European Union Referendum Bill

Lord Wigley Excerpts

Monday 2nd November 2015 Lords Chamber

[Lord Hannay of Chiswick]

Yes, I would be delighted to do that. I have been interrupted rather a lot of times. I will reply to the noble Lord, Lord Pearson, before following that sage advice. I was not addressing just the question of our trade with other member states. There will be plenty of other opportunities to do that. I was talking about our trade with the rest of the world. If the vote goes for withdrawal, we will have to construct a new British tariff. If that tariff is above the level of the common external tariff, we will have to pay compensation under the WTO rules to every other member of the WTO. These serious matters need to be brought out into the open. I beg to move.

[Lord Wigley (PC)]

My Lords, I support the noble Lord, Lord Hannay. I cannot see how any reasonable person could possibly object to the amendment, in terms of getting the information that is needed to enable people to come to a balanced decision. Of course, whichever way they vote, the information should be neutral and factual.

My Amendments 28 and 29 are linked to this group and refer to two specific areas, including agriculture, which the noble Lord, Lord Grocott, addressed a few moments ago. Amendment 28 raises the issue of European Union structural funds. This area is of great significance to two-thirds of Wales, which are within the structural fund area and which, since 2000, have received several thousand million pounds, first from Objective 1 funding, then convergence funding and now the current round that runs to 2020.

Currently many organisations in Wales in the public and private sector look to these sources of funding to make a vital difference. If leaving the European Union during this time is going to change the entitlement to such funding, it clearly has a direct, immediate effect on such organisations, whether universities, local government or people in the private sector. They have a right to know about this.

It is not unreasonable to ask for an assessment in the generality but also specifically with regard to the regions that have a direct entitlement to such funding. Some areas, such as South Yorkshire, Merseyside, Cornwall and Northern Ireland and, in the past, the Highlands and Islands of Scotland have benefited from such funding. It is of material consequence. It is made available on the basis of the low level of the economic performance in areas such as Wales. Our GVA per head now stands below 75% of the UK average, because of the failure of successive economic policies. We will not go into whether that failure is on account of what has been done here at Westminster or in the Assembly, but the funding is because of that failure. We are entitled to such funding to try to trigger the economy. Cornwall has undoubtedly succeeded to a considerable extent by using this funding, perhaps better than we have in Wales. Although the authorities in Brussels say that the way in which Wales has used the funding has been an example to other parts of Europe, none the less, we still have these economic problems. People in Wales deciding whether to vote to leave the European Union or to remain in are entitled to some assessment of what effect a loss of this funding might have.

I take the point that was made in the context of the earlier exchanges that perhaps the Treasury would make up for this loss. But history does not fill us with a lot of confidence about that. Until 2000, we were not getting anything at all, because the Treasury refused to put forward proposals to Brussels that would entitle Wales to such funding. It drew a map, divided from north to south, and made sure that neither side of that line was entitled to get the money. It was only when a new map was put forward that we got our entitlement.

Then there was the experience even after we started getting money from Brussels. In 2000, when the Objective 1 money was coming through, we found that it was not being passed on by the Treasury to the National Assembly. We were expected to spend the money but were not getting the contribution from the Treasury because we were already being looked after very well indeed. I went off to Brussels with a delegation to see the then Commissioner for Regional Policy about this. When we explained the situation to him, he turned to his officials and asked in French, “Could this possibly be true?”. His officials confirmed that, yes, Brussels was passing the money over to the Treasury in London and it was not being passed to those areas that were entitled to get the funding. It was outrageous. To his credit, the Commissioner took the matter up with the then Chancellor of the Exchequer, Mr Gordon Brown, and in the financial review a few months later—in July 2000 or 2001, if I remember right—an adjustment was made of the £442 million that had come from Brussels which was meant for Wales but had not been passed over. How on earth can we be expected to have full confidence that London will step in and fill the breach when that has happened in the past? At the very least we should have an assessment made as to what the effects would be, not just in Wales but in the other areas that might be affected by this.

Amendment 29 moves on to the question of agriculture. Whatever the pros and cons in various parts of the United Kingdom of the common agricultural policy may be, the farming unions in Wales have no doubt whatever what the impact will be, as 80% of farm incomes in Wales are dependent on Brussels. Of course, we will be told, “Ah well, that will be made up for again”. Are we going to go back and have something like the Milk Marketing Board regime or the type of sheep meat regimes that we had prior to the European Union? So much of our market for sheep meat is in Europe and the dependency of sheep farmers in particular on the European Union is very considerable indeed. I am not saying that I know all the answers to these arguments—I do not—but the farmers and those in the universities and other sectors of the economy are entitled to know them. At the very least, clear and unbiased statements about the factual reality should be put out by a Government who have looked at both sides of the argument.

