Outcome of the European Union Referendum

Baroness Randerson Excerpts

Tuesday 5th July 2016 Lords Chamber

[Baroness Randerson (LD)]

My Lords, with the single, wonderful and inspirational exception of our football team, my country has perplexed and saddened me recently. I campaigned in the referendum in Cardiff, which voted heavily to remain, but much of the rest of Wales voted to leave, despite being a net beneficiary of EU money. That included rural areas with a heavy dependence on EU agricultural subsidies, which now face a very uncertain future, and the city of Swansea, which has had many millions of pounds from the EU to build a new university campus. The heaviest leave votes were in those parts of Wales which have benefited most intensively from EU funding.

These areas are at the sharp end when industrial and business investment recedes. Indeed, the Cardiff metro project, designed to link the valleys with the capital city, is already in doubt because of the almost inevitable withdrawal of EU funding. Successive Governments in Britain have proved very unwilling to endorse the use of EU money to assist poorer areas. I recall that the very first big argument in the fledgling Welsh Assembly was about the Labour Government’s refusal to provide match funding—which is, of course, what you need when you have money from Europe. So I am very sceptical that the current or future Governments will simply plug the gap. Anyway, the mythical £350 million a week has already been spent many times over.

A slow fuse has been lit. People seemed to expect an immediate explosion after the EU decision. They looked to the stock market, expecting it to fall dramatically. However, what will actually happen is that business disinvestment will take years as the fuse slowly burns away. I have one plea to the Government: that they ensure that the Welsh Government are fully involved in the negotiations to come. If they are not, the alienation in Wales will only increase. The Government need to beware of creating another Scotland.

I shall now concentrate on transport-related issues. These are practical problems that need to be solved, or at least grappled with. They are issues that affect us in everyday life. I am pretty sure that people who voted to leave still expect to be able to fly abroad to their summer holidays and to buy goods that have been transported safely and in a timely manner from other countries. There is a simple, practical fact about which nobody—no referendum, no decision—can do anything: the continent of Europe, the land mass, stands between us and much of the rest of the world.

The first issue is the Channel Tunnel. The dream of the Channel Tunnel long predates the European Union, but the tunnel was constructed while Britain was a member and it has been executed and managed with EU membership at the forefront. It is privately financed and privately run by an Anglo-French consortium and its scale is simply enormous—400 trains a day, 50,000 passengers a day and 54,000 tonnes of freight a day. The point is that the British border is in France, and that arrangement has already been placed in doubt.

It is clear that many who voted to leave did so in the expectation of tighter border controls. This conflicts with the inspiration behind the Channel Tunnel, which was to have freer and faster movement of both people and goods between Britain and France. Any moves to implement tighter controls or to apply them in different ways will inevitably have an impact on business and on the enormous investment that the Channel Tunnel represents. Have the Government given any consideration to the impact of future models for immigration control on this business, which has invested recently many millions of pounds on expansion plans? How will control of movements through the tunnel work in future?

Turning to air travel, Britain is part of the single European sky project. Europe has competence on air traffic management and the single European sky project defragments European airspace. It reduces flight times. It is good for the environment. It increases safety. Airspace is divided into blocks: functional airspace blocks. We share one—a unified block—with Ireland, which of course will remain part of the EU. About 90% of North Atlantic traffic passes through this block. It is part of the modernisation of air traffic management technologies and I hope that it is pretty obvious that we need to remain part of it. But here is the rub. The European Aviation Safety Agency has competence over our airports, air traffic management and air navigation services as part of this modernisation scheme. So the question for the Government is: will we withdraw from this, or is this yet another part of the EU that we suddenly discover is a benefit and not a burden?

The aerospace industry is worth billions of pounds to our economy and employs thousands of people. Freight transport—whether by road, rail, sea or air—is our lifeblood with, in the first quarter of this year, 700,000 vehicles travelling from Britain to mainland Europe. We all know about the impact last summer of the delays around Dover when we had Operation Stack. It caused loss of time and money for those in the industry, but it also destroyed goods. Delay means the destruction of goods in the freight industry, so changes in border control will affect that.

Finally, I emphasise the importance that EU legislation has had for us on our roads. The tachograph, regulations on drivers’ hours, standards of vehicles, the loading of vehicles: they all affect us every day as we drive on our roads. The EU has at its core a sound principle, and I think that many people are suddenly beginning to wake up to that.