G7

Lord Anderson of Swansea Excerpts

Thursday 12th June 2014 Lords Chamber

[Lord Hill of Oareford]

I very much take the point about the importance of ensuring that there is diversification around energy supply, and a number of measures are in hand in the EU and through the G7 to try to take that forward. On sanctions more generally, I would argue that the steps taken so far have made a contribution. I understand my noble friend’s point about the importance of the power of markets to drive that, as well, but the combination of sanctions and markets is having the effect that I alluded to on the Russian economy. It is also the case, with regard to the adequacy of that response, that work is going on through the European Union. If Russia either destabilises the situation further or causes more difficulties with Ukraine over its signing of the accession agreement, urgent work has been going on to work up a range of sector-wide sanctions to hit various areas, whether it is defence, finance or energy. Therefore, I agree with my noble friend that we need to do that work and make it clear to Russia that, if we have to take further steps, we will do so.

[Lord Anderson of Swansea (Lab)]

My Lords, does the Leader of the House recognise the tactical problems and dangers to the national interest of this country in our taking such a strong personal lead against M Juncker? He is, after all, the favourite candidate, Chancellor Merkel still appears to be supporting him and he will offer us no favours if eventually he is elected. On Ukraine and relations with Russia, I echo what the noble Lord, Lord Wright, said. Yes, Russia annexed Crimea and is already paying a price economically in terms of market confidence and the rating agencies, and diplomatically in terms of its isolation. However, there are many areas where we need to engage with Russia, such as on arms control, Syria and Iran. During this difficult period, in what ways will we seek to engage with Russia on areas of mutual interest?

[Lord Hill of Oareford]

I will not reiterate the points I made to the noble Lord, Lord Wright, on striking the right balance between ensuring that there are consequences of taking action of which the entire international community disapproves and accepting the need to make sure that channels are kept open. Therefore, I agree with the noble Lord’s basic point. On the point about the top job, I think it is fair to say that from the beginning the Prime Minister adopted a position of principle both on who should make the relevant decision and on the attributes that one should look for in selecting someone to do the job. His argument was that the recent elections clearly show that there is widespread appetite for a different approach. However, for there to be a different approach you have to have someone leading the Commission who is open to that. That is the argument that the Prime Minister has made. It is an argument based on principle, not personalities. I accept that the media have reported the issue as one of personalities, but it seems to me that it is quite right for a Prime Minister to argue for something that he believes is right. One needs to make those arguments in a number of ways and sometimes you need to lead from the front.