European Union Referendum (Date of Referendum etc.) Regulations 2016

Baroness Anelay of St Johns Excerpts

Wednesday 2nd March 2016 Lords Chamber

Moved by

[Baroness Anelay of St Johns]

That the draft Regulations laid before the House on 22 February be approved.

Relevant document: 26th Report from the Secondary Legislation Scrutiny Committee

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

My Lords, before us today are two Motions, each of which goes to the heart of the United Kingdom’s place in the European Union. The first is a statutory instrument that, in light of the UK’s renegotiated relationship with the European Union, would set the date for the referendum. The second refers to a document published and laid before this House on Monday 22 February last week that sets out the terms of this new relationship.

I shall take each Motion in turn, but perhaps I may be forgiven if I start by saying how much I am looking forward to hearing today the maiden speech of my noble friend Lord Gilbert of Panteg.

The statutory instrument is required to set the date of the referendum. Given the deal achieved by the Prime Minister, it is time to give the British people their say. The Prime Minister has announced his intention to do so on 23 June, but it is for Parliament, in this House and the other place, to approve that date. The statutory instrument gives this House the opportunity to give its approval today.

The instrument does several other things, which I shall come to. First, let me set out why the Government believe that 23 June is the right day for the poll. The date strikes the right balance between having a proper debate and a timely vote. Any sooner and we risk unduly curtailing the campaign. Any later and we risk testing the patience of the British people. We have to take account of what is real in human life outside the world of politics. Shortly after 23 June, schools start to break up for the holidays. Whereas I know noble Lords will continue to work after that—I do not know, I assume so; we normally do—it would certainly be seen as awkward if we held the referendum while people were on holiday over the summer. That has not been a popular proposal in the past. Delaying beyond late June would mean delaying a referendum until September or October. The British people would quite rightly expect to have their say sooner than that.

[Lord Foulkes of Cumnock (Lab)]

My Lords, I had the opportunity yesterday of asking the Minister informally about the problem that might arise if the Queen’s Speech was to take place during the course of the referendum campaign and she kindly dealt with that. There was a report this morning that the Queen’s Speech is now going to be held in July. Can the Minister confirm if that is the case?

[Baroness Anelay of St Johns]

I am grateful to the noble Lord, who was helpful yesterday in one of the all-Peers briefing meetings that I have held to raise these matters. May I put on the record the answer I gave yesterday and respond immediately to his question? I have seen reports in the press, including in the Times. They have not been substantiated to me. Having been Chief Whip over a period of years, I am certainly aware of the fact that it would be highly unusual for any announcement of the Queen’s Speech date to be made as early as this. There is clearly no decision on that matter. However, the noble Lord raises an important fact about the Queen’s Speech and its interaction with the referendum. There is, I am assured, no inhibition on having the Queen’s Speech during the period of a referendum. That, I hope, underlines the initial answer that I gave yesterday. I am sure there is no let or inhibition on that going ahead.

It is important that people have enough time properly to inform themselves of all the options and to understand the consequences of their vote. Campaigners on both sides of the argument must have enough time to set out their case and have a full and robust debate. We believe that 23 June gives that balance. It also meets the practical requirements of the Electoral Commission. Its assessment of readiness, which was published last week, notes that the date,

“does not pose a significant risk to a well-run referendum”.

As well as setting the date, the statutory instrument also establishes the timing for three key stages of the referendum: the designation process, the regulated referendum period itself and the pre-poll reporting requirements. The House examined all those matters very closely indeed when the referendum Act made its passage through the House. The Electoral Commission’s assessment of readiness endorses the Government’s approach on each of these areas and notes that the arrangements for a well-run referendum are well advanced. This has been echoed by the Joint Committee on Statutory Instruments and by your Lordships’ Secondary Legislation Scrutiny Committee. Both have given the instrument their usual rigorous scrutiny and both were content with the approach proposed. I am grateful to the members of those committees.

