European Union Bill

Baroness Falkner of Margravine Excerpts

Tuesday 22nd March 2011 Lords Chamber

[Baroness Falkner of Margravine]

My Lords, I rise with some clear indication of how interesting the passage of the Bill will be in this House, given that my party’s name has been mentioned so many times already before a word has been spoken from these Benches. It will be an amusing time.

For me, speaking on this EU Bill is somewhat daunting in the knowledge that the noble Lord, Lord Liddle, winds up for those on the Labour Benches and my noble friend Lord Wallace for the Government. By way of background, I took over as the Liberal Democrat’s EU policy officer in the early 1990s in the aftermath of the Maastricht treaty. It was in that capacity that I learnt from both the noble Lord and my noble friend how the EU actually worked in practice. I should say about the noble Lord, Lord Wallace, that I learnt even more by proxy from Dame Helen Wallace—the author, along with my noble friend—of several authoritative texts on the EU. Speaking alongside this cast of characters on the Bill gives one a sense of déjà vu, but I am sure that we will revert to some of the healthy arguments in the hours ahead about the extent to which the public in the UK have an appetite for the European Union.

If we on these Benches are known for anything it is for our internationalism and our support for our neighbours in Europe. On our Benches are several distinguished noble Lords who are not only expert in their knowledge but undiminished in their support, going back to the days of the EU accession referendum and before, and who will see the changes proposed in this Bill as matters of principle affecting our ability to be active members of the European Union. We would expect nothing less. We will also be joined by newer noble Lords on these Benches, who I suspect will bring a freshness and practical experience of selling Europe to the general public in elections. We look forward to working to improve this important piece of legislation from both aspects.

This is an important Bill. The coalition’s programme for government said that it,

“believes that Britain should play a leading role in an enlarged European Union, but that no further areas of power should be transferred to Brussels without a referendum. This approach strikes the right balance between constructive engagement with the EU to deal with the issues that affect us all, and protecting our national sovereignty”.

It is undoubtedly a compromise but, like many compromises, despite what the noble Baroness, Lady Symons of Vernham Dean, said, it is something that the British people, who are rather more pragmatic than driven by ideology, can live with. Perhaps that is why the election resulted in the way it did.

[Lord Anderson of Swansea]

In using the words,

“constructive engagement with the EU”,

the noble Baroness’s memory might go back to the fact that the Conservative Government of that time talked about constructive engagement with apartheid South Africa.

[Baroness Falkner of Margravine]

My memory goes back even further to when the Labour Party was itself completely riven on what approach it might take to the European Union, which was rather before the apartheid saga.

The coalition programme looks forward to forthcoming legislation with a view to increasing parliamentary scrutiny of new powers and competences, and looks outwards to ensure that the demands of democratic engagement are upheld. It goes further than before by enshrining in law that for significant changes sovereignty should be ceded by those who own it, the citizens or people of our country. It is therefore a far cry from the wording in the Conservative manifesto, which stated:

“We will work to bring back key powers over legal rights, criminal justice and social and employment legislation to the UK”.

The Bill takes the treaties, as amended most recently by Lisbon, as the starting point. While the coalition agreement gives a commitment to examine the EU's existing competences, and particularly to work to limit the application of the working time directive, this is not in my view a dramatic change. In fact, in an age of austerity, it might seem sensible to review the need for greater labour flexibility. However, it does raise the question of what other competences there will be and when. I wonder whether my noble friend could explain when winding up the debate the timeframe to which the Government are working in their examination of competences, and what role Parliament will play in scrutinising their conclusions.

Let me now turn to the substantive parts of the Bill. Clauses 2 to 5 will no doubt attract considerable scrutiny, as they deal with the procedure to be followed for treaty amendments and changes. They change the current situation in now requiring an Act of Parliament after the Government have signed up in principle to the change. This will no doubt add a considerable time lag to EU decision-making. We had an example of a draft European Council decision only last night on the European stability mechanism, and I wonder what useful purpose might have been achieved by a country that is not in the eurozone holding up those that are in it doing something that tidies up an existing situation and seeks to put it on a permanent footing. The way in which we dealt with that last night would no longer be possible if these changes go through.

