EU Referendum: Assessing the Reform Process (EUC Report) Debate

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EU Referendum: Assessing the Reform Process (EUC Report)

Earl of Courtown Excerpts
Tuesday 3rd November 2015

(9 years, 1 month ago)

Lords Chamber
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Earl of Courtown Portrait The Earl of Courtown (Con)
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My Lords, this has been a quite excellent debate with some very varied and informed speeches.

Lord Boswell of Aynho Portrait Lord Boswell of Aynho
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That is nice to know.

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Earl of Courtown Portrait The Earl of Courtown
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Yes, we have been here for some evenings now and—please excuse me—it has all been blending into one debate.

As noble Lords will no doubt be aware, the Government published their response to the committee’s report on this issue on 28 September this year. They welcomed the report and responded to its recommendations in turn but things are moving swiftly on this issue, so let me begin by setting out the Government’s position before I turn to the individual points raised by noble Lords during the debate.

My right honourable friend the Prime Minister has been clear about the changes that are needed. He has set out four clear areas of reform. First, on sovereignty and subsidiarity, Britain must not be part of an ever-closer union, which may be right for others but will never be right for the United Kingdom. We want a greater role for national parliaments in the European Union.

It is vital that the European Union adds to our competitiveness rather than detracting from it. We need to sign new trade deals, cut regulation and complete the single market. On this, we have already made much progress. As the Prime Minister set out in his Statement to the House following the October European Council, there has been an 80% reduction in new legislative proposals under the new European Commission. We have reached important agreements on a capital markets union, on liberalising services and on completing the digital single market. We have also championed vital trade deals but there is more to be done.

On eurozone governance, we need to make sure that the European Union works for those outside the single currency as well as those within it. The single market must be protected and we must face neither discrimination nor additional costs from the integration of the eurozone. Finally, as has been mentioned, on immigration we need to tackle abuses of the right to free movement and deliver changes that ensure our welfare system is not an artificial draw for people to come to Britain. There is a clear process to secure these reforms.

Baroness Morgan of Ely Portrait Baroness Morgan of Ely
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I am sorry, but the facts, as I pointed out, simply do not bear that out. I request that the Minister withdraw that statement because it is simply not factually correct. Welfare is not a magnet, as has been proved by a European Commission report, and I ask the Minister to withdraw the statement.

Earl of Courtown Portrait The Earl of Courtown
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I have some notes for later in my speech that will refer to that point, which the noble Baroness made in her speech. As far as withdrawing something that I did not put out in in the first place, I understand what the noble Baroness is saying, but I will write to her on that and put a copy in the House Library if possible.

The European Union Referendum Bill has passed through the other place and is now making its way through this House. The Prime Minister has already met with leaders of all 27 other member states as well as with the presidents of the European Commission, of the European Parliament and of the European Council to discuss the reforms that we seek. Technical talks have been taking place in Brussels to inform our analysis of the legal options for reform. There will now be a process of negotiation between all 28 member states, leading up to the December European Council. The Prime Minister will be writing to the President of the European Council to set out the changes that we want to achieve.

I will now address the points raised today. The noble Lord, Lord Boswell, asked a number of questions in his speech, which I will do my best to answer. He asked whether my right honourable friend the Chancellor is leading on this and how he interacts with the Foreign Secretary and the Prime Minister. The Prime Minister is leading the renegotiation, working closely with the Chancellor and Foreign Secretary, supported by the Minister for Europe and Cabinet colleagues.

The noble Lord, Lord Boswell, also asked about treaty change. The Prime Minister has been very clear in his discussions with other leaders that the reforms we are seeking must be legally binding and irreversible and that, in some areas, that will mean treaty change. There must then be agreement to those changes before the referendum.

Lord Kerr of Kinlochard Portrait Lord Kerr of Kinlochard
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I congratulate the noble Earl. He has proved my prophecy correct. The last sentence that he read out is there in the Government’s response—the same clichés in the same order.

Earl of Courtown Portrait The Earl of Courtown
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I thank the noble Lord for bringing that to my attention. The noble Lord, Lord Boswell, also asked about the role of the European Parliament. We will work closely with the European Parliament and recognise the important role that it plays in the European Union’s institutional architecture, for example as co-legislator for secondary legislation and in scrutinising trade agreements. My right honourable friend the Prime Minister welcomed President Schulz to the UK recently, and the Foreign Secretary has also met key players in the European Parliament.

The noble Lord, Lord Boswell, also raised the subject of the key interlocutors in Brussels. As I mentioned earlier, the Prime Minister has met all the leaders, as well as the President of the European Commission. The technical talks, led for the UK by the Prime Minister’s Europe adviser and UK Permanent Representative to Brussels, have been taking place in Brussels, and there will now be a process of negotiation between all 28 member states leading up to the December European Council. The Prime Minister will be writing to the President of the European Council to set out those changes.

Lord Boswell of Aynho Portrait Lord Boswell of Aynho
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I am most grateful to the noble Earl for how far he has taken this. Can he give any news—or at least an undertaking to reflect and report back—on the possibility of the Foreign Secretary honouring his undertaking to attend our committee?

