Lord Boswell of Aynho
Main Page: Lord Boswell of Aynho (Non-affiliated - Life peer)EU Referendum: Assessing the Reform Process (EUC Report)
Lord Boswell of Aynho Excerpts
Lord Boswell of Aynho
That this House takes note of the Report of the European Union Committee on The referendum on UK membership of the EU: assessing the reform process.
Lord Boswell of Aynho (Non-Afl)
My Lords, I am delighted to introduce this report by the European Union Select Committee entitled The Referendum on UK Membership of the EU: Assessing the Reform Process. This report, published in July, marked the committee's first formal response to the Government’s announcement that they would seek to renegotiate the UK’s relationship with the EU, followed by an in/out referendum on UK membership by the end of 2017. The report took account of an evidence session held with the Minister for Europe, David Lidington, and meetings with EU institutions and others during an intensive committee visit to Brussels. At the outset, I record my thanks to all those who took part: those who gave evidence or discussed matters with us; those Members and colleagues who participated and, as ever, our expert and committed staff.
To be clear, the committee did not and will not make a recommendation concerning whether the United Kingdom should remain a member of the European Union. Neither did the report focus on the provisions of the European Union Referendum Bill, which is currently before your Lordships’ House. Rather, the report was designed to inform noble Lords of our views and concerns about the process of renegotiation and reform.
The committee reached the following conclusions, which I will summarise. We supported the Government’s efforts to ensure that the referendum takes place as soon as possible, in order to minimise uncertainty. The UK’s upcoming presidency of the European Council, scheduled for the second half of 2017, makes the arguments for an earlier referendum all the stronger. Notwithstanding the Minister for Europe’s assurances that it would be possible, in theory, to hold a referendum during the course of the presidency, common sense tells us otherwise. On the other hand, an earlier referendum creates the possibility of the UK having voted to leave before the presidency takes place. While the Government were right to press ahead with their plans for the presidency in 2017, it is only fair on our fellow member states to be ready to put contingency plans in place should the referendum either be delayed or result in a vote to leave.
The Minister told us that the internal Whitehall system for carrying forward negotiations—which seems to involve the Foreign and Commonwealth Office, the Cabinet Office, No. 10, HM Treasury and our Brussels officials in UKRep—was intended to work,
“by network rather than by hierarchy”.
This struck us as both unrealistic and a recipe for confusion. By way of example, the media frequently report that the Chancellor of the Exchequer is in fact leading this process, as exemplified by his high-profile visit to Berlin this week. Is that true? If so, what role is his department playing? How will he be held to account by Parliament for his actions? How is he interacting with the Prime Minister, the Foreign Secretary and our diplomats in Brussels? I would be grateful if the Minister provided some clarity on this in his response.
Equally, from the UK perspective, it would be helpful to know more about who our key interlocutors are in Brussels. The Government’s written response to our report—brief as it is—stressed that the Prime Minister’s key contacts were with the presidents of the EU institutions. But what about the role of influential, well-regarded and technically expert officials in their teams, such as the Council Secretary-General Jeppe Tranholm Mikkelsen, the Head of Commission President Juncker’s Cabinet, Martin Selmayr, or, indeed, Jonathan Faull, who has been appointed to head a Commission task force for strategic issues related to the UK referendum? Will the Minister tell us more about what role they are playing and how they interact with interlocutors at official and ministerial level in the UK Government?
The committee was pleased to have the opportunity to meet Martin Schulz, the President of the European Parliament, to discuss these issues. It is essential that the Government do not overlook the role of that Parliament in the reform process, as its approval is likely to be required for any legislative proposals that emerge. What assurances can the Minister give us that the Government are actively engaging with the European Parliament?
I acknowledge that, at the time of our report’s publication, the Prime Minister had left a good impression with other member states thanks to his efforts to engage with them ahead of the June Council. We stressed that the onus was on the Government to explain what they seek to achieve by way of reform, and to ensure that such positive momentum was not lost. It is therefore regrettable that a number of member states, notably Estonia and Finland last week, as well as the EU institutions, have expressed frustration at the lack of detail on the Government’s reform objectives.
