Cyprus: Russian Military Base

Baroness Ludford Excerpts

Tuesday 10th March 2015 Lords Chamber

[Baroness Anelay of St Johns]

My Lords, the visit of President Anastasiades to London in January 2014 and the arrangement on non-military development reaffirmed the strong bonds of friendship and partnership which exist between Cyprus and the UK across many areas, notably defence, security, EU reform and foreign policy co-operation. Non-military development is a further measure of the normalisation of administrative planning laws and shows that the United Kingdom and Cyprus are serious about working together on our shared interests.

[Baroness Ludford (LD)]

The Minister rightly talks about the need to maintain EU solidarity on sanctions against Russia, but this solidarity is threatened by at least a quartet of EU leaders from Hungary, Greece, Cyprus and, indeed, Italy. What efforts is the UK making to maintain and forge, if necessary, renewed solidarity? Can she refute press allegations that the UK is being reticent about further financial sanctions because of lobbying by the City of London?

[Baroness Anelay of St Johns]

My Lords, the United Kingdom has led the way in negotiating sanctions against Russia for its illegal activity. We continue to do so; we are not deflected from that course. My right honourable friend the Foreign Secretary has made it clear that he would like an early rollover of sanctions on 20 March. We are doing our best to negotiate with all our colleagues to maintain the resolve of unity within the EU on these matters.

European Union (Definition of Treaties) (Association Agreement) (Georgia) Order 2015

Baroness Ludford Excerpts

Thursday 26th February 2015 Grand Committee

[Lord Bowness (Con)]

My Lords, I thank the Minister for her clear explanation of the orders, and I am sure that we are all grateful to her for bringing us up to date on the situation in Ukraine. I should say at the outset that I support the orders and the fact that the European Union has entered into these association agreements with Ukraine, Moldova and Georgia.

These countries have two things in common: first, they are victims of territorial disputes and, secondly, all have sought a European and westward-looking future. Ukraine is, of course, in the forefront of the news today, and the dispute over Crimea and part of eastern Ukraine sadly seems likely to be added to the list of frozen conflicts, joining those in South Ossetia, Abkhazia in Georgia, and Transnistria in Moldova.

I have just come back from the meeting of the OSCE Parliamentary Assembly, where discussion about the situation in Ukraine dominated proceedings. However, deep concerns were also expressed about Russia’s intentions in respect of Moldova and Georgia—and the Baltic states, which are outside the area we are discussing. We must do everything we can to anticipate Russian intentions towards these states and not allow the dissident parts to provide the excuse for Russia to undermine the rest of the country seeking a different, European and democratic future. We have already seen Armenia turn its face against an association agreement.

This afternoon is not the place to go into these situations in detail but, while I entirely agree that Russia should not have a veto over the future of any sovereign state, it is important that the position of the European Union and our Government is clear—namely, that although the agreements are a welcome step to inclusion of these countries in Europe, there can be no question of accession to the European Union while these territorial disputes exist. Unless we make that clear, we stand the risk of dashing the hopes of many citizens in those countries, and that can lead only to disillusionment with the European Union and the West in general.

Nevertheless, we should adopt the agreements with enthusiasm and offer as much assistance and economic help as possible to buttress the sometimes fragile democracies that exist in these countries. The agreements are with each of the three countries and the Governments of those countries do not recognise the independence of or the occupation of part of their respective states. It may be an academic point, but the agreements make no reference to these facts. My noble friend referred to businesses in Transnistria; are we quite satisfied that the benefits of these agreements cannot be claimed by businesses— which are no doubt very inventive as to where goods are produced and subsequently exported from—which are in fact based in these disputed territories? If that is considered to be too fanciful, are we in any circumstances under the agreements able to differentiate between the three sovereign states and their Governments and the areas over which they have no control and are in dispute?

