(11 years, 11 months ago)
Lords ChamberMy Lords, the monitoring and supervision of the large banks within the eurozone is coming in the so-called European banking union. It is obviously imperative that the group of 17 eurozone members cannot take over, in effect, the European Banking Authority which sets standards for the 27. In order to avoid that and to protect the EBA from risk, will the noble Lord comment on how watertight is the proposed requirement that there must be a simple majority of states, both in the eurozone and outside it?
My Lords, the noble Lord, Lord Williamson of Horton, asks a straight question: how watertight is the agreement on the requirement to have a majority? If I may mix my metaphors, the agreement that was struck in this council is absolutely rock hard. I do not think that I can put it more strongly than that.
(11 years, 12 months ago)
Lords ChamberMy Lords, it is always good to hear my noble friend and his reiteration of the case for us being a member of the European Union, with the benefits that being part of the single market gives the British economy and indeed European consumers right across the Union. I also agree with what he said about our negotiating position. It is extremely important to get a message over to the European Commission that the days of continual increases in the budget have to come to an end. It is no longer possible for Governments to argue for reductions in their own national budgets while agreeing to extend those budgets in the European Union.
My Lords, I declare an interest in that I spent a good part of my career on European affairs in the British Government and some part of it in the European Commission. It is difficult to comment decisively on a negotiation that is not finished but will apparently be resumed in January in order to seek to agree on a multiannual budget framework for the EU. I know of course that, if agreement is not reached, we shall have annual budgets, so there will not be a deadlock. There will, however, be high costs, so we have to be attentive to that. There has also been talk about the British rebate—and there always is whenever there are EU financial negotiations. Can the Minister once again confirm that the UK rebate is subject to unanimity, that it cannot be changed without our agreement and that it is indeed an intrinsic part of the financial arrangements of the European Union?
The two key points of the negotiation of the noble Baroness, Lady Thatcher, in which I participated, was that the UK would receive a substantial amount of money—by the end of 2010, the British taxpayer had received £68 billion, which is well worth having—and that the rebate could not be taken away by qualified majority. My view is that we can sleep easy on that point.
(12 years, 1 month ago)
Lords ChamberMy Lords, I do not think that I can give my noble friend what she would really like, which is an agreement with Chancellor Merkel’s position. The Prime Minister has said that he is willing to do a deal on the budget in November, so long as it is the right deal for British taxpayers. Given the tough trading settlement that all EU member states have had to pursue at home, there simply is not the case for increases in European spending that are above the rate of inflation over the coming financial framework, which starts in 2014 and goes on until 2020.
Furthermore, Chancellor Merkel and three other leaders in 2010 joined the Prime Minister in writing a letter for a call for action to curb the progressive increase in EU spending and we remain committed to that objective. Last Monday, Chancellor Merkel and the Prime Minister discussed the budget and, I gather, reiterated their ambition to limit increases in the budget. Of course, they agreed that officials should work together on this before they meet early in November.
My Lords, I recognise that the so-called banking union involving monitoring and in some cases intervention in banks within the eurozone but not in the UK could be advantageous if it helped to stabilise the financial situation in the eurozone, although some related issues could give rise to problems. It was expected earlier that the European Council would decide to complete the banking union at this meeting but, of course, the conclusions obviously do not do so. Indeed, among the 3,164 words—that is my count—in the conclusions on economic policy, it states on completing EMU that “informal consultations will continue” and that the European Council looks forward to a road map,
“at its December 2012 meeting, so that it can move ahead on all essential building blocks”.
That is not exactly a rousing conclusion. Will the Leader of the House give us a reasonable estimate of the timetable now for the completion of the banking union?
My Lords, that is a very seductive question. But it is really not possible for me or the British Government to give a view as to when we think that those negotiations and discussions will be completed. Apart from being extremely good at counting the number of words, the noble Lord probably has also read many reports in the press over the past few days about the view of other countries on the banking union, and he will understand just how difficult and complicated that is. However, we will continue to play a lead role in the development of common rules for the single market and encourage our colleagues to come to an agreement as quickly as possible.
(12 years, 4 months ago)
Lords ChamberMy Lords, I have made the point about the primacy of the House of Commons and I stand by it. Of course it is an essential principle of democracy that those who make the law should be elected and of course it is true that this House makes the law, as we are going to be doing later this afternoon. My noble friend is right. No law becomes law without the agreement of the House of Commons. This afternoon, this law cannot become law without the agreement of the House of Lords.
My Lords, I am aged 78 and I expect personal decomposition before we ever agree on the composition of this House. I welcome what is in the Bill about the independent Members and the statutory commission but I raise one single question. How can the noble Lord the Leader of the House justify the phrase in the Bill that,
“present party political activity or affiliation does not necessarily preclude selection”,
as an independent Member? I do not think that that is right.
My Lords, I think the whole House would agree that the noble Lord looks to be in robust health and I wish him continuation of that for very many long years. The line he takes is the point made by the noble and right reverend Lord, Lord Harries. It is our view that non-party political Members will be appointed. There may be a case for saying that former eminent politicians who have no interest in continuing a party political role could be selected by the Statutory Appointments Commission, but it is a statutory commission and not one which is guided by party politicians.