The designation process is the means by which the Electoral Commission appoints lead campaigners on one or both sides. We have followed the Political Parties, Elections and Referendums Act in allowing a total of six weeks. The application window for campaigners will be open for four weeks from 4 March, were the House to agree later today that the statutory instrument be approved. The Commission then has two weeks, from 1 to 14 April, to decide which, if any, applicants to designate. Many noble Lords here today took an active part in the passage of the Act and will remember that designated lead campaigners receive a number of benefits, including: a higher spending limit, of £7 million; a free delivery of mailings to every household or every elector; and, assuming campaigners are designated on both sides, access to a grant of up to £600,000 and a campaign broadcast. The regulated referendum period follows the designation process, with no overlap of dates. It will run for 10 weeks from 15 April. During this period, full financial and campaigning controls will apply—in particular, spending limits for campaigners. I stress this point because this timetable specifically meets the requests made by Members of this House during the passage of the referendum Act. At that stage, I wrote to the noble Lord, Lord Willoughby de Broke, who will speak today on this very point.

Finally, the statutory instrument sets deadlines for registered campaigners to report any donations or loans to the Electoral Commission. It is the first time in a UK-wide referendum that sources of significant campaign finance will be visible and public before the poll, ensuring real transparency. This process was refined during the passage through this House of the European Union Referendum Act. I must thank in particular the noble Lord, Lord Jay, for leading that debate with his customary eloquence.

At the end of this opening speech, I shall move that the statutory instrument should be agreed to. However, the formal view of the House on that matter will be taken at the very end of proceedings tonight.

I turn now to the EU renegotiation. The British public made it clear that they were not content with the UK’s relationship with Europe. The Prime Minister sought to address that. In November last year, he wrote to Donald Tusk, President of the European Council, setting out in detail the four areas in which he was seeking reform. These were economic governance, competitiveness, sovereignty and welfare, which has been allied with migration in the press. At the February European Council the Prime Minister negotiated a deal covering each of these areas. This deal gives the UK a special status within the EU that no arrangement outside the EU could match. It is a good deal for Britain—as the Prime Minister has said, it is a deal that gives us the best of both worlds.

This agreement is legally binding. It is also irreversible, because it can be amended or revoked only if every single member state of the EU, including the UK, were to agree unanimously to do so. It commits member states to future treaty change. Last week, it was registered with the United Nations as an international treaty.

Taking each of the four issues that the Prime Minister addressed in turn, let me set out briefly what the deal gives us. I appreciate that noble Lords will have had the opportunity to look at the White Paper last week and to have considered other documents published since. On economic governance, the renegotiation secures the UK’s position inside the single market but outside the single currency. It means that we have new commitments from the EU to complete the single market and sign new trade deals. The responsibility for supervising the financial stability of the UK remains in the hands of the Bank of England and other UK authorities. We have made sure that we will never join the euro; British taxpayers will never be required to bail out the eurozone; British businesses cannot be discriminated against for not being in the eurozone. And all discussions on matters that affect all EU member states will involve all EU member states, including the United Kingdom, not just members of the eurozone.

On competitiveness, the renegotiation delivers a new commitment from the European Commission to review annually the burden of regulation on business. If there is too much red tape, we will demand that it is cut. There is a specific focus on relieving the burden on small businesses, and for key sectors. The agreement also makes it clear that the EU will pursue,

“an active and ambitious trade policy”,

and that it must boost its international competitiveness in key areas such as energy and the digital single market.

On sovereignty, we are out of ever-closer union. We will never be part of a European superstate. The text of the renegotiation includes a commitment to change the treaties to exclude the UK from ever-closer union,

“at the time of their next revision”.

We will not be compelled to aim for “a common destination”.

We have obtained new powers to block unwanted European laws: a legally binding agreement that our Parliament can, acting with some others in Europe— 55% of national Parliaments—block unwanted new EU laws with a “red card”. A new mechanism will be created to review existing EU laws to ensure compliance with the principles of subsidiarity and proportionality, so that powers can be brought back to member states wherever possible. National Parliaments will be involved in this mechanism, and the European Commission will also be required to report every year to the Council on its compliance with these principles.

On welfare and migration, an emergency brake will mean that people coming to the UK from within the EU will have to wait four years until they have full access to our in-work benefits. This brake will take effect once the necessary legislation is passed. The European Commission has made it clear that Britain already qualifies to deploy that brake. Migrants from the EU working in this country will not be able to receive child benefit at UK rates if their children live in another EU country.

Let us be clear that much has been said elsewhere about the legal status of the deal. Let me elucidate. This deal is legally binding for EU member states. They all signed up to it in a decision under international law. The February European Council conclusions and the texts of the deal agreed at the Council set this out clearly. They are supported by the legal opinions of both the Council Legal Service and Sir Alan Dashwood QC. The deal is also irreversible because, as mentioned earlier, it can be amended or revoked only if every single member state, including the UK, were to agree unanimously.