[Baroness Ludford (LD)]

My Lords, I also thank my noble friend the Minister for her helpful introduction and explanation of the situation. I spent many years making EU law, but perhaps not so much time implementing it, and therefore I am not familiar with this process. Before moving on to other things, perhaps I could ask about the draft Explanatory Memorandum. It explains that one of the effects of the order, declaring that the agreement is to be regarded as an EU treaty under the ECA 1972, is that certain rights and obligations under the agreement automatically become law in the United Kingdom and then subordinate legislation can be made to give effect to the provisions of the agreement. I am not clear which rights and obligations automatically become law. It may be that the noble Baroness can take me aside at some point and explain how all this works, and that will clear my confusion.

My more general point is to strongly welcome these association agreements. I agree with everything the noble Baroness has said about the prospect of not only greater prosperity for the citizens of these three countries, but also greater security for the European Union, and I agree that the prospect of better energy security is a factor in that discussion.

I take the point made by the noble Earl, Lord Dundee, about the role of the Council of Europe. It is important that the roles of the EU and the Council of Europe should be complementary. It is fair to say that the EU has much greater resources than the Council of Europe; we know that the Council is always stretched for money, partly because its member states do not give it enough. They should not trip over each other. At one point there was a tendency for the EU to sort of push aside the Council of Europe, which is not a clever idea. The EU needs to come in as a complementary body, and of course it has another role to play in terms of the economic and trade relationship. However, for the rule of law, fighting corruption and an independent judiciary, obviously we have the whole Strasbourg package—aquis, if you like—and that is essentially what the EU wants to implement. There should not be any institutional jealousy between the two organisations. Sometimes during my time as a Member of the European Parliament, there was evidence of a bit of that. After all, the EU pinched the flag of the Council of Europe. However, it is important that the two should work together so as to add value to each other.

I welcome what the Minister said about the provisions on the rule of law and the fight against corruption which have been in force since last November. I should like to stress the importance of that. If we look at the history of countries acceding to the EU, although I know that this is not about accession, it is arguable that not enough was done in these areas before they were admitted to the European Union and there have been continuing problems in the existing member states. More must be done. We really need to front-load this issue. You cannot have a flourishing economy or property rights without an independent judiciary. It is almost more important even than democracy, in a sense. Certainly, some drew that conclusion from the western Balkans. You cannot have economic reform, as I say, without a strong independent judicial system.

I agree with the Minister that, while we must not overstate it, these association agreements have the potential to have a beneficial effect on the prospect of dealing with the conflicts because the people in the breakaway regions would be able to see the benefits of participating in a deep relationship with the EU and would want a slice of the action. But the association agreements of themselves are not going to solve the conflicts.

I welcome what the Minister had to say in going slightly outside the scope of these orders to update us on the situation as regards Ukraine. In that context, I am extremely shocked to read today that the President of the Republic of Cyprus, Mr Anastasiades, on a visit to Moscow, has formalised an agreement for Russian warships to use Cypriot military bases and has also spoken against EU policy on Ukraine. We know that there is press commentary on the difficulty of keeping together a common EU policy on sanctions and the prospect of tightening sanctions on Russia. There were worries about Greece. There have been worries about Hungary, of course, which I mentioned in the House the other day. Mr Orban hosted President Putin the other day. I personally find this the most extraordinary disloyalty by EU member states towards a common EU policy on Russia. I hope that some very candid words are being shared around the European Council table with some of our member states.

I know we have just a short procedure here so I will not go on. These association agreements are extremely welcome. Perhaps from smaller acorns big things will grow. One day, perhaps, one or more of these countries will be eligible to join the European Union. This is not the time and there is no guarantee of that. Personally, I hope that it might be possible for at least some of them and this at least leaves the door open. But as the Minister said, it is their sovereign choice what relationship they want with the EU. All parties in the UK have always supported the process of enlargement and the European Neighbourhood Policy, because it is not just for benefit of those countries; it is for our security.

