European Union Bill

Baroness Falkner of Margravine Excerpts

Monday 16th May 2011 Lords Chamber

[Lord Triesman]

My Lords, I cannot recall an occasion yet when the noble Lord, Lord Stoddart of Swindon, and I have been in complete accord but we are this evening. I share the view that it is absolutely extraordinary that most of us should have stood by ready to start debating this Bill at 6 pm only to find that it has started, even with a few minutes’ intervention from the noble Lord, Lord Stoddart, way past 8 pm. I do not believe that that is helpful to the government Front Bench, let alone to both parties opposite or, indeed, to us. I shall not repeat what the noble Lord, Lord Stoddart, said at any length, because he made the point very forcefully. It is extremely hard to understand what is so pressing as to mean that we should discuss absolutely critical issues about constitutional arrangements between our Parliament and Europe on this type of timescale. We are shoe-horning it—that is the only way that I can describe it—into tiny pockets of time very late in the day with the prospect of holding debates extremely late at night, when we all know that proper justice is not done to the matters that we need to discuss.

I take the Bill very seriously, just as the House took the Fixed-term Parliaments Bill seriously this afternoon. They are big constitutional issues by any standard. As I said, I take this Bill very seriously, although I have a very different view from that of the noble Lord, Lord Stoddart, for example, on a number of its provisions. However, that is neither here nor there. We either take it seriously or we do not. I think that we are being asked to perform a serious job in a trivialised way and I cannot believe that the House will find that acceptable. I hope that the Front Bench opposite will have a credible answer and a credible timetable.

[Baroness Falkner of Margravine]

My Lords, perhaps I may detain the House for a minute or two to comment on the speeches that noble Lords have just made. As we understand it, it is the operations of the usual channels that have resulted in such peculiar anomalies—if I may call them that—in the conduct of the Bill. On the previous two days in Committee, we had extraordinary groupings. I know that Members on the Cross Benches were as perplexed as we were about how those groupings had been determined, and there was consensus across the House that they had not worked very well.

We were then told last Thursday that there was going to be an additional day in Committee—today. In other words, if the House had not sat on Friday, we would not even have had one working day’s notice. It was simply a coincidence that the House sat on Friday and that we therefore had one working day’s notice. We were led to believe that that was agreed among the usual channels and that in fact the opposition Benches of the noble Lord, Lord Triesman, had requested the extra day today. However, from the tone of the debate, it sounds as though that may not have been the case.

I hope that my noble friends on the government Front Bench will bear in mind that, if we are to have serious scrutiny on the Bill, as we all want, and time to prepare seriously for that serious scrutiny, we require slightly more notice than we were given on this occasion, and we require slightly more attention to be paid to the way in which the Bill has been conducted to date.

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[Lord Liddle]

We all know the noble Lord’s views on this matter. The experience of the 1975 referendum was that it did not resolve the issue of whether we stayed in the European Union. We won a yes vote, but it did not resolve the fundamental issue. However, on issues such as the euro, there is a fundamental constitutional principle at stake, and it is right to have a referendum, so there are circumstances in which referenda are the right thing to do.

In the light of the AV referendum result, which I regard as the betrayal of the Liberal Democrats in the AV referendum by their partners, when I looked at the coalition agreement I was surprised by what it said. We are now told that the Liberal Democrats are going to adopt a much more muscular, robust relationship with their coalition partners. Well, on this Bill, let us have a look at what the coalition agreement says. It says:

“We will amend the 1972 European Communities Act so that any proposed future treaty that transferred areas of power, or competences, would be subject to a referendum on that treaty”.

In other words, you would have a referendum on a big treaty, but the agreement continues:

“We will amend the 1972 European Communities Act so that the use of any passerelle would require primary legislation”.

Yet every page of this Bill fully and directly contradicts that coalition agreement where the agreement says that passerelles and other matters should be subject to referenda.

[Baroness Falkner of Margravine]

I, too, have a copy of the coalition agreement in front of me. While the noble Lord is right in what he says about bullet point three, he is very selective in his interpretation of what to pick and choose, because he does not notice that bullet point four says:

“We will examine the case for a United Kingdom Sovereignty Bill to make it clear that ultimate authority remains in Parliament”.

If the noble Lord had been watching the news, and was aware of government statements in the year since the coalition agreement was made, he would know that no sovereignty Bill is about to be introduced into either House of Parliament but that the areas where there might be changes in sovereignty—in other words, a transfer of power and competencies—might be covered for the use of referendums.

[Lord Liddle]

I have the greatest affection for the noble Baroness, but I think that her attempt to justify the fact that the terms of the coalition agreement have not been met in this case is neither muscular nor robust. I think, therefore, that our friends on those Benches have something to think about. What I am suggesting that our friends on those Benches think about is the merits of the amendments that this side is putting forward. We are offering a mechanism by which a lot of the unacceptable trivia in the Bill could be assessed in a proper way by an independent committee that would advise Parliament about whether they were fundamental or matters that would not require a referendum.