The Prime Minister last week promised to “quicken the pace” of negotiations and reiterated that he will write to the President of the European Council, Donald Tusk, in “early November”, setting out his position in more detail. The calendar tells us that we have now arrived in early November. Can the Minister tell us when the stamp will go on the letter which is so greatly anticipated by all? Can he also provide clarity on how the letter will be brought to the attention of my committee and the House?
On the subject of parliamentary accountability, our report acknowledges that the sensitivities of the process meant that the Government were unwilling, in their words, to provide Parliament with a “running commentary”. Yet, the committee also warns in it against presenting Parliament with a fait accompli. The Government have consistently repeated the mantra that Parliament will be kept informed. Yet actions speak rather louder than words. By way of illustration, last Friday’s Financial Times reported that the Chancellor was pushing for an “emergency brake” to safeguard the interests of non-eurozone countries. Is there any truth to this? If so, when will Parliament be given an opportunity to scrutinise or consider such proposals? It has come to a poor pass when Parliament must rely on media reports, rather than the Government, for the latest update.
To give another example, two months ago the Minister assured the House that the Foreign Secretary would be willing to appear before my committee, but we have yet to receive a response to our invitation to him to do so. Will the Minister repeat his assurance this evening and assure us that we will get a swift response to our outstanding invitation?
Equally, given the profound implications for the nations of the United Kingdom, we feel that it is vital that the Government engage fully with the devolved institutions. We, for our own part, are seeking to do so. Last month we visited the National Assembly for Wales, where we met the First Minister and the Assembly’s Constitutional and Legislative Affairs Committee, and we will be travelling to Belfast and Edinburgh over the coming weeks. We therefore note with concern that our colleagues in the Scottish Parliament have apparently been met with a brick wall in their efforts to secure an evidence session with the Minister for Europe. What assurance can the Minister here tonight give us that the Government are engaging with counterparts in the devolved institutions, including meeting their legislatures’ committees—and, more to the point, taking their views and concerns into account during the negotiation process?
Our report also dwelt on the question of treaty change. We accept that it is not feasible for changes to the EU treaties to come into force ahead of a referendum. Nevertheless, the Government are right to seek to ensure that any agreement on key aspects of a reform deal is legally binding. Two potential precedents are the 1992 Edinburgh agreement, by which Denmark secured legally binding opt-outs to be incorporated in future treaty change, and the guarantees offered to Ireland before its second referendum on the Lisbon treaty, which were contained in conclusions of the European Council.
In the absence of firm details, the report found that it was premature to examine the Government's policy priorities at this stage. However, the committee naturally takes a close interest in the question of enhancing the role of national parliaments. We have no principled objection to the Government’s proposal for a red card, by which national parliaments would be able to block unwanted legislation. Yet viewed in isolation, it could give the misleading impression that national parliaments should, or could, only play a blocking role. If the Government are serious about enhancing the role of national parliaments, they should explore means such as our own proposal for a “green card”, whereby national parliaments could make a positive and proactive contribution to the development of EU policies and legislation—which could, of course, include proposals for deregulation or decluttering the system, as well as altogether new innovations. Can the Minister give us an assurance that the Government will take the green card model seriously in their forthcoming negotiations?
To conclude, we recognise that the question of UK membership of the EU is only one of several fundamental issues facing the EU at present. Nevertheless, as our report says, the process that is now under way,
“presents significant challenges and opportunities, not only for the UK, but for the EU as a whole. As the Prime Minister has stated, the package of reforms … should be for the benefit of every nation and citizen of the EU”.
For the committee’s part, we will continue to engage with the Government, the devolved institutions, the EU institutions and other member states, in particular in the context of our new inquiry, entitled “Visions of EU Reform”. However, that debate is for another day. For the moment, I commend this report to the House and look forward to contributions from noble Lords on all sides.
The Earl of Courtown (Con)
My Lords, this has been a quite excellent debate with some very varied and informed speeches.
The Earl of Courtown
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
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?
The Earl of Courtown
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.
