fought passionately for the things she believed in. She fought for her constituents in Batley and Spen, she fought for those overseas who could not fight for themselves, and she fought to make this country a better place.

To be a Member of Parliament is both an honour and a privilege. It is a privilege to be elected by your constituents to represent their best interests in Parliament, but to serve your constituents and to help tackle the problems of those in your own community is a deep and lasting honour. Tragically, Jo Cox lost her life in the line of parliamentary duty, representing the people she was elected to serve. To be involved in politics is to be dedicated to public service, to be driven by a desire to make things better for our community and for our country and, indeed, for our world.

In the days since her death, Jo Cox has come to embody what is decent and good in our democracy. Too often, we see fear and division dominate political debate. Too often, we see fear and mistrust of others being used to manipulate the public mood. Jo rejected that approach. She worked to bring people together and was hopeful that we could build a country which is united. The words of her maiden speech in the House of Commons have been often quoted because of the truth contained in their simplicity:

“we are far more united and have far more in common with each other than things that divide us”.—[Official Report, Commons, 3/6/15; col. 675.]

In response to her death, one of my own noble friends has written:

“Time to stop the anger and ask ourselves what sort of country do we want to be? What can we do to truly honour Jo Cox, who in her life, said no to the easy option of cynicism and took the much harder route of trying to make the world a better place. Jo Cox’s murder is a wake up call to all of us. If we can show just an iota of the courage and love that Jo showed in her life, or just one ounce of the compassionate bravery that her husband has shown since her death, then we can and will create the better world that Jo Cox lived and worked for”.

Her family, her friends, her constituents, our country and, yes, the global community are so, so much poorer because of Jo Cox’s death. But the world and the lives of countless people were made so, so much better by her life, so may the memory of Jo’s remarkable life of compassion and commitment be a lasting inspiration to us all.

Government and Parliament

Lord Wallace of Tankerness Excerpts

Thursday 9th June 2016 Lords Chamber

[Lord Wallace of Tankerness (LD)]

My Lords, like all the other contributors to this first-class debate, I congratulate the noble Baroness, Lady Smith of Basildon, on introducing this topic and on the constructive suggestions that she—and indeed many others—put forward. The debate will repay reading in the days and weeks ahead.

As so many contributors have indicated, a delicate balance lies at the heart of our constitution: the balance of power between the Executive and Parliament. It is important that we are always on our guard to make sure that the balance does not tip too far in one direction—in favour of the Executive and to the detriment of Parliament.

For Liberal Democrats, the distribution of political power is an issue of prime importance. The belief is in our DNA that, ultimately, sovereignty rests with the people, and that authority in a democracy derives from the people. These beliefs point to a strong democratic process with a just and representative system of government and effective parliamentary institutions, with decisions being taken at the lowest practical level possible.

A key role of Parliament in a parliamentary democracy is to hold the Government of the day to account. That applies to both Chambers. We do this by Questions, by challenging the Executive’s policies and actions and by requiring Ministers and senior officials to account publicly and in person for their decisions.

I agree with the noble Lord, Lord Norton of Louth, that there have been a number of positive developments in recent years, both here and in the House of Commons, to improve the balance between Executive and the legislature. There have been changes in the House of Commons following the recommendations of the Wright committee, the new arrangements for Select Committees and the establishment of the Backbench Business Committee. In your Lordships’ House, there has been the introduction of the ad hoc Select Committees which allow us to investigate current issues facing the country in an in-depth and timely manner, and the practice of reserving one of those committees to conduct post-legislative scrutiny, which ensures a more regularised system for evaluating how well an Act of Parliament is working. Added to that, we have topical Questions for Short Debate, for which more time has been made available and perhaps still more could be.

But there is still some distance to go on the path to reform. At the heart of the challenge before us is the capacity of Parliament effectively to scrutinise the volume of legislation that is routinely presented by the Government of the day. The noble Lord, Lord Cunningham, mentioned the paper which was circulated to a number of us by Mr Daniel Greenberg, in which he indicates that between 1960 and 1965 the average number of clauses in a new Act was 24, but between 2010 and 2015 the average number of clauses in a new Act had risen to 49. There has not been an equivalent increase in the amount of parliamentary time devoted to scrutinising them. The paper further points out that in the 1960 annual volume of Public General Acts there were 1,200 A5 pages, whereas in 2010 the same document had grown to 2,700 A4 pages. That is quite a significant increase.

The noble Baroness, Lady Smith, quoted from the recent report of the Constitution Committee, chaired by the noble Lord, Lord Lang of Monkton, which stated that,

“the nature of the instruments has also changed. Delegated powers in primary legislation have increasingly been drafted in broad and poorly-defined language that has permitted successive governments to use delegated legislation to address issues of policy and principle, rather than points of an administrative or technical nature”.

Examples have been given of Bills in the previous Session and in this Session where that has been case, and it was particularly graphically illustrated by the Housing and Planning Act, cited by both the noble Baroness, Lady Hollis, and the noble Lord, Lord Campbell-Savours.

If an increasing amount of legislation is being presented to Parliament, and more policies are being implemented by way of statutory instruments instead of primary legislation, there must be a concern as to whether Parliament has the capacity to cope and to perform its role effectively and efficiently. The result is that government can pass legislative proposals with greater ease and less scrutiny—and that problem is compounded if a Bill is inadequate. Much emphasis in the debate was placed on the importance of having impact assessments on time and on having draft regulations and codes of practice.

Another paragraph in the document from Mr Greenberg caught my eye. It is not just in secondary legislation that much detail is found. Mr Greenberg wrote:

“Another rule of law issue of concern to many is the enormous growth since around 2000 of the use of powers to make quasi-legislation in the form of guidance, codes, schemes and other instruments which have legislative effect but are not given the formality of scrutiny associated with subordinate legislation. They are not published on the National Archives legislation site, and although in principle published on the government’s central website they can be difficult or impossible to find, even if one knows of their existence”.

So there is a whole tranche of regulation or sub-regulation which Parliament barely gets an opportunity to look at.

I have mentioned before how this House has updated its procedures and practice to try to deal with the onslaught of more and more delegated legislation. It is widely agreed across your Lordships’ House that the Delegated Powers and Regulatory Reform Committee and the Secondary Legislation Scrutiny Committee provide us with an invaluable service in the work they carry out on the meaningful scrutiny of statutory instruments. This is something that the other place might wish to emulate.