[The Earl of Sandwich (CB)]

My Lords, I am grateful for this opportunity to say a few words. I was in Georgia last July, just after the association agreement was signed, and I cannot underestimate the euphoria that there was, but of course I was among Ministers and people negotiating the agreement. The Georgian Orthodox Church is not exactly of the same mind and I think it may lead them all downhill.

I note from the Explanatory Memorandum that the impact is very modest on the UK economy. The figure of £0.6 million is quoted. Perhaps the Minister could reassure me that this really is the bottom end of the range and that Georgia, if the situation remains stable, can expect a gradual improvement. I would also like to be reassured that there has been no further development on the Russian front in Abkhazia and South Ossetia. It is not a stable Government—there has already been a change of Minister since we were there—but I am very pleased to read in press reports of the solidarity there is between Moldova, Ukraine and Georgia. They were, for example, at the celebration of the centenary events of the Maidan in Kiev. The Georgian President was invited, and I know that there has been a lot of exchange. I do not think that these association agreements need disturb the Russians unduly. We have moved on from last year and must all expect greater prosperity to follow from them.

I was on the European Union Committee which produced the report on Ukraine and Russia recently. I very much hope the Government will respond to it swiftly, because it will give more of us an urgent opportunity to discuss the situation.

Greece: New Government

Baroness Ludford Excerpts

Tuesday 3rd February 2015 Lords Chamber

[Baroness Anelay of St Johns]

My Lords, it is clear that the stand-off between Greece and the eurozone is fast becoming the biggest risk to the global economy and is a rising threat to our economy at home. I say that, and indeed the Chancellor of the Exchequer said it yesterday after his meeting with the Greek Finance Minister. It is up to Europe to come to a conclusion which means that Greece can remain part of the euro, that the European Union can prosper, and that jobs and growth can continue. That is the way forward for success in Europe and for the success of this country in Europe.

[Baroness Ludford (LD)]

Does my noble friend agree that if, as we all hope, the eurozone is to get more jobs and growth, then in communicating with the Greek Government, we must urge structural reforms, including eliminating cronyism and corruption; that those are essential if we are to get, in the words of the new Finance Minister, a reformed, not a deformed, Greece; that fiscal responsibility and sustainability are essential; that spending more money without knowing where it is coming from—a fault not unknown in some parties in this country—is inadvisable; and that the UK can also offer the Greek Government the benefits of the progress that has been made in this country in tackling tax evasion in the last five years?

[Baroness Anelay of St Johns]

My Lords, I agree with every word that my noble friend said.

EU: UK Membership

Baroness Ludford Excerpts

Tuesday 25th November 2014 Lords Chamber

[Baroness Ludford (LD)]

My Lords, I welcome this debate, initiated by the noble Lord, Lord Liddle, and I have pleasure in taking part. I also look forward very much to the maiden speech of my noble friend Lady Smith of Newnham, who is a considerable authority on EU affairs. I remind the noble Lords, Lord Liddle and Lord Howell of Guildford, and the House that the comments directed towards coalition policy should, in fact, be directed towards Conservative Party policy. Government policy, as expressed in the 2010 coalition agreement, is that:

“We will ensure that the British Government is a positive participant in the European Union, playing a strong and positive role with our partners, with the goal of ensuring that all the nations of Europe are equipped to face the challenges of the 21st century”.

I can but agree with my party leader, Nick Clegg MP, who yesterday described as “idiotic” the suggestion by Mr Owen Paterson MP that the Conservative manifesto should commit them to an exit—a Brexit—from the EU. Mr Clegg said:

“It would be an act of economic self-harm to jeopardise 3m jobs in that way”.

Perhaps I have set the record straight.

