Panama Papers

Baroness Smith of Basildon Excerpts

Monday 11th April 2016 Lords Chamber

[Baroness Smith of Basildon (Lab)]

My Lords, I thank the Leader of the House for repeating the Prime Minister’s Statement. It has been a difficult week for the Government. For most people, the reports that they have heard over the past week or so about offshore investments, tax havens and corporate tax avoidance are way outside of their personal experience. Most people are still going to open bank accounts in their local high street, if they can find a branch open. So the press reports will not be fully understood by everyone, but three things emerge. Overwhelmingly, most people have said that they were very familiar with reports on the Panama papers, with just over 4% of those aged 65 and over saying that they were not—so most people have read the information and heard what is going on. There is a general attitude from most people that, even without understanding the full details, something here is not quite right. But only 8% of people said that they were surprised at the reports. For me, that indicates a cynicism about the finances of those in the public eye and highlights a necessity for public confidence in financial regulatory regimes.

George Osborne said in his Budget Statement last month that people,

“talked about social justice, but left enormous loopholes in our tax system for the very richest to exploit”.—[Official Report, Commons, 16/3/16; col. 956.]

When he said that, I do not think that he was anticipating the Panama papers. What has become clear, as news from across the world shows, is that not everyone who holds such offshore accounts or funds welcomes the transparency that this leak has brought—not because they have done anything illegal or necessarily wrong but because they never intended it to be public. Clearly, some have found it very difficult and for others it has had serious consequences.

I have a few questions for the Leader of the House on the Statement. It reports that Crown dependencies and overseas territories have agreed automatically to exchange taxpayer financial information from September. That is welcome, but it has taken some time, as my understanding is that these negotiations were initiated and made progress under the Labour Government. I ask specifically about bearer shares, when the identity of the investor or beneficiary is secret. Holding such shares is illegal for UK companies, but can she confirm that it is legal for a UK citizen to hold funds in bearer shares in other countries? If it is not, what is the penalty?

The Statement also says that there will be new legislation this year,

“to apply to corporations who fail to prevent their representatives from criminally facilitating tax evasion”.

Your Lordships’ House will appreciate that that is not a new announcement. In fact, the Government have already consulted on this, and published the consultation responses last December. The report on responses to the consultation last year, under the fourth item, “Next steps”, said that there would be further consultation early in 2016, including seeking views on,

“the merit and content of industry drafted guidance”.

Why is further consultation needed after there has already been a consultation? Is that approach of industry-drafted guidance really appropriate, and has that consultation, which was promised for early 2016, yet been published? Given that we have an extra consultation, is this an opportunity for the Government to take account of the recommendations from the Parliamentary Commission on Banking Standards in its report, Changing Banking for Good? That commission included Peers from across your Lordships’ House, including the most reverend Primate the Archbishop of Canterbury and the noble Lords, Lord Lawson and Lord McFall. Following their work, and having taken evidence, they were clear that it is not just corporate responsibility that is needed—they recommended individual responsibility. The commission received considerable evidence, including from bankers themselves, that led it to the recommendation that, without such individual responsibility, it would be impossible to crack down on banking failures and problems. Does the Leader of the House really believe that, without individual responsibility, the legislation proposed would be an adequate deterrent?

The fines and compensation paid by UK banks in the past 15 years come to more than £53 billion, which is six times the cost of the 2020 Olympics. It is an almost inconceivable amount of money. Yet no one has ever gone to prison and only one person has ever been held personally culpable and personally fined, to the tune of half a million pounds. I think that the Chancellor raised the point that it is the customers and shareholders who bear the cost of that failure, not the senior managers, who are supposed to be rewarded for being responsible. Yet there are numerous accounts of those who have wrongly claimed benefits and been sent to jail. A quick internet search finds dozens of cases where false claims of £30,000 or less have led to custodial sentences. So will the recommendations from the Parliamentary Commission on Banking Standards be considered as part of this new consultation on corporate responsibility so that the Government can consider individual responsibility as well?

Will the noble Baroness explain why the Government lobbied the EU against plans to tackle tax avoidance? Conservative MEPs have regularly voted against measures to deal with aggressive tax avoidance and press reports suggest that the Prime Minister personally intervened to block EU plans to take action on tax havens. It would be helpful for your Lordships’ House if the noble Baroness could clarify those points.

Finally, on enforcement, the commitment of a £10 million cross-agency task force is welcome. Additional funding is clearly essential, especially given the cuts that have been made to HMRC. In the last Budget, the Chancellor made a strong case for bearing down on tax avoidance and evasion, especially in relation to the impact on public finances, and I think we would agree on that. In terms of ensuring that taxes are paid, the OBR reported just last month:

“HMRC is also now less optimistic about how much of the lost yield can be recouped through additional compliance activity, on the basis that they are unlikely to be able to work the higher number of additional cases on top of existing workloads”.

To date, the Chancellor has refused requests better to resource HMRC. How will the £10 million referred to today be allocated? Will it go directly to HMRC or is it something to be found from within existing Treasury budgets?

I am grateful to the noble Baroness for repeating the Statement and I look forward to her response in answer to those questions.

[Lord Wallace of Tankerness (LD)]

My Lords, I, too, thank the noble Baroness the Leader of the House for repeating the Prime Minister’s Statement. As I observed to my noble friend Lady Kramer, if when we went into recess on 23 March we had thought that on the first day back there would be a Statement entitled “Panama Papers”, we would wonder what in the world had been going on. However, they relate to a very important issue because it is at the core of our politics.

It is, I think, agreed on all sides of your Lordships’ House that people in this country should have full confidence in our leaders and that when decisions are made and Budgets are written there is not even the slightest hint of a conflict of interest or personal gain. Regrettably, we are now in a position where not only do people no longer have complete faith in this Government’s decisions but, more fundamentally, trust in politics and in our ability to get things done has been damaged by the events of the past week. It is a poor indictment of our political system that there is now such a great demand to see politicians’ tax affairs and that trust in politics is now so low that there is almost an assumption that a politician is doing wrong, playing the system or is “at it”, and there is the cynicism referred to by the noble Baroness, Lady Smith of Basildon. In the nearly 33 years since I was first elected to the House of Commons, I have known politicians from right across the political spectrum. With very few exceptions, I can say that whatever our differences in political outlook—and some of the differences have been quite fundamental—my experience has been of men and women united in the common purpose of public service. Sadly, that is not always the common perception, so there must be change.

There has been some discussion about the Prime Minister’s personal affairs. Frankly, they are beside the point. Indeed, if this issue triggers an avalanche of published tax returns, and consequent personalisation as they are pored over and individuals are identified, there is a danger that the fundamental point of the weaknesses in the current system will be missed. For, miles removed from the Prime Minister’s personal tax affairs, these Panama papers have shown up dictators stealing from their people from Sudan to Syria, from the family of Mubarak to the friends of Putin, aiding warlords and leaders ripping off developing countries which need the most help. The epicentre of much of this activity would appear to be in a number of British Overseas Territories. At its peak in 2005, it was claimed that there were more than 7,000 somewhat dodgy deals in the British Virgin Islands alone. We have some responsibilities there, so can the Leader of the House guarantee that the Prime Minister will use the options available to him to ensure that those under the UK’s watch can no longer be complicit in helping dictators and other unsavoury characters?

When, not so long ago, the Prime Minister asked British Overseas Territories to reform their activities, particularly in relation to disclosure of beneficial interests in companies registered there, they said no, and he backed down, but today we are told that they will provide UK law enforcement and tax agencies with full access to information on the beneficial ownership of companies. That turnaround is very welcome, but can the noble Baroness tell us whether at the anti-corruption summit this May it is intended to press overseas territories to make available to tax authorities in other countries with a legitimate interest in the information a central list of beneficial ownership in each fund created?

In coalition government, the coalition parties, including the Liberal Democrats, took unprecedented action to clamp down on tax avoidance and evasion, very much at the prompting of my colleague Danny Alexander. I am sure the noble Baroness will like to confirm that we made 42 changes to tax law, closing down loopholes and making strategic changes to deter and prevent tax avoidance. We invested nearly £1 billion in HMRC to make sure that everyone pays their fair share of tax and increased the number of staff working to tackle tax avoidance by 2,500. Will she confirm that we strengthened the disclosure of tax avoidance schemes—DOTAS—regime and introduced a tougher monitoring regime and penalties for high-risk promoters of tax avoidance schemes?

Will she also agree that there is more that can and should be done? Indeed, in March my party leader, Tim Farron, asked my colleague Vince Cable to lead a major review on tax to ensure that people can have faith in the system and to make sure it works in a truly globalised world. I hope that, in a spirit of non-partisanship, when that work is done the Government will be willing to look at it closely. We will of course want to examine closely criminalising those who assist in evasion, which has been announced by the Prime Minister, but can the noble Baroness confirm that that is the same policy that Mr Danny Alexander announced on 19 March 2015, when he unveiled plans to,

“make it a criminal offence for corporates to fail to prevent tax evasion or the facilitation of tax evasion on their watch”?

The noble Baroness the Leader of the Opposition foreshadowed that question. I am quoting from a press release by Her Majesty’s Treasury. Is this a reannouncement or is there is really something new?

In a similar view, will the noble Baroness the Leader of the House look again at some of the other proposals trying to tackle tax evasion that my right honourable friends put forward during the coalition, which were blocked by her party? Does she also recognise that the current anti-abuse rules, while an excellent start, can and should go further? Will the Government strengthen the penalties for participating in repeated avoidance schemes? Does she recognise that the changes the Government are bringing in will not even allow someone to be named unless they have been involved in three separate avoidance schemes, and that this is does not go far enough?

At the weekend, the secretary of the Church of Scotland’s Church and Society Council, the Reverend Martin Johnstone, tweeted:

“I hear #DavidCameron is being discriminated against for being rich. It's tough but easier than being discriminated against for being poor”.

In all this, we must not lose sight of what is really at stake: the need to rebuild faith in our politics by doing what matters, by reaching out and helping people, and by having a politics that works for people and their communities when it is their interests that are at the heart of how things are done. We must not lose this opportunity to change the system, so will the noble Baroness assure the House that the Prime Minister’s announcement today will be the start of a process to strengthen our anti-abuse rules and to rebuild trust in our politics?

[Baroness Stowell of Beeston]

My Lords, as always, I am grateful to the noble Baroness and the noble and learned Lord for their remarks. Before I respond to some of the specific questions that they put to me, I want to re-emphasise a couple of points in the Prime Minister’s Statement. While David Cameron has been Prime Minister of this country, we have done more to tackle tax evasion and aggressive tax avoidance than any Government before we came to power. Some of the evidence to illustrate the impact of our action has already been highlighted. We made 40 tax changes to close off loopholes which have brought in £12 billion. We have brought in £2 billion from offshore tax evaders since 2010. One of the points which is worth me highlighting, which has not been fully recognised, is that all this action, whether on tax avoidance or on closing tax loopholes generally, means that the gap between tax owed and tax paid is now at its narrowest point ever. That illustrates how much we believe in making sure that people pay the taxes they owe and that the actions we have taken have had a positive effect.

