European Union (Notification of Withdrawal) Bill

Debate between Lord Wigley and Lord Blencathra

Committee: 1st sitting (Hansard): House of Lords
Monday 27th February 2017 Lords Chamber

[Lord Wigley (PC)]

My Lords, I have put my name to Amendment 4, which was so effectively moved by the noble Lord, Lord Hain. Amendment 5, which is in my name and grouped with it, covers some of the matters that have already been discussed in the debate on Amendment 1.

The issue here is vital to much manufacturing industry in the UK and I am grateful to the noble Lord who spoke a moment ago emphasising that. The EU market is absolutely critical for manufacturers. This is generally true throughout the UK, but it is particularly true in Wales, where manufacturing represents a significant part of the economy and where the service sector is somewhat smaller than it is in other parts of these islands. I note the points made by the noble Lord, Lord Howell, and I respect them, but those arguments do not carry so much weight in Wales, given where we are now.

That is why the Welsh Government, led by Labour First Minister Carwyn Jones, jointly with the official Plaid Cymru Opposition led by Leanne Wood, have taken the unusual step of publishing a joint White Paper, Securing Wales’ Future, which has been endorsed by the National Assembly for Wales as a body. The White Paper calls for us to have,

“a new relationship with Europe”,

so it obviously accepts that, as a result of the referendum, we are leaving the EU as it is presently composed. That is something that I greatly regret, but it seems to be the reality.

The central theme of the White Paper is encapsulated in the following summary paragraph:

“We believe that full and unfettered access to the Single Market for goods, services and capital—including our key agricultural and food products—is vital for the forward interests of Wales and the UK as a whole and we urge the UK Government to adopt this as the top priority for negotiation with the EU”.


The reason for putting so much emphasis on this dimension is simple. When the old heavy industries in Wales declined as a source of employment, the replacement strategy adopted by successive Labour and Conservative Governments in London, and thereafter by Governments of Wales in Cardiff—and central to the highly successful work of the WDA—was to maximise inward investment to Wales by companies from America and Asia wanting to secure a manufacturing base in order to sell to the EU market.

This approach has been the key strategic element that has helped Wales to build a new manufacturing economy over the past three or four decades. I personally saw the merits of this at first hand, having worked before entering politics with three American corporations—Ford, Mars and Hoover, which was at Merthyr Tydfil at that time—and then having helped to set up a small company, Alpha-Dyffryn, which I chaired for nine years. This company was the sprat that caught the mackerel and secured the Siemens factory at Llanberis, which employs some 400 people and was established to sell to the European market.

What I know about all American companies coming to be based in Wales—companies such as Ford at Bridgend—is that they do so in order to sell to a European market of 500 million customers. If such companies had to overcome tariff or technical barriers, they would think twice before locating in Wales—or, indeed, in north-east England, Merseyside or the Midlands. They would certainly think twice about increasing their existing investment. Such unhampered access is equally relevant to key Welsh industries such as agriculture: 90% of our exports of beef and sheepmeat go to the European market.

The Welsh Government are not blind or deaf to the outcome of the referendum. They recognise that two elements that influenced some, though not all, of the out voters were, first, migration levels from the EU to the UK—although this amounts to only 2.6% of the population in Wales—and, secondly, the wish to avoid what some saw as unnecessary regulation. Those two elements may militate against our continuing full membership of the single market—although we note that, as has been mentioned, this is a price that Norway finds worth paying. Indeed, as has also been mentioned, some of the campaigners to leave the EU argued during the campaign that we would be able to seek a Norway-type relationship.

The Assembly White Paper states explicitly that the Welsh economy,

“will continue to need migration from EU countries to help sustain our private sector economy and public services”.

This is true of the tourist sector, of food processing, of the university sector and of much more. It is in the interests both of Wales and of the EU to reach an agreement that allows barrier-free access to the single market in return for an agreement to allow EU migrants to come to Wales to work. I emphasise the words “to work”. That is the key element in the approach of the Assembly White Paper, which explicitly states that,

“freedom of movement of people is linked to employment”.

That is the requirement and it should be acceptable both to EU countries and to ourselves.

What we ask in the amendments is that the Government commit to such an approach in their negotiations with our 27 EU partners. Equally, with regulations that may be needed to avoid market distortion, it should be possible to agree, and for the UK to legislate, for such regulations as may be needed to maintain a level playing field. In fact, the European Union Committee recognises this in its report Brexit: The Options for Trade, which, in paragraph 43 of the summary, on page 76, says:

“The notion that a country can have complete regulatory sovereignty while engaging in comprehensive free trade with partners is based on a misunderstanding of the nature of free trade. Modern FTAs involve extensive regulatory harmonisation in order to eliminate non-tariff barriers, and surveillance and dispute resolution arrangements to monitor and enforce implementation. The liberalisation of trade thus requires states to agree to limit the exercise of their sovereignty”.