The noble Lord, Lord Cunningham, was right to say that the conclusions of the Joint Committee he chaired were endorsed by the Liberal Democrats. My noble friend Lord McNally served on that committee. It concluded that the House of Lords should not regularly reject statutory instruments but that in exceptional circumstances it might be appropriate for it to do so. To roll back from that in any way would be a dilution not only of the power of your Lordships’ House but of the power of Parliament.

It is against that context that we look at the recommendations proposed by the review conducted by the noble Lord, Lord Strathclyde. It has not had a great press from the various influential committees of your Lordships’ House which have reported on it, or from the Public Administration and Constitutional Affairs Committee of the House of Commons, as has been said.

The common view was best summed up by the noble Lord, Lord Norton of Louth, who, in the Lords of the Blog on 23 March, said:

“Lord Strathclyde’s review is not some minor technical report—it is actually quite dangerous in seeking to constrain the capacity of Parliament to call government to account”.

The House of Commons committee, which has been referred to, said:

“The Government’s time would be better spent in rethinking the way it relies on secondary legislation for implementing its policy objectives and in building better relations with the other groupings in the House of Lords”.

We should not consider any actions that diminish the impact of Parliament’s scrutiny function of the Executive. Instead, both Houses of Parliament should examine better ways in which we can work together to achieve a more comprehensive, informed and effective scrutiny of the Government’s legislation and actions. We continue to reject the notion that any Government achieving a majority in the House of Commons should have an absolute power to prosecute their business without the proper burden of checks and balances. As the noble Baroness, Lady Smith of Basildon, said, the Government of the day are not always right about everything and at all times.

We should not confuse the primacy of the House of Commons with the primacy of the Executive—there is an important distinction to be made there. It is incumbent on Parliament, therefore, not just to fight against moves to weaken our ability to hold the Executive to account but to try to find new ways in which we can improve our procedures. There have been some good suggestions today. The pause button referred to by the noble Baroness, Lady Hollis, is worthy of examination.

My noble friend Lady Smith of Newham drew attention to the fact that the House of Commons has passed resolutions which the Government have done nothing about. We should perhaps examine that issue. The committees of the Scottish Parliament can be the sponsors of legislation. Mr Greenberg suggests that there should be an annual debate. Every Act when it is passed should have something attached to it indicating how much scrutiny it received. If the Government had to debate it annually, it might make Ministers think before they act.

The noble and learned Lord, Lord Judge, asked how long we can go on talking. There has been some worthwhile talking today but I take his point that it may be time for action. There have been many good ideas in the debate. I hope that the Leader of the House will respond in the constructive spirit in which noble Lords have contributed, because what is needed is a willingness to seize the initiative.

Queen’s Speech

Lord Wallace of Tankerness Excerpts

Wednesday 18th May 2016 Lords Chamber

[Lord Wallace of Tankerness (LD)]

My Lords, I echo the proposer and seconder of the humble Address, and the noble Baroness, Lady Smith, in paying tribute to Her Majesty. As she came to Parliament today to deliver her gracious Speech she did so with dignity and showed yet again the service that has been the hallmark of her reign.

I also congratulate the noble Lord, Lord King, and the noble Baroness, Lady Goldie, on their excellent speeches in proposing and seconding, and I defer to the noble Baroness in saying “a” humble Address—I was a Scottish primary pupil as well. The noble Lord, Lord King, and I overlapped in the House of Commons. He has dedicated his life to public service, in the military and in politics. The noble Baroness, Lady Smith, listed all the Secretary of State roles that he held, which is probably more than I have had Liberal Democrat spokesmanships. He has been a genuine public servant in so many different ways.

The noble Lord found fame at the hands—or perhaps the fingers—of his noble friend the noble Baroness, Lady Trumpington. It was also perhaps ironic that the noble Lord, who in a debate readily confessed to not knowing what WhatsApp was, became an internet sensation by making such a confession.

He also told us about jiggery-pokery in Bridgwater in the 1870s, which proves that parties exceeding their expenses limits in West Country constituencies is nothing new. He recently spoke in the House on investigatory powers with his experience as a former Northern Ireland Secretary and a former Defence Secretary. I am sure that there will be many more exchanges when the Investigatory Powers Bill comes to your Lordships’ House. I can confidently predict that this House will give that Bill the most fulsome scrutiny.

The noble Baroness, Lady Goldie, and I have known each other for many years. We entered the new Scottish Parliament together at the very beginning, in May 1999. I would call her a noble friend across the political divide. She was right, as, indeed, were others, in congratulating Ruth Davidson on the remarkable result she achieved in the recent Scottish elections. It has perhaps not always been the case that the Conservative Party in Scotland has taken such a hard-line attitude against the SNP, as the noble Baroness herself revealed. In the run-up to the referendum in 2014, reflecting on the period of minority SNP government between 2007 and 2011, she said:

“The bottom line is that when Alex Salmond needed the Tories he couldn’t get enough of our help”.

Some things change. I also remember that when the noble Baroness was elected leader of the Scottish Conservative Party she promised to crack down on disloyalty and disobedience. It may be that she will be invited to soirées at No. 10 to give some helpful advice to the Prime Minister.

The noble Baroness, being a Scot like myself and others, will be familiar with the old Scottish saying, “Cauld kale het up”—which means cold kale warmed up again. Perhaps she was reflecting on that when she listened to the words of the gracious Speech today, because much of what we heard today had already been announced. Only one year into a Conservative majority Government, there is a sense that perhaps they are starting to run out of steam. Or it may be, as the noble Baroness, Lady Smith, suggested, that having this Queen’s Speech ahead of the referendum means that they cannot really reveal as much as they were wishing to reveal. It may be that, like an iceberg, there is still quite a lot that we cannot see and that the phrase:

“Other measures will be laid before you”,

has more potential than it usually has when those words are spoken.

I believe that the measures we have heard today demonstrate a lack of ambition. I find it deeply disappointing, because we on these Benches are ambitious for our country and we will shortly be facing the biggest decision that the United Kingdom has faced in generations. In case we had not heard it on Radio 4’s “Today” programme, the gracious Speech reminded us that the Government will hold a referendum on membership of the European Union. Whether to remain in or to leave the European Union is a fundamental decision that we have to make. There has rightly been much focus—including from the noble Lord, Lord King—on the economic arguments for and against, but for me and many of my colleagues on these Benches there is a more fundamental question to be answered as to what kind of country we want the United Kingdom to be. What sort of country do we want our children and grandchildren to live in? What is the international legacy that we want to leave for future generations?