We have been leading efforts worldwide; it is not just about the things that we have done in this country. Thanks to the work of the UK, more than 90 countries have signed up to the automatic exchange of information. That means that agencies such as HMRC can now pursue avoiders and evaders in ways that they have never been able to before. Our determination to tackle corporate secrecy by shining a light on beneficial owners is going to be game-changing. I get civil servants briefing me on some of these technical matters, and when you start asking questions, you realise just how different things will be when all these measures are in place. I do not think that that has been properly understood and recognised. It is the right thing for us to do.

The anti-corruption summit that the Prime Minister will be hosting next month is the first one ever, and it follows from him taking the lead at the G8 in 2013. The noble and learned Lord is right that while we did a lot when we were in coalition with the Lib Dems, there is more to do and we will continue to pursue this while we are in government because it is absolutely the right thing for us to do.

I turn to the specific questions asked by the noble Baroness and the noble and learned Lord. I was asked about the new criminal offence. I would not want to say that the Lib Dems in coalition or indeed Danny Alexander should take credit in quite the same universal way that the noble and learned Lord was trying to claim in his remarks, but it is true to say that this is a new criminal offence, previously announced, and a lot of work has been undertaken in consultation to prepare for this legislation. That is a good thing. It is good that it has taken time for this to come through and that it has been widely consulted upon. It is not a knee-jerk reaction to any of the events of the past week; it will be properly thought-through new legislation. It will be part of the Queen’s Speech, and we will hear more about that when we introduce the legislation later this year.

The noble Baroness asked me why further consultation on the legislation was necessary. I do not think we are trying to pursue further consultation. The consultation has happened and we have produced a written response to it. As she would expect, as we finalise legislation—

[Baroness Smith of Basildon]

My Lords—

[Baroness Stowell of Beeston]

This is a Statement and I am responding to questions. If there is more information on this that I can provide afterwards then I will write to the noble Baroness if there is something specific.

The noble Baroness asked about the European Commission and what was described as the Prime Minister blocking something that the European Commission wanted to pursue by way of disclosure of the beneficiaries of trusts. At the time that the Prime Minister wrote his letter, the Government were concerned that what was proposed by the commission, which included all trusts, would distract from action against those areas of most concern, such as shell companies, and in practice these further changes were not achievable. In the subsequent negotiations we were able to secure a sensible way forward that ensures that trusts that generate tax consequences have to report their ownership to HMRC. In layman’s terms, I would say that that means the automatic exchange of information will very much provide the data and the information that are needed for the relevant agencies to pursue tax avoidance and evasion.

The noble Baroness asked about bearer shares. In the same letter to the noble Baroness I will provide further detail on the new legislation if I can, but it is fair to say that there are very few countries now that permit the issuance of bearer shares as a result of the work of the global forum on tax transparency, which we were very much in the lead on.

The noble and learned Lord, Lord Wallace, asked about some specific issues, most of which I think I have covered. He asked about the collection by Crown dependencies and overseas territories of data that will be available to our law enforcement agencies in this country. We are going to publish our own public register of beneficial ownership. The Crown dependencies and overseas territories will for the first time be collecting the data and making them available to the United Kingdom. I am not able to answer the noble and learned Lord’s specific question except to say to him, as the Prime Minister made clear in his Statement, that what these Crown dependencies and overseas territories are now committed to doing on the collection of data for us on their beneficial ownership—and, I should add, doing it with regard to the automatic exchange of information a year earlier than any of the other countries that have signed up to doing this—is something that many of our partner countries, such as states in the United States of America, do not even collate. The overseas territories and Crown dependencies are going to be collating it. That is a very big step forward, and we will continue to make all the progress that we can to ensure that in this country we go after aggressive tax avoidance. We will pursue every avenue that we possibly can.

European Council: March 2016

Baroness Smith of Basildon Excerpts

Monday 21st March 2016 Lords Chamber

[Baroness Smith of Basildon (Lab)]

My Lords, I am grateful to the Leader of the House for repeating the Statement made by the Prime Minister earlier today. I have to say that it was not quite the Statement that we were expecting after the media noise over the last day or so. She may have noticed when she was speaking that noble Lords were flicking through the Statement that was released, because the last part that she read out was not released to the Opposition or to your Lordships’ House in the usual way. I do not imply any discourtesy, but I suspect that the crescendo that we heard in defence of compassionate Conservativism at the end probably had not been written in time for the printed copy.

As MPs and Peers left Westminster on Thursday evening, no one could have foreseen the events of the weekend. Clearly, problems were simmering at the heart of the Government, which led to the dramatic resignation of the Work and Pensions Secretary on Friday evening, just as many of us were about to turn in for the night. In the Statement, the Prime Minister paid fulsome tribute to Iain Duncan Smith for his work in government. But for those who read his resignation letter and watched him on TV yesterday, it is clear that his concerns and the reasons for his resignation are deeply held. Although some feel that this had been building up for some time, others such as the noble Baroness, Lady Altmann, took to the airwaves to condemn it as a more recent conversion. We may never know the truth.

I genuinely welcome the fact that, despite these distractions, the Prime Minister was able to focus on what was an extremely important EU Council, on which I want to focus. Europe is facing the most severe migration crisis since the Second World War. Many have observed that this is the biggest challenge that the EU has ever faced. Given the scale and the seriousness of the crisis, and the importance of the EU Council meeting, I find it disappointing that internal government political problems dominated the weekend’s news coverage.

Before we get into the detail, we should just reflect on how the human misery at the heart of the crisis is too often lost in the language of EU agreements and treaties. This is nothing less than a matter of life or death for the people involved. You just have to imagine being a parent and paying your life’s savings to someone you know full well to be a criminal just to try to possibly escape the horror that has convulsed your country, with no real prospect of peace in sight. We have seen this in Syria, Afghanistan and north Africa. Many of these families know that they face a great risk, but they believe that staying is a greater risk for them. We just have to imagine and think how absolutely desperate they must be. They have not packed suitcases to go off on holiday, nor have they have been able to sit down and make a rational choice to leave their homes. They feel that there is no alternative but to seek refuge and a better, safer life for them and their children elsewhere.

In 2015, more than 1 million people made that dangerous journey to Europe in a desperate search for safety. Upon arrival, if indeed they make it that far, despite the best efforts of charities, the authorities and volunteers, they all too often face appalling conditions. There is no proper access to all those things that we take for granted: homes, food, sanitation, healthcare and schools. They do not have them in the way that we expect to have them. This is a humanitarian crisis on the most enormous scale. Talk of migrants—especially “bunches of migrants”, a phrase that we have heard—merely dehumanises each and every individual tragedy that we are faced with. Perhaps we should all try to remember that and think about how we speak.

It is right that our response to a crisis of this magnitude is an EU-wide response. It is also right that, through the EU, we engage with Turkey. The need for Europe-wide co-operation underlines the case for remaining in the EU. Labour supports Turkey’s application to join the EU, but we also recognise that this is certainly not an immediate prospect: important issues have to be addressed first and conditions met. We want to be satisfied with regard to human rights, governance, free media, the rule of law and Turkey’s relationship with Cyprus. However, the agreement reached over the weekend, if implemented properly and fully, could relieve some of the pressure that both Turkey and Greece are facing. I welcome the clarification on Turkish visas and Schengen. We also pay tribute to those from our Armed Forces and military engaged in the EU naval operations for their vital work on this issue.

However, questions remain both on refugees and on the wider issues, which I hope the noble Baroness can address in her response. For those seeking refuge who are to be returned, what measures will be taken to ensure that they do not again fall into the hands of traffickers and that they are protected by international law? What measures are guaranteed for those claiming asylum in terms of access to interpreters and to legal advice and representation? Is the noble Baroness able to confirm whether Turkish travel documents have a sufficient level of integrity and security in line with EU standards, including on fingerprints? In repeating the Statement today, she gave some figures on the number of refugees who have settled in the UK. If she could update those figures, that would be helpful.

What progress has been made with ensuring that Turkey fully respects the Geneva Convention on human rights, to ensure that all those arriving from other countries receive formal international protection? What steps are being taken to ensure that those arriving in Turkey do not simply shift via other routes—for example, through Libya? What support is being given to Greece to enable it to execute the terms of the deal at such notice?

Finally, on the other issue that the Prime Minister mentioned, the tampon tax, I pay tribute to my noble friend Lady Primarolo, who is in her place. She tells the story of how, as a Treasury Minister, she sought and, in 2000, succeeded in reducing VAT on female sanitary protection to the then lowest level of 5% from the higher level that we as a Government inherited of 17.5%. It was not easy. She was told the justification for why it could not be reduced to the lower level of 5% in a scene worthy of “Yes Minister”. She was told: “But Minister, it is only for essential products”. When she asked for examples of what those could possibly be, she was told, “Well, Minister, essential products like razor blades”.

Today, we welcome the progress made and recognise the efforts of my noble friend in getting us to this point. The right decision has been made. The Chancellor said last week in his Statement that the money raised from that 5% VAT would go to charities. Does that mean that charities will not receive that income, or will the Chancellor find some other way to make up the deficit of the money that they were expecting? I hope that the noble Baroness will be able to answer my questions.

[Lord Wallace of Tankerness (LD)]

My Lords, I thank the Leader of the House for repeating the Statement. Given that much of it was about Turkey, I am sure that she and the House as a whole wish to place on record our condolences to the families of those who have been the victims of recent terrorism atrocities in both Ankara and Istanbul.

Faced with such an immense challenge, it would be unreasonable to doubt the good faith of those who have strived to reach some agreement between the European Union and Turkey over the past few days, but it should not come as a surprise when I say that we on these Benches have serious misgivings about the EU-Turkey deal which has emerged from the European Council meeting. The United Kingdom should be leading by example in the response to the refugee crisis. We should be using a significant influence to fight for an EU-wide response that is fair, just and respect the values that this country holds dear. Credit where credit is due: where this Government have played a leading role, such as in encouraging humanitarian relief in Syria and the region, we have been successful, not least at the Syria donor conference in London last month.

However, when we look at the agreement and the Statement from the Prime Minister, we find it shameful that the United Kingdom is demonstrating such reluctance to stand up for vulnerable refugees who have fled from war and terror. The noble Baroness, Lady Smith of Basildon, gave very clear substance to what those people are facing. Our continued inaction does not do justice to Britain’s history and values.

When one reads the Prime Minister’s Statement, one finds that we will not be taking more refugees as a result of this deal. Put that in a context where people are facing misery and need. One wonders whether this is really a manifestation of compassionate conservatism.

Safe and legal routes are crucial for moving the current process forward. The vast majority of refugees fleeing Syria and Iraq choose to stay in the region, as close to their homes as possible, but for those who cannot survive in the region, routes must be available to apply for asylum not only in the United Kingdom but in other countries as well. On these Benches, we support the measures set out by the United Nations High Commission on Refugees on 4 March: humanitarian admission programmes, private sponsorships, family reunions, student scholarships and labour mobility schemes. Direct resettlement from the region is part of that, and we should be scaling up our resettlement programme. Twenty thousand people over five years is insufficient. The United Kingdom should use its leadership in Europe to encourage other European countries to scale up their own programmes of direct resettlement.

We also need a system in place for those already in Europe, including the estimated 26,000 children who arrived in 2015, 10,000 of whom are now missing. In the vote in the earlier Division, the House made its view very clear on that.

