European Union Referendum Bill

Baroness Anelay of St Johns Excerpts

Monday 23rd November 2015 Lords Chamber

[Baroness Morgan of Ely]

It is far more complicated. We are talking about 28 member states which will all have a say on our destiny in terms of our relationship with them in future. That is a completely different situation from the situation in Scotland. So no, I do not think there is a parallel here but the Government should come forward with some clarity, in particular on the procedural process.

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

My Lords, the noble Lord, Lord Kerr, made important points in his speech earlier this evening about the nature of this referendum and the fact that what the leave scenario will look like will be less clear to the public. That is certainly true by the very nature of this referendum. He has called for the Government to set out the relationship that they envisage for the European Union in the event of a vote to leave the EU, and he rightly highlights that it would be for the Government to negotiate on any future relationship in the event of a vote to leave.

The noble Lord, Lord Kerr, and just now the noble Baroness, Lady Morgan, have made it clear that it is the matter of the process which is important for the Government to clarify, and I shall certainly seek to do that among giving other answers to questions that have been posed.

The second part of the government amendment earlier today—Amendment 24B, which the House agreed to—seeks to address the earlier call of the noble Lord, Lord Kerr, for the Government to set out what some of the alternatives to membership might be. In response to the noble Lord’s amendment, we have proposed a duty that would require the Government to describe some of the existing arrangements that other countries have with the EU, where they are not members. I believe that this is as proportionate and reasonable a response as we can provide.

Noble Lords have called for any government amendment to set out evidence-based and authoritative information in a way that is as useful to the public as possible. However, I do not believe that it would be helpful, or indeed appropriate, for the Government to have a commitment in legislation to confirm at this early point exactly what the UK’s envisaged relationship would be with the EU, should the UK electorate vote to leave. I think that I can be more helpful to the noble Lord, Lord Kerr, as a result of the conversations that we have been able to have today, and look more deeply at the intention behind the amendment. I hope to come to that fairly shortly.

My noble friend Lord Hamilton correctly referred to the fact that this referendum is advisory not mandatory, but I can assure him that my right honourable friend the Prime Minister has said that we will abide by the decision of this referendum, whatever it is. The Prime Minister has said that the Government, of course, are now focused on delivering a successful renegotiation. Therefore, we feel that we cannot speculate on the types of possible arrangement that could be negotiable—not negotiated, but actually achieved—with the EU. In my right honourable friend’s speech at Chatham House, the Prime Minister gave his view on some of the existing alternatives. He made clear that Switzerland has had to negotiate access to the single market sector by sector. He pointed out that Norway is part of the single market but has no say in setting its rules.

What we sought to do, through my earlier Amendment 24B, is to provide the public with useful information about those existing models and others that other countries may have. We sought to meet the aims of the amendment of the noble Lord, Lord Kerr, as far as possible at that point. We made it clear then, and we have throughout our discussions at Second Reading and in Committee, that it is the campaigners on both sides of the debate who will have strong views about the arrangements. Any information published by the Government will be heavily scrutinised and interpreted in different ways by the campaign groups to make the strongest arguments for the case for remaining or leaving. One side is likely to argue that the Government have not been ambitious enough and that far more should have been possible, and the other side, I suspect, will argue the opposite.

The result for the public may be confusion—I appreciate that—rather than providing useful information. This would have the exact opposite effect from that which noble Lords have said they wish to support over the course of our debates. Indeed, if we were to set out early and in statute an envisaged relationship in the event of a vote to leave, it would simply invite media headlines because it would be interpreted that the Government were sending a strong signal that we had already prepared to exit the EU. I confess that I do read the Daily Mail and I can see the headline hitting me already. If I were to accept the amendment tonight I would be stepping into that bear trap. I know that that is not the bear trap that the noble Lord intended—that was not his intention.

As I said earlier in the debate, should there be a vote to leave, the Government would then at the appropriate moment need to engage with processes provided under our international obligations, including those under Article 50 of the Treaty on European Union. Of course, processes such as Article 50 have never been used in the past. This would be a precedent if it were to happen and that would make it all the harder to speculate on how such a negotiation might play out. Indeed, there could be unpredictable consequences to entering into a process to leave under any scenario, including that which encompasses the Article 50 process. Much play has been made about Article 50—I said to the noble Lord, Lord Kerr, earlier today that I now carry it around with me in my handbag wherever I go. Therefore I know that I also referred to it in some detail at an earlier stage in Committee and set out the processes that it engages. I will not abuse Report stage by reading again from the full text of that.