Make no mistake, the decision on 23 June is not so much about the here and now as about the impact on our children and on our children’s children. Will Britain be the sort of country that resists change to meet the challenges of the 21st century, or will we be citizens of an adaptable country that can thrive, innovate and lead in an open, global economy? Do we credibly think that the only way we can protect our security against existing threats is by standing alone, or do we believe that we will make ourselves safer by standing together with our neighbours and sharing our response with countries that are our friends, that share our values and that also face these threats?

Just over 70 years ago we were at war with our European neighbours. Today we sit at the same table with them, working together for a better future for us all. The European Union is, indeed, the world’s most successful peace project. Our generation has enjoyed that peace; surely we must bequeath that to future generations. I want our children and grandchildren to grow up in a society that shares security, shares political values and shares social standards with our European neighbours, rather than running the risk of returning to mutual hostility. I want future generations to grow up in a confident Britain that pursues prosperity and peace in co-operation with our European neighbours.

It is not just in our relationship with our European colleagues that we on these Benches want to see an optimistic and confident United Kingdom, but also within our nation. Liberal Democrats have always been optimistic—we have often had cause to be—and we are eager to improve the lives of our children and grandchildren, and for everyone to have their opportunity to succeed. That is why we believe that we should be looking to the future. Yet so often in the last 12 months the Conservatives have allowed short-term political interest to triumph over the longer-term interests of the country and the opportunities of the next generation. Today we see that the country’s challenges on education, housing, investment, skills and the environment are either ignored or offered nothing more than empty rhetoric.

A responsible Government should be fighting to address the challenges yet to come, not fixating on tomorrow’s headlines or reliving the battles of the past. The future is full of exciting opportunities as technology changes the way we work and live. We believe that education is the key to equipping future generations with what they need to embrace the challenges of the future. It is the key to freedom and opportunity. That is why we must create an education system that enables the next generation to reach its full potential.

We note the promises in the gracious Speech on education, but in their first year in office the Conservatives have set back progress on education. Teachers are demoralised and school budgets are stretched to breaking point. Children are missing out rather than being given the confidence, creativity and practical skills to meet the challenges of a future economy. So warm words alone will not be enough. That is why we call for an education charter to enshrine the importance of giving every child a decent education. Every child surely deserves a great start in life and we are determined to make sure that the education system finds and nurtures the best in everyone. This is essential in order to break down the unfair divisions in our society and to ensure a productive, competitive economy.

In recent days, we have seen organisations such as the CBI and the Institute of Chartered Accountants in England and Wales express concerns that the Government are taking their eye off the ball, thinking about the short-term rather than the long-term future of this country. That is why we need a plan for a changing 21st-century economy. The Government promise a right to access high-speed broadband, but we want to see a future economy Bill to support ambitious investment in new fibre-optic broadband, housing and rail infrastructure, setting out a long-term industrial strategy and giving real support for new technology so that United Kingdom businesses are at the forefront of new ways of working.

I welcome the emphasis placed on education in prison. Education should indeed be at the heart of the prison system, giving prisoners the skills to lead a productive life on release. However, prisoners also need help with mental health issues and drug and alcohol abuse, and meaningful support in preparing them for release. This can be achieved only if we increase staffing and cut overcrowding. Our prison system is in crisis, so just making some structural changes will be no more effective than rearranging the proverbial deckchairs on the “Titanic”. We need extra resources and a commitment to make sure that prisons work as places of rehabilitation.

I am perhaps most disappointed by the Government’s failure to recognise that education can also be fundamental in tackling fear and division in society. That is why we believe that the counter-extremism Bill is at best ill-judged. I rather suspect that defining “extremism” will take up at least a day in Committee in your Lordships’ House, then no doubt many days in court as lawyers debate what we actually meant by the definition at which we ultimately arrived. At worst, the Bill could serve to create more division, alienation and stigmatisation. By educating children together, we break down divisions within society, promote community relations and counter prejudice. Alongside this, Liberal Democrats believe that a global responsibilities Bill would have ensured that the United Kingdom played its part in tackling the challenges of an ever-shrinking world. As part of this, we would strengthen our commitment to human rights rather than make the dangerous move this Government are making in scrapping everything and starting from scratch.

The gracious Speech talks about “proposals”. That is not quite a Bill; we are not quite sure where they are. Perhaps we will get some clarification in the speech of the noble Baroness, Lady Stowell, or in the days ahead. However, we again see the Prime Minister putting what he believes to be his party’s interests before the interests of the country, trying to placate a hostile Cabinet rather than protecting or standing up for our Human Rights Act—legislation which has ensured justice for the victims of domestic violence, and that disabled people are protected and children are guarded against abuse.

If there has been a delay and we are getting only proposals, it may be because there is some doubt or uncertainty around the Cabinet table. As my right honourable friend the Member for Orkney and Shetland observed last month in another place:

“The Home Secretary tells us that she wants to remain in the European Union but leave the convention; the Under-Secretary of State for Justice wants to leave the European Union but remain in the convention; and the Lord Chancellor wants to leave the European Union, stay in the convention, but ignore the jurisprudence of the Court. Thank goodness we do not have the instability of a coalition Government any more”.—[Official Report, Commons, 26/4/16; col. 1291.]

I leave the noble Baroness the Leader of the House with a small piece of advice, if I may. We note the reference in the gracious Speech to the primacy of the Commons. That is of course right, but let us not confuse the primacy of the Commons over the Lords with the important issue of the legislature standing up to the Executive and holding it to account.

Last year at this time, I suggested that we would do well to reflect on the strength of the mandate of a Government who secured less than 37% of the popular vote on a turnout of 66%, should they seek to drive through ill-thought-through legislation without robust scrutiny and the proper checks and balances this House provides. On more than one occasion in the previous Session, the Delegated Powers and Regulatory Reform Committee produced a report excoriating the shortcomings of Bills. I echo the noble Baroness, Lady Smith, in expressing thanks and appreciation to noble Lords—Ministers—who have been willing to engage, to listen and compromise, and to try to find a way forward.

However, it was also notable that, in the latter stages of the previous Session, notwithstanding deep concerns in your Lordships’ House and after hours of detailed scrutiny, Ministers often steadfastly refused to budge on a host of issues. These were not matters that challenged manifesto commitments; rather, they were amendments to ensure that those commitments were delivered in a fair and proportionate manner. I hope the noble Baroness, Lady Stowell, and her colleagues will reflect on this and that she will indicate what the Government’s response will be to the report of the noble Lord, Lord Strathclyde, which has not exactly been welcomed by three of your Lordships’ committees that have now reported on it. It would serve Ministers well to listen to their colleagues in both Houses when concerns are expressed about the legislative programme, to show a willingness to negotiate in order to reach sensible compromises and, indeed, to heed the warning this week from a report by the Institute for Government that:

“The Government must be smarter about how it manages its business in Parliament”.