On previous occasions the noble Baroness the Leader of the House and other Ministers have tried to argue that, by accepting those seeking asylum who have travelled the fraught journey to continental Europe, we are only encouraging more people to do so. I have always thought that it was a bit like saying that the Good Samaritan should really have passed by on the other side because, by stopping to help, he was only encouraging more acts of highway robbery on the road between Jericho and Jerusalem. If, as the Statement hopes, the agreement breaks the business model of the people smugglers, what reason is there then for us not taking an equitable share of those who are already in continental Europe?

Clearly, the Dublin system is not currently sufficient to deal with this crisis. Instead, the United Kingdom should encourage the European Union to develop European-wide systems of responsibility for asylum seekers, including setting up a system for asylum requests to be distributed equitably across EU member states which takes account of different demographic projections, such as the high net migration in the United Kingdom, compared to forecast population decreases elsewhere.

Turning to the specifics, many people and well-recognised organisations have expressed concern that the proposals as they stand seek to address only the short-term concerns over European borders. Serious questions were raised after the 7 March proposals were published as to their standing in European Union and international law. Will the noble Baroness the Leader of the House give the House the Government’s assessment of the international legal position in relation to this agreement? Can she give details of how full and proper asylum determination procedure will be carried out in Greece in full compliance with European Union law? The agreement states:

“People who do not have a right to international protection will be immediately returned to Turkey”.

Can the noble Baroness provide more detail on who that covers? What provision is made for families and children, given that children and women now make up 60% of those crossing to Europe? Will those who have the right to international protection be granted asylum only in Greece, or will they be relocated elsewhere?

The one-for-one arrangement appears to apply only to Syrian refugees. What is the position regarding other nationalities, such as Iraqis and Afghans, who are also fleeing conflict areas? Not surprisingly, Greece is having great difficulty processing the number of people through the relocation provisions, so can the noble Baroness give us some detail as to how quickly people will be assessed and indicate what provision the United Kingdom is making for the assessment process?

There appears to be little in the way of concrete proposals to tackle trafficking within Turkey and other launch points, including Libya. Although we would like a full investigation into the cash flows of the smuggling businesses, in the mean time, can the noble Baroness assure the House that the money provided by the European Union to improve humanitarian conditions for refugees in Turkey will be closely monitored and, where possible, be funded through international organisations, including UNHCR, UNICEF and other NGOs?

Finally, the EU-Turkey statement reaffirms a commitment to re-energise the accession process. We have supported Turkey’s application, but I do not think that anyone can be under any illusion that, however important it is, it will be a difficult and probably long process. Can the Leader of the House assure us and confirm that, given some of the actions of the Turkish authorities in recent months, there will be no watering down of the justice and rule-of-law requirements of EU membership?

In conclusion, we have seen in recent days the real colour of this Government on this and other issues. Whether it is in relation to the incredibly vulnerable unaccompanied children and families seeking refuge in Europe or the Chancellor of the Exchequer trying to pay for his bonus for the wealthy by punishing disabled people, it appears that, time and again, this Government’s choices are driven by cynical politics and public image rather than economic necessity or indeed humanitarian concern.

European Council

Baroness Smith of Basildon Excerpts

Monday 22nd February 2016 Lords Chamber

[Baroness Smith of Basildon (Lab)]

My Lords, I thank the noble Baroness for repeating today’s Statement, which is hugely significant for the future of our country and its place in the world. I am also grateful to the Chief Whip for allowing some additional time for Back-Bench contributions and questions.

Clearly, anyone could be forgiven for thinking that the UK’s relationship with the EU was the only issue discussed at the European Council over the weekend. I am grateful that, in the Statement she repeated today, the noble Baroness made it clear that other issues were also debated. It must be immensely frustrating for other countries that issues such as migration, Syria and Libya have not received the same degree of interest as our referendum has. Perhaps that makes a profound point, because those are obviously issues where European and international co-operation are absolutely vital and crucial.

On our role within the EU, the Prime Minister is clearly relieved that a deal has been done and that he has been able to announce the date for the referendum, although at times over the weekend it was all looking slightly dodgy. We were told that, following the completion of negotiations, there would be an English breakfast on Friday morning where the deal would be finalised and then the PM would travel back for a Cabinet meeting in the evening. However, as that breakfast became brunch, brunch became lunch, and lunch became dinner, it was clear that there were still a few sticking points. When we saw Angela Merkel rushing out for a bag of chips as sustenance we knew there was still some way to go. Perhaps the Prime Minister thought that he could starve them into submission. Finally the deal was announced—not exactly what he had asked for but, as any experienced negotiator will confirm, that is the nature of negotiations. The deal had significant changes that certainly cannot be dismissed as unimportant, although some have tried. Then, for the first time since 1982 during the Falklands crisis, the Cabinet met on a Saturday.

There is an historical connection here, in that it was Harold Wilson, the first and until now the only Prime Minister to hold a referendum on the European issue, who is said to have once remarked:

“A week is a long time in politics”,

though his referendum campaign lasted just half the time of ours. If a week is a long time, the next four months of campaigning are going to seem like an absolute eternity. There will be discussions and deliberations and, as leaflet after leaflet extolling the views of one campaign or another is handed out and posted through letterboxes, recycling bins are going to be full to overflowing.

I predict some excellent debates and factually based communications that will inform and enlighten. I also predict nonsense, scaremongering and bad temper. We shall also have some moments of pure theatre. The “will he/won’t he” performance of Boris Johnson’s announcement last night was clearly designed to create the maximum spectacle and drama, and he succeeded in that. He was obviously aware of the deliberate impact that that would have on the Prime Minister.

However, for most of us this issue has to be more than just about personalities and theatrics. It has to be about more than who can shout the loudest or get the most celebrities signed up to their campaign. It is more—so much more—than Mr Cameron’s deal. Support for that view has come from surprising sources. It was almost incredible to hear Chris Grayling yesterday morning on the radio saying that it was a relief rather than difficult to declare his opposition because he, like many others, had made up his mind weeks ago, but had done the right thing and let the Prime Minister continue his negotiations. The right thing? Whatever the Prime Minister returned with was never going to get the support of the very people—his Cabinet and his party—he was trying to please. When, on 2 February, we had that previous Statement I expressed our view that too much of the Prime Minister’s negotiating position had been targeted at his own internal party problems, whereas the only objective must always be the national interest and the key issues that impact on people’s everyday lives.

I am not suggesting that the deal is not helpful. People will have their own views. However, there are so many other issues that are crucial to the UK and to Europe on which we should be taking a lead. We should be exerting our influence and trying to create the kind of EU in which we can take great pride. The Labour Party and the trade unions played a strong role in ensuring that issues such as employment rights, guaranteed paid holidays, paid maternity leave and protection for agency workers were kept out of any renegotiation. Those rights are far too important to be lost or weakened.

The same applies to consumer and environmental protections that have a real and tangible impact on many if not all of us. That includes the cutting of data roaming costs for mobiles and for using the internet, the improvement of air passengers’ rights, clean beaches and bathing water—good for our well-being and a boost to local economies—and how we deal with and dispose of waste. Thanks to EU legislation, on those kind of issues we all benefit. Indeed, given that the air quality here in London and other parts of the UK continues to fall short of EU clean air standards, it would clearly have been more beneficial to the public health of our fellow citizens if the Government had engaged more proactively on this front.

I watched with incredulity yesterday as Iain Duncan Smith claimed that we would be safer out of the EU, as being part of it increased the threat of Paris-style terrorist attacks. Is this the same Iain Duncan Smith who supported the Government’s proposals to opt out of EU measures to deal with crime and policing, including terrorism, and then found out, along with the rest of his party, that they had to opt back in to everything because it actually worked? It worked because it made us safer.

For so long, Brexit campaigners have been telling us that EU citizens travel to the UK in order to get benefits. Then, when the Prime Minister reaches an agreement to cut these, the argument shifts to being that it will not make any difference. You cannot have both sides of the argument at the same time. As this campaign progresses, let us have the kind of debate that can make us proud as a country and as a Parliament. Let us try to recapture some of that vision and promise that was in the hearts and minds of those who first conceived that a way to peace and prosperity was a Europe—which was then divided and devastated by two wars—that would work together with common principles and values for the benefit of all citizens. Let us have a debate of vision and of facts. We should recall that in 1961, our application for membership was vetoed because it was felt that we would be too dominant and powerful through our relationship with the Commonwealth and the US. Yet today we maintain those strong and special relationships alongside our membership of the EU.

None of us would claim that the EU was perfect. We all recognise where it has been weak and where change is needed. But would it not benefit this country if we could again be seen as a powerful figure on the European stage—a powerful country that would take a lead within an EU that works better for working people, strengthens businesses small and large, and brings ongoing and better reform? Why should we not seek to build human rights, employment rights, consumer and environmental protections into future Europe-wide trade treaties? Taking on workers from other countries should never be used as an excuse to drive down wages or disadvantage local workers. Rather than merely seeking greater control for ourselves, why should we not seek to stop the pressure from Brussels to deregulate and sell off public services? That is a matter for national Governments. Why are we not pressing across the EU for a more humanitarian and strategic response to the thousands of refugees seeking asylum, with far too many losing their lives in the process?

Whatever the outcome of the referendum on 23 June, the EU is still going to exist just 21 miles from the shores of Dover and across the border in the Republic of Ireland. That is a fact of life. If we vote to leave, we will still have to manage that reality while our businesses, large and small, that want to trade within the EU will still have to abide by its regulations, which the United Kingdom will have no part in making. During this referendum we will hear a lot of talk about sovereignty, independence and what it means to be a nation state in the ever-changing world of the 21st century. We have already heard quite a bit about patriotism. I so hope that neither side in this debate will seek to claim ownership of patriotism or denigrate anyone else’s.

As I said earlier, and I am sure that I speak for many Members of your Lordships’ House, I hope that the debate will be more informative and enlightening than it is misleading and ill tempered. However, my plea is deeper than that. Already today, we have heard the news that the pound is falling in value, partly from the uncertainty of Brexit and partly because of a Government who are now seen as divided and preoccupied. This makes the need for a constructive, positive debate not just important but absolutely essential. Four months is a long time. The Government must not be so preoccupied with this debate that they lose focus on other issues. The debate has to be about the future of the UK and not that of the Conservative Party, as entertaining as that may be, because this is not about entertainment. This is a huge decision that faces each and every one of us. In the Statement which the noble Baroness repeated, there was the comment that this is not just a theoretical question but a real decision about people’s lives. We entirely concur with that statement.

The British people deserve a proper debate ahead of 23 June. My party has set out its position clearly and with conviction. We look forward to making the case for a stronger, open and confident Britain remaining as an engaged, challenging and leading member of the EU.

[Lord Wallace of Tankerness (LD)]

My Lords, I, too, thank the noble Baroness the Leader of the House for repeating the Prime Minister’s Statement. At the outset, I declare my registered interest as a member of the board of Britain Stronger in Europe. I say gently to the noble Baroness, Lady Smith of Basildon, that twice in her remarks she talked about four months being a long time. A number of us in your Lordships’ House who are veterans of three and a half years on the Scottish referendum would think four months a relative relief.