At present, Wales gets a net advantage of some £40 per head per annum from the European Union. It is not a tremendous sum but it is an advantage—other areas will no doubt have a disadvantage. People should know, to the best of our ability to tell them, what the effect of pulling out would be. That is the point of these amendments, which have the same objective as the earlier amendment that has been moved. I very much hope that the Government will give some firm commitment on these matters.

[Lord Blencathra (Con)]

My Lords, I will speak to my Amendment 27. I agree entirely with the noble Lord, Lord Hannay, that this group of amendments and the consequences of leaving or staying in are among the most important that we shall debate in this House. The noble Lord, Lord Hannay, has moved an amendment asking the Government to report on the possible consequences to the UK if we vote to leave. I believe it is equally important that we have an assessment of the likely consequences if we vote to stay in. Some might ask how one can report on that when one has no idea what the EU might agree to in a future treaty. That is true, but only to a certain extent. There is a track record here; the EU has a bit of form on this. It is not as if we have not been here before on numerous occasions.

In 1989 we had the Delors report, calling for full European integration. It was pooh-poohed by the UK Government and press as something that was never going to happen, but that ignored the inexorable drive to ever-closer union—though that was not the terminology then—that led to the Maastricht treaty. We got qualified majority voting and the start of interference in justice and home affairs measures, as well as a host of other unexpected consequences. Of course, the British people were given no say in a referendum. So we got the Delors report, warts and all.

About 10 years later, we had the Valéry Giscard d’Estaing grand report, the draft treaty establishing a constitution for Europe. This, again, was pooh-poohed by EU supporters as not being a radical change, and nothing to worry about. If I recall, the UK Government and press condemned it and said that it should not and would not happen. It was vetoed by France and then the EU did what it always does; it reintroduced it in slightly different clothes as the Lisbon treaty. Some 95% of the EU superstate constitution proposed by d’Estaing was incorporated into the Lisbon treaty and the name was changed from “constitution” in order to deceive the electors of Europe. Once again, the British electorate were given no say.

The point I am trying to make with these two examples is that that there is a track record of the EU taking ever more power from national Governments and vesting it in the Commission. Now we come to the core of my amendments, based on the five presidents’ report, published in June or July this year. If we say to the British people, “Look at this report; this is what you can expect if we stay in”, the response of the BSE campaign will be that it is just some vague suggestions; it may not happen and if it does, it will be years away and will apply only to the eurozone members in any case. In other words, these are the same lines we were spun about the Delors report and the d’Estaing report, but a few years later they became binding treaties.

--- Later in debate ---

[Lord Grocott]

My Lords, I am sure the noble Lord, Lord Wallace, will agree that it is essential to any dispassionate debate—if such a thing is possible—that both sides of the argument should be presented. All the amendments in this group are of a similar character—they all seek further information to present to the British public before the British public make a very important decision. I do not have a problem with any of the amendments because I am in favour of the British people having all possible information. I would like them to have even more information, were it possible.

I cannot find a way of tabling an amendment on this subject that would be in order, but I would love the British people to be able to consider—on the principle that it is better to look in the history book than in the crystal ball—the last time that a major decision in relation to the European Union was made in this country, which was when we decided not to join the euro. I think that that was a splendid decision by the last Labour Government. They went to some lengths to present to the British people the facts of the arguments of those who were in favour of Britain joining the euro as well as the facts as to whether the forebodings of their prophets of doom came into being. I remember that there were all sorts of arguments about the collapse of inward investment into Britain should we not join the euro, and so on. However, that point is out of order so I shall not speak to it at length.

The only problem I have with these amendments—it was part of my interventions on the noble Lord, Lord Hannay, although it does not, in my book, disqualify the amendments—is that I have considerable doubts that I could say that the word “objective” is a characteristic of every amendment in this group. By way of illustration I will refer again to the common agricultural policy. I mentioned the amendment in the name of the noble Lord—I was about to call him my noble friend, although he is not far off—Lord Wigley, with whom I agree on so many things. I agree with him very much that it is extremely important that there should be support for British agriculture in difficult terrain such as north Wales. The noble Lord knows far more about that than I do, but it is extremely important that there is support for that economic activity in our country. However, if we are to have a report on the consequences of coming out of the common agricultural policy, do we or do we not include the presumption—and only a fair-minded person would have to make this presumption—that some of the moneys currently spent by the British taxpayer on the common agricultural policy should be spent directly on British agriculture by the British Treasury?

[Lord Wigley]

That is, indeed, a central question. However, it is not a matter on which we should make an assumption. We should be told whether or not that will be the case.