It is staggering that Europhobes should see the EU as the graveyard of sovereignty but would be quite happy to be like Norway, having to follow all EU rules but with no say in them. It would be the ultimate expression of powerlessness: EU regulation without representation. We cannot win all battles in Brussels but we can have a decent chance if we have a voice. It is the basic Liberal Democrat contention, which we have consistently followed for seven decades, that Europeans are better together. I had written that before the two previous speakers, so great minds think alike. My party has been consistent on this. We have not only peace but greater prosperity, security and stability by being part of a union which has, at its heart, a guarantee of the rule of law, democracy and human rights. The 20th century surely taught us that. We cannot meet the threat of cross-border crime and wider security threats unless we co-operate with our European partners. As my noble friend Lord Wallace of Saltaire said, as a Liberal Democrat, in a speech at Chatham House, these threats,

“are shared with our neighbours and partners—they’re not challenges to Britain on its own”.

We cannot meet those threats through “exit or isolation”. He insisted, not only that,

“any foreign and security policy which denies the central importance of European engagement will have a large hole at its core”,

but that that security co-operation should encompass energy, the environment, conflict prevention and many other matters, as well as cross-border policing.

Yesterday, I read something which shocked me to the core. A Daily Mail article deplored the lack of welfare regulations on duck farming—presumably in the light of the bird flu incident—and, specifically, the lack of EU legislation on duck farming. You could have knocked me down with a feather; a duck feather, of course. Even the Daily Mail recognises that sometimes we do need EU-wide standards to safeguard health, security, the environment and free trade. The serious point is, of course, that the mantra should be “Europe only when necessary”. I am proud that Liberal Democrats in the European Parliament, working with the Government, helped to secure an exemption from EU accounting rules for 100,000 smaller British firms, saving them hundreds of millions of pounds in administration costs. Liberal Democrats insist on effective and objective impact assessments before new proposals by the European Commission or European Parliament amendments are put forward. Much could be done to tighten up the scrutiny of new EU regulation. National Governments should stop policy laundering through Brussels and gold-plating on implementation. It is a great pity that the European Commission pressed on with the European public prosecutor proposal after 14 national Parliaments rejected it.

The big picture is that the UK has a huge stake in the EU single market. We must be constructive and engaged in pressing for the opening up and liberalisation of these half a billion consumers to British businesses, especially digital industries, the energy market, transport and other services. We cannot do that if we are simultaneously trying to unravel a key element in the single market: the right of free movement to work, not to claim benefits. In an increasingly multipolar, globalised world, the UK and its EU partners have the collective strength to promote our values and secure respect for them around the world, including in Washington. An active and engaged UK in the European Union is the best commitment we can make on the centenary of the First World War.

--- Later in debate ---

[Lord Dobbs (Con)]

My Lords, our identity is defined by our culture, not by institutions. This morning I was fortunate enough to go to the National Gallery to see some of the glories produced by that extraordinary Dutch artist, Rembrandt. It was a small reminder, among so many, that we Europeans have been the most successful peoples in the history of the world. Indeed, for 2,000 years we were the world. We bound more books, we parsed more poetry, we made more music and, in the process, we framed more freedoms than anyone else.

However, recently something has gone wrong. We have lost our sense of purpose. Why is that? President Juncker has an answer. For him, it seems, it is the fault of the people. This is what he said recently:

“We all know what to do, we just don’t know how to get re-elected after we’ve done it”.

Those are haunting words. They imply an appalling lack of leadership and a serious disconnect with the peoples, which puzzles me because, if the EU is not for the peoples, who on earth is it for?

Tragically, the single most powerful factor propping up the current hopelessly arthritic structures of the EU right now is not ambition, and least of all is it success. It is fear: fear of the unknown, fear of admitting failure, and fear of what might happen if the nettle is grasped and the eurozone is reorganised, yet fear of endless economic stagnation if it is not. But fear is a pretty miserable basis for building the future. Surely we can do better than that.

In a remarkable intervention today while on a visit to Strasbourg, the Pope, as we have heard, described the EU as,

“a ‘grandmother’, no longer fertile and vibrant”.