House of Lords: Domestic Committees

Lord Wallace of Tankerness Excerpts

Monday 9th May 2016 Lords Chamber

[Lord Wallace of Tankerness (LD)]

My Lords, I thank the Leader of the House for introducing this debate and setting out the background to the report from the Leader’s Group on Governance, its recommendations and how she proposes to move forward. I also express thanks and appreciation to the Members of the Leader’s Group who have done a very thorough job in a relatively short time. I particularly wish to pay tribute to the noble Baroness, Lady Shephard of Northwold, for her excellent chairing of the group, the clarity with which she set out the group’s report to your Lordships’ House today, and the example she gave of the lack of clear boundaries between committee responsibilities. That underlined the need for the work that has been done. I also thank my noble friend Lady Doocey, who served on the group. She made great efforts to engage with colleagues on these Benches and ensured that our views were fed through to the work of the Leader’s Group.

I very much welcome the report from the Leader’s Group and I fully support its recommendations. As it clearly sets out, this House had changed considerably since the last time there was a thorough review of the domestic governance arrangements, conducted under the chairmanship of my noble friend Lord Tordoff in 2001-02. The House is busier, with more and more Members, who engage more regularly in the legislative responsibilities of the Chamber, which are rightly taken extremely seriously. There have been procedural innovations to ensure that more Members can participate fully in all aspects of the work of the House, such as the establishment of ad hoc Select Committees and of topical QSDs, which allow the Chamber to discuss issues that are currently relevant to the country in a timelier manner.

As the report points out, this has led to an increase in demands for services and facilities, which are necessary to ensure that the Members of this House can carry out their roles as legislators in a professional way. We cannot function as a proficient legislature, undertaking the serious work of scrutiny of the Executive, which is our primary role, without such help and support as IT support, a desk, the production and distribution of papers et cetera. This is also an important opportunity to thank all the members of staff—the clerks, the technicians, the catering staff, the cleaners—who work to support this House and its Members to ensure that we play our roles effectively and efficiently.

There is also, rightly, more scrutiny of this House than ever before. As we are an unelected Chamber, the public must be confident that our practices and procedures are as scrupulous as those in the House of Commons, if not more so. This extends not just to how we conduct our business in this Chamber, but to how we take decisions about the facilities and services that support aspects of work in the House. We have a responsibility to ensure that our internal arrangements are governed by best practice, that our financial decisions are underpinned by best value, and that we are open, transparent and accountable.

I was struck by two contradictory thoughts when looking back at the work conducted some 15 years ago under the chairmanship of my noble friend Lord Tordoff. On the one hand, progress has clearly been made in tackling some of the internal difficulties that the House faced then. It has been some time since Members felt it necessary to raise any great dissatisfaction with the delivery of services or internal governance directly on the Floor of the House. On the other hand, the issues raised in my noble friend’s review regarding communication, consultation, and clarity of roles and decision-making are still recognisable today. It is disappointing that the ambitions expressed by the review have still not been realised. In particular, the objective set out in paragraph 52 of that report—

“The fundamental objective of our suggestions is that Members of the House should be able to influence decision-making on the services and facilities that they enjoy. Views should be expressed at the beginning of the process, not at the end”—

still has not come to fruition. The role of the domestic committees as “user groups”, canvassing the views of Members and providing a vital channel of communication for Members to make complaints or suggestions about the services, has, I believe, not been realised. Therefore, I was, and remain, fully supportive of the decision of the noble Baroness the Leader of the House to establish this group to review the governance arrangements.

As well as the informal consultations that my noble friend Lady Doocey conducted among Members on these Benches, I initiated a discussion at a group meeting to enable colleagues to air their views on domestic governance arrangements in your Lordships’ House. The view of my colleagues was very much that a radical overhaul of the domestic committees is needed, including the House Committee. Colleagues felt that there needs to be more transparency in how the business of the domestic committees is conducted, and they were keen to see a fundamental change of culture and attitude in the committees, with new ways of working and support being given for new and innovative ideas.

I was therefore pleased, although not wholly surprised, to see some of these concerns well reflected in the report from the Leader’s Group. It is clear, as has been echoed in comments that have already been made about the unanimity of views expressed to the group, that the issues are not just of concern to Members of my own party, but felt right across the House. In my view, the recommendations contained in the report give us an opportunity to start afresh. As I indicated, I fully support the recommendations. I believe that the new structure proposed in the report resolves some of the issues that have been of most concern to Members. Having a strong senior committee, responsible for developing, setting and approving the strategic, business and financial direction of the House administration, will ensure that there is appropriate, high-level oversight of the running of your Lordships’ House.

A particular concern of mine during my time as a member of the House Committee is that I was not always confident that its strategic aims filtered through to the numerous domestic committees to ensure that the decisions then taken by those committees reflected the overarching objectives of the House Committee. I am pleased to see the recommendation from the Leader’s Group that the chairs of both the finance and services supporting committees should also be members of the senior committee. This will be vital to tie the work of the supporting committees into the work of the senior committee, and to ensure the flow of information in both directions.

I also agree with the conclusion of the group that there need to be clearly defined terms of reference for the domestic committees, and clearly defined reporting structures and relationships between them. I am hopeful that with fewer domestic committees, as the report suggests, it will be easier to establish who has responsibility for what, and that the many decisions taken to ensure the smooth and effective running of this House are taken at the appropriate level. I also approve of the recommendation to encourage greater sharing of working practices between senior administrative staff and Members of the House. As the noble Baroness, Lady Shephard, reflected, the committee should not approach its work as a Select Committee, even down to the seating arrangements. I do not think I am giving away any secrets if I say that the Joint Committee on the Palace of Westminster took a view very early on that we should not operate as a Select Committee but more like a board. Those of us who have served on that committee believe that has worked well.

My noble friend Lady Maddock will seek some clarification on the position of the Works of Art Committee, which she so ably chairs. This is an important committee, particularly in its role in ensuring a historical record of this House for future generations. It is important that we reflect on that committee’s views.