[Lord Grocott]

It would be fine if that happened, but the figures are worth reflecting on. I find it difficult to imagine that the contribution to British agriculture would be less than it is currently via the common agricultural policy. I took the precaution of getting an up-to-date figure—I assume that responses from Ministers are accurate on these matters. I asked the Government two or three weeks ago what the current cost of the common agricultural policy was and the answer from the noble Lord, Lord Gardiner of Kimble, was €55 billion for 2015. He went on to say that the CAP accounts for 40% of the EU budget.

Noble Lords who regularly contribute to economic debates—which I do not—will be able to do these figures in their heads. However, €55 billion is the total cost of the CAP. That represents 40% of the EU budget. The UK contribution to the EU budget as a whole is €16 billion. Let us work that out. Off the top of my head, I think the British contribution to the cost of the common agricultural policy is 2 billion or 3 billion euros. I repeat that I have doubts about the use of the word “objective” in this kind of discussion, but it seems that anyone considering this objectively would have to consider that a very substantial contribution to agriculture—that vital industry in this country—would have to come from the British Exchequer if there were less support coming via our contributions to the CAP.

--- Later in debate ---

[Lord Dobbs]

My Lords, the noble Lord, Lord Wigley, said that he could not see how any reasonable person could possibly object to these amendments. I hope that I will be able to open his eyes just a little. We have already heard, even in the extended debate on this proposal, just how easy it is to slip into outright campaigning. It seems to be impossible to separate the facts from the campaigning. They say that there are facts, political facts and campaigning manifestos. I happen to have written a few campaigning manifestos in my time. I know what wicked statements they are, and I am very glad that I have left all that behind me and now simply write works of fiction.

The amendments of the noble Lords, Lord Hannay and Lord Blencathra, and others call for an official report—but could any official report ever be worth the paper it was printed on? For instance, an official report at the start of this year that talked about immigration policy in Europe would not have known how events were going to impact on it, and would presumably have looked totally different six months later. The noble Lords, Lord Wigley and Lord Hannay, ask us to gaze into the future of agricultural policy. What will happen if we vote to leave? It depends who is making those decisions after we leave. You do not have to be a political seer to suggest that there is a strong possibility that, if we decide to leave the EU, we will not even know who is going to be Prime Minister six months after that vote. That is the political reality.

[Lord Wigley]

Does the noble Lord not accept that the Prime Minister himself, when he comes to a judgment on whether to recommend the package he will have renegotiated, will be making some assessments—presumably quantifiable—of the implications of that renegotiation? Is it not reasonable that those who are asked to vote on this have as much information as possible?

[Lord Dobbs]

I agree entirely with the noble Lord that they should have as much information as possible. However, as well as known unknowns there are also unknown unknowns—as someone once said—which are completely dominant in this area. As far as the EU is concerned, it is the unknown unknowns that have come to the fore and gained strength in recent months and years.

--- Later in debate ---

[The Minister of State, Foreign and Commonwealth Office (Baroness Anelay of St Johns) (Con)]

My Lords, I am grateful to all noble Lords for their contributions to what has been an extensive and certainly an important debate today. This Bill sets the stage for one of the biggest decisions that the British public have been asked to make in a generation. It is absolutely right to say, therefore, that the British public should expect to be able to make an informed decision and to be provided with information about the possible consequences of the decision they take when they cast their vote.

The debates today give the Committee the opportunity to consider what information it is appropriate and/or necessary for the Government to provide at the conclusion of the negotiations for a reformed EU. As the Electoral Commission has recognised, it is the designated campaign organisations that will play a crucial role in providing such information. This is the established practice in the United Kingdom and is in line with the Council of Europe’s best practice guidance on referendums. However, as the noble Lord, Lord Hannay, has argued, along with many other noble Lords, there may also be a role for the Government. That issue has been fully discussed today, and there are further matters relating to that in other groups that we will discuss later today.

Each of the amendments in this group creates a statutory requirement for the Secretary of State to publish a report no later than 12 weeks before the date of the referendum and to lay such reports before each House of Parliament. Before I refer to the timeframe itself, in line with the normal practice in these circumstances, I should comment on the different content required in each report as set out in the amendments themselves.

Amendment 21, in the names of the noble Lord, Lord Hannay, the noble Baronesses, Lady Morgan of Ely and Lady Smith of Newnham, and my noble friend Lord Bowness, requires the Government to publish a report that sets out information on the consequences of withdrawal from the European Union. The report must cover: the effect that withdrawal would have on the rights of individuals in the UK, and on the rights of UK and EU citizens living in the EU and UK respectively; the legislative consequences for each government department and the devolved Administrations; and the impact on social and environmental legislation, law enforcement, security and justice. Many noble Lords have intervened in other Members’ speeches with regard to these matters.

