Outcome of the European Union Referendum

Lord Balfe Excerpts

Tuesday 5th July 2016 Lords Chamber

[Lord Balfe (Con)]

My Lords, I, too, draw attention to my entries in the register of interests. From time to time, I am asked what I do in the House of Lords as special interests. I generally say to people that I follow foreign affairs and trade unions and they very seldom overlap, but tonight, unfortunately, they do.

I endorse everything that has been said about EU citizens resident in the UK—the eloquent words of the noble and gallant Lord, Lord Craig of Radley, being just the latest—but I want to draw attention to another group of people: the civil servants and public servants working throughout the European Union institutions, many of whom are in a state of near despair, not only at what they perceive as the Government’s neglect of them over many years but at the situation now and what remains to be resolved.

I draw attention to the fact that one of my roles in life is as chair of the Members of the European Parliament pension fund. This puts me in a similar position to many other public servants in EU institutions. The fund covers all the member states and my duty as chair of the fund is to them all. So I will be effectively on the other side of the negotiating table, because it is my duty to ensure that, in leaving the EU, the UK does not escape its duties and liabilities and leave them for other member states to pick up.

There is a saying going round Brussels at the moment and it is very true: “If you are not at the table, you are on the menu”. We are on the menu. There are many UK citizens working in Community institutions who are rightly concerned for their future. They have acquired rights and legitimate expectations which HMG must assume as part of the negotiation process. We are not just talking about Commission officials; we are talking about the whole spectrum of UK citizens involved with the EU and its institutions. Some are still working there, some are retired, some are the partners of deceased pensioners and some are married to citizens from other member states. On my books from the UK I have two widows in their 90s. I have another pensioner who has a daughter with Down’s syndrome. Under our regulations, the daughter gets a pension; the mother is needlessly worried about the future, which was assured but is now thrown up in the air. HMG must face up to the consequences of this foolish decision.

Vice-President Georgieva has been in charge of this in Brussels. At a meeting with staff representatives, one of them said:

“I am coming up to retirement, will my pension still be protected by the Protocol on Privileges and Immunities? And what are the ‘red lines’ for negotiations with the UK regarding UK officials?”.

They then went on to point out that many staff have worked in London and in other places and agencies all their lives. She was asked whether she could reassure them. The Commissioner’s answer was not reassuring. She said:

“All Member States bear responsibility for the pensions of EU officials”.

So far, so good. But, she continued,

“there is no guarantee that pensions will remain protected, such a discussion will have to be factored into the negotiations. As long as the UK remains a member of the EU pensions will be paid from the Community budget; if the UK becomes a third country, it is clear they cannot be bound by the protocol”.

In other words, these civil servants are in a position whereby not only are their jobs under some threat—although, as they are engaged by the Community, they are probably okay there—but their futures are under threat.

I said earlier that many different institutions and groups of people are affected. Most Community officials live in one of the two main places of work, either Brussels or Luxembourg, and most of them work for the European Parliament or the Commission. However, there are the other institutions, such as the European Court of Justice and the Court of Auditors, and the specialist agencies spread throughout the EU, including the European Medicines Agency based in London, which is now the subject of a bidding war to move it from London, with Italy currently in the lead to take those jobs away. All those bodies have UK staff members and they have people who are dependent on the protocols and immunities that we have agreed.

I have mentioned marriages and civil partnerships between UK nationals and those from other countries. The head of administration for pension funds is married to a Swede, who has never lived in the United Kingdom and works for the Commission. She has a reasonable right to expect her pension to be paid when it comes due, through her husband, if he predeceases her. So there are many instances of marriages—and, of course, most staff working for the EU have properties in Brussels, Luxembourg and other places, and children in school there. We are inflicting a huge upheaval on our staff.

What I am looking for from the Minister is three short things. First, I would like to hear a word of sympathy and understanding, which has not been heard from this Government. Secondly, I would like an acceptance that the negotiating mandate when drawn up will include an acceptance that all the acquired rights and legitimate expectations will be met. Thirdly, I know that it is presently too early, but I would like the agreement of the Minister to facilitate a meeting between representatives of the affected personnel and others with the appropriate Minister for the exit negotiations at the appropriate time.

This whole issue has sent a shiver down the spines of servants of all our international institutions. One of the candidates for Conservative leadership is pledged to withdraw from the European Court of Human Rights—or she was until she rewrote her manifesto. But there are numerous institutions. I serve on the pension fund board of CERN, the leading physics laboratory in the world, where people are worried whether Britain will withdraw from it. She could withdraw from CERN. We need to get our act together and remember that if we want the best civil servants to go from Britain and represent Britain in international institutions, they have to be treated with sympathy and decency, which I have not yet perceived as part of this debate. I look forward to it arriving.