I recognise, as the report itself does, that the proposed new structures impact upon the duties of the Lord Speaker and the Chair of Committees. As has been said, the Chair of Committees will continue to chair, amongst other committees, those relating to the procedures of this House: the Liaison Committee, the Committee of Selection and the Committee for Privileges and Conduct. These are essential to how we operate as a House, and our reputation in the country. However, in light of the recommendations, the Chair of Committees will not chair as many committees as they did previously. I therefore ask the noble Baroness, the Leader of the House, whether she intends to take forward the suggestion in the report that the remuneration attached to the post of Chair of Committees should be reviewed. I probably share the view that a proper name will evolve and we will find it without having to go down the path of primary legislation. Given the status of the Chair of Committees—or senior deputy speaker or whatever—and of the chair of the European Union Committee, and the fact that significant salaries are attached to both, it is my personal view that they should be elected by the whole House in the same way that the Lord Speaker is.

I absolutely agree with the view expressed by the group that new ways of working are fundamental to the success of the new committee structures. For Members to be confident that the new committees are working on their behalf, there must be better communication, innovative working practices and a willingness to embrace ideas and suggestions from Members across the House. Although much of this challenge will rest on the shoulders of the chairs of the new committees, it will be incumbent upon all their members to embrace that philosophy and take it forward. I therefore hope that the leaders of the respective parties, and the Convenor of the Cross Benches, will recommend individuals for membership of these committees, bearing in mind the requirements of membership.

It was a particular honour and privilege for me to serve as Deputy Leader of this House during the latter stages of the coalition Government. I am therefore mindful that one’s responsibility, as the leader of a political party, is not just to one’s own Benches but to the House as a whole. That responsibility is to ensure that how we conduct ourselves conforms to the highest standards of propriety. I therefore conclude by saying that I look forward to taking up my responsibilities as an ex officio member of the new senior committee, and I wholeheartedly endorse the recommendations of the Leader’s Group on Governance.

Her Majesty the Queen: 90th Birthday

Lord Wallace of Tankerness Excerpts

Thursday 21st April 2016 Lords Chamber

[Baroness Smith of Basildon (Lab)]

My Lords, I am delighted to have the opportunity to follow the noble Baroness and to speak on behalf of these Benches to wish Her Majesty the Queen a very happy 90th birthday and to support the humble Address.

For many of us, milestone birthdays are a time for reflection, but when that birthday is a 90th and a whole life has been spent in the public eye in public service, that reflection has an added dimension. Like all of us, Her Majesty the Queen will have many personal memories of births and deaths, and of people, places and events. While her life has brought more privilege and opportunities than most, she has also known the highs and the lows, and the joys and the sadnesses that normal family life brings. As the noble Baroness also said, it is impossible to reflect on the role of the Queen without recognition of her husband, the Duke of Edinburgh—outspoken, sometimes irreverent and at all times totally human, his support has been vital.

The late King George VI, with his sense of public responsibility during the Second World War, had a huge influence on his daughter. I am sure he would take immense pride in how she has conducted herself and shaped the role of our longest serving monarch.

This 90th birthday is a time for public celebration and public reflection. It is not just here at home but across the world that those with memories of the Queen will share them—memories of a visit, a conversation or even just a comment.

As the noble Baroness said, when Princess Elizabeth Alexandra Mary was born on this day in 1926 in London, few could have predicted the life that lay before her. At that time, she was third in line to the Throne, because the then Prince of Wales had not yet met Mrs Simpson and started the chain of events that led to the Queen’s father becoming King. Yet the responsibility is one that she readily absorbed, making her first radio broadcast in 1940 at the age of 14, as the noble Baroness referred to, on BBC “Children’s Hour”, to the children evacuated overseas during the Second World War.

With thousands of other young women, she qualified as a mechanic and driver with the ATS. For the time, that was quite bold and daring for a princess and not a decision that the Government were at all happy about, believing that her most important training should be as heir to the Throne, not as a mechanic. Her determination and persistence in insisting that she wanted to serve her country was a clear indication that she would become a Queen who would bring her own style and make her own way. So on VE Day, the two royal princesses were as keen as anyone to celebrate the peace. Her Majesty has spoken about joining the crowds in Whitehall, where they mingled anonymously with those linking arms and celebrating the end of the war. In a world without selfies or mobiles, I wonder how many thought that the two attractive young women partying with them looked just like Princesses Elizabeth and Margaret.

In the aftermath of the Second World War, as with the first, the royal families from across Europe found that as time moved on so did they. In those post-war years, the monarchies of Bulgaria, Portugal and many other countries ceased to exist. But here in the UK, a country that has known just a very short-lived republic in the 17th century, the monarchy has not just survived but has increased in popularity. We should recognise and happily acknowledge that such success is to the enormous credit of the Queen and the way she has conducted herself and undertaken the role—a role for which there is no manual or guide.

In the age of Twitter, “Celebrity Big Brother” and, at times, the sharing of private moments far too publicly, it is refreshing and enormously valued and respected that Her Majesty the Queen has never spoken out publicly of her views on a political or policy issue. She has maintained a dignified privacy of thought and displayed strict impartiality. If it was frustrating at times, it never showed.

The 12 Prime Ministers who have had weekly audience with the Queen have found a willing listener and someone whose discretion they can rely on absolutely: no leaks, no Tweets, just absolute confidence. Those who have attended Privy Council meetings will recognise that businesslike approach.

Some will have heard of the Labour Minister who, while standing as business was conducted, suddenly heard her mobile phone ringing very loudly from the very large handbag at her feet. Hugely embarrassed, she dived into the bag and desperately rummaged until she eventually and triumphantly retrieved the phone and silenced it. Her Majesty looked at her and sympathised: “Oh dear, I do hope it wasn’t anyone important”. I do not think either of them will ever talk to me again.

That dry sense of humour has become very evident over the years. At the opening of the Docklands Light Railway, shortly after her election in 1987, the late Mildred Gordon MP was asked by the Queen how she liked her new job. She responded that she felt that she had little power to help her constituents. The Queen replied understandingly, “Once they find out that you lot can’t help them, they all write to me”.

The fascination with the life of the Queen is magnified overseas, and often the most die-hard republicans show an admiration for her role. Many will recall the somewhat bizarre pirouette of the former Canadian Prime Minister, Pierre Trudeau, behind the Queen in 1977—although he later also spoke of his respect. Just last week, almost 40 years later, the current Canadian Prime Minister and Pierre Trudeau’s son, Justin Trudeau, met Her Majesty and paid a glowing tribute. You had to smile as one onlooker observed, “The hereditary principle is alive and well”.