Earl of Courtown Portrait The Earl of Courtown
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My Lords, I was going to come to that. Yes, I will bring that point about the Foreign Secretary appearing before the noble Lord’s committee to the attention of the department.

A number of noble Lords mentioned the devolved Administrations, including the noble Viscount, Lord Brookeborough. The Government have been clear that they will continue to keep Parliament informed on the progress of this renegotiation. As foreign policy issues are reserved, relations with the European Union are the responsibility of the Parliament and Government of the United Kingdom. However, the United Kingdom Government involve the devolved Administrations as directly and fully as possible in decision-making on EU matters that touch on devolved areas.

The noble Lord, Lord Boswell, asked about the green card issue. The Government are committed to making it easier for national Parliaments to work together to influence the European Union’s decision-making. Many member states agree with the United Kingdom that there are shortcomings in democratic accountability in the European Union, and there is widespread support for enhancing the role that national Parliaments play. It is clear from the noble Lord’s letter to President Juncker that the House of Lords EU Committee—and, I am sure, the other committees around the EU—sees this as a way of shifting the political culture for the better within the European Union. The Government share that overall objective.

Several noble Lords mentioned the letter. As the Prime Minister said when he arrived at the European Council in October, he will again be setting out the four areas which we need to change and laying down what the changes will be at the start of November. The Government will continue to keep Parliament informed, and the Prime Minister will share his letter with Parliament.

My noble friend Lord Howell of Guildford referred to treaty change. The Prime Minister’s position that some of the reforms we are seeking will require treaty change has not changed. We must have agreement to such treaty change before the referendum. My right honourable friend the Prime Minister also said that Britain would benefit from being in a reformed European Union, but that a reformed European Union would also benefit from having Britain in it. The Prime Minister has clearly set out the four areas where we are seeking change, and I will not repeat them.

I take note of the suggestion of the noble Lord, Lord Desai, relating to a Privy Council committee, but Her Majesty’s Government continue to believe that the scrutiny arrangements are valid. Our strategy is reform, renegotiation and then referendum. We will work together with other countries to discuss and agree reforms, many of which will benefit the entire European Union, before holding a referendum to ensure that the British people have the final and decisive say.

The noble Lord, Lord Hannay, raised the question of national Parliaments and the red card. As I have already set out, the Government want a greater role for national Parliaments in the European Union. Many member states agree with the United Kingdom that there are shortcomings in democratic accountability, and there is widespread support for enhancing the role that national Parliaments play.

The noble Viscount, Lord Brookeborough, mentioned matters relating to enabling the electorate to understand the issues. At the conclusion of any deal, the public will rightly expect Ministers to set out the results of the renegotiation, how the relationship with Europe has been changed and if and how those changes address their concerns. As my right honourable friend the Chancellor of the Exchequer said in June, the Government will publish assessments of the merits of membership and the risks of a lack of reform in the European Union, including the damage that could be done to Britain’s interests. The noble Viscount also asked about plan B. The Prime Minister is focused on success. He believes that he can and will succeed in reforming and renegotiating our relationship with the European Union and in campaigning to keep the United Kingdom in the European Union on that basis.

The noble Baroness, Lady Morgan, mentioned welfare and migration. If I can add anything more, I will, but I will go through the note I have. We accept that the free movement of people to work is one of the four fundamental freedoms of the European Union, and these negotiations do not seek to curtail this freedom, but we want to protect the United Kingdom’s welfare system from abuse and reduce the incentives that encourage highly skilled workers to travel to the UK to do low-skilled jobs. This undermines economic growth in their countries of origin and belief in the fairness of free movement in destination countries. That means reforming welfare to reduce the incentives that have encouraged such mass migration from Europe, including the very generous way in which you can access our welfare system and in-work benefits almost on day one of arrival in Britain. We must also develop other freedoms, in particular freedom of movement of services and capital, to ensure that it is not just free movement of people that contributes to convergence of living standards across Europe.

Baroness Morgan of Ely Portrait Baroness Morgan of Ely
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I am sorry, but the noble Earl keeps repeating things that are simply not true. I ask him to go back to the Department for Work and Pensions, ask for the figures and make sure that there is an understanding that this is not abuse in the way that people are making out that it is. Let us not talk up this issue, because it is not a problem—it is making a problem up.

Earl of Courtown Portrait The Earl of Courtown
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I have already committed to the noble Baroness that I will take this back and look at it.

I disagree with the noble Lord, Lord Kerr of Kinlochard, over his suggestion about not revealing what we want. The Prime Minister has been clear and has spoken on several occasions about the areas where we are seeking change. Technical talks started in July, and their purpose is to explore the technical and legal options for delivering reforms. We are not going to give a running commentary on those discussions. Unsurprisingly, I agree with the noble Lord, Lord Kerr, about giving a running commentary, as also made by the noble Baroness, Lady Morgan. I add that his self-description does not do him justice.

This has been a fine debate, and I thank noble Lords for their important contributions. The Government are clear about the interest that the House has taken in this issue, and rightly so, as it is one of the utmost importance and one in which the Prime Minister is focused on success. He believes that he can and will succeed in reforming and renegotiating our relationship with the European Union and campaigning to keep the UK in the EU on that basis, before holding a referendum to ensure that the British people have a final and decisive say.