Those of us on these Benches very much welcome the Prime Minister’s successful renegotiations in Europe last week. The hard work that he put in, not only last week but in the weeks leading up to it, was very evident and it is fair to say that what he came away with exceeded many people’s initial expectations. We also welcome the willingness of other EU member states to work with the United Kingdom to reach this compromise. That demonstrates the degree of good will towards the United Kingdom from other EU Governments, and their commitment to maintaining British membership. I was delighted yesterday to hear the Prime Minister setting out, at long last, the strategic case for the United Kingdom continuing its membership of the European Union. It was very welcome, too, that the Prime Minister took the opportunity in his Statement to knock on the head the fanciful idea that, in the event of an out vote, there could be a second renegotiation and a second referendum.

The referendum vote in June will be of the utmost significance. It will settle not only Britain’s relations with Europe, but our place in the world. We very much believe that the United Kingdom will derive strength from being seen as a team player and engaged in international affairs. It is an illusion of sovereignty to suggest that, if we come out, we will somehow get sovereignty back. Liberal Democrats are firmly committed to the United Kingdom’s place in the European Union. We are united in our belief that the United Kingdom is better when it is united with our colleagues in Europe. In an uncertain world of challenges and threats, I also believe that Europe is better and stronger for having the United Kingdom in it as a member state.

We have spoken from these Benches on a number of occasions about how we will use the campaign to speak about the positive case for Britain remaining within the EU. In the EU, Britain can thrive. Together, we will be a stronger and more prosperous nation, securing jobs and creating opportunity for our children and grandchildren. We have created together the world’s largest free trade area, we have delivered peace, and we have given the British people the opportunity to live, work and travel freely. History shows that Britain is better when it is united with our European partners. Together, we are stronger in the fight against the global problems that do not stop at borders. We can combat international crime, fight climate change, and together provide hope and opportunity for the future.

It is worth reflecting for a moment on the creation of the European Union and its lasting legacy. After decades of brutal conflict on the continent, European nations came together in co-operation. To this day, neighbours and allies support each other in what remains the world’s most successful project in peace. We remain stronger together in continuing the fight against terrorists who despise our liberal and modern way of life. Will the noble Baroness the Leader of the House take the opportunity to repudiate the alarmist comments made by her colleague, the Secretary of State for Work and Pensions, when he said that remaining in the EU exposes Britain to a Paris-style terrorist attack? Does she agree that it is only by working in co-operation with our international friends and neighbours that we can combat such threats to our security?

Britain is already stronger and better off trading and working with Europe. We are part of the world’s largest single market, allowing British businesses to grow and prosper. Our people have more opportunities to work, travel and learn than ever before. Staying in the EU gives our children and grandchildren greater prospects, and the best chance to succeed. Does the noble Baroness share my concerns, therefore, at the dramatic fall in sterling today—referred to by the noble Baroness, Lady Smith—which we believe was driven in great part by fear of Brexit? Does she agree that the threat of leaving the EU is already costing British businesses and that it would be much worse for British exporters if we were to withdraw from the world’s biggest single market? Can the noble Baroness indicate when we will get the Government’s report on EU membership under Section 7 of the European Referendum Act that Parliament passed towards the end of last year?

This country’s place in the world depends on our getting on well with our neighbours, who share our values and interests. Does the noble Baroness the Leader of the House agree that this referendum is about the kind of country we want to leave to our children and grandchildren, and about how we think of ourselves as a country? Does she agree that issues such as climate change and the natural environment are better tackled when we come together to think about the world we want to leave to future generations?

There has been speculation about a statement or an initiative on sovereignty, which was lacking from the Prime Minister’s Statement today. Before going down that particular road—it may just have been a ruse to try to bring Boris on board—will the noble Baroness reflect that in fact further piecemeal constitutional meddling of that kind may end up with consequences more damaging than the ones they seek to resolve? Will she give the House an indication of the Government’s thinking on that?

Finally, will the noble Baroness confirm that this is, indeed, a once-in-a-generation decision and that there is only one opportunity to show that the United Kingdom is not a country that is isolated and sidelined but one that is open, outward-facing and proud of its place in the international community, and that an out vote means taking the United Kingdom back and an in vote means taking the United Kingdom forward?

European Union: United Kingdom Renegotiation

Baroness Smith of Basildon Excerpts

Thursday 4th February 2016 Lords Chamber

[Baroness Smith of Basildon (Lab)]

My Lords, I am grateful to the Leader of the House for repeating the Prime Minister’s Statement. I also thank the Government Chief Whip for extending the time for Back-Bench contributions. I know that the noble Lord understands the need for that and also for a more substantial debate on this matter in the near future.

Let me make it clear at the outset that we broadly welcome the Statement. I readily confess to some degree of relief that the Prime Minister is finally making at least some progress on his aim of seeking a new relationship with the European Union. I do not think I am alone in finding that the Prime Minister’s rhetoric has been, perhaps, the opposite of what one would normally expect from a good negotiator. This is not a game. This is not an issue in which internal party political divisions should have any role at all. The only objective must be the national interest: an interest that brings jobs, investment, prosperity and a continued influence in the world; greater protections for British workers and increased opportunities for our businesses; and that keeps us safer, both at home and abroad. What has been outlined so far appears to be a step in the right direction. However, as I think the Leader conceded, it is more of an agreement to agree than a detailed and finalised deal, but it is none the less welcome and we look forward to further clarification and expansion on the detail of how the proposed negotiation will work in practice.

We on these Benches welcome that important and hard-fought advances such as employment rights and improved environmental protections have not been negotiated away. They are tangible benefits for British citizens and it is right that they are protected. Whatever the future arrangements, I hope that the Prime Minister will ensure that British workers are never left behind in standards and rights at work.

I want to be clear that my party will campaign to keep the UK in the European Union, not least because we believe it is increasingly impossible for countries to be fortresses in our interconnected world. Many of the most serious challenges, including crime, terrorism and climate change, affect all countries and are best met by co-ordinated European and worldwide action.

Many noble Lords will recall the hugely informative debates we had on the coalition Government’s bizarre hokey-cokey of opting out then opting back in again on crime and criminal justice measures. It was clear then, and the Government had to concede, that meeting the challenges of serious and organised crime—drug trafficking, fraud, child abuse and paedophilia, and people trafficking—could effectively be tackled only through the EU. I remain of the view that one of the strongest cases for the European Union is the effectiveness of our co-operation on serious crime. The threats and challenges we face will not go away by voting to leave. That established co-operation means that we are better able to detect crime, bring criminals to justice and, therefore, protect our citizens.

It also illustrates one of the failures of politicians, and others, on this issue. There has been a complete inability to talk about the EU so that people outside Parliament know what we are talking about—even in the Statement today. For most people, an emergency brake is in a car. The language of EU directives, qualified majority voting and other terms that most people never normally use does not begin to explain why our membership is so important. We need to talk about the Europe-wide environmental measures that make our beaches and coastal waters cleaner and safer, about consumer protection to stop customers being ripped off, about rights at work, about jobs, about justice and about catching criminals. These are the issues that really touch people’s lives.

There is a huge challenge for all of us in this House and our colleagues in the other place, as well as our national media and opinion-formers. That challenge is illustrated by what could be described as the more colourful headlines, front pages and commentary that the Prime Minister has faced since his return. This debate is a once-in-a-generation opportunity for many millions of people, each with one equal vote, to have their say about our country’s future place in Europe and the world—although, sadly, not for the 16 and 17 year-olds whose future is dependent on the outcome of that vote. The debate should not be only one of persuasion. It should be one of education and providing straightforward, honest and accurate facts and allowing people to reach their own decisions.

Noble Lords will recall that during the passage of the European Union Referendum Bill, your Lordships’ House secured concessions from the Government on the importance of significant information provision in advance of the referendum, including agreement to report back on: the rights of individuals within the UK, including employment rights; the rights of EU citizens living in the UK; social and environmental legislation; law enforcement, security and justice; the effect of withdrawal on Gibraltar; the right to apply for financial support from EU structural funds; and support for agriculture and research—although, sadly, not our call for the Treasury to report on the financial impact of the UK voting to leave. That is such an important issue and I ask the Leader to raise this with the Prime Minister and the Chancellor in the interests of a balanced and informed debate. If I have one plea for politicians and the media, it is that this debate should provide more light than heat. As Thomas Jefferson said:

“The cornerstone of democracy rests on the foundation of an educated electorate”.

Finally, as my colleague the leader of the Opposition in the other place told MPs yesterday:

“The Labour party is committed to keeping Britain in the European Union because we believe it is the best … framework for European trade and co-operation in the 21st century, and in the best interests of people in this country”.—[Official Report, Commons, 3/2/16; col. 928.]

No doubt, many in your Lordships’ House—on all sides—are of the same view. I trust also that everyone in this House understands that, should the UK vote to leave the EU, our country, our companies, our universities and our people will still have to follow its rules when doing business with its institutions or when travelling to the remaining member states—all without any further say in making those rules.

Reform is a constant process. It is not an event. The most effective way to reform an institution is through patience, explanation, persuasion and the building of alliances—often across and outside the normal political boundaries. That is something that noble Lords understand well.

It would be helpful to your Lordships’ House if the Leader of the House could today provide some of the detail that so far is missing or set out the timetable in which that will be provided and your Lordships’ House given an opportunity to debate it. The sooner the proposed reforms are agreed and clarified, the sooner we can step up the campaign to keep Britain in Europe and end the damaging uncertainty that has been created around our continued membership.

[Lord Wallace of Tankerness (LD)]

My Lords, I, like the Leader of the Opposition, thank the Leader of the House for repeating the Prime Minister’s Statement and also for the arrangements for Back-Benchers to raise questions on this important issue. In his Statement, the Prime Minister said that a full day’s debate would take place following the Statement after the European Council later this month in government time in the other place. I hope that the noble Baroness will be able to make a similar commitment with regard to a debate in your Lordships’ House.

The draft plan before us represents meaningful reforms that can strengthen our economic co-operation with Europe, can bring jobs and growth to the United Kingdom and indeed, as the noble Baroness said in repeating the Prime Minister’s Statement, will provide strong protection for Britain from discrimination and unfair rules and practices. Indeed, the provision prohibiting discrimination on the basis of official currency or legal tender seems to be a particularly strong passage in the texts that have been released.

The Prime Minister referred to the legally binding nature of any agreement. Will the noble Baroness the Leader of the House amplify that when she responds? Would these agreements be legally binding and come into force when the United Kingdom notified the Council that there had been a decision in the United Kingdom to remain in the European Union?

While we on these Benches were somewhat sceptical of the political motives of the Prime Minister in seeking a referendum, it is nevertheless a reality. My party will use the campaign to deploy a positive case for Britain remaining within the European Union. We stand united against the idea that Britain should be isolated, sidelined or alone. We believe that, together in Europe, the United Kingdom will be a stronger and more thriving nation.

In the European Union, Britain is part of the world’s largest single market, allowing our businesses to grow and prosper. In the European Union, neighbours and allies support each other in what remains the world’s most successful project in peace. In the European Union, our citizens have more opportunities to work, to travel and to learn than ever before, ensuring that our children and grandchildren have ever greater prospects and opportunities. In the European Union, together we can protect the natural environment and tackle climate change more effectively. In the European Union, together we are stronger against terrorism and against those who despise our liberal and modern way of life, and we can together tackle more effectively the criminal gangs who peddle illegal drugs and weapons and engage in human trafficking.