There are other well-known people who also celebrate their 90th birthdays this year: Sir David Attenborough, the singer Tony Bennett and Fidel Castro. In those 90 years, the world has seen massive social and cultural change. In technology, John Logie Baird had only just demonstrated his new invention, the mechanical television, yet last Christmas, the Queen’s Christmas message had more viewers than any other programme on Christmas Day, even “Downton Abbey”—I was looking for the noble Lord, Lord Fellowes, but fortunately he is not here. In 1926, the first transatlantic telephone call was made from London to New York, the first red telephone box was installed and the national grid was set up. In that same year, the League of Nations convention abolished all slavery—so it seems so disappointing that, almost 90 years later, we had to bring in our own Modern Slavery Act. While this week we debated and sought to improve the Government’s Trade Union Bill, it was tougher in 1926, when we had martial law on the streets in response to a general strike.

So times have changed, but values have not. The British Royal Family is one of the most traditional institutions in the world, yet if we stand back and reflect on the past 90 years, both the 90 years of the Queen’s life and more than 60 years of her reign, we see significant changes. Many politicians would give their right arm for her approval ratings. She has perceptively, skilfully and without fanfare guided the monarchy into the 21st century. It is clear that Her Majesty values not just the monarchy of today but that of the future, and has encouraged and supported her children and grandchildren in undertaking official engagements and public service.

For some in your Lordships’ House, she has been the Queen for our entire lives. Many of us do not remember any other monarch. She is the figurehead of our nation, and I hope that our tributes today convey something of the high personal esteem in which she is held. So today is a day for celebration. Happy birthday, Ma’am.

[Lord Wallace of Tankerness (LD)]

My Lords, from these Benches, I am delighted to add our good wishes and congratulations to Her Majesty the Queen on this very special occasion of her 90th birthday. Her Majesty has had, and continues to have, an extraordinary life which she has dedicated in service to our country.

As we have heard, we are living today in a very different society from the one into which Her Majesty was born 90 years ago today. Then, the sufferings and losses of the Great War were still raw. It was less than a decade since the United Kingdom had emerged from the horrors of the First World War, vowing that such devastating conflict should never happen again. And yet, sadly, it did happen again, when Her Majesty, then Princess Elizabeth, was barely a teenager. As we have heard from the Leader of the House and the Leader of the Opposition, during the Second World War Her Majesty not only served in the Auxiliary Territorial Service but brought comfort to many young people by broadcasting a message to evacuees, urging them to have courage.

Thankfully, today the prospect of war breaking out in the heart of Europe is unimaginable. Today, too, we are living in a world which is far more interconnected than it has ever been. Again, the Queen has fully engaged with this changing world. The metamorphosis of empire and colonial rule into the Commonwealth of free nations has in no small way been achieved by the Queen’s strong personal commitment to that unique institution and force for good in the world. She has kept up with technology and the IT revolutions which have transformed our world. In March 1976, when almost 50, and taking part in a network technology demonstration, the Queen was the first Head of State to send an email, although I rather suspect they did not call it that then.

Throughout the huge change that this country has experienced in the past 90 years, Her Majesty has been a constant, standing with her people whether it be in times of tragedy or times of joy. Her unwavering sense of duty, supported for more than 68 years by the Duke of Edinburgh, and her commitment to the service and welfare of the people of this country are surely an inspiration to us all. When speaking in your Lordships’ House on the eve of Her Majesty’s 80th birthday, my noble friend Lord McNally recalled the vow that the then Princess Elizabeth made in Cape Town on her 21st birthday. She said:

“I declare before you all that my whole life, whether it be long or short, shall be devoted to your service”.

Gladly, it has been a long life and surely no vow has been more dutifully honoured.

On behalf of my Liberal Democrat colleagues, I offer my warmest good wishes to Her Majesty the Queen on this most joyous of milestones for a day full of love and affection from family, friends and a grateful nation. Long live our noble Queen!

[Lord Hope of Craighead (CB)]

My Lords, as the House knows, members of the Cross-Bench group whom I represent seldom, if ever, speak with one voice. I am reminded of that feature of our existence almost every day, but this occasion, surely, is quite different. I know that each member of the group would wish me to say how delighted we all are to be associated in every way with what has been said, and that we join together as one in supporting this Motion.

The Cross-Bench group brings to this House Members with a wide range of experience. Many have spent their entire working lives in the public service. Some, by reason of the positions that they have held, have a much greater appreciation than the rest of us of the volume of work with which Her Majesty has lived for so many years, with such a great sense of dedication and commitment. But all of us, in one way or another, have our own memories of her and of the service that she has given. We can all share in the memories of the great occasions.

Perhaps one above the others that deserves to be remembered today is Her Majesty’s state visit to Dublin in May 2011. Her remarkable speech at the state dinner in Dublin Castle was surely an extraordinary moment in history, which only she could bring about. Her silent tribute in the garden of remembrance the previous day had done so much to settle memories of the past.

One occasion that stands out in my own memory, because I was there, was her Address to both Houses in Westminster Hall on the occasion of her Golden Jubilee. It is hard to believe, but that was 14 years ago in 2002. The then Speaker, Speaker Martin, and the Lord Chancellor, the noble and learned Lord, Lord Irvine of Lairg, who I am glad to see is in his place, presented their addresses and handed them to her after reading them. Then it was her turn. She stood up and went forward to the microphones to read her own speech. There was no table; there was no lectern; she held her speech in front of her as she stood alone, I thought with great courage, on the steps in front of a huge audience. Unlike the speeches at a State Opening, that speech was her own creation—full of warmth and perfect for the occasion. She ended with a triumphant sentence assuring us of her resolve to continue to serve us all to the best of her ability. It was faultlessly read, as always, in a firm, clear voice. She then sat down to prolonged applause, which lasted for well over a minute. She seemed not to have expected that, and was greatly moved by that applause, but it was so well deserved.

Later she joined us for a reception in the Royal Gallery. One of the Law Lords who was with me had his back to her as she reached us. He was tapped on the shoulder by the Lord Chancellor. My colleague had the misfortune to be in the process of eating a large biscuit. Something was bound to go wrong and, indeed, it did. When he turned round, he was so astonished to see her standing beside him that he dropped his biscuit onto the floor right in front of Her Majesty’s feet. Her Majesty, who has a great sense of humour, was much amused. Another Law Lord, a judge from New Zealand, was then introduced. Her Majesty said to him, “I hear that you are about to end your appeals to the Privy Council”. He replied that it would not affect him, as he had already reached the retirement age of 75 and would no longer be able to sit. “When was your birthday?”, she asked. When he said that it was in June, she exclaimed, “You are two months younger than I am”. So much hangs on those words—we can all do our own arithmetic—but those words were as clear a demonstration as there could be that retirement was not for Her Majesty, that it is not and it never has been. How blessed we all are that this is so.