As I mentioned briefly but will now say more fully to the noble Baroness, Lady Morgan, before the referendum we will of course lay out what this process would involve. In this scenario, as in any scenario, the Government would seek to protect the interests of the British people. That is exactly what noble Lords would expect us to do. There has been some question about the whole issue of the process being tangled in international law—yes indeed. The noble Lord, Lord Kerr, raised an important question about whether the UK would abide by its international obligations. I can reassure him concisely that, of course, the UK will abide by its international obligations. The Government are committed to upholding the rule of law, including under any of the different scenarios for withdrawing from the European Union. I was most grateful to my noble and learned friend Lord Mackay of Clashfern for crystallising so clearly the problem at hand, as he so often does in this Chamber, and making it clear that international law requires the Government to go through the proper procedures if they wish to resile from a treaty obligation. That is certainly the case.

Indeed, my right honourable friend has made it very clear throughout his time as Prime Minister that he holds dear the golden thread. The golden thread means not only that we have government that is not corrupt and is careful of people’s interests, but involves strengthening international law, not weakening it.

[Lord Forsyth of Drumlean]

Given that the Prime Minister said that he rules nothing out, and that the Government will abide by any result in the referendum, surely we must assume that the Government are absolutely confident that they can make the necessary arrangements to enable us to leave the EU, and therefore this is a bit of a red herring.

[Baroness Anelay of St Johns]

My Lords, I am not quite sure what the colour of a herring may be, but all I can say is that I am sure that my right honourable friend could fillet it quite nicely.

However, the problem is that the result would not be predictable. This is the picture that the noble Lord, Lord Kerr, has carefully teased out. Clearly, there could be unpredictable consequences; that is why I am not in a position tonight to accept the amendment. There is also an issue about timing. It is simply not feasible, or indeed in the national interest, to tie the Government’s hands in legislation by setting out our preferred, almost negotiable, alternative before we have had the referendum, let alone before we know the consequences of the vote. We are focused on delivering a successful renegotiation. This debate, led by the noble Lord, Lord Kerr, has teased out the implications of the process. I hope therefore that I have put on the record more clearly the Government’s view of how those processes would be engaged. Although I am not able to accept the noble Lord’s amendment tonight, I hope that I have put on record sufficient information to enable him to withdraw his amendment.

[Lord Kerr of Kinlochard]

I thank the noble Baroness and all those who took part in this debate, particularly those who supported me. However, I am left worrying what the Scots have against me. When you think about it, everybody who spoke in support of my amendment was not a Scot and everybody who attacked it was a Scot—the noble Lords, Lord Hamilton, Lord Forsyth and Lord Lamont. I believe that the Stoddart family hailed from Scotland. Anyway, we Scots are a cantankerous lot.

I wish to comment on only three points from the debate. First, I totally agree with the noble Lord, Lord Stoddart, and indeed with the Minister, that the fact that the referendum is advisory, not mandatory, is a distinction without a difference. If the country votes to leave, we leave—that is for sure. I say to the noble Lord, Lord Hamilton, that I thought we had an agreement that we both were clear that any free trade agreement was perfectly possible. I am sure that it is perfectly possible although, of course, as the noble Lord, Lord Tugendhat, reminded us, there are free trade agreements and free trade agreements. Saying that it is possible does not guarantee that it is perfect. Where I cannot agree with the noble Lord, Lord Hamilton, is that I do not believe that it would be possible to secure full voting membership of the single market with no concomitant obligations on expenditure commitments. I do not believe that that is on offer or that it could be offered. That is where I differ from the noble Lord, Lord Hamilton. I am very grateful to my only Scottish ally in this matter—the noble and learned Lord, Lord Mackay of Clashfern—for confirming that my understanding of the law, although amateur, was in this case, by great good luck, correct.

The noble Baroness has moved a long way, for which I am very grateful. She has listened to what has been said in non-Scottish accents in various parts of the House during this debate. I think she is saying that, in the event that the country voted to leave, the Government would invoke Article 50—that that is the process that would be followed. I think she is also saying that the country would need to know before the referendum that, because we would be in an Article 50 negotiation, we would be unable to dictate the terms of our withdrawal—that that would be a matter for negotiation and that there could be, in her words, unpredictable consequences. I think she is saying that that is factual information, not speculative, which it would be the duty of the Government to make clear. The leave campaign will assert that we can dictate whatever terms we like. The stay campaign will assert that an Article 50 negotiation would, indeed, be a bear trap, as the noble Lord, Lord Forsyth, said. But what is important is that the Government should say what in their view would be the—

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[Lord Collins of Highbury (Lab)]

My Lords, we do not support the amendments tabled by the noble Lord, Lord Green, mainly because, as the noble Lord, Lord Lamont, said, they are highly speculative, impossible to calculate, unpredictable, and not based on factual information that the Government have. Confusing the free movement of labour with migration and simply putting everyone in together will not lead to a rational debate.