This has been a very useful opening salvo to the debates today on information, but I rather feel that the noble Lord, Lord Hannay, will not be too surprised if I remark that his amendment is highly prescriptive. I know that he meant to set out a very good construct around which other noble Lords could contribute; he has achieved just that and I am grateful to him. As for the content of the amendment, the duties that it imposes are onerous. That is not necessarily a reason to not do this, but I am very mindful of what my noble friend Lord Higgins said when he posed the question of whom these reports are meant to be for. That is what we need at the core of our deliberation. The public are educated and sophisticated, and those of us who are unelected take those who cast their votes for another place very seriously indeed. When we go on the doorstep, we listen to what they say. We are confident, as we should be, that they want to see clear, objective information, but the question to consider is how that will be best delivered. How will it be objective? As my noble friend Lord Higgins said: how will it be accessible? We want not to overwhelm people with detail but to enable them to make an informed decision.

Amendment 21 would also need to be carefully reworked before it could appear in the Bill. For example, the references to “European” or “United Kingdom citizens” and to “devolved jurisdictions” would need to be corrected. We would need to work out whether there was an intended distinction between the use of the terms “legislative” and “statutory”. We would also need to clarify what was intended by the term “social legislation”, which is at present so broad as to be unclear. The very broad nature of the examples that noble Lords gave showed the difficulty with the definition. We would also need to think carefully about which of the areas in question, such as environmental legislation, were devolved matters.

I know the noble Lord, Lord Hannay, has used this as a valuable spur to debate, but I should put on the record why it would not be appropriate to accept the amendment, which appears to require detailed analysis of future discretionary changes to devolved legislation, without first consulting the devolved Administrations. I hope that noble Lords will accept that it would be inappropriate to commit at this stage, on behalf of four different Governments, to producing such broad analysis. To condense this into one report could be confusing to those who need to make a decision at the ballot box.

Amendment 27, tabled by my noble friends Lord Blencathra, Lord Hamilton and Lord Flight, would create a statutory requirement for the Secretary of State to publish a report and lay it before both Houses of Parliament 12 weeks before the date of the poll. Unlike Amendment 21, this report must set out the consequences for the United Kingdom of remaining in the European Union. The amendment has given the Committee a valuable opportunity to broaden the debate on what constitutes information appropriate for the Government to publish. In that respect, it assists the debate today. However, like Amendment 21, this is a highly prescriptive amendment that sets out six areas that the report must cover. These include the effect on the UK’s social security systems, its insolvency law and its place on the IMF if it were to remain in the European Union. Noble Lords will be aware that providing the level of detail required by this amendment on a wide range of policy areas could involve a high degree of speculation. We would all be cautious about that, I hope. Without a crystal ball—I do not have one to hand—I fear that we could struggle to anticipate future policy developments at EU level. I know, as I have heard it from all quarters around the Committee all afternoon, that noble Lords want to ensure that any information provided to the public is well founded and assists an informed decision.

Amendments 28 and 29, from the noble Lord, Lord Wigley, and Amendment 30, from the noble Baroness, Lady Morgan, focus on the consequences of a withdrawal from the EU on structural funds, support for agriculture and Gibraltar. Amendments 31 and 32, from the noble Lord, Lord Green of Deddington, focus on the consequences on net migration of remaining in the EU and access to citizenship for non-EU citizens within member states. I will make two points with regard to all these amendments. These are highly specific obligations. The question we need to consider is whether every one of the requirements set out in these amendments represents the extent of the information that the general public would need from the Government or not. We come back to the question of what it is right for the Government to propose for the public—which includes us as voters—to be able to make a well-informed decision. Noble Lords clearly already have varied views on that, and we need to see how we take that forward to be able to come to some common conclusions at some stage.

[Lord Wigley]

I thank the noble Baroness for the attention she is giving this. If the Government were unable, after considering this matter, to give a commitment to bringing reports on structural funds and agriculture—which my two amendments address—would she rule out the right of the National Assembly for Wales to bring forward its own reports and its own interpretation of the situation?

[Baroness Anelay of St Johns]

My Lords, it would be wrong of me to give a commitment on that until I have come to the conclusion of what I may or may not be able to offer. I do not want to provide too much hope about what I am going to be able to offer, but I hope it will be seen to be constructive, which is how it is intended. I know the noble Lord makes a very serious point in his intervention. At the base of this, and what needs serious consideration, is what the Government should be providing and what should be provided by campaigning bodies.