These are important arguments that we need to deploy in the referendum. Does the noble Baroness the Leader of the House therefore accept that, while the reforms in this particular package are welcome, the referendum debate itself will need to go beyond the details of the renegotiation and take into account the wider benefits of European Union membership and the costs of leaving? Will the noble Baroness confirm that the Government’s message during the referendum campaign will not just be about the finer details of this package, but about the further and more important values that are at stake?

In the light of the changes made in your Lordships’ House to the European Union Referendum Bill, will the Government ensure that there is a realistic assessment of what Brexit would look like and its disadvantages for the United Kingdom? Can the noble Baroness assure your Lordships’ House that the reports on the consequences of withdrawal and alternatives to membership will provide a meaningful analysis?

Strathclyde Review

Baroness Smith of Basildon Excerpts

Wednesday 13th January 2016 Lords Chamber

[Baroness Smith of Basildon (Lab)]

My Lords, I have greatly enjoyed listening to the noble Lord, Lord Strathclyde. At the outset, I thank him for his service to your Lordships House’ through this report. For years your Lordships have, without any recognition, fanfare or glare of publicity, dutifully and with great expertise considered and advised Governments on statutory instruments—or SIs as we affectionately call them. Rarely if ever has there been any interest outside Parliament. Now, with the Government having been asked to reconsider just one such SI, their massive over-reaction means that suddenly SIs are the hot and exciting political issue. In the language of social media, SIs are trending in UK politics. Part baffling and technical, part exotic with lots of promise, they have, some may say, even added a frisson of excitement to parliamentary proceedings. For that I thank the noble Lord.

More seriously, I also thank him for his report, and for the extraordinary speed with which it has been produced and the vigour with which he has sought to defend the Government’s exceptionally weak rationale for undertaking it. Like him, I look forward to this debate and welcome that there is such interest across the House from those speaking today. I am also pleased that we have two maiden speeches, from the noble Baroness, Lady Bowles and my noble friend Lord Darling, whom it is a great pleasure to welcome.

The noble Lord, Lord Strathclyde, is a jovial man of great integrity. He was a popular and effective fellow leader during the last Labour Government. Before he spoke today, I must admit that I was starting to worry that his memory was failing him. When I read his report, I thought that he had forgotten his speech, the date of which our memories may differ over—I think it was in 1999 but he says it was in 2000—in which he declared that the convention was dead. He disabused me of this when he spoke. So what has changed, now that he now sits on the government side of the Chamber? As I have said before, I think that there are two versions of the noble Lord, Lord Strathclyde: one for opposition, and now we have a shiny new one in government.

Across this House we are proud of our well-earned reputation for effective legislative scrutiny. It is what we do, and we do it well. As part of that, SIs are normally examined in Committee by Peers who have knowledge of or expertise in the issues. Any member of your Lordships’ House is entitled to ask questions or express an opinion in an SI committee. Very occasionally, there is a vote. Exceptionally this House may reject an SI. It last did so in 2012, on legal aid, and prior to that in 2007, under the noble Lord’s leadership. In his report the noble Lord recommended that the Lords’ power be limited to asking the other place to think again only. But SIs are sent to your Lordships’ House from the Government, not from the Commons, and it is perfectly proper for us to consider an SI first. Perhaps more importantly—and it is probably easier for me to admit this as a former Member of the other place—your Lordships’ House’s processes are more robust.

In the other place the Government ensure they have a majority on any SI committee and MPs are chosen by Whips. Other former MPs may recognise that the two most common questions asked by MPs selected to serve on an SI committee are, first, “Why me?” and secondly, “How long will it last?”. It is a rare Minister who welcomes Back-Bench interventions.

Of course, we should examine our procedures to see whether they remain effective, appropriate and relevant, but that should be in the interests of good governance and with respect to the role of your Lordships’ House, not for the advantage of any Government. If we are seeking to change how we scrutinise legislation, even in the narrow way outlined in the report by the noble Lord, Lord Strathclyde, we surely have to consider not just our own procedures but whether any change here should be undertaken alongside the creation of a more effective process in the other place.

We know that this report has been produced only because of our decisions to support two Motions on tax credits, one from the noble Baroness, Lady Meacher, and the other from my noble friend Lady Hollis. The result was that the Chancellor took that opportunity substantially to change his position. Indeed, perhaps Mr Osborne learnt a valuable lesson—that this House can be a Minister’s friend. As the noble Lord, Lord Forsyth, who will forgive me for quoting him, so perceptively pointed out recently in a Question to the Leader of the House,

“had this House passed the secondary legislation on tax credits, it would have had the immediate force of law and prevented the Chancellor of the Exchequer abandoning his proposals in his Autumn Statement”.—[Official Report, 3/12/15; col. 1199.]

He is quite right. We provided a breathing space for the Government to reconsider.

There was also the fatal Motion in the name of the noble Baroness, Lady Manzoor, which was rejected. The noble Baroness and I sought the same end, but we on these Benches chose to use the procedures of this House in a way that was both principled and sustainable. Even that was too much for this Government. Before any Motion had even been tabled, we had threats that the Government would pack the Lords with 150 new Conservative Peers or, more bizarrely, that this House would be suspended.

Challenge and scrutiny are not new. They were not invented by this Opposition. Indeed, unless the noble Lord’s is memory is failing, he will recall his time on this side of the House. He alluded to it in his comments today. As Opposition leader and Chief Whip, he could boast well over 500 government defeats, including 145 during the 2005-10 Labour Government and 245 during the 2001-05 Labour Government, which had an elected majority of 167. Those many defeats included a government Bill at Second Reading, two fatal SIs and a number of key national security measures that involved ping-pong late into the night. Those were hugely significant defeats for the Labour Government, so we understand that challenge and scrutiny are never easy for any Government or any Minister; but any changes must be in the public interest, provide for better legislation and be agreed by this House. They cannot be forced on Parliament by an Executive who fail to understand the role of and reason for effective challenge. As the Hansard Society points out in its excellent report, this is no way to undertake reform. An independent inquiry into the legislative process is required.

Every year around 1,000 SIs are debated here following consideration by our highly regarded Secondary Legislation Scrutiny Committee. The committee flags up the issues it knows we will take an interest in or where the Government have fallen short, and we welcome those reports as essential to proper scrutiny. So, given that hundreds of SIs have already gone through your Lordships’ House, is it really the case that the Government are failing to get their business through? Of course not. The reality is that we seldom use our powers to their limits, but that does not mean they should not exist. It means that this House is respectful of when it is appropriate to use them. That was recognised in the Cunningham report of 2006, and I look forward to the contribution from my noble friend Lord Cunningham later today.

The Government’s case for weakening Lords’ scrutiny of secondary legislation is feeble. It is an unnecessary solution to a fictitious problem. We have to ask: is the overreaction to the tax credits vote symptomatic of the Government’s attitude to scrutiny and challenge? We should not see this as a stand-alone report; rather, it should be seen alongside other legislation and proposals—for example, the lobbying Bill in the previous Parliament that restricted the ability of charities and other groups to campaign for their causes; new limits on freedom of information; and the Trade Union Bill, debated this week, which will strip the Labour Party of its funding, quite contrary to the balanced proposals from the Committee on Standards in Public Life. We have seen reports of Ministers being told to make increased use of statutory instruments to drive through legislation without proper scrutiny; and now we have the proposal to remove this House’s power to veto the same secondary legislation that the Government favour. It is hard not to see this as an authoritarian Executive waging war on the institutions that hold them to account. The Government are seeking to stifle debate, shut down opposition and block proper scrutiny. They are a Government who fear opposition and loathe challenge.

The noble Lord’s report is entitled Secondary Legislation and the Primacy of the House of Commons. This is not about the primacy of the House of Commons over your Lordships’ House; it is about the Executive seeking to brush this House aside. The noble Lord asks for responsible opposition. We provide that. What we seek is responsible government.

House of Lords: Strathclyde Review

Baroness Smith of Basildon Excerpts

Thursday 17th December 2015 Lords Chamber

[Baroness Smith of Basildon (Lab)]

My Lords, I thank the noble Baroness for repeating the Statement and I thank the noble Lord, Lord Strathclyde, and his team for the uncharacteristic speed in which it has completed a government review. However, it has not taken long, has it? This is the first wholly Conservative Government for nearly 20 years and it is the first ever Conservative Government without an automatic majority in your Lordships’ House, yet within months they are already trying to change the rules, on the pretext that this House has exceeded its powers.

From the outset, I want to be clear: we do not set our face against change and improvements. It is Labour Peers who have proposed immediate changes in how we operate. We have also proposed significant change through a constitutional convention. The Government have declined to hold such a convention. Instead, we have today’s announcement on the Government’s growth area of legislation—statutory instruments.

At this point, most normal people’s eyes will glaze over, but SIs are the Government’s secret weapon. Traditionally, they were not used for issues that should be in primary legislation or for major policy changes where there should be full scrutiny and consideration. But their use has grown over a number of years and, more significantly, at a faster rate since 2010. The tax credits changes originally proposed were a major policy shift, and it would have been entirely appropriate for them to have been considered in primary legislation. But the Government chose to use an SI.

We will want to consider the report from the noble Lord, Lord Strathclyde, in more detail, but I say to the noble Baroness that the process he recommends is a very significant change. First, it is a major departure to use legislation to address this issue. Secondly, in terms of procedure, a statutory instrument is not sent to your Lordships’ House from the House of Commons but from the Executive—from the Government. It is not like legislation where proposals are considered and sent from one House to another.

In terms of statutory instruments, both Houses separately consider measures proposed by the Government. Either House can accept or reject, and rejection by either House is in effect a veto. That is why this House has so rarely rejected a statutory instrument. Since 1999, it has happened just four times in 16 years—approximately once a Parliament. The noble Baroness referred to this, but let us be clear that in this Parliament three attempts at a so-called fatal Motion to reject an SI have failed.

The recommendation from the noble Lord, Lord Strathclyde, is that your Lordships’ House could send an SI back to the Commons, but there is no guarantee that the Commons will have considered it first and there is no indication of the timescale. This proposal denies your Lordships’ House the opportunity to ask the Government to reconsider. It instead sends it to the House of Commons. I know that other noble Lords share my concern about the degree of scrutiny for statutory instruments in the other place. We know that any Government with a majority would just ensure that a small committee will consider and pass the SI.

Why do the noble Lord, Lord Strathclyde, and the Prime Minister consider such change is needed? We are told that it is because of the tax credits vote. This House fulfilled its duty in scrutinising secondary legislation. Contrary to some reports, we overwhelmingly declined to block the measure through a fatal Motion but supported asking the Government to reconsider and bring forward changes. That is the right and legitimate role of a second Chamber. Indeed, it allowed the Chancellor to reconsider and to bring forward even more substantial changes than suggested by your Lordships’ House.

We are also told that the Labour Opposition and the Lib Dems are ganging up on the Government and forcing through legislative change. The evidence for that assertion is feeble. There have been 42 votes in your Lordships’ House since the election. The Government have lost 23 and won 19. But, significantly, 16 of those government defeats were on Bills that started in your Lordships’ House with no pre-legislative scrutiny and no prior consideration by the other place. We would have been failing in our duty as a second Chamber if we had not appropriately scrutinised that legislation. Those concerns were raised by the Delegated Powers Committee and the Constitution Committee.