The free movement of labour has been an important component of the EU. Certainly, people have come here to work. Where they have not come here to work, the Government have been addressing those issues in terms of the benefits system, as the Labour Party has also committed to do.

I have no doubt that in the course of this referendum campaign, the noble Lords, Lord Green and Lord Willoughby de Broke, will repeat what they have said. They will make this issue part of the referendum campaign and I will take great pleasure in making sure that other voices are heard in that debate which challenge some of the assumptions about migration. But for the purposes of the EU referendum campaign, it is wrong to confuse the free movement of labour with migration, and it certainly is not capable of being subject to a rational report.

[Baroness Anelay of St Johns]

My Lords, Amendments 26 and 27, tabled by the noble Lord, Lord Green of Deddington, would create a statutory requirement for the Secretary of State to publish two very specific reports no later than 12 weeks before the date of the referendum, and to lay these reports before each House of Parliament.

The first of the reports, in Amendment 26, would focus on the effect that remaining in the European Union would have on net migration to the United Kingdom. The second would include information on access to citizenship for non-EU citizens within member states. As I have set out, and as the noble Lord, Lord Collins, just alluded to, the Government have come forward with amendments designed to provide information that is as useful as possible to the public, ensuring that they are able to make an informed choice. In addition, these reports should be appropriate for the Government rather than the kinds of reports that campaigning groups or other groups not related to the campaign might commonly issue in any event. We have said throughout that whatever the Government produce in the way of reports must be objective and grounded in fact.

The Government already publish information on migration issues in this country. The Home Office issues a quarterly release of immigration statistics from administrative sources. These statistics are complemented by the Migration Statistics Quarterly Report of the Office for National Statistics. Indeed, I understand that the next set of figures is due to be published this Thursday. In addition, the Office for National Statistics periodically publishes quantitative projections, looking at future figures and trends. That is it—they look at the likely future figures and trends. The Government should publish only reports that are grounded in fact and objective.

The wording of Amendment 26 is clearly speculative, because it asks the Government to publish,

“a report on the impact of continued membership of the European Union on the scale of net migration to the United Kingdom and its consequential effect on the future population of the United Kingdom”.

One can speculate on that, but one cannot provide statistical information grounded in fact that would guide the public in a non-directional way about how to vote in a referendum. I understand the noble Lord’s concern, but there are ways in which information is already provided, and it is better provided by others rather than by a statutory requirement on the Government.

On Amendment 27, my noble friend Lord Hamilton raised the issue of free movement. The amendment asks the Government to lay a report giving information,

“on the current length of time taken for people who are not European Union citizens to acquire citizenship in each member state”.

That in itself is not information to which the Government would have right of access, so I am not sure how a statutory requirement could be placed upon us. The amendment also asks us to report on,

“the extent of free movement within the European Union that accompanies such citizenships and accrues to family members of those citizens”.

Again, this is a matter of reporting on the law of other countries rather than conditions in this country. My noble friend Lord Hamilton raised a serious point about migration, and my right honourable friend the Prime Minister has made it clear that in his negotiations with our European colleagues—the other 27 states—one of his four requirements is that there should be reform of the impact of migration, particularly as it relates to welfare law.

I am afraid that my noble friend will have to wait a little while before we have a debate on exactly what the impact of the law on free movement is. But I am sure that the usual channels will arrange good opportunities for debate, because if they do not, the Government will not be able to set out our case—which we need to do. I feel confident that the usual channels will be there first, before I can even ask. I understand the concerns underlying the amendments. I hope that I have been able to explain why it would be inappropriate for them to go into the Bill—but also why their content will, indeed, be the focus of much debate, not just by Government and by Parliament but by all the campaigning groups. I therefore urge the noble Lord, Lord Green, to withdraw his amendment.

[Lord Green of Deddington]

My Lords, I thank the Minister for that response. The hour is late, so I shall be even briefer. There certainly are pull factors. There has been inadequate training in the past, and we have even cut our budgets for training. Secondly, I think that it was the noble Lord, Lord Collins, who spoke about EU migrants coming here to work—but 75% of them are in low-paid employment, so they are not a huge benefit to our economy. As for speculative projections, the Government produce population projections every two years. I assume that those are objective and grounded in fact, and could therefore be published, with the immigration assumptions underlying them.