On behalf of all of us on the Cross Benches, I join with the rest of the House in supporting the Motion and wishing Her Majesty a very happy birthday. We offer her our warmest congratulations and our profound thanks. I think it is also right to say that we offer our profound thanks to His Royal Highness the Duke of Edinburgh—always there at Her Majesty’s side and with his own unique sense of humour, as has been said. For him, too, surely, this is a very happy day.

Panama Papers

Lord Wallace of Tankerness Excerpts

Monday 11th April 2016 Lords Chamber

[Baroness Smith of Basildon (Lab)]

My Lords, I thank the Leader of the House for repeating the Prime Minister’s Statement. It has been a difficult week for the Government. For most people, the reports that they have heard over the past week or so about offshore investments, tax havens and corporate tax avoidance are way outside of their personal experience. Most people are still going to open bank accounts in their local high street, if they can find a branch open. So the press reports will not be fully understood by everyone, but three things emerge. Overwhelmingly, most people have said that they were very familiar with reports on the Panama papers, with just over 4% of those aged 65 and over saying that they were not—so most people have read the information and heard what is going on. There is a general attitude from most people that, even without understanding the full details, something here is not quite right. But only 8% of people said that they were surprised at the reports. For me, that indicates a cynicism about the finances of those in the public eye and highlights a necessity for public confidence in financial regulatory regimes.

George Osborne said in his Budget Statement last month that people,

“talked about social justice, but left enormous loopholes in our tax system for the very richest to exploit”.—[Official Report, Commons, 16/3/16; col. 956.]

When he said that, I do not think that he was anticipating the Panama papers. What has become clear, as news from across the world shows, is that not everyone who holds such offshore accounts or funds welcomes the transparency that this leak has brought—not because they have done anything illegal or necessarily wrong but because they never intended it to be public. Clearly, some have found it very difficult and for others it has had serious consequences.

I have a few questions for the Leader of the House on the Statement. It reports that Crown dependencies and overseas territories have agreed automatically to exchange taxpayer financial information from September. That is welcome, but it has taken some time, as my understanding is that these negotiations were initiated and made progress under the Labour Government. I ask specifically about bearer shares, when the identity of the investor or beneficiary is secret. Holding such shares is illegal for UK companies, but can she confirm that it is legal for a UK citizen to hold funds in bearer shares in other countries? If it is not, what is the penalty?

The Statement also says that there will be new legislation this year,

“to apply to corporations who fail to prevent their representatives from criminally facilitating tax evasion”.

Your Lordships’ House will appreciate that that is not a new announcement. In fact, the Government have already consulted on this, and published the consultation responses last December. The report on responses to the consultation last year, under the fourth item, “Next steps”, said that there would be further consultation early in 2016, including seeking views on,

“the merit and content of industry drafted guidance”.

Why is further consultation needed after there has already been a consultation? Is that approach of industry-drafted guidance really appropriate, and has that consultation, which was promised for early 2016, yet been published? Given that we have an extra consultation, is this an opportunity for the Government to take account of the recommendations from the Parliamentary Commission on Banking Standards in its report, Changing Banking for Good? That commission included Peers from across your Lordships’ House, including the most reverend Primate the Archbishop of Canterbury and the noble Lords, Lord Lawson and Lord McFall. Following their work, and having taken evidence, they were clear that it is not just corporate responsibility that is needed—they recommended individual responsibility. The commission received considerable evidence, including from bankers themselves, that led it to the recommendation that, without such individual responsibility, it would be impossible to crack down on banking failures and problems. Does the Leader of the House really believe that, without individual responsibility, the legislation proposed would be an adequate deterrent?

The fines and compensation paid by UK banks in the past 15 years come to more than £53 billion, which is six times the cost of the 2020 Olympics. It is an almost inconceivable amount of money. Yet no one has ever gone to prison and only one person has ever been held personally culpable and personally fined, to the tune of half a million pounds. I think that the Chancellor raised the point that it is the customers and shareholders who bear the cost of that failure, not the senior managers, who are supposed to be rewarded for being responsible. Yet there are numerous accounts of those who have wrongly claimed benefits and been sent to jail. A quick internet search finds dozens of cases where false claims of £30,000 or less have led to custodial sentences. So will the recommendations from the Parliamentary Commission on Banking Standards be considered as part of this new consultation on corporate responsibility so that the Government can consider individual responsibility as well?

Will the noble Baroness explain why the Government lobbied the EU against plans to tackle tax avoidance? Conservative MEPs have regularly voted against measures to deal with aggressive tax avoidance and press reports suggest that the Prime Minister personally intervened to block EU plans to take action on tax havens. It would be helpful for your Lordships’ House if the noble Baroness could clarify those points.

Finally, on enforcement, the commitment of a £10 million cross-agency task force is welcome. Additional funding is clearly essential, especially given the cuts that have been made to HMRC. In the last Budget, the Chancellor made a strong case for bearing down on tax avoidance and evasion, especially in relation to the impact on public finances, and I think we would agree on that. In terms of ensuring that taxes are paid, the OBR reported just last month:

“HMRC is also now less optimistic about how much of the lost yield can be recouped through additional compliance activity, on the basis that they are unlikely to be able to work the higher number of additional cases on top of existing workloads”.

To date, the Chancellor has refused requests better to resource HMRC. How will the £10 million referred to today be allocated? Will it go directly to HMRC or is it something to be found from within existing Treasury budgets?

I am grateful to the noble Baroness for repeating the Statement and I look forward to her response in answer to those questions.

[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. As I observed to my noble friend Lady Kramer, if when we went into recess on 23 March we had thought that on the first day back there would be a Statement entitled “Panama Papers”, we would wonder what in the world had been going on. However, they relate to a very important issue because it is at the core of our politics.

It is, I think, agreed on all sides of your Lordships’ House that people in this country should have full confidence in our leaders and that when decisions are made and Budgets are written there is not even the slightest hint of a conflict of interest or personal gain. Regrettably, we are now in a position where not only do people no longer have complete faith in this Government’s decisions but, more fundamentally, trust in politics and in our ability to get things done has been damaged by the events of the past week. It is a poor indictment of our political system that there is now such a great demand to see politicians’ tax affairs and that trust in politics is now so low that there is almost an assumption that a politician is doing wrong, playing the system or is “at it”, and there is the cynicism referred to by the noble Baroness, Lady Smith of Basildon. In the nearly 33 years since I was first elected to the House of Commons, I have known politicians from right across the political spectrum. With very few exceptions, I can say that whatever our differences in political outlook—and some of the differences have been quite fundamental—my experience has been of men and women united in the common purpose of public service. Sadly, that is not always the common perception, so there must be change.