Lord Boswell of Aynho
My Lords, veterans of debates on the European Union and reports of the Select Committee and its sub-committees will be familiar with the fact that we are often obliged to do this at a late hour. That is partly a function of being able to get the reports debated in a timely manner. If we are honest, there are occasions when the subject matter is somewhat staid and the comments are occasionally even a touch self-congratulatory. I think we have been spared that tonight. The convention is to say that we have had a very good debate, but actually, amazingly enough, we have; it has been very lively, and one could almost call it enjoyable. I would take some encouragement from that, in that there may be something going on in the air, because there appears to be a renewed interest, sensitivity and liveliness about the debate, which is probably to the good for the future.
It is late and I do not intend to speak at length, but, first, I should say that the Minister is very good—sometimes better than some of the professional politicians, if I may put it that way—at playing a straight bat against both fast bowling and some deadly spin. He has done that in a way that the noble Lord, Lord Kerr, forecast, almost quintessentially. In a sense, I admire that technique. Amazingly enough, we manage to distil words of wisdom even as we go along, albeit that it is a slow process. I reflect on my own experience as a Minister, when the dilemma was not what you knew—that was quite easy—but what you knew but could not remember whether you were allowed to say, which was more difficult. However, the debate will continue, as it will with other noble Lords.
I do not want to go through in seriatim, but there have been some important calls for better vision and fascinating suggestions about better communication with this committee and the role of this committee in communicating at large. If I can do so without invidiousness, I shall single out three contributions to comment on. The first is that of the noble Lord, Lord Hamilton, who remains my good friend. He is very right, occasionally, to shake us up. He did not like the report, and I am sorry about that. I suppose my excuse is a sort of Billy Bunter excuse for eating the cake: it was quite a small one. The reason the report was quite a small one was, as we say in our final paragraph, that we are beginning the process of shedding light on the process. There is more work to be done.
Many of his adversions related to the treaties and how they would interact, what would happen to them and whether it would be necessary to change them. Frankly, we need to remind the House that the Government, not the EU Select Committee, have called, in their terms, for a new settlement with the European Union, which they are negotiating and on which it is our duty to comment. We are not, as it were, functioning as the Government. We are not striking out too far. However, I take the point, and I think in our forthcoming report on visions we will want to give a bit more meat to this process. As we learn more of the Government’s intentions from the letter to President Tusk and otherwise, we will take that forward.
The second contribution was made by the noble Lord, Lord Balfe, who talked about a possible scenario on exit. I know that the Government are very reluctant to talk about this. I would like to report to the House and to the noble Lord, Lord Hamilton, that it may not be as simple as that. If one thinks that there may or may not be treaty change engaged in remaining, it is almost certain, on the intelligence and advice I have received, that there would be treaty change on leaving. It would require three treaty changes under Article 50: a treaty of withdrawal negotiating our exit; an amending treaty for the remaining 27 member states who would have to take us out of the equations of the Lisbon treaty; and, one assumes, a future treaty of association between the United Kingdom and European Union. That is a triple bill which might entail all these potentials for referenda and other debates to go on. However, I leave that.
I shall close on two aspects of the comments of the noble Viscount, Lord Brookeborough. I acknowledge that he was not the only speaker, although I think he is the resident most directly affected, who talked about the sensibility of the devolved Administrations. He singled out the problems in the island of Ireland. I think I am right in saying that near Clones one of the major roads crosses the border four times in five miles, which is an example of the kind of issue that can arise—and that is before you look at some of the constitutional implications of the Anglo-Irish agreement and so forth. We are sensitive to that and we will continue that work with our colleagues in the devolved Administrations.
Even more, he made an impassioned point which reflects the view of us all that there should be as much plain speaking and common sense about this discussion as there can be. I understand that the words “derogation”, “protocol” and so forth trip off our tongues easily because we are used to them, but they not the kind of thing that will engage the electorate. We have a primary duty to report to this House, and we have an important secondary duty to contribute to the national debate which will now start to get under way and to do it in a fair and objective way. In doing that, we will need to focus very carefully on what the Government are doing. We will then report as we can and as material becomes clearer to us. We have made a start. We intend to carry on. I am very grateful for the support of noble Lords in this debate tonight.