I accept that every change of treaty requires an Act of Parliament, and I am in no way opposed to that level of parliamentary approval for significant and substantive treaty changes. Yet I wonder whether raising the test for an Article 48(6) decision—the simplified revision procedure—as set out in Clause 1(5) is necessarily the way to go. Clause 4 sets out a rather long list of criteria whereby a future treaty change will be judged and changes the situation whereby qualified majority voting ensues. I understand that the list is so comprehensive due to our lack of a written constitution in the United Kingdom and therefore to the relatively open-ended possibilities of judicial review. Can my noble friend explain whether that is the rationale behind this prescription and, if it is not, why we are spelling out our parameters in such detail? Does that not reduce the flexibility of the Government of the day to evaluate each decision on its merits and to go forward on that basis?

I turn to that other area of controversy, the so-called use of the referendum lock. The potential use of referendums will cover large numbers of procedures, including ordinary and simplified revisions and passerelles. The Constitution Committee, in its report on the Bill, lists some 50 treaty provisions that might attract a referendum. I accept the Government’s premise that a significant disconnect has developed between the British people and EU institutions. In fact, I wrote a thesis in the early 1990s on British attitudes to European federalist integration, and that disconnect had been there for some decades before. The challenge for succeeding Governments is to improve education about the EU and its institutions rather than just lamenting the lack of support for them, as put out by noble Lords on the opposition Benches a few minutes ago.

As we moved to a federal settlement in the UK in the 1990s with the establishment of a Parliament in Scotland and an Assembly in Wales, one would have expected that we would have also taken the opportunity to talk of our rightful place in Europe. Yet the Opposition became obsessed instead with impregnable tests on the euro and whether the ill-fated constitutional treaty would get through. In the mean time, another generation has grown up knowing the European countries better than ever before but not feeling the common solidarity that should unite us, other than in the most instrumentalist manner.

That distrust of EU institutions now leads us to the logic of the referendum lock. As noble Lords will know, the Constitution Committee defines a limited set of conditions in which, in its opinion, a referendum would be warranted. The committee goes on to say that this Bill is a radical step-change in the adoption of referendum provisions. As a Lib Dem who was privy to several animated discussions in our own party over whether to commit to a referendum before joining the euro, I know how difficult it is to agree what constitutes a fundamental shift in power. I was proud of moving to that promise and am overall a supporter of referendums for significant changes. Other European countries have their own scrutiny and control mechanisms in place. I come from a view that every generation should be able to have a voice on the direction of its country’s stance on sovereignty. At this stage, I am not inordinately concerned about these clauses. As the Constitution Committee reminds us, Parliament could repeal or amend any or all of the control mechanisms established by the Bill, including the referendum lock provisions.

On the significance condition, therein will lie the practical issues of how frequently referendums will be held. First, let us be clear that this condition in the Bill will enable Ministers to judge whether a simplified revision procedure change that gives an EU body the power to impose sanctions, requirements or obligations on the UK would not require a referendum. If this reading is correct, can the Minister give us examples of the sort of changes he has in mind that would then fall under ministerial judgment under this test? In other words, what would he consider insignificant?

On the subject of referendums, my recall is that if a treaty change would have triggered a referendum, we would have had about five in the past 25 years. Does the Minister expect a similar number in future? The other contentious area—

[Lord Sewel]

I am grateful to the noble Baroness for giving way. She has touched on the difficulty of significance —of what is significant and what is insignificant—and has asked the Minister to give examples. Does that not hint at the real possibility that the difference between significant and insignificant will be before the courts virtually every time this issue comes up?

[Baroness Falkner of Margravine]

The Constitution Committee made clear in its report that this would not necessarily be a matter for the courts but a matter of political judgment. We will probably hear from the Minister in his closing speech, and I will leave it at that.

The other contentious area in the Bill relates to parliamentary sovereignty and the status of EU law. I know that this has exercised the other place considerably and that its European Scrutiny Committee has commented on this at length. Given the number of speakers in this debate, I will comment on Clause 18 as we deliberate on it in Committee.

I conclude by stating the obvious. Ultimately, the Bill is about a political perspective on how to protect the UK’s interests in the EU. It is not a political Bill, as the noble Baroness, Lady Symons of Vernham Dean, suggests, but it goes to the heart of political judgments about what is right by our country.

There are elements of compromise on which in our coalition, as I suspect there are in parties themselves, there are opinions on all sides. What is essential for us in this House is that in scrutinising this legislation we end up with a product that achieves greater confidence among the public in what their Government will and will not do in their name. We look forward to the Bill in that spirit.