The Government’s collective memory is at fault. Between 2005 and 2010, the Labour Government lost 105 votes, including a Second Reading and a fatal SI Motion. Between 2001 and 2005, we suffered 245 defeats, and that was with an elected Commons majority of 167. That was when the noble Lord, Lord Strathclyde, was Leader of the Opposition. I think there are two Lord Strathclydes: there is the one who used to do my job as Leader of the Opposition, who would make, and I am sure has made, the very points that I am making now, and then there is the new version that we see today. The only difference is this Government.

The other point is that we lost major and very serious votes on terrorism and security legislation. I cannot recall a single vote that this Government have lost that is of that magnitude or seriousness. It has to be taken into account that we vote far less than the other place. They have voted 143 times in this Parliament; we have voted just 42 times. That is because, in recognising the role of a second Chamber, we are more selective and cautious in choosing when we vote.

So let us be honest with ourselves: this is not about tax credits or any other issues on which your Lordships’ House has disagreed with the Government. If it was, it would be a massive overreaction. It is far more serious than that, so let us look at these changes in the wider context of: the misnamed lobbying Bill, or the gagging Bill as it was nicknamed, which has made it so much harder for charities and campaigning organisations to be effective in their campaigning and lobbying; the weakening of freedom of information legislation; and the fact that, for the first time ever, a Government have instructed the Boundary Commission as to how many constituencies there should be, knowing that the reduction favours Conservatives over Labour; and at the same time appointing Members of this House at a faster rate than any other Prime Minister in our history, with the greatest ever proportion of government Peers.

The Government are also making it harder, through individual electoral registration, to register to vote, and we have had English votes for English laws—who knows where that will lead? Also, leaping in where the late Lady Thatcher chose not to tread, there is the Trade Union Bill. Not only does that Bill make it harder to fund and to campaign for trade unions, but it will also completely undermine the funding of the Labour Party, while keeping very quiet about Conservative Party funding.

All this paints a very unattractive picture of a Prime Minister and a Government who will not tolerate challenge. They loathe scrutiny; they fear questioning. The evidence base for the changes proposed today are weak. I guarantee and assure your Lordships’ House that we are very open to genuine suggestions for clarification, modernisation and changes, but that has to be in the context of fulfilling our duty and our legitimate constitutional role, not just because the Government and the Prime Minister did not like losing a vote.

I ask the noble Baroness four key questions. When will the Government respond to the report? Does she accept the assertion on page 23, and, indeed, throughout the report by the noble Lord, Lord Strathclyde, that too much legislation is being undertaken by statutory instruments and that that should be changed? What consultation will there be prior to a decision by the Government, other than a debate in your Lordships’ House? And can she comment on suggestions that the Government intend to use the Parliament Act to force through any legislative change?

[Lord Dholakia (LD)]

My Lords, I add my thanks to the Leader of the House for making the Statement and giving us advance sight of the report from the noble Lord, Lord Strathclyde. I also add my thanks to the noble Lord, Lord Strathclyde, and his team. The noble Lord promised the report before Christmas and he has delivered.

My party believes that both Houses should be examining better ways to work together to achieve more comprehensive, more informed and more effective scrutiny of government legislation and the actions of the Executive. We continue to reject the notion that any Government achieving a majority in the Commons should have the absolute power to prosecute their business without the burden of proper checks and balances, particularly as voter turnout declines and Governments are elected by a smaller and smaller share of the vote. We believe that a second Chamber, however it is constituted, should not be a mere echo of the House of Commons. We are interested in ways to strengthen the role of Parliament as a whole, not to convert the House of Lords from a revising Chamber to an impotent debating society.

We firmly believe that there is a strong case for enhanced parliamentary scrutiny of secondary legislation. This is particularly important when the primary legislation introduced by the Government is a skeleton Bill, with the statutory instruments flowing from it containing provisions which are more suitable for primary legislation. Already in this Parliament, the Government have introduced two such bills: the Childcare Bill and the Cities and Local Government Devolution Bill. If Governments make increasing use of skeleton Bills, it stands to reason that the SIs stemming from them should be afforded much closer scrutiny.

To that end, my party submitted formal evidence to the noble Lord, Lord Strathclyde, suggesting two different mechanisms by which this House could propose amendments to statutory instruments. We firmly believe that such a mechanism would allow the House of Commons to think again and would, in fact, reduce the incidence of this House withholding its approval of a statutory instrument—which, incidentally, has occurred only six times in the last 50 years. We do not believe that this House should be required to give up its power of veto, when this is such a rare occurrence. To do so would change the arrangements agreed by both Houses following the report of the Joint Committee on Conventions in 2006.

Does the Leader of the House agree that this is not simply a matter for the Prime Minister and the Government, but for Parliament? As there are wider implications, not least for the Parliament Acts, does she recognise that a simple amendment to the Statutory Instruments Act 1946 is clearly not sufficient to deal with this important issue? Does she agree that the proper way to proceed would be to reconstitute a Joint Committee of both Houses to ensure that the matter is fully debated?

We will have a further opportunity to discuss this issue and we will certainly have more to say at that time.

Syria: UK Military Action

Baroness Smith of Basildon Excerpts

Wednesday 2nd December 2015 Lords Chamber

[Baroness Smith of Basildon (Lab)]

My Lords, I thank the Leader for her comprehensive comments. When she repeated the Prime Minister’s Statement last week, she made a commitment that, should there be a vote in the House of Commons on extending military air strikes to Syria, there would be an opportunity for debate in your Lordships’ House. I thank her because it is clear from the number, range and expertise of speakers that this has been welcomed across your Lordships’ House. As I said last week, I hope that the Government will seek to make use of that expertise beyond this debate.

I am sure the whole House will welcome the fact that the noble Lord, Lord Hague, has chosen to make his maiden speech today. I have to say that choosing this particular issue is perhaps the parliamentary equivalent of making an entrance, but I look forward to hearing what he has to say and we are grateful that he has chosen this debate for his maiden.

First, I will share some thoughts about our colleagues of all parties in the other place who are grappling with this issue and will be voting tonight. I occasionally envy those who at the outset of any debate or consideration of serious, important issues have absolute confidence and certainty about their decision, because for most of us it is just not like that. Unless we are expert in a particular field, we want to hear the arguments, analyse information, take advice, give thoughtful consideration and examine our consciences before reaching a judgment. Many MPs with the same information will come to different conclusions. Across the Commons there are those who continue to have doubts, but that does not make them weak on ISIL/Daesh or security. Those who are convinced should not be attacked for supporting action they believe to be part of a process to attack ISIL and better protect UK citizens. For many, it will be a marginal decision in weighing up the considerations. We must support MPs who we trust to make such decisions and condemn those who abuse, intimidate and threaten them.

All party leaders are entitled to seek to persuade their MPs of their views through information and argument but reported comments that those who vote differently are a “bunch of terrorist sympathisers” or have “no hiding place” are offensive, wrong and of no help in allowing proper decision-making.

We are not debating today whether to engage with allied forces or to attack ISIL/Daesh militarily. We are, rightly, already doing so. The proposal from the Prime Minister is about extending that military force with air strikes into Syria. In some ways, it would be a relatively marginal increase. Today, the Prime Minister has to provide the information and arguments to convince not just MPs but the country as a whole that the extension of air strikes against military targets will be effective and that it is part of a wider strategy—a strategy that comprehensively addresses not just military aspects but, post air strikes, the humanitarian and diplomatic issues and the reconstruction of post-conflict Syria.

I am grateful for the briefing on intelligence and military issues that I had on Privy Council terms. But no briefing is needed to understand the vile evil of ISIL. They are murderous fanatics, despised and condemned across the world not just for the incomprehensible attacks on Paris but, as we should never forget, the murders of British holidaymakers in Tunisia; the beheading of British citizens; the bombing of a Russian airline; the mass murder of women too old to be sold as sex slaves; and the murder of gay men by throwing them off buildings. The list goes on. We also know that the threat here at home is real and severe. So for all those reasons, there can be no doubt that action against such evil is necessary and justified.

As I said last week, we are not an isolationist party. We recognise wider international obligations and responsibilities. Last week, I cited military and humanitarian examples—I will not repeat them—of intervention by UK forces under a Labour Government that had helped to secure peace and stability. That is why we are part of the allied forces in Iraq and Syria already. We are part of a campaign that shows solidarity with those who also recognise the threat of ISIL and we are playing our part militarily, diplomatically and on humanitarian issues.

UN Security Council Resolution 2249, unanimously passed on 20 November, calls on member states to use,

“all necessary measures … to prevent and suppress terrorist acts … specifically by”,

ISIL/Daesh; and to deny them “safe haven” in Syria and Iraq. Chapter VII, Article 51 of the UN Charter is clear about the inherent right of individual or collective self-defence until the Security Council has taken necessary measures to maintain international peace and security.

We clearly should be part of that coalition, seeking to weaken ISIL and to be a credible and authoritative voice in the Vienna talks to bring some peace and stability to Syria and the region. But on the specific Motion before the House of Commons that we are discussing here, there remain issues to be addressed in judging the effectiveness of the new action proposed. The Government are going to provide further reassurance on whether additional air strikes are the best way to achieve our common objectives, on the difference and impact that the extension of our military involvement in Syria will have, and on how it will contribute to the wider strategic aims, including the Vienna peace process.

We also want to know more about the wider comprehensive strategy, including the humanitarian implications and support that the noble Baroness referred to. I was glad that she referred to this because it is extremely important that there is greater engagement with moderate Islamic communities, working with them here in the UK to combat and prevent home-grown violent radicalisation. All of us will also want guarantees that every conceivable action will be taken to avoid innocent civilians being casualties or being killed.

I have a few questions which it would be helpful if the noble Earl, Lord Howe, could respond to when he winds up tonight. The first is on the military assessment of the difference that our extended involvement will bring, given the current level of engagement we already have in Syria and Iraq and the amount of bombing that has already taken place in Iraq and Syria. As we have heard—and I was grateful to the noble Baroness for her considered response on this today—only so much, however valuable, can be achieved by air strikes alone. There has been extensive debate over the last week about the potential of moderate ground forces, post air strikes, and what action they will be able to take. I am pleased that the noble Baroness referred today to the fact that a number of MPs and experts have questioned the reliability of the 70,000 estimate provided by the Prime Minister, and the ability of those ground forces to mobilise in a way that is deemed necessary, given that there are not the military command structures, weaponry or communications between air strikes to co-ordinate those land and air assaults.

I was pleased that the Government understood those concerns and that the noble Baroness provided more information today. When the noble Earl responds, can he say something more about the numbers? My information is slightly different, so I would like some clarification, including on when ground forces would be needed and how operations would be co-ordinated. Also, what consideration has been given to diplomatic initiatives to build up a larger coalition of regional ground troops?

There are significant and considerable encouraging developments at the Vienna peace talks, which we welcome and support. I appreciate the update from the noble Baroness today but, as encouraging as that is, we still seem to be a long way from developing more than a process, as important and crucial as having a process is. The statement from the International Syria Support Group last month set early timescales for objectives to be met. Further meetings soon will evaluate progress, which will be a key diplomatic priority—for without progress in those talks, the strategic case fails. Can the noble Earl reassure your Lordships’ House of the Government’s confidence in the process and the advances that are being made?