I suggest that there is possibly a germ of consensus in the coalition agreement. We on this side have moved our position from when Labour was in government because we now believe that matters such as passerelle clauses and simplified revisions of the treaty should be approved by a proper Act of Parliament. That is a significant move on this side of the House towards greater parliamentary accountability. I should have thought that the Lib Dems ought to seize that as an advance in accountability. We should confine referenda to these fundamental issues that your Lordships’ Constitution Committee said needed to be defined. An independent committee would be a good way of doing this.

I am sorry to have gone on at such length—

--- Later in debate ---

[Baroness Falkner of Margravine]

My Lords, I completely agree with the noble Lord, Lord Kerr of Kinlochard, on the need for proportionality and I accept that things will happen that we may not be able to foresee when we are drafting legislation and giving a legal basis to aspects of future decision-making. However, before I speak to Amendment 39B, I should like to say a few words about Amendment 39A.

I welcome the explanation of the noble Lord, Lord Liddle, of how the Labour Party has moved considerably to advance accountability. It is particularly welcome given that it failed to provide for that in the time that it was in office. I do not often find myself echoing the words of the noble Lord, Lord Waddington, very much, but this afternoon’s discussion on the budget rebate was a very useful one to remind us that even when it was in office it took accountability so lightly that when the budget provisions were changed, as it appeared from today’s discussion—and nobody on the Labour Benches rebutted it—in 2005, the Chancellor of the Exchequer did not even agree with that change. Yet it happened.

I turn specifically to Amendment 39A. The noble Lord, Lord Liddle, explained what his amendment would do. I have some sympathy with the idea that you would have a level of scrutiny here that should determine what should happen—in other words, that Parliament should take a decision, rather than having a referendum. But my question would be to the noble Lord about his proposed new subsection (4B), which calls for a resolution of each House of Parliament. It is not entirely clear to me what would happen if one House of Parliament approved of holding a referendum but the other did not. Presumably, we would have a situation whereby a Joint Committee could have recommended a referendum and, potentially, the Commons would have agreed with the Joint Committee but perhaps this House would not. I wondered whether he would be able to tell us what would happen, in that case, on Amendment 39B.

In this variation, the review committee takes into account the significance, urgency and national interest at stake in its examination of the draft decision. Both urgency and national interest are, I say to noble Lords opposite, deeply subjective. We thought, with the European financial stability mechanism before us in February, that there was huge urgency in agreeing on what to do, because of the Greece, Ireland and Portugal scenarios. In fact one could argue that there is still considerable urgency, given where Spain—and, potentially, Italy—is. But the fact that other countries may be covered by that by the time the facility comes into being in 2013 suggests that something that one sees as urgent at a particular point in time may as events unfold not be quite as urgent as we thought.

Let me come to a consideration of a national interest. We know that this is notoriously difficult to define in international relations, which is one reason why this concept of national interest, which we all cherish and hold dear, has never been given legal force. I recall when I was a student reading the realist American scholar, Hans Morgenthau, who in 1951 wrote his book In Defense of the National Interest, which was contested throughout the 1950s, during the Cold War, and all through the 1960s, and is contested still today. It has never taken off as an argument that was legally testable in a court of law, so I would be concerned—while I see what the noble Lord means; we know the national interest when we see it. We can touch it; we can feel it; we can smell it. But to define it in legislation would be extremely difficult to do. I therefore suggest some caution about agreeing with the amendment. On Amendment 39B, I ask the noble Lord what he would do if one House went in a different direction from the other.

[Lord Hannay of Chiswick]

My Lords, I would like to speak very briefly in support of this probing amendment, not because I am in total agreement with every detail of it but because I think that it addresses a very serious problem to which I alluded at the end of Second Reading, when I said that the effect of the Bill if passed unamended would be to lock the door and throw the key out of the window. I believe that that is an accurate description of what this Bill will do if not amended. These amendments are a sincere and quite well thought-out attempt to keep the key in the hands of the Government and the majority in both Houses of Parliament to some extent, subject to the reporting of a committee and so on.

I think that this issue should be taken a bit more seriously, frankly, than it is by those on the other side of the House. If the noble Baroness, Lady Falkner, will forgive me for saying so, about the piece that she quoted—I hate to have to construe somebody else’s coalition agreement, which has nothing to do with me—the sovereignty issue to which she referred and which she read out is dealt with in Clause 18, not in the clauses that we are discussing now. We will probably have the delights of spending a whole day discussing that next week but it has nothing whatsoever to do with referendums. No one has ever suggested that it should be. The suggestion was that you should inscribe in the Bill some test of what the basis for European law in this country is. Anyway, I suggest that the Government really ought to think about this enormous multiplicity of referendums which are provided for and which cannot be dealt with just by casual remarks such as, “Oh well, don't worry—they won’t ever happen”.