As for Amendment 27 and the Government’s right of access to the citizenship laws of other countries, they have already answered Parliamentary Questions on that subject, so they clearly have some information. If they need any more, they have 27 embassies that could, I hope, help them. Apart from that, the noble Lord, Lord Lamont, has already said it all, so I shall say no more. I beg leave to withdraw the amendment.

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[Lord Wigley (PC)]

My Lords, I am glad to have the opportunity to welcome the amendment put forward by the noble Baroness, Lady Morgan, because it touches on an area that could cause considerable confusion and difficulties to charities. I am involved with a number of them and have known some of the problems that have arisen in the context of elections. It is quite clearly not a question of campaigning in a party-political sense but, equally, charities have a viewpoint on changes that can affect their fundamental raison d’être. They need to be able to put forward information for people to consider without being seen as campaigning. That dimension is complicated by the difference in the legislation that exists in different parts of these islands.

This is clearly a probing amendment and I very much hope that the Minister will at least be able to come back at Third Reading on this matter, if not tonight. Before I sit down, I thank her very much indeed for the way in which she and her colleagues have handled the Committee and Report stages of the Bill, and the outcomes we have had from it.

[Baroness Anelay of St Johns]

My Lords, I am grateful to the noble Baroness, Lady Morgan, for pointing out that this is a probing amendment. She was able to give us enough advance notice of this late-stage amendment to enable us, I hope, to gather together the reassurances that she and others rightly seek. Under charity law, political activity by charities is subject to strict rules. Charities are also subject to requirements of electoral law. My noble friend Lord Hamilton asked for some clarification on what appears to be obfuscation. That is what I hope to do at this stage, because he is right: it is important that the role of charities is clear and respected.

In England and Wales under charity law, a charity may engage in non-party political activity to support its charitable purpose where the trustees consider it to be an effective use of the charity’s resources. One is thereby pursuing the reason why the charity has been set up—what its mission is—but one is not permitted to take part in party-political activity. A charity must never support a political party or candidate, and must always take care to preserve its independence when engaging in any political activity.

Charity law is devolved in Scotland and Northern Ireland, but the rules are similar. There is already guidance for charities on referendums: for example, the Charity Commission for England and Wales published guidance in July 2014 entitled Charities, Elections and Referendums. The Office of the Scottish Charity Regulator published guidance last year ahead of the referendum on Scottish independence. The Charity Commission for Northern Ireland has produced general guidance for charities in Northern Ireland on political activity.

So we have had Charity Commission guidance in England and Wales, and the Scottish Charity Regulator and Northern Ireland Charity Commission have issued guidance. To complete the picture, the Charity Commission for England and Wales has already said that in principle it will be happy to work with the Electoral Commission, the Office of the Scottish Charity Regulator and the Charity Commission for Northern Ireland on this subject. However, it does not believe that there is a need for much additional material given the existing guidance for charities across the UK, some of which I have just referred to.

The Charity Commission for England and Wales and the Electoral Commission are meeting tomorrow to discuss the joint promotion and communication of their guidance in order to promote charities’ awareness and understanding of the rules that apply. I also understand that the UK charity regulators are due to meet later this week, providing a timely opportunity to discuss this issue and consider the potential for collaboration on such guidance. While the provisions of the Bill apply across the UK, we must recognise that charity law is devolved in Scotland and Northern Ireland. We must therefore also respect the independence of the different regulators and their entitlement to reach their own views in particular cases.

Given my explanation about the collaboration that is not just happening normally but is happening now, we do not believe that the amendment is necessary, given the willingness of the Electoral Commission and UK charity regulators to work collaboratively on this specific subject.

I do not think that the noble Baroness intended her amendment to be self-operative, because clearly it will create an unnecessary burden for the regulators, which she does not intend. She asked me to say whether the regulators have demonstrated a willingness to collaborate on guidelines. I say yes, and they are coming up with the evidence for that, as well.

[Lord Lea of Crondall (Lab)]

Before the Minister sits down, I am intrigued by whether she is saying that this is a one-off issue of conversation to do with the referendum, or is the word “political” and how it is used by the Charity Commission for England and Wales going to be subject to some new regime?

[Baroness Anelay of St Johns]

My Lords, perhaps I can unpack two parts of my response. With regard to the word “political”, clearly there are regulations and guidance that cover political activity across the whole range of what may happen in the United Kingdom, obviously including Scotland and Northern Ireland. So there is therefore a basis on which the regulators and charities work.

I then referred separately to the meetings that are taking place this week, which are looking specifically at the referendum and what it might entail. So we are applying the general to the particular to ensure that the way they collaborate is effective for the particular referendum. I hope that that is helpful.