(12 years, 8 months ago)
Lords ChamberMy Lords, I am very grateful to my noble friend, who of course is quite right that it is good to concentrate on jobs, growth and competitiveness. It is also important that we should work together. Britain is very much in the lead on this co-operation, working closely with other countries. The Statement is very clear not only about the British interest but also the wider European interest. That is why we have sought to complete the single market in services, the digital single market and also the energy single market, which we believe will be a substantial force in reducing prices overall and raising living standards throughout Europe. It is our intention to continue working together on these important issues at a European and bilateral level. We can see from the letter that was agreed by 12 of our partners that there is a good deal of co-operation.
My Lords, I, too, welcome the Government's Statement, and in particular the front-line role given to the statement that the biggest challenge for Europe's long-term future is to secure sustainable growth and jobs. I note that in its conclusions, the European Council states that it will concentrate on the implementation of reforms and pay particular attention to measures that have a short-term effect on jobs and growth. That is long overdue and I am very pleased to see it.
I am one of the Members of the House who reads all 45 paragraphs of the conclusions, not just the Statement. I will make one comment and then pose two questions or invitations to the noble Lord. My comment is that I am very pleased to see, in the section on action at a national level, that inter alia all member states are invited to remove barriers to the creation of new jobs. I make this point because it is important to realise that in the single market it is not just the EU institutions and the UK Government but the prosperity of the whole Union that matters. That is a very important point that could ultimately be advantageous to UK growth.
My first invitation is that the Leader of the House should spend a day and night giving priority to two points in particular. I say that because long experience has taught me that conclusions always have masses of things in them, and that if one wants to get anywhere one has to concentrate on one or two major points. The two points that strike me as very important are well known and come from the text of the conclusions. The first is that,
“efforts will continue in order to … reduce the administrative and regulatory burdens at EU and national level”.
Personally, I would like to have seen a stronger word than “continue”. I would like to have seen something like “be stepped up”. However, it is extremely important for the United Kingdom to keep the emphasis on this point, even if it irritates some people, because we need action.
My second point concerns paragraph 18, which states that,
“efforts must be stepped up”—
I am glad that this time it says “stepped up”—
“with a view to … creating the best possible environment for entrepreneurs to commercialise their ideas and create jobs and putting demand-led innovation as a main driver of Europe's research and development policy”.
This is not referred to in the government Statement, but it is important. There is great potential for Britain in using European research and development policy to drive action at a commercial level as well. Over time it could be highly beneficial. Therefore, I invite the noble Lord to spend a day and a night concentrating on those two points with his colleagues.
My Lords, I very much welcome what the noble Lord said. He is not alone but part of a small and very keen group of Peers who read and study the conclusions and then ask me questions on them. Fortunately, I, too, am one of those who read them. That does not mean that the noble Lord will never catch me out. However, my eye was drawn to these two conclusions—particularly the one that mentioned taking steps to remove administrative and bureaucratic burdens. This is something the Prime Minister spent a great deal of time talking about at the Council, one of the reasons being that very often Council conclusions will talk about these measures and about growth and employment measures but the Council does nothing about them. It is very important that we get into a process where the Council and the Commission do something about them.
Secondly, on more innovation, I very much admire the noble Lord for bringing this one out. Innovation is going to be the engine of growth within the whole of Europe, as he rightly pointed out, and I very much welcomed his earlier remarks about this Council being on sustainable growth and jobs. The key to all this is, of course, implementing these high sounding phrases. The noble Lord was correct in pointing out that this is not just about doing these things at a European level or, indeed, a British level. It is for every country in Europe to play a role. Within our own parliamentary system, we need to be part of that process that pushes down on regulation. We try to remove barriers to trade wherever we find them. The history of post-war Britain is that where we remove these barriers, we increase growth and employment prospects for all.
(13 years ago)
Lords ChamberMy Lords, I have a lot of sympathy with what my noble friend says, and he is right; legislation is more difficult and complicated, in large part because we live in a more difficult and complicated world. You just have to look at the growth in technology and the subsequent substantial increase in regulation and secondary legislation. There is more legislation from Europe; there are active judges and so forth. However, I wonder whether my noble friend’s solution is necessarily the right one. You could not get much more collective wisdom than is present in your Lordships’ House, where every piece of legislation is discussed and debated very thoroughly.
Does the noble Lord agree that this epidemic of legislative obesity has produced on average 3,165 pages of government Acts each year for the past three years, compared with 1,325 pages a year under the Attlee Government in 1945 to 1947, when really important legislation was being enacted? This extends to secondary legislation; in the last yearly statistics—we are right up to date—there were 10,662 pages of statutory instruments, of which admittedly 8.5 per cent were made under the European Communities Act but 95.1 per cent were our national legislative mountain. Does the Minister agree that is extremely difficult for ordinary citizens to comprehend what is being enacted in their name?
