European Union Referendum Bill

Debate between Lord Flight and Lord Liddle

Wednesday 28th October 2015 Lords Chamber

[Lord Flight (Con)]

My Lords, may I briefly speak to Amendment 1? It seems to be extremely straightforward. For a fair referendum, we want an entirely clean situation where adequate notice is given and where there is no possible scope for the public sector, the Government, the EU or any public body to spend money influencing the course of the campaign. As has just been stated, the Electoral Commission supported this amendment. It is in line with what the Government have said they are seeking to do. I find it quite irritating that there is such complexity surrounding what is really a pretty straightforward point but I very much hope that the Government will accept the amendment in the spirit in which it is offered.

[Lord Liddle (Lab)]

My Lords, I will speak to Amendment 2, which has been somewhat incongruously grouped with Amendment 1. However, I do not mind that because I am speaking to this amendment somewhat tongue in cheek, not in the expectation that the Government will accept it but to make a point about the fairness of this referendum and the need for the outcome to be accepted for a generation to come.

My amendment would change the date from 2017 to 2019. I have put this down to make a broader political point: that there is, in my view, a fundamental contradiction in the Government’s renegotiation strategy. They say that they want a fundamental change in the relationship with the European Union and, at the same time, they have chosen to impose a unilateral timetable for this renegotiation by saying that they need to have the referendum by the end of 2017. In practice it should be said—I think that the Government would sort of accept this—that the real deadline is the end of 2016. No one really thinks that you can muddle up a British referendum with the French presidential and German Bundestag elections, which will be dominating Europe in 2017. The Government have in practice set themselves a very tight deadline for their renegotiation. The truth is that they cannot achieve within that timescale some of the objectives which they have apparently set themselves.

First, there is no prospect of comprehensive treaty change by the time of the referendum. Secondly, even on matters such as benefits for Polish workers in Britain, while it may be possible to achieve some kind of political consensus among the member states about what changes are necessary, there is very little prospect that such changes in European legislation, even if agreed in principle by the Council of Ministers, could have gone through the complex legislative procedures of the European Union, given the role of the European Parliament and the Council in co-decision, by the time of our referendum. I am sure that the former Members of the European Parliament who are in this House will agree with that. We are dealing with a situation where the Government will have to be content with agreements in principle and, possibly, devices such as the protocols which were granted to Denmark and Ireland, which were basically promissory notes of future changes in EU treaties when such treaty changes come to be made.

I would like to see honesty from the Government about this situation because if we are to win this referendum we do not want to create a situation where lots of people who campaigned against British membership immediately turn round and say, “We was robbed”, which is what happened in 1975. I think there is some risk of this so the Government have to be franker than they have been so far about their renegotiation strategy and what they can achieve within the timescale they have imposed. Let us remember, this is a unilateral British timescale; the European Union is not causing the problems. It is a unilateral timescale that we have laid down.

EU: Financial Regulation (EUC Report)

Debate between Lord Flight and Lord Liddle

Tuesday 7th July 2015 Lords Chamber

[Lord Liddle (Lab)]

It is not the case that France has a veto in relation to the common agricultural policy, as I think the noble Lord well knows. All the decisions on the reform of the common agricultural policy have been taken by majority voting in the Council of Ministers. Of course, the council tries to take into account the views of member states which have particular interests. Surely he would acknowledge that, in the case of financial services, that is what has happened with Britain: our interests have been taken into account by the council.

[Lord Flight]

I would have thought that what I have just said demonstrates that what I call sensible interests, including our interests, have often been overridden. With regard to agriculture, while I am well aware that the overall reforms of the system have been pan-EU, I think that France still has some protective vetoes. We will see whether this is correct, and what the negotiations are able to achieve.

I am critical also of the UK. There has been a lot UK gold-plating of what has come to the UK both internationally and from Europe. The introduction of RDR has simply removed financial advice being available to 70% of the country’s population, as a result of which the Government are struggling with providing guidance on pension fund services and leaving people hanging in mid-air as to who they might approach to manage their pension assets.