I know that the Government understand that in terms of both the short-term and longer-term future of Syria, there are serious concerns about Assad. The noble Baroness was very clear last week about there being no role for Assad in a post-conflict Syria, but it remains uncertain how that will be achieved. The future of Syria, and the ability of Syrian refuges to return to their homeland to be part of the reconstruction, is dependent not just on removing ISIL but on removing Assad. Are the Government confident that the military action and objectives are adequately strategically linked to and co-ordinated with the diplomatic efforts that are taking place?

Obviously, to seriously combat ISIL/Daesh, as the noble Baroness said, we need to end or significantly limit its finances and funding. I find it absolutely extraordinary that, according to government estimates, it is funding its activities with around $1.5 million each and every day from oil revenues, as well as from other sources. Is this part of the Vienna talks, and what immediate political and diplomatic efforts are being employed now?

Although we do not vote tonight, we bring consideration and thoughtfulness to this issue. We are extremely fortunate in having a number of noble Lords with considerable experience in diplomacy, in the military, in security, in aid and humanitarian work, in government and in Parliament. Their experiences may not lead them all to the same judgment at the same time, but I urge the Government to make use of that expertise.

I thank the Government for their commitment, in the statement that they issued to the House of Commons today, to provide quarterly progress reports. However, I just want the noble Earl to confirm later that this House will also receive those reports and that, should there be significant developments, additional statements will be provided and brought to your Lordships’ House.

Finally, whatever the outcome of tonight’s vote in the other place, we entirely concur with the final paragraph of the government Motion and offer our wholehearted support to Her Majesty’s Armed Forces.

Syria: Foreign Affairs Committee Report

Baroness Smith of Basildon Excerpts

Thursday 26th November 2015 Lords Chamber

[Baroness Smith of Basildon (Lab)]

My Lords, we are grateful to the Leader for repeating the Prime Minister’s Statement, and welcome the publication of the Prime Minister’s response to the Select Committee report. Both are necessary and detailed, and cover a range of issues which all Members of your Lordships’ House will wish to consider and reflect on.

The first duty of any Government is the safety, security and well-being of their citizens. My party does not take an isolationist or non-interventionist position. We have never been reluctant to use force when it has been deemed necessary. I understand and appreciate how difficult it is when making such judgments to ensure that decisions are right and fair and that actions are justified.

Our interventions as the Labour Government in 1999 to protect Muslim Kosovar Albanians from genocide by Milosevic, and in Macedonia in 2001, were central and crucial to the protection of citizens and supporting peace. We used military action in Sierra Leone to bring order and stability, and we still have British citizens there playing a central role in building and maintaining that stability. We have also provided military support in times of humanitarian crisis; for example, fighting Ebola in West Africa.

Your Lordships’ House, Parliament as a whole and, indeed, the general public are convinced of the evil and brutality of ISIL. They are very aware of and well informed of the atrocities. Paris brought it so close to home: not only is ISIL willing to cause death, terror and mayhem—and apparently rejoicing in that—but it has the capacity to do so. If anyone doubts that such attacks will continue, they have only to look at the videos and messages posted online as recently as last night: they are chilling, they are frightening and they must increase our determination to protect our citizens.

Our efforts must focus on a comprehensive strategy to tackle not just the actions of ISIL but the environment which encourages such views to develop, and we have to support the overwhelming majority of Muslims here in the UK who themselves challenge and reject such a violent interpretation of their religion and culture. That is why any strategy to defeat ISIL has to be so much more than military action alone.

As we know, the UK is already engaged militarily, providing intelligence and logistical support to our allies in Syria who are engaged in flying missions. We are directly involved in targeted military bombing in Iraq, and we must judge any proposed extension of UK involvement against the wider support it can gain, against the contribution it will make to the chances of success and against the additional capacity it will create. Proposals that are brought forward must also be judged against how they can contribute to the future transition to peace and stability and to the protection and security of our citizens in the UK.

There are also broader issues. There is not just a war to be won; there is also a peace to be won. The issues raised by the Foreign Affairs Committee focus on extending military operations, and the committee identified seven challenges to the Government that should be addressed before the Prime Minister asks the House of Commons to consider this matter and vote. When the report was published a month ago, the Foreign Affairs Committee was not convinced that the Government would be able to provide convincing answers to the points raised. Of course, we will all want to consider with care the Prime Minister’s answers and the committee’s response.

The conflict in the region is not straightforward. Indeed, as the noble Baroness said, it is highly complex. The civil war in Syria has meant not just the physical collapse of a country but the absolute collapse of society. The skills of, and commitment to peace by, those who have been forced to leave their homeland and become refugees will be needed to build the future. So when the extension of air strikes on strategic targets in Syria is considered, it must be as part of a political, diplomatic, humanitarian and economic strategy. We will seek reassurances that the Government fully understand that, and that they will be engaged in and committed to working closely with countries across the region towards the reconstruction and a peace process. The Vienna talks are vital. Whatever the difficulties, that framework and the bringing together of so many countries provides some movement towards political and diplomatic progress.

I have a few questions for the noble Baroness that I hope she will be able to address. Can she say whether any assessment has been made of the direct threat to British citizens from ISIL here in the UK? Can she be clear about the additional capacity that British participation would bring militarily, given the support that is already being provided? Has any assessment been made of the impact of UK involvement on the success of the objectives of military engagement? Can she also say whether the service Chiefs of Staff have been able to participate directly in the decision-making process by providing expert strategic advice? The noble Baroness will understand the concerns about any possible unintended consequences of increased military action, particularly civilian casualties. Therefore, can she also say something about the impact of military action in terms of civilian casualties in Iraq as a result of UK action?

The Government’s response says that,

“a political solution to the Syria conflict”,

is “finally a realistic prospect” following the establishment of the International Syria Support Group and the Vienna talks. This is going to be a difficult process. The government response rightly states that this issue must not be reduced to a choice between Assad on the one side and ISIL on the other. In repeating the Statement, the noble Baroness was clear about the Government’s opposition to Assad. Can she say something more about the longer-term future of Assad and about how the British Government can achieve our objectives, given the atrocities for which Assad and his Government are responsible? I know where the Government stand on this but I am thinking particularly of how we think we can achieve the objective of removing Assad. Finally, can she say something further about the legal basis for military action following the United Nations Security Council meeting on 20 November?

Today’s Statement will obviously be considered carefully over the coming days before the Prime Minister brings any Motion before the other place. These are not issues on which your Lordships’ House has a vote, but I hope that—and put it to the noble Baroness that—given the military, diplomatic, political and humanitarian experience and wisdom in this House, we will have an opportunity for an early debate in addition to the scheduled debate she referred to. I urge the Prime Minister to consult those in this House whose expertise will be of great value.

[Lord Wallace of Tankerness (LD)]

My Lords, I join the noble Baroness the Leader of the Opposition in thanking the Leader of the House for repeating the Prime Minister’s Statement, and thank her also for early sight of the Prime Minister’s response to the Foreign Affairs Select Committee.

From these Benches we unequivocally condemn atrocities perpetrated by ISIL, be they in Paris, Ankara, Sharm el-Sheikh, Tunisia or Beirut, or indeed the day-in, day-out victimisation of people in the Middle East. We have also recognised that in defeating an enemy like ISIL the use of military force will be necessary, and indeed we have supported air strikes in Iraq. But the use of lethal force should never be used simply as a gesture—not even a symbolic gesture. It has to have effect. And to have effect, it must surely be part of a wider strategy, not least on the diplomatic front. So the challenge is not whether the Government have made a case to justify bombing but whether they have a strategy to bring stability to the region and lay the foundations for a peaceful future for Syria.

We have consistently called for a diplomatic effort to put together a wider coalition, including others who have an interest in the defeat of jihadism, notably Russia and Iran. While it is understandable, it is not right either to have a knee-jerk reaction to engage in air strikes in Syria or to avoid being involved in another conflict in the Middle East at all costs. Given the gravity of the question that we are being asked, we will look carefully at the Government’s response to the Foreign Affairs Select Committee and take a considered response.

In doing so, we will apply five tests to what the Prime Minister has said. First, is military intervention legal? In fairness, the response that we have had today is reassuring on that point. Secondly, is there a wider diplomatic framework, including efforts towards a no-bomb zone to protect civilians? Thirdly, will the UK lead a concerted international effort to stop the funding of jihadi groups within the region? Fourthly, is there a post-ISIL plan for Syria and Iraq? Fifthly, what is the Government’s plan domestically? I would be grateful if the Leader of the House could provide the House with further details. What is the Government’s plan for post-conflict reconstruction, especially in terms of the vacuum that would inevitably be created in an immediate post-ISIL Syria? What discussions are the Government having with Turkey about its contribution to the fight against ISIL? Can we be assured that we fully share each other’s objectives?

The document before us helpfully discusses the precision with which on a number of occasions our own military capabilities can add to the current actions. However, as we have seen from recent TV reports, some of those already engaged in the region do not act with the same kind of restraint and precision as we can and would. So if we were to become engaged in military action, what responsibility would we have for the actions of other members of the coalition? Perhaps more importantly, what influence could we bring to bear on other members of the coalition with regard to the restraint and precision with which they would take action?

What pressure is being put on our coalition partners in the Gulf, particularly Saudi Arabia and Qatar, to rejoin the air strikes, as my noble friend Lord Ashdown asked at Questions? They appear not to have been involved in them for some months. What are the Government doing to ensure that they play their part? I am sure that we agree that ISIL would like nothing better than to be able to frame a narrative that the conflict was one between the crusading West and them as defenders of Islam. We must give the lie to that, and that requires the evident and active involvement of coalition partners from the region itself.

Further, what efforts are being made to stop the funding and supply of resources to ISIL? Do the Government have confidence that some of our coalition partners are doing enough within their own countries to stop the funding of ISIL and other extremist groups? The strategy before us does not seem to address that question. What further steps do the Government intend to take into investigating foreign funding and support of extremist and terrorist groups at home in the United Kingdom?

It is disappointing that the document says nothing about trying to have a no-bomb zone, which would help the refugee and humanitarian situation in the region and beyond. Humanitarian aid alone, while important, cannot stop the flows of people, and there is huge pressure on Lebanon, Jordan and Turkey, which cannot maintain the numbers in refugee camps within their borders.

Finally, since we cannot separate the domestic and international aspects of the fight against ISIL, will the Leader of the House tell us what steps the Government are taking or intend to take to ensure that, in the event of action, the British Muslim population fully understand and are supportive of the actions that the Government propose?

G20 and the Paris Attacks

Baroness Smith of Basildon Excerpts

Tuesday 17th November 2015 Lords Chamber

[Baroness Smith of Basildon (Lab)]

My Lords, we are grateful to the noble Baroness for repeating the Prime Minister’s Statement. I am sure other noble Lords shared similar emotions to mine as we watched the horror of the attacks in Paris unfold on Friday evening. Such deliberate, calculated evil is almost impossible to comprehend, especially in such a beautiful city, where so many of us will have happy memories and remember good times.

I totally endorse the comments already made about our thoughts and prayers being with those who were murdered and maimed, their friends and their families, but also with the citizens of Paris and the whole of France, whose lives and confidence have changed dramatically as a result of what happened on Friday evening. There can never be any justification for such acts of terror, so we share their hurt, their anger and their resolve. We also share the determination to protect our citizens, and those of other countries, from such attacks. Such violent attacks are totally indiscriminate. Those of all faiths and none can be killed, maimed or lose loved ones, and those of all faiths and none have come together to condemn universally those responsible, without reservation.

