European Union (Withdrawal) Bill

Lord Adonis Excerpts

Committee: 11th sitting (Hansard): House of Lords
Wednesday 28th March 2018 Lords Chamber

[Baroness Goldie]

I am grateful to the noble Lord, Lord Lisvane. As the late FE Smith, said, I am no wiser but I am certainly better informed.

[Lord Adonis (Lab)]

I suggest that the noble Lord, Lord Lisvane, becomes the Queen’s printer, because he is far more knowledgeable about these matters than anyone else in the country.

[Baroness Goldie]

I do not wish in any way to diminish the talents of the Queen’s printer, whoever that person or group of persons is or wherever they dwell, but I think that the noble Lord belongs in this Chamber making the powerful and important contributions that he does.

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[Lord Liddle (Lab)]

My Lords, I add an English voice in support of the amendment—a northern English voice and a Cumbrian voice. In deference to the noble Lord, Lord Cavendish, for whom I have great regard because of the work he does in Cumbria, I think that European funds have made an enormous difference to our prospects in the north. In our debates on the Bill, we have heard a lot of the voices of Wales and Scotland about how they should be treated in the light of Brexit, but we have heard very little about how the north of England should be treated. This reflects the fact that federalism in this country has not advanced far enough. We do not have a proper devolved system of government. It is an object lesson in how the interests of large parts of England are completely forgotten in a lot of our deliberations.

The noble Lord, Lord Wigley, is absolutely right that the £350 million a week claim on the bus played an enormous part in the leave victory. I remember giving out leaflets on the streets of the ward I represent on the county council in Wigton in Cumbria. People came up to me and said “Roger, you know, we’re not going to vote for you on this because we’re just wasting all that money”. I tried to explain to people that the £350 million that they were talking about was a gross figure of UK contributions to the EU, from which we got back substantial amounts of money which went to Cumbria in a big way.

Let me cite some examples. There is not just the agricultural support, which I know is a great concern of the noble Lord, Lord Cavendish. We would not have broadband in Cumbria if we had not had special EU support for it. We would not have had the regeneration schemes for the ports of Maryport, Whitehaven and Barrow if we had not had EU structural funds. We have had huge support for regeneration.

One other interest that I should declare is that I chair Lancaster University, just outside my native county, which is presently building a health innovation campus that would not happen without EU structural funds—and this for an excellent university, which is top of the league in the Sunday Times this year, if I can plug it in the Lords Chamber. It is a vital investment for the university’s future.

The truth is that, if the £350 million claim that the leavers made was to be met, all that spending would have to be scrapped—all the spending on agriculture and the regions and all the spending on culture, science and innovation would go, because that was the gross contribution. Clearly, therefore, there is great embarrassment on the Benches opposite as to their present intentions, because they cannot tell the Foreign Secretary that he was lying throughout the campaign. But the truth is that that was what he was doing. He was lying about the £350 million. The fact is that, if these programmes, the agriculture support and structural fund money is to continue, there is no £350 million. There might be a lesser sum from the net contribution, but when you are thinking about the net contribution, you have to think about the impact of Brexit on our economic growth and therefore on tax revenues. It is already the case that, whereas we were growing before the referendum at the top of the G7 league, we are now growing at the bottom of it, and the Chancellor’s own forecasts for the next five years suggest that we will continue to be in that position and will suffer a considerable loss of potential growth and tax revenue.

This is a very serious issue. I would like clear answers from the Government as to what promises beyond 2020 they are prepared to make on agriculture and structural funds. That matters greatly to the future of the regions of this nation.

[Lord Adonis]

I endorse everything that my noble friend Lord Liddle has said. Always when the House debates a Bill at length, certain themes appear, and the themes and patterns can often be of some significance. One of the most significant themes that has appeared in your Lordships’ consideration of this Bill is how weak the voice of England has been in our debates compared with the voice of Scotland, Wales and Northern Ireland.

There has been only one substantive debate about the interests of England after EU withdrawal and how it is handled, which was the debate initiated by the noble Lord, Lord Shipley—significantly, a former leader of Newcastle City Council—on 19 March. It was a very significant debate in the form that it took. What came through very clearly in the debate was that the noble Lord, Lord Shipley, and other leaders of local authorities in England, including the noble Lord, Lord Porter, who sits on the Conservative Benches and is the leader of the Local Government Association, had far more confidence in the EU’s processes of consultation through the Committee of the Regions than they did in any institutional arrangements for consultation between Her Majesty’s Government and local authorities in England.