It might also be described as a bit of a dinosaur—all muscle-bound body and a tiny head, but with one idea echoing inside it: that of ever closer union. However, the dinosaur has entirely forgotten what that means. It was an idea launched through the treaty of Rome, which called for an ever closer union,

“among the peoples of Europe”.

I repeat: the peoples, not the institutional fixtures and fittings. In that ambition, at least, the EU seems to have succeeded. It has united the people—in dismay and growing disenchantment. The EU must change or it will be changed by the peoples.

Earlier this year I asked this House to consider an EU referendum Bill, and I recognise some familiar faces. It was never going to pass—not through this House —but the debate was necessary in order to throw light on this mighty issue. And it worked beyond my wildest dreams. Labour Members of this House rose as one to deny the people their say. They did not even wait until the white vans had pulled up in their driveways. They said, definitively, “No”. I shall be eternally grateful to a noble friend on the Liberal Democrat Benches who, at the time of the crucial vote, rose in his place, cast aside his party’s habitual coyness, pointed to the Division Lobby and cried, “This way to kill the Bill!”. His party, to a man and a woman, were counted through.

And so, through the fog of confusion, came clarity. This side of the House, the Conservative side, demands a referendum; every other party opposes it.

As grateful as I am to the noble Lord, Lord Liddle, for securing this debate, he and I could argue for a thousand years, I suspect, until we were old men, and still, I fear, we would never agree.

[Baroness Ludford]

My Lords, the noble Lord said that every other party opposes a referendum. I restate, for the sake of clarity, that the Liberal Democrat position, as expressed in the European Union Act 2011, is that there should be a referendum if there is a significant transfer of powers to the European Union. The Liberal Democrat spin on that is that that should be an “in or out” referendum, so we are in favour of a referendum under certain conditions.

[Lord Dobbs]

I thank the noble Baroness for that intervention. We hear the words—we have always heard the words—and yet we saw what they did when the time came to put their necks on the line.

I am grateful to the noble Lord for this debate. We need these debates. We need to clarify the issue. It is time to take this agonising issue—because we do not agree and we will never agree—out of the hands of us agonised politicians and give it to the people to decide. It is their future, and it must be their decision.

--- Later in debate ---

[Baroness Morgan of Ely]

That is even madder than I thought, then.

What we have to think about is the importance of the EU in protecting consumers and restricting unfettered capitalism, which has allowed bankers’ bonuses to spin out of control. If we are not doing it in this country, I am glad that someone else is doing it. A common competition policy has protected consumers from monopolies and multinational companies. This has been seen most visibly in the airline market, which has enabled millions across Europe to enjoy cheaper flights.

It is EU laws which have allowed social protection for the workers in the EU, including a minimum of four weeks’ paid holidays for full-time workers, a right to parental leave, extended maternity leave, a new right to request flexible working and the same protection for part-time workers as for full-time workers.

Labour wants to tackle immigration head on, and we have put forward clear ideas about how we would like to see reform in this area.

The Government’s promise of a referendum following a renegotiation by 2017 is random and has caused severe uncertainty, as emphasised by my noble friend Lord Howarth. As my noble friend Lord Lennie outlined, Nissan’s future in the UK, along with that of other manufacturers, depends to a large extent on EU membership.

The Prime Minister does not seem to have grasped the fact that there is a need for unanimity in order to change the treaty. He still has not told us what he wants in a reformed EU. It is irresponsible to put the interests of party above those of the country. That is the only point on which I agree with the noble Lord, Lord Stoddart.

[Baroness Ludford]

The noble Baroness talked about party. Can I emphasise that Mr Cameron is speaking as leader of the Conservative Party, not as Prime Minister?

EU: Reform

Baroness Ludford Excerpts

Wednesday 19th November 2014 Lords Chamber

[Baroness Anelay of St Johns]

My Lords, I can. The contribution made yesterday by the German deputy Finance Minister on “Newsnight” made it clear that strong and productive discussions are afoot.