I am not going to quarrel with the noble Lord’s figures or, indeed, his conclusion; increasingly people have difficulty in catching up with the changes that are made regularly in legislation. Unless we get this right, there is a danger that at some time in our lives we will all become law-breakers solely out of ignorance. We keep these things under review and we wish to have legislation which is clear and simple and easy to understand. I know that this House will support our efforts.
(13 years, 6 months ago)
Lords ChamberMy Lords, obviously what we are dealing with is an important constitutional issue. That is what we need to concentrate on. I want to put two specific points to the Leader of the House, because while I do not care too much about the new elected Members, I care about my friends who are here now.
My first point is that, when we come to the first election, the draft Bill proposes in Schedule 6 that two-thirds of the existing Members would be considered transitional Members. Accordingly, one-third of my friends—I cannot see which ones—will not be here any more. I really think it is essential to be clear how it is going to be achieved. The Leader said that that is dealt with in the document but I cannot find it, even though I read very fast.
My second point is that this document sets out the membership of the House and includes the transitional Members. Again, in Clause 59, the draft Bill says that all Members listed at the beginning are to receive a salary. Accordingly, I assume that all my friends here who have not been slung out because they are not in the two-thirds will receive a salary. Would the noble Lord confirm that?
The noble Lord, Lord Williamson, is not only a fast reader; he reads in a very exacting way. I will deal with the second point first. Newly elected Members in the new regime would receive a salary, which would be decided by IPSA.
(13 years, 10 months ago)
Lords ChamberMy Lords, some of us are very keen to see the possibility of some approach that would lead to a solution to the evident difficulties in the passage of the Bill through the House. Since we have dealt with the amendments to Part 1 of the Bill, it would seem reasonable to foresee that this part of the Bill should go through with a view to the referendum taking place on 5 May. However, the timing for Part 2 of the Bill is not so tight, as it requires action on constituencies to be in place by October 2013, with a view to the next election. Has the Leader considered—or would he consider—the possibility that the Bill might launch the Boundary Commission’s work but that Part 2 would come fully into force only by order at a later date? We know there are several other issues, such as the need for some flexibility in the 5 per cent margin on the size of constituencies. However, I intervene now on this key issue of timing so that the Bill might pass but Part 2 be brought fully into force later by order, without compromising the start of work by the Boundary Commission.
I thank all those who have taken part, particularly the noble and learned Lord. I very much recognise the constructive way in which he wishes to continue. I hope we will soon be able to restart the Committee stage. I also thank the noble Baroness the Convenor of the Cross Benches. It is always difficult for the Cross-Benchers to involve themselves in what they might see as being a political fight. This is now much more than a political battle; there are serious issues about the role of the House in scrutiny, which I tried to lay out. I very much welcome what the noble Baroness said.
I will not respond in detail to what everybody has said. I say briefly to the noble Lord, Lord Pearson: there are many opportunities in this House to raise the issues that he has raised—in Private Members’ Bills and through amendments to other Bills. He may well have a point but it is a point that is not part of this Bill, specifically. I urge him to raise these matters in debate, rather than on this Motion. The noble Lord, Lord Williamson, makes a suggestion similar to those that many others have made. We do not mind how we resolve these issues—we know that there must be a resolution—so long as we do not delay the main purposes of the Bill. I beg to move.
(14 years ago)
Lords ChamberI think that the whole House will agree—and if not, they should do—that he spoke with tremendous good sense in support of the Statement and of the Prime Minister. Of course, there are others in this House—in both Houses—who have a division of view between Euro-enthusiasts and Eurosceptics. However, that need not divide us on the broad direction that we should remain part of the European Union and that we should argue for change internally, which is what we have been doing in the past week in laying out a very clear framework for budgetary change over the next 10 years. We will be at the forefront of making those arguments. Following on from what my noble friend said, we are not alone in this or isolated in Europe in wanting a proper budgetary discipline. The noble Lords opposite had an opportunity, over the past 10 years, to get this right and spectacularly failed to do so.
My Lords, on the EU budget for 2011, I thank the noble Lord the Leader of the House for making it clear in the Statement not only that the European Council will not accept more than 2.9 per cent but that if the Parliament and the Council do not agree, there will be no increase at all. I think that would apply not only to EU policies but to the expense rates, travel allowances and things of that kind in the European institutions. Under the provisional twelfths regime, money at this year’s level—but no more—will be available on a month-by-month basis. In view of this, will the noble Lord the Leader of the House keep the House informed on the discussions between the Council and the European Parliament so that we know whether, from 1 January, there will be an increase of 2.9 per cent or a zero increase?
My Lords, the noble Lord, Lord Williamson, brings a wealth of experience to the House and real knowledge of the workings of the European Commission and European Parliament. What he outlined is entirely correct; if there is no agreement to the 2.9 per cent then there is agreement on no increase at all. The current spending pattern would be rolled over to next year and it would be paid on a monthly basis—it would be divided by 12 and paid out on those terms. It also includes all expenditure: expenses, allowances, salaries and so forth. We would greatly welcome that result and it would be very nice to hear from the noble Lords opposite whether they would welcome it too.