I reiterate and reinforce the commitments made by my colleagues in the other place: this is an issue above and beyond any party politics. A Government’s first duty is to the safety, security and well-being of their citizens, and we will work with the Government to fulfil that duty.

The Prime Minister outlined the action that has already been taken with our international allies to tackle those who create death, mayhem and fear. I welcome that he acknowledged, and said that he understands, the concerns raised by the Foreign Affairs Select Committee and others about the way forward, and how and whether further military action, such as airstrikes on Syria, should be part of that response. We welcome his commitment to respond personally, as the noble Baroness said.

I know the noble Baroness understands the huge human cost of the conflict in Syria and the necessity for a full, strategic plan to seek a politically sustainable resolution that will bring peace to Syria, and for a longer-term strategic plan to seek to deal with the aftermath. The thousands who have fled their homes include so many of those who will be needed to return to build the peace. The Prime Minister’s comments at the G20 yesterday, when he said:

“I think people want to know that there is a whole plan for the future of Syria”,

and for,

“the future of the region”,

were widely welcomed. To be successful, any plan will need national and international support.

I shall raise specific questions about security here at home. We welcome the additional support and money being made available for security and intelligence. We welcome the announcement of greater resources for tackling cybercrime and terrorism. But when asked, when he made the Statement today in the other place, about the role of community and front-line policing—given the cuts that have been made and are being planned to the “eyes and ears” on the ground—the Prime Minister did not respond.

There are many in your Lordships’ House who, through professional experience, can provide real examples of how community policing is essential and successful in tackling crime and terrorism. On 28 October, I asked the noble Lord, Lord Bates, about this very issue. My Question was prompted by those in the most senior roles in counterterrorism in the UK being very clear that community police, through the normal course of their work, pick up intelligence and information that is essential to fighting serious crime and identifying terrorism threats. Of the proposed further cuts in policing, Sir Bernard Hogan-Howe, the Met commissioner, said:

“I genuinely worry about the safety of London”.

I understand that the noble Baroness is unlikely to answer a question that the Prime Minister failed to, but can she assure your Lordships’ House that she recognises the seriousness of this issue? Will she commit to raise it directly with the Prime Minister and report back to your Lordships’ House?

Those seeking to leave and enter this country, including British citizens, will face increased levels of checks and security at borders. It is right that visitors and refugees fleeing the brutality of ISIL and chaos in the region should be subject to such security, but the noble Baroness will also know of the reductions made in border security staff at ports and airports. What plans are there to ensure that staffing levels will be appropriate to deal with the increased level of security required?

In recent years, the Government have introduced a number of new measures designed to tackle terrorism. One referred to in the Statement, which the noble Lord, Lord Bates, and I discussed at length in the course of a recent Bill, is about closing down any educational institutions teaching intolerance. Is this commitment and others to be met from existing resources, or will new resources be made available? To what extent is the Treasury involved in such decisions on new powers?

Lastly on security, the Prime Minister said in his responses that all members of the Privy Council can receive security briefings on these issues. The noble Baroness may be aware that I have previously requested such briefings when speaking for the Opposition on security and counterterrorism, but I was not successful in receiving any. The Official Opposition in the other place has welcomed the briefings to date, so will she confirm the Prime Minister’s commitment to briefings for privy counsellors?

I welcome the understandably brief comments at the end of the Statement on the other issues that were raised at the G20. Specifically on global warming, we welcome the fact that the USA and China will join the Paris talks and we look forward to hearing more on that after the conference. However, the noble Baroness also referred to the UK taking the lead on action to tackle corruption in a number of areas. This is essential. I appreciate that there is not enough time today to cover the whole range of issues that this raises, but can she provide further information on the areas and the success of any measures that have been taken? If the noble Baroness is unable to respond today, perhaps she will write with more details.

Finally, in the Statement, the noble Baroness, repeating the Prime Minister, asked the public to be vigilant. We must, of course, do that, but let us also pay tribute to those in the emergency services and the first responders, who never know from day to day what they may have to attend to. It is right that this House should recognise their service.

[Lord Wallace of Tankerness (LD)]

My Lords, I, too, thank the noble Baroness the Leader of the House for repeating the Prime Minister’s Statement. On behalf of my noble friends, I join in condemning the atrocities in Paris on Friday evening, and those who perpetrated them. I also offer condolences to the families and friends of those who were killed, those who were injured and those whose lives will have been shattered. I also join the noble Baroness the Leader of the Opposition in paying tribute to the emergency services and the ordinary citizens who responded with such evident compassion and help.

I also ask the noble Baroness the Leader of the House to join me in expressing sympathy for the victims of the suicide bombings in Beirut on Thursday, which killed more than 40 people as they, too, went about their daily lives. It is important to send a signal by showing our solidarity with the people of Beirut, as we do—rightly—with the people of Paris. While ISIL likes to frame the conflict as one between the West and Islam, is not the truth that, day in, day out, ISIL is murdering scores of Muslim believers?

We, too, support what the Government are doing. We accept that the primary duty of any Government is to safeguard their citizens. I welcome the announcement of additional support for the security services in general and for strengthening cybersecurity in particular. I hope the Leader of the House will endorse what the Prime Minister has said in another place about the importance of safeguarding human rights. ISIL detests our diversity, our freedoms and our values; we let it win if we compromise on any of these.

I also echo what the noble Baroness, Lady Smith, said about police funding. Reassurances have been given about the counterterrorism element of police funding. I will not elaborate on what she said because she very clearly and concisely put the point about the importance of community policing and the intelligence-gathering that can be done through it. I repeat her request to the Leader of the House to recognise the strength of feeling on this and to undertake to take the matter up with the Prime Minister.

It would be very easy, in the aftermath of such outrages, to make knee-jerk, rather than properly considered, responses. I therefore welcome the fact that the Prime Minister says that he will respond personally to the report from the Select Committee on Foreign Affairs in the House of Commons on military intervention in Syria. I also welcome the Prime Minister’s acknowledgement that many questions and concerns have been raised—including some from these Benches—about the wisdom of joining in airstrikes and adding our explosives to the tons that have already been dropped on Syria. Specifically, the Prime Minister, in articulating some of these concerns, asked what difference action by the UK would make. Would it make the situation worse? How does the recent Russian action affect the situation? How, above all, would a decision by Britain to join strikes against ISIL in Syria fit into a comprehensive strategy for dealing with ISIL and a diplomatic strategy for bringing the war in Syria to an end?

He went on to say:

“I understand those concerns, and they must be answered. I believe that they can be answered”.

I do not expect the noble Baroness to give us the answers today, but will she give us some indication of when those questions are likely to be answered? When the Prime Minister says that he will set out a comprehensive strategy for dealing with ISIL and our vision for a more stable and peaceful Middle East, will he also be consulting our allies before he makes that announcement on his strategy? It is important that we reflect on the allies. He has said that progress has been made in Vienna to deliver transition in Syria, but we are entitled to ask some questions about the nature of the international coalition. It is important that it is international. We have called in the past for engagement with Russia and Iran but clearly, too, there are a number of different countries and partners—such as the Sunni monarchies in the Gulf and Turkey—that do not all share the same priorities and objectives. Trying to pull together that coalition is clearly a complex matter. What specific steps are the United Kingdom Government taking to make sure that when these talks take place and a coalition is being put together, everyone is pulling in the same direction?

At home, the Statement recognises the importance of engaging with the Muslim communities. Britain’s diverse Muslim communities are affected by conflict and they are as well aware as anyone of the efforts being made by those who would pervert Islam to try to sow poison in those communities. We need an active dialogue with the leaders of our Muslim communities on an appropriate response. When she held office, the noble Baroness, Lady Warsi, did sterling work in taking this forward and I would welcome reassurances that the level of work and engagement that she undertook continues to be undertaken by Ministers.

Finally, the Statement also referred to climate change. Not surprisingly, given the enormity of what happened on Friday, it has been somewhat overlooked but it will be in Paris next month that people gather again to discuss climate change. The Secretary of State at DECC is reported to have indicated recently that the forecast is that we will manage only 11.5% of energy from renewables by 2020, rather than the EU obligation of 15%. Can the Minister confirm this and, if it is indeed the case, will she not take the opportunity that this House has provided by taking out the clause that would accelerate the ending of the renewables obligation for onshore wind? Perhaps she could reflect again on that and just quietly drop it.

House of Lords: Government Review

Baroness Smith of Basildon Excerpts

Wednesday 28th October 2015 Lords Chamber

Asked by

[Baroness Smith of Basildon]

To ask Her Majesty’s Government, further to their announcement yesterday that they are to conduct a review covering the procedures and responsibilities of the House of Lords, whether they will provide information including the terms of reference for the review, its membership and the timescale set for its report.

[Baroness Smith of Basildon (Lab)]

My Lords, I beg leave to ask a Question of which I have given private notice.

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

My Lords, my noble friend Lord Strathclyde’s review will examine how to protect the ability of elected Governments to secure their business in Parliament. In particular, it will consider how to secure the decisive role of the elected House of Commons in relation to its primacy on financial matters and secondary legislation. My noble friend will be supported in that work by a small panel of experts and we expect the review to conclude swiftly. The membership of the panel will be communicated to both Houses as soon as it is agreed.

[Baroness Smith of Basildon]

My Lords, last night the Government issued a statement—to the press, rather than to your Lordships’ House—to say that they were setting up this review. They do not seem to have got very far with any work on what it actually is. As the noble Baroness said, it is to ensure that the Government can secure government business. The Government made clear that they intend to review the powers and processes of this House. The noble Baroness called it the review of the noble Lord, Lord Strathclyde. My understanding is that it is a government review undertaken by the noble Lord.

It is obvious that the impetus for this was the Government losing two votes on Monday on the amendments in the name of my noble friend Lady Hollis and of the noble Baroness, Lady Meacher. Prior to that vote, we heard the Government threaten first that this House would be suspended; then that the Government would make 150 new Conservative Peers; or that they would clip our wings. Clearly, the Government intend to clip our wings. Less than six months into a new Parliament, the Government are trying to change the rules to ensure that they will not lose a vote again.

Clearly, some in government have very short memories. If noble Lords look back at the number and content of the defeats endured by Labour Governments, it is clear how very little justification there is for this move. It is a gross overreaction. I am not against a review. We have called for a constitutional convention to address much wider issues that affect your Lordships’ House, but any review must be in the public interest and not for short-term party-political gain.

I do not think that the noble Baroness really answered my question, but I will press her on membership. She said that there will be a small panel to assist the noble Lord, Lord Strathclyde. Will she confirm whether that will be a cross-party panel or merely a Conservative panel? Will she tell us when it will report and to whom?

[Baroness Stowell of Beeston]

My Lords, on Monday this House withheld its approval from a financial measure—that is what happened. The measure had been approved three times by the other place. That has never happened before. Monday was a significant day for this House and the events on Monday justify the review. It is a government review about how elected Governments can secure their business when an established convention has been put in doubt. The noble Baroness made reference to a constitutional convention. What the Government have done by asking my noble friend to lead this review is to simply look at the issues arising from the events on Monday. It is limited and it is focused. My noble friend will have at his disposal a panel of experts and, as he said himself today, he will talk to other political parties. Ultimately, we are trying to ensure that elected Governments can be confident that they can secure their business, when that business has had the support of the elected other place.