There is the need for an independent new appraisal of what regulation in the EU and even internationally is good and useful for markets and for clients, and what is unnecessary, harmful, and incurs a cost and adds no benefit. I would like to think that the UK will give an EU lead to reform of regulatory overkill and I wish the noble Lord, Lord Hill, enormous good fortune in his commitment to review the cumulative effects of the various regulatory reforms.

[Lord Liddle]

Does the noble Lord accept that the Commission has just produced precisely what he is asking for? Commissioner Timmermans has put forward a whole set of propositions on regulatory reform and on reviewing existing legislation to make sure that unnecessary regulation is cut back. The noble Lord, Lord Flight, appears to be making statements without full regard to what is happening currently in Brussels.

[Lord Flight]

I am aware of what is happening in Brussels but I specifically said that I wanted to see the UK more active in terms of a programme of regulatory rationalisation and review. The key point I am seeking to make is that when I stand back, I perceive what I believe to have been enormous overkill, often not addressing the right areas, since the 2008 financial crisis.

Cities and Local Government Devolution Bill [HL]

Debate between Lord Flight and Lord Liddle

Wednesday 24th June 2015 Lords Chamber

[Lord Flight (Con)]

My Lords, I support my noble friend Lady Wheatcroft’s excellent amendment. If you go to America, you will find that cities have retained the right to finance infrastructure projects with municipal bonds. Indeed, income from bonds even enjoys the advantage of being tax-free. However, as she pointed out, much of the heritage of our great cities of the last century and much of their infrastructure investment were financed by municipal bond issues. That came to an end, sadly, during the Attlee Government after the Second World War. The argument was that the Government could borrow more cheaply via gilts and thus dosh out the money. What actually happened was that the money never got doshed out and the municipalities were unable to have their own bond issues.

For me, this subject is absolutely central to the reality of devolution to cities. It is about their ability to raise money and to invest in their own infrastructure. I, too, look forward to hearing of the opportunities in the sports world, but there is masses of scope for infrastructure investment. I raised this issue at Question Time in the House earlier this year I think, and got a response which seemed to be saying that, yes, the Government agreed with this and would include it in future legislation. Over a year ago, when I discussed the territory with the Mayor of London, he absolutely supported the idea that it should be a fundamental part of devolution to our cities.

I very much hope that the Government will accept my noble friend Lady Wheatcroft’s amendment, which, quite rightly, is designed to be cautious and not to allow the ability to go overboard. It would make a start and a crucially important contribution to real devolution.

[Lord Liddle]

My Lords, I express support for the principle of the amendment moved by the noble Baroness, Lady Wheatcroft. The combined authorities need more independent power to raise money for good local projects and I accept that we have to break away from the kind of Treasury stranglehold, as it were, that operates in this area. I would be interested to see how far the DCLG and its excellent Ministers, who are very committed to devolution, are getting on with the Treasury on this question. We look forward to the response on that. However, there are two problems, which I know the noble Baroness, Lady Wheatcroft, will have thought of. The question is what the answers are—they may be in the response to the proposal.

First, there is the question of risk if something goes badly wrong. Not only would that be a failure for the combined authority that had sponsored the proposal but it would result in severe losses for local savers. Is there any way of spreading the risk and/or any form of insurance that could maybe bring the big institutions in to bear some of the risk? I am not a finance person, but the noble Baroness is and I am sure she will have thought about this.

Secondly, with a proposal of this kind you need to ask how the market in these bonds would operate. After all, people might have enough money to invest £10,000 or something in the future of their city—I could imagine people being very happy to do that—but their personal circumstances can change. They might want to be able to dispose of that bond. How would a secondary market operate in something that had initially been limited to residents of the area? However, in principle, this is exactly the kind of radical thinking that we need to revive municipalism.