The European Court of Justice has held that decisions of this sort must be taken into consideration as being an instrument for the interpretation of the EU treaties. The Council president has confirmed this. He said:

“The 28 Heads of State or Government unanimously agreed and adopted a legally binding and irreversible settlement for the United Kingdom in the EU. The decision concerning a new settlement is in conformity with the Treaties and cannot be annulled by the European Court of Justice”.

This new settlement builds on a number of existing protections and opt-outs which apply to the UK’s membership of the EU. This means that the UK now has a special status within the EU: inside those areas of activity where it is in the UK’s interest, but outside those where it is not. I have already mentioned that we are not under the standard obligation for member states to join the euro. We will always keep the pound. The UK has remained outside the Schengen border-free area, which means that we maintain control over our own borders. The UK has opted out of many measures in the justice and home affairs fields while opting in to those which are essential to protect the security of this country.

Noble Lords will be aware that today we laid before Parliament the latest document intended to inform the public ahead of the referendum. This is the most recent in a series of papers fulfilling those commitments that I made to this House during the passage of the European Union Referendum Bill before it became the Act. There were calls from across the House to ensure that the voters went into this debate with all the information they needed. The Government listened carefully and brought forward amendments to the Bill in response to all the positions put forward by Peers from every Bench around the House.

The first paper is named specifically in the Motion on the Order Paper today—The Best of Both Worlds: The United Kingdom’s Special Status in a Reformed European Union. This fulfils the obligation under Section 6 of the European Union Referendum Act which required the Secretary of State to set out the results of the renegotiations and the Government’s view of them. The second paper details the process of withdrawing from the European Union. Though not specifically mandated in legislation, this paper, published on Monday, about Article 50 meets a commitment I made to the House on Report on 23 November at column 475 of Hansard.

Today, a third paper was published. It sets out the alternatives to membership of the European Union, and sets out unequivocally the Government’s view that none of the alternative models of association with the EU offers anything like such a good balance of advantages, obligations and influence as we get from our current special status within the EU. This paper is the first part of the report that the Government will publish to meet the requirement of Section 7(1) of the European Union Referendum Act 2015. The second part of that report, which will provide information about the rights and obligations that arise as a result of the UK’s membership of the EU, will be laid at a later date—I hope not too much later. Work is ahead. Both parts of the report will be available eventually on the GOV.UK website. Today’s part is on the website and a copy is in the Printed Paper Office. As soon as the second part of the report is available it will immediately go on the website and, again, I commit that it will go into the Printed Paper Office.

The Prime Minister set out last week the Government’s clear recommendation that the United Kingdom should remain a member—

[Lord Forsyth of Drumlean (Con)]

I am most grateful to my noble friend for giving way. We all appreciated the careful way in which she shepherded the Referendum Bill through this House. Indeed, there was a request for information, but does she not recognise that there is a difference between information and propaganda?

[Baroness Anelay of St Johns]

My Lords, of course, the Government are leaving propaganda to those who will be the lead designators of the campaigns. They are fulfilling their full requirements under the Act, as they should do.

This will be a once-in-a-generation moment to shape the future of our country. Ultimately, it will be for the British public to decide, and that includes Members of this House, as a result of the drafting of the Act itself. However, the Government have made clear their view. This Government came in with a clear mandate to renegotiate Britain’s place in Europe and to put those changes to the people. The Prime Minister has successfully completed the former. The instrument in front of the House today will set the date for the latter.

This is the last piece of legislation that will be debated in this Chamber to establish the referendum itself. As such, it represents Parliament taking the final steps towards a truly historic moment—giving the people of the United Kingdom and Gibraltar their say on membership of the European Union. The case for holding the poll on 23 June is a simple one. It gives time for proper debate without delaying and trying the electorate’s patience. There is little point in waiting further. We have a deal. The UK’s relationship with the EU has been changed and improved by that. It is time for the campaigners to make their case and for the British people then to decide, settling the issue for a generation.

At this stage, I refer back to a comment I made earlier—I will now formally move, with regard to the statutory instrument before the House, that the decision will be made later. I make that formal recommendation, which launches us on an historic journey towards a referendum in which every single Member of this House will be able to make their own, individual decision. I beg to move that the House do approve the European Union Referendum (Date of Referendum etc.) Regulations 2016.