European Union (Notification of Withdrawal) Bill

Debate between Lord Wigley and Baroness Falkner of Margravine

Report stage (Hansard): House of Lords
Tuesday 7th March 2017 Lords Chamber

[Lord Wigley (PC)]

My Lords, I support Amendment 1, but I believe we have Amendment 1 and Amendment 3 in the wrong order. If we pass Amendment 3, as I suspect may well happen, that would give Parliament the final say, which is certainly better than allowing the Government to walk roughshod over Parliament and decide for themselves. We cannot ignore the fact that the people, regrettably in my view, voted to leave the EU, although in doing so they did not have a clear view as to the alternative they were backing. If Parliament—or the Government for that matter—has the final say and the people who voted out last June do not like it, we could easily escalate the situation into an almighty crisis. That could be avoided by a confirmatory referendum.

Let us imagine over the next two years that negotiations get nowhere and the Government resort to the WTO basis with no preferential access to the single market. Car factories start closing, as the noble Lord, Lord Morgan, mentioned. Financial services move to Paris or Frankfurt. The EU insists on a €30 billion payment, or whatever, from the UK. EU nationals start quitting key posts in the NHS and expats find that they have to start paying for their healthcare in the countries they live in, or lose pension increments that arise from the UK. At that point, many who voted out will start bleating, “This isn’t what we voted for”. At that point, the only way for the Government to hold their line is to be able to tell them, “Okay, you will get the final say, so let’s see what happens with the final package”. It is therefore in the Government’s best interest to have a confirmatory referendum. I believe that is a very good reason for backing the amendment.

[Baroness Falkner of Margravine (LD)]

My Lords, I am unable to support the amendment. I say so with a heavy heart, but I am extremely conscious of the economic consequences, not least the ones the noble Lord just mentioned, of prolonged uncertainty. I will briefly sum up why. We have had uncertainty in this country from when the then Prime Minister made his Bloomberg speech, but more so since he started his negotiation. The negotiation took 14 months. We have had the referendum. That took four months to organise. So why are there noble Lords here who believe that it could be done in the space of an election campaign? The Electoral Commission’s role is such that it needs to take its time. We would probably run into a referendum around October 2019. If the result was that the country did not like what it got, there would have to be another negotiation, either to revoke Article 50 or to change the terms. That would bring us into the general election. If there is going to be a general election in 2020 anyway, there seems to me little value in having a referendum in early 2020 or late 2019.

That is just the chronology. To imagine that our EU partners would hang around from 2015 to 2020 without making provisional plans for a 12.5% hole in their budget, or for a potentially dramatic change in the relationship of 65 million people with the single market, is somehow not to understand even the EU’s position. I say that advisedly. We have seen HSBC move 1,000 jobs. We have heard Mario Draghi telling us that euro clearing would have to move. We have heard the Irish Government tell us that they are preparing for companies to move their office space. We know that 1.1 million people are dependent on the financial services sector, and their jobs are in line at the moment. The idea that business will hang around for a further four years was rebutted in the evidence we took for the report of the EU Financial Affairs Sub-committee on Brexit and its impact on financial services. We were told in terms that uncertainty was extremely damaging to the sector and that people therefore wished to have a transition period.

Let me conclude with one or two points that relate directly to some of the remarks made by speakers in this debate. The noble Lord, Lord Hain, said that a process which is started by a referendum should end with one. I accept the logic of that. The process started with a referendum in 1975. Until last year, the people of this country who are 60 years old or under had not had a say in our future direction. I have to admit with a heavy heart that they did not go in the direction I wanted them to go in, which was to remain, but they made their choice. So the process did start with a referendum and it will end with one. I suspect that what the noble Lord is alluding to is a third and potentially a fourth referendum.

The noble Baroness, Lady Wheatcroft, said that we do not know what the world will look like in a couple of years’ time, and I agree with her completely. That is why I look forward to debating the amendments to come about whether Parliament should make an assessment.

I am in a place where I think that referendums are a dangerous tool. Direct democracy, in my opinion, is dangerous. Referendums should be used with great care and clarity. We cannot explain a complicated negotiation result in a referendum, as Mr Cameron found out to his cost.