I am delighted to see the noble Lord, Lord Bourne, in his place—I think that he may be responding to this debate. In his characteristic way, he made a very constructive response to the debate, saying that the Government were considering consultation arrangements post-EU withdrawal with local authorities in England. I took it to be a very significant statement when he said that that might involve new consultative machinery, including possibly a new consultative body between the Government and local authorities in England. I have to say that the fact that it takes EU withdrawal for Her Majesty’s Government to produce proposals for formal institutional consultation between the leaders of local authorities in England and the Government is a pretty damning commentary on the state of our constitutional arrangements in this country. One of the themes that comes through very strongly from Brexit is that English local government and the regions and cities of England are essentially government from London in a colonial fashion, in much the same way as Scotland and Wales were before devolution. One of the very big issues raised by Brexit is that whatever happens over the next year, whether or not we leave—and I hope we do not—Parliament is going to have to address with great seriousness in the coming years the government of England as a nation but also the relationship between this colonial-style government that we have in Westminster and Whitehall and local government across England as a whole.

The one telling exception to this pattern is London, because London has a directly elected mayor and the Greater London Authority. As a former Minister, I know that the whole way that London is treated is radically different from the way that the rest of England is treated because it has a mayor and the GLA. When the Mayor of London phones Ministers, sitting there with 1 million votes—somewhat more than my noble friend has as the county councillor for Wigton; I know he has done very well but he does not sit there with quite so many votes—I assure noble Lords that Ministers take the Mayor of London’s call.

I remember vividly that when I was Secretary of State for Transport I met the then Mayor of London, who is now the Foreign Secretary, and he did not know who the leader of Birmingham City Council was. It only happens to be the second largest city in England. That is a very telling commentary on the state of the government of England. How England is going to be treated is massive unfinished business in our constitutional arrangements, and Brexit has exposed a whole set of issues relating to the government of England that will now have to be addressed.

[Lord Cavendish of Furness]

The noble Lord is making an important point about devolution, with most of which I agree. Does he accept that this Government have really gone out of their way to try to devolve power and that in many cases, as I think he would accept, it is the people on the ground who have refused and rejected it?

[Lord Adonis]

My Lords, I am not seeking to make party-political points in this debate; this issue is going to embrace us on all sides of the House. I note, though, that at the moment we still do not have proper arrangements in place for what is going to happen over the mayoralties in the great county of Yorkshire, which is a hugely important set of issues. There is massive disagreement taking place between different cities in Yorkshire and the Government about how this should be handled. At the moment we still do not have strong powers for any of the mayors outside London. The treatment of the counties of England that are not going to be embraced by the new city mayors is very problematic in the current arrangements, partly because it is genuinely problematic. We have never been able to resolve the issue about how you devolve to local government in England outside the major cities.

This is going to be a big ongoing source of debate, and rightly so. As these debates have demonstrated, we have done much better by Scotland and Wales in recent years, not least because they now have their own devolved Parliament and Assembly. We have done our very best to ensure consensual power-sharing government in Northern Ireland although, to our great regret, the Assembly is not sitting at the moment. Before long we are going to have to start giving equal attention to the government of England.

[Lord Foulkes of Cumnock]

I hope my noble friend Lord Adonis will forgive another Scottish voice, but I completely agree with every word that he has just said. Is not one of the ironies that our asymmetric devolution, which is the problem, is something that we could be tackling now with legislation in this Parliament if we were not preoccupied with this futile Bill and the other eight Bills that are going to follow it, which are totally unnecessary? We would have the time to deal with it.

[Lord Adonis]

I entirely agree with my noble friend; he is completely right. However, it is rather a sad commentary on our politics at the moment that we in this House need to be frank and accept that, but for Brexit, a lot of these issues would not have been flushed out. I do not think that, but for Brexit and the Brexit referendum, we would be addressing them.

At the moment, I am spending a lot of time travelling around the country, particularly to places which voted to leave. Most of these places are remote from London. There is an almost direct relationship between the distance from London, particularly the time it takes by train to get to places, and their likelihood of having voted to leave the European Union. What comes through so powerfully from the people I am meeting there is a massive sense of isolation and alienation not just from Brussels, although that is an issue, but from London and our Government and Parliament here. That is not a stable state of affairs for the future of government and democracy in this country, and it will have to be addressed.

[Lord Foulkes of Cumnock]

I completely agree. I feel so frustrated because for the past three years, I have been trying to persuade the leader of our party to consider a constitutional convention or to discuss the issue even within our party. I agree that we need to come back to that, but I turn to the amendment in the name of my noble friend Lord Wigley. I call him my noble friend because, especially on this Bill, we agree on so much. I am grateful to him for tabling it. Although it applies to Wales, as others have said, it could apply equally to England and Scotland.