There has been some discussion about the Prime Minister’s personal affairs. Frankly, they are beside the point. Indeed, if this issue triggers an avalanche of published tax returns, and consequent personalisation as they are pored over and individuals are identified, there is a danger that the fundamental point of the weaknesses in the current system will be missed. For, miles removed from the Prime Minister’s personal tax affairs, these Panama papers have shown up dictators stealing from their people from Sudan to Syria, from the family of Mubarak to the friends of Putin, aiding warlords and leaders ripping off developing countries which need the most help. The epicentre of much of this activity would appear to be in a number of British Overseas Territories. At its peak in 2005, it was claimed that there were more than 7,000 somewhat dodgy deals in the British Virgin Islands alone. We have some responsibilities there, so can the Leader of the House guarantee that the Prime Minister will use the options available to him to ensure that those under the UK’s watch can no longer be complicit in helping dictators and other unsavoury characters?

When, not so long ago, the Prime Minister asked British Overseas Territories to reform their activities, particularly in relation to disclosure of beneficial interests in companies registered there, they said no, and he backed down, but today we are told that they will provide UK law enforcement and tax agencies with full access to information on the beneficial ownership of companies. That turnaround is very welcome, but can the noble Baroness tell us whether at the anti-corruption summit this May it is intended to press overseas territories to make available to tax authorities in other countries with a legitimate interest in the information a central list of beneficial ownership in each fund created?

In coalition government, the coalition parties, including the Liberal Democrats, took unprecedented action to clamp down on tax avoidance and evasion, very much at the prompting of my colleague Danny Alexander. I am sure the noble Baroness will like to confirm that we made 42 changes to tax law, closing down loopholes and making strategic changes to deter and prevent tax avoidance. We invested nearly £1 billion in HMRC to make sure that everyone pays their fair share of tax and increased the number of staff working to tackle tax avoidance by 2,500. Will she confirm that we strengthened the disclosure of tax avoidance schemes—DOTAS—regime and introduced a tougher monitoring regime and penalties for high-risk promoters of tax avoidance schemes?

Will she also agree that there is more that can and should be done? Indeed, in March my party leader, Tim Farron, asked my colleague Vince Cable to lead a major review on tax to ensure that people can have faith in the system and to make sure it works in a truly globalised world. I hope that, in a spirit of non-partisanship, when that work is done the Government will be willing to look at it closely. We will of course want to examine closely criminalising those who assist in evasion, which has been announced by the Prime Minister, but can the noble Baroness confirm that that is the same policy that Mr Danny Alexander announced on 19 March 2015, when he unveiled plans to,

“make it a criminal offence for corporates to fail to prevent tax evasion or the facilitation of tax evasion on their watch”?

The noble Baroness the Leader of the Opposition foreshadowed that question. I am quoting from a press release by Her Majesty’s Treasury. Is this a reannouncement or is there is really something new?

In a similar view, will the noble Baroness the Leader of the House look again at some of the other proposals trying to tackle tax evasion that my right honourable friends put forward during the coalition, which were blocked by her party? Does she also recognise that the current anti-abuse rules, while an excellent start, can and should go further? Will the Government strengthen the penalties for participating in repeated avoidance schemes? Does she recognise that the changes the Government are bringing in will not even allow someone to be named unless they have been involved in three separate avoidance schemes, and that this is does not go far enough?

At the weekend, the secretary of the Church of Scotland’s Church and Society Council, the Reverend Martin Johnstone, tweeted:

“I hear #DavidCameron is being discriminated against for being rich. It's tough but easier than being discriminated against for being poor”.

In all this, we must not lose sight of what is really at stake: the need to rebuild faith in our politics by doing what matters, by reaching out and helping people, and by having a politics that works for people and their communities when it is their interests that are at the heart of how things are done. We must not lose this opportunity to change the system, so will the noble Baroness assure the House that the Prime Minister’s announcement today will be the start of a process to strengthen our anti-abuse rules and to rebuild trust in our politics?

[Baroness Stowell of Beeston]

My Lords, as always, I am grateful to the noble Baroness and the noble and learned Lord for their remarks. Before I respond to some of the specific questions that they put to me, I want to re-emphasise a couple of points in the Prime Minister’s Statement. While David Cameron has been Prime Minister of this country, we have done more to tackle tax evasion and aggressive tax avoidance than any Government before we came to power. Some of the evidence to illustrate the impact of our action has already been highlighted. We made 40 tax changes to close off loopholes which have brought in £12 billion. We have brought in £2 billion from offshore tax evaders since 2010. One of the points which is worth me highlighting, which has not been fully recognised, is that all this action, whether on tax avoidance or on closing tax loopholes generally, means that the gap between tax owed and tax paid is now at its narrowest point ever. That illustrates how much we believe in making sure that people pay the taxes they owe and that the actions we have taken have had a positive effect.

We have been leading efforts worldwide; it is not just about the things that we have done in this country. Thanks to the work of the UK, more than 90 countries have signed up to the automatic exchange of information. That means that agencies such as HMRC can now pursue avoiders and evaders in ways that they have never been able to before. Our determination to tackle corporate secrecy by shining a light on beneficial owners is going to be game-changing. I get civil servants briefing me on some of these technical matters, and when you start asking questions, you realise just how different things will be when all these measures are in place. I do not think that that has been properly understood and recognised. It is the right thing for us to do.

The anti-corruption summit that the Prime Minister will be hosting next month is the first one ever, and it follows from him taking the lead at the G8 in 2013. The noble and learned Lord is right that while we did a lot when we were in coalition with the Lib Dems, there is more to do and we will continue to pursue this while we are in government because it is absolutely the right thing for us to do.

I turn to the specific questions asked by the noble Baroness and the noble and learned Lord. I was asked about the new criminal offence. I would not want to say that the Lib Dems in coalition or indeed Danny Alexander should take credit in quite the same universal way that the noble and learned Lord was trying to claim in his remarks, but it is true to say that this is a new criminal offence, previously announced, and a lot of work has been undertaken in consultation to prepare for this legislation. That is a good thing. It is good that it has taken time for this to come through and that it has been widely consulted upon. It is not a knee-jerk reaction to any of the events of the past week; it will be properly thought-through new legislation. It will be part of the Queen’s Speech, and we will hear more about that when we introduce the legislation later this year.

The noble Baroness asked me why further consultation on the legislation was necessary. I do not think we are trying to pursue further consultation. The consultation has happened and we have produced a written response to it. As she would expect, as we finalise legislation—