In the context of these amendments, that is a very pertinent paragraph.

What is being sought by the cross-party approach in Wales is neither unreasonable nor impractical. Indeed, the wording of the Government’s White Paper leaves a small chink of light that suggests that they may in their heart be amenable to such an approach. Indeed, in paragraph 8.3 of the White Paper they say that a new negotiated agreement,

“may take in elements of current Single Market arrangements in certain areas as it makes no sense to start again from scratch when the UK and the remaining Member States have adhered to the same rules for so many years”.

Precisely. So why will the Government not accept one or other of the amendments as a token of their sincerity in that approach, or at least table their own amendment along these lines on Report? Industry, business and agriculture would then sleep much more easily—and so would the Government of Wales.

[Lord Blencathra (Con)]

My Lords, I have no problem in agreeing with the noble Lord, Lord Wigley, that a good trade deal, and a fair trade deal, is important for Wales—and, indeed, for all parts of the United Kingdom. My problem with the amendments is that they fly directly in the face of what the people voted for. Since the referendum, many remainers have been peddling the myth that the people voted to leave the EU but not to leave the single market. The single market was not on the ballot paper, they say, so the people could not have voted for it. Apparently they just wanted to leave the EU but to stay in the single market; we heard that point put passionately by the noble Lord, Lord Ashdown, a few moments ago.

Remainers have accused my right honourable friend the Prime Minister of “opting” for a hard Brexit. I submit that that is nonsense. The Prime Minister is not opting for a hard Brexit, a soft Brexit or any sort of squishy Brexit; she is merely attempting to carry out the wishes of the people to leave the EU. That automatically means leaving the single market, because if we stay in the single market we are still in the EU, to all intents and purposes.

European Union Referendum Bill

Debate between Lord Wigley and Lord Blencathra

Wednesday 18th November 2015 Lords Chamber

[Lord Blencathra]

I beg to differ with the noble Lord. I have almost concluded my remarks on the timescale on which we ban things and I am trying to show that, over the years, this House and the other place have been raising the age at which young people are permitted to do things. It is quite incongruous to suggest that, as we raise the age bar every year because we do not trust the ability of young people to make certain decisions, we should suddenly say that we will lower to 16 the age at which people have the right to vote in this referendum.

On 21 July this year we banned anyone under the age of 18 from buying fireworks. Without listing all the other legislation through which we have prohibited under 18 year-olds from doing things like opening a bank account, making a will or appearing in an adult court, the trend is pretty obvious. Rather than Parliament acknowledging that young people are growing up faster and can be trusted with decisions, rightly or wrongly, we have been going in the opposite direction. Almost every year we have been raising from 16 to 18 the age at which young people can do things. I simply say that we cannot have it both ways, as the proponents of this amendment are arguing. We cannot say that young people should be permitted to vote at the age of 16 because they are more aware and mature—and then push the age up to 18 for almost everything else.

I conclude by saying that if under 18 year-olds are not fit to serve on a jury and judge the fate of an individual human being, I submit that they are not fit to decide the fate of a nation.

[Lord Wigley (PC)]

My Lords, I tabled a detailed amendment in Committee to make this provision, but I am very happy indeed to support the amendment moved by the noble Baroness.

Against the background of the constitutional referendum in Scotland last year, it strikes me that a principle has been established that we as a House and the Westminster Parliament are willing to consider, at the very least, that in constitutional matters, this may be appropriate. The rationale as I understand it in Scotland was that the decision was so far-reaching with regard to the future of Scotland that everyone who could make a reasonable contribution to that decision should be encouraged to do so, and that 16 and 17 year-olds were seen in that context. Surely the decision we are about to take with regard to the future of the United Kingdom, inside or outside the European Union, is equally far-reaching. It is going to affect those young people and people of all ages for the rest of their lives.

Of course we have to draw a line somewhere, but saying that it is all right for people aged 16 and 17 to vote does not mean that we must then necessarily say, “What about 15, 14 and 13 year-olds?”. That reduces the argument ad absurdum. The principle has been acknowledged, not only in Scotland but also in Wales with regard to some of the changes to the powers of the Assembly that we may make. How on earth can we say that it is all right for young people in Scotland and Wales to vote, but not for young people in the context of the United Kingdom? Is the relationship of the United Kingdom with the European Union going to be seen as something that looks to the past and to a type of Britain that some people might identify with, but I suspect that the majority, both in this Chamber and certainly in these islands, might not? If we are looking forward, if we are outward-looking and positive and if we want our young people to play a role in that sort of community, surely we should trust them with regard to this vote. I hope very much that this Chamber will give them that opportunity.

European Union Referendum Bill

Debate between Lord Wigley and Lord Blencathra

Monday 2nd November 2015 Lords Chamber

[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.