As others have also said, I am pleased that it is the noble Lord, Lord Bourne, who will reply to the debate, because I have had dealings with him, as he will testify, on a number of occasions both before he was a Minister and since, and he looks at these things carefully, seriously and sympathetically. I expect that he will do the same again today.

I will not go through the whole list, but in Scotland we will lose structural funds, scientific grants and the Social Fund, and the Erasmus funding is in doubt. There is the European Investment Bank, which has funded roads, railways, hospitals and many other things. None of this can be continued when we leave—if we leave: the noble Baroness, Lady Humphreys, is absolutely right. I should always use the phrase “if we leave”, because it has not yet been finally decided, we are going through a process. It was the noble Lord, Lord Roberts, who said it, not the noble Baroness, Lady Humphreys. I am getting completely mixed up. As we go through the process, we are seeing more and more problems that will be created by Brexit.

I do not know whether any of your Lordships have visited the Falkirk Wheel, now one of the great tourist attractions in Scotland but also one of the great engineering attractions. Again, it was partly funded by the European Union. The Scottish Parliament estimates that more than 40,000 jobs have been created with European funding. As I said, I do not want to list them all—I could go on at length if that were appropriate, but I will not.

We have had vague promises that funding will be continued if we leave the European Union. We need, if not today then in the near future, more detail, more specifics. We need to know exactly what kind of funding there will be. Will each of the funds lost be replaced? What will replace the common agricultural policy? What will replace the regional development fund? What will replace the scientific grants? What will replace the Social Fund? It needs to be more specific. It is exactly like the immigration arrangements, which get put off, put off and put off. We have been promised them again and again but they have not been published. We do not even have a White Paper, let alone a Bill.

People need to know. If, as I hope, we will have a final say, if the British people will be given a final say, they will need to know whether these funds are to be replaced, how they are to be replaced and whether they will be replaced pound for pound, pound for euro, or whatever is appropriate. I hope the Minister will give such an assurance.

It is also ironic, as I said earlier when I was having an exchange with my noble friend, Lord Adonis, that we are wasting a lot of time in this debate.

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[Lord Bourne of Aberystwyth]

My Lords, it certainly was in our last manifesto. As I have just indicated, it talks about reducing inequalities, so the noble Lord has that comfort. Again, I will ensure that any points not dealt with in my answers will be covered in a letter to all Peers who have participated on these amendments, a copy of which will be placed in the Library.

The noble Lord, Lord Wigley, made some points about cohesion funding, which dates back to 2000. I remember when the noble Lord was leader of the opposition in the Assembly and I was leader of the Welsh Conservatives—I later became leader of the opposition. I too went out to Europe and fought for this with Michel Barnier. I also remember the struggles that we had with the Treasury; that was accurately reflected. I agree with the noble Lord, Lord Thomas, on this point, which the noble Lord, Lord Wigley, made in the Assembly on many occasions. Such funding was not a badge of pride: it was coming to Wales because of the poverty that was experienced in west Wales and the valleys. It was not limited to Wales: Cornwall, Merseyside and so on were also involved. This was something that we did not really want to qualify for. There will be another round of funding from 2021 to 2027 and I will look at how that pans out. It is not guaranteed, even in European terms, that Wales will qualify. We were somewhat surprised in the last round of funding—it was very marginal—that Wales just managed to qualify. In one sense we were pleased, because to just qualify rather than just miss was welcome. We have to remember that there is no automatic right to it. It is based on 75% of average prosperity throughout the European Union.

There were some free-ranging points made about the referendum campaign—I remember the campaign in Wales as a campaigner for remain—but I will focus on the parts of the debate that were more central to the amendment and the legislation. First, however, I will touch on some of the funding that is coming to Wales. As a Welsh Office Minister, I know that we are participating very much in mid-Wales growth deals, north Wales growth deals and city deals. Stuff is going on which is helping projects in Wales now and engaging with the NFU, the FUW, the CLA and so on. Many things are happening in Wales that I am sure noble Lords across the Chamber would be pleased about.

Points were made about the Barnett formula. Lord Richard would have had much to say on this and we come back to it on many occasions. However, the issue exists independently of Europe and it is not made better or worse by our position in Europe. It does need addressing. In fairness, as part of the coalition in the previous Parliament, we ensured that the formula was ameliorated by the application of the Barnett floor, which benefited Wales. That said, I recognise the points about the historic position of Wales, unlike Scotland which benefits from the Barnett formula. I will leave that for another day, if I may.