[Baroness Ludford (LD)]

Will my noble friend the Minister confirm that once the opt-back-in to the 35 measures is complete, the UK will be in a strong position to push for reform in the areas of policing and criminal justice and civil liberties, including reform of the European arrest warrant, which is needed, as well as staying within the instrument itself?

[Baroness Anelay of St Johns]

My Lords, this Government have already reformed the process of the European arrest warrant. It is different from that which this House passed in 2004. The Government are strongly of the opinion that further reform is necessary across all aspects of EU activity to make it more flexible, competitive and democratically accountable.

Transatlantic Trade and Investment Partnership

Baroness Ludford Excerpts

Tuesday 18th November 2014 Lords Chamber

[Lord Livingston of Parkhead]

The noble Baroness is entirely correct. The agreement with Canada is far more the state of the art. Although we are waiting to see the results later next month of the consultation on ISDS, I hope and assume that they will incorporate much of what we have learnt from CETA. From speaking to the US representatives, I know that they too are very much for things like transparency in ISDS clauses, thus meeting some of the genuine concerns about some of the past ISDS clauses.

[Baroness Ludford (LD)]

My Lords, is it not the case that these trade negotiations are probably the most transparent ever? Quite rightly, the negotiating mandate has been published, which is good, and it confirms that EU member states will agree to the inclusion of investor protection and ISDS mechanisms only if they allow EU member states to pursue legitimate public policy objectives, including the regulation of public health. This is a great improvement on the past and gives a guarantee that what matters is the substance.

[Lord Livingston of Parkhead]

My Lords, my noble friend is entirely right. The substance of the ISDS clauses is nowhere near as fearful as some of the claims. Although we can improve the transparency of the discussions, and the UK is certainly seeking to do that, the EU should at least be commended on the degree of public consultation that has taken place on these discussions.

EU: Free Movement of Labour

Baroness Ludford Excerpts

Tuesday 11th November 2014 Lords Chamber

[Lord Garel-Jones (Con)]

My Lords—

[Baroness Ludford (LD)]

My Lords—

[The Lord Privy Seal (Baroness Stowell of Beeston) (Con)]

If we are all very brief, we should be able to get in a question from the Cross Benches and a question from the Liberal Democrats.

[Baroness Anelay of St Johns]

My Lords, we do indeed appreciate the contribution of those who come from the EU to work here. The problem relates to those who come and decide that they will not work. That is why we made changes to the benefits system; that is why Germany is in the process of doing much the same.

[Baroness Ludford]

My Lords, does the Minister welcome the judgment of the European Court of Justice just this morning, as I do, confirming that benefit tourism is not part of the free movement scheme, which is indeed a right to move for work? It has also confirmed the three-month wait period before even those genuinely seeking work can claim benefits. Does she agree that it is entirely in the UK’s interests to support the single market, including liberalisation of services, of which the free movement of people is a part? Cherry picking is therefore not in our national interest.

European Union: Reform

Baroness Ludford Excerpts

Thursday 6th November 2014 Lords Chamber

[Baroness Anelay of St Johns]

What an interesting thought, my Lords.

[Baroness Ludford (LD)]

My Lords, would the Minister give an assurance that, in pursuing reform of the EU and EU treaties, the Government will pursue what is in the coalition agreement of 2010, which is to end the travelling circus to Strasbourg, which costs about £150 million a year? That reform would really resonate with the people of this country. Is the Minister aware that there is now a considerable cohort of Members of this House who have personal experience and can tell her in great detail about the inconvenience of it, as well as the cost, which is the most important thing to taxpayers?

[Baroness Anelay of St Johns]

My Lords, it is a pleasure to see my noble friend back in her place, although losing her seat in Europe was not perhaps the best way in which to achieve it. But her expertise is welcome here, and she makes an extremely important point. Negotiations must proceed to ensure that the EU spends our money wisely.