European Union Referendum Bill

Debate between Viscount Trenchard and Lord Forsyth of Drumlean

Monday 2nd November 2015 Lords Chamber

[Viscount Trenchard]

My Lords, I will not detain the Committee by going over all the arguments that have been made. I, of course, agree with those noble Lords who think that the information and any statements that may be produced should inform people about the consequences of remaining in as well as leaving the European Union. However difficult that may be, at least the Government should say what kind of association with the European Union they think would be desirable for the United Kingdom to pursue in the event that it votes to leave the EU.

My noble friend Lord Forsyth commented that under the Bank of England bank deposit guarantee scheme the maximum amount that is guaranteed has been reduced from £85,000 to £75,000. It is clear that that is because the euro is the currency of the European Union and all monetary values are determined in euro amounts. I suspect that this has happened because the sum was fixed at €100,000, which was approximately £85,000 and is now approximately £75,000. That is why the Bank of England has reduced by a significant percentage the maximum amount available under its guarantee scheme.

I also noticed that, according to the Daily Telegraph, Cabinet sources have informed that newspaper that the Prime Minister’s thrust for substantial alterations to our terms of membership will cover four main areas, and that he is asking for an explicit statement that the euro is not the official currency of the EU, making it clear that Europe is a multicurrency union. From that it follows that if Europe is to be a multicurrency union, it would not be possible in future for the Bank of England arbitrarily to reduce the maximum amount under its guarantee scheme in the way that it has, or to increase it, should the currency movement be reversed.

[Lord Forsyth of Drumlean]

My noble friend is absolutely right. Is the situation not even worse, however, in that even if the Bank of England wished to set another level it cannot do so? British pensioners and savers are having to reorganise their savings to make a reduction. The British Government, the Prime Minister or the Bank of England do not have the power to decide a simple matter, such as how much is guaranteed on deposit. That illustrates how overwhelmingly intrusive Europe has become.

[Viscount Trenchard]

The noble Lord is completely right. As I said in at Second Reading, it is necessary that our renegotiations should include the repatriation of financial regulation, the independence of the Bank of England from the European authorities, and the independence and equivalence of our own financial regulators with those of the European ones, which should be those for the eurozone.