The noble Baroness, Lady Humphreys, was there at the start and very much engaged with ensuring that we got the benefits of Objective 1 into Wales. In parenthesis, the giving of taxation powers to Wales, which was part of the coalition Government and the Silk commission and is now in process, should help to incentivise growth in Wales and is part of the added powers that have been given to the National Assembly for Wales. We should not fail to recognise that a lot of these issues are things that the National Assembly now can, and I have no doubt will, ameliorate.

The noble Lord, Lord Roberts, made a valid point about Welsh agriculture being much dependent on agricultural funding. I hope he takes comfort from what I have said about the agricultural budget up to the end of the Parliament. He is right that we have to focus on it. In fairness, it is not just a Welsh issue but, as he rightly recognises, it is central to a lot of Welsh life and many areas and close to the hearts of people in Wales.

The noble Lord, Lord Liddle, mentioned the Cumbrian situation and touched on federal issues. I can promise that just as I would take a call from Sadiq Khan, I would take a call from the noble Lord. If he wants to ring on any issues, I would be very keen to do that. I think Wigton is extremely important.

The noble Lord, Lord Adonis, referred appositely and correctly to the weak voice of England in our structures. I think that the noble Lord, Lord Foulkes, by inference touched on the incomplete part of the jigsaw in that we do not have regional voices for England, or not in the same way that exist in Scotland, Northern Ireland and Wales.

I perhaps take issue with the noble Lord, Lord Adonis, about the unknown mayor of Birmingham. I think that would be a surprise to many people. Many people know that it is Andy Street, just as we all know Andy Burnham. I do not think it would be quite right to refer to them as colonial governors, either.

[Lord Adonis]

My Lords, I was referring to the then Leader of Birmingham City Council who is now also a Member of your Lordships’ House.

[Lord Bourne of Aberystwyth]

And a very able one. I take that qualification and thank the noble Lord for it.

It is also worth saying that there were attempts to extend regional government to England. I am sure we all remember the referendum in the north-east, which was pretty decisive. I accept that there are issues to address there. This Government have done more for city mayors than has been done for a long time in terms of devolved power and not just in the big cities of the UK. We have looked at other areas—Cambridgeshire, for example. However, there is incomplete work—including in Yorkshire, it is fair to say.

I agree with the noble Lord, Lord Foulkes, that the Falkirk Wheel is well worth visiting. I also agreed with him on other issues that he mentioned in relation to the unaddressed issues about government in our country—some points well made.

I thank the noble Lord, Lord Thomas of Gresford, for his contribution and agree that we fought for money for Wales. It was not a matter of pride, it was a matter of getting money that was needed. I agree that in many ways the money is still needed because of the relative poverty in Wales—sometimes a poverty that is not obvious. The grinding poverty that exists in the Valleys is obvious, but the poverty in the rural communities of north-west and south-west Wales is not necessarily as obvious.

I thank the noble Lord, Lord Griffiths of Burry Port, for his contribution and for re-focusing us on some of the issues that matter. He referred to the history of some of the devolution process in Wales—the 1997 referendum, the 2011 referendum and much work that was done in-between. He is right that there is a money issue. I do not think it is just a money issue; it is also an attitude issue that has existed prior to this Government and probably the previous Government. In short, I think it is ameliorated. There is an attitude of: “Let’s not forget Wales, let’s not forget Scotland”. It has become lot better; it is plugged in. That is not to say that we are there yet. It is not just a money issue, though money is important too.

The noble Lord mentioned the Barnett formula. A lot of good work has been done in the past by Gerry Holtham and the Holtham commission, but there are issues which remain to be addressed—that is no doubt true. He went on to talk about the consenting process, and I take it that he means the process referred to in Clause 11. I agree that this is a partnership and, in fairness, the Prime Minister is very much aware of that. She met the First Ministers of Wales and Scotland very recently, and I think progress was made. More work needs to be done and is being done. We are not there yet. I think that anyone who is fair minded would acknowledge that we have made considerable progress on this but, as I say, we are not there yet.

I appreciate that the noble Lord, Lord Wigley, may regard this as half a loaf—it is not everything he wants—but I am happy to talk to him between now and Report and to find answers to some of the questions put by the noble Lord, Lord Liddle, about the timing of this process. I hope that helps the noble Lord: I thank him for bringing this important issue to the House. I thank other noble Lords for their part in this. While the present team and I remain at the Wales Office, we are determined to ensure that Wales gets a fair deal. I am sure that applies to the Scottish and Northern Ireland teams in relation to Scotland and Northern Ireland. We have to ensure that all parts of the United Kingdom are taken care of in this. We do not want this to be x versus y: everybody has to be fairly dealt with. On the basis that I am happy to try to find more information for the noble Lord, Lord Wigley, and others, I hope that the noble Lord will withdraw his amendment.