European Union Bill

Lord Hannay of Chiswick Excerpts

Tuesday 5th April 2011 Lords Chamber

Of course, it would be open to Parliament, when considering a Bill, to say that all or part of that Bill should come into force only when approved by referendum. That is what we did on the Bill concerning the referendum on the voting system. However, what cannot be done within the constitution is to say that Parliament can require a future Bill to be made conditional on support in a referendum. That is a condition which must be decided only by Parliament when it considers that Bill. That must certainly be true for future Parliaments; in my view, it is absolutely clear that there is no way in which much of the legislation here can remain beyond the life of this Parliament. I further believe that it is probably also true that future Bills introduced in the present Parliament cannot be required to bring with them an agreement from a referendum. We need to deal with this issue much more thoroughly than we have done so far.

[Lord Hannay of Chiswick]

I support my noble friend's amendment. It is the practice in this House to start a Committee stage with an extremely abstruse point and this is certainly extremely abstruse. However, I argue that it is the tip of a rather large iceberg which is the overload of the list of things that have to be subjected to referenda set out in the rest of the Bill. This is the kind of entrée for that and it is absolutely right that we should have a serious debate about it now and not just treat it as a minor and abstruse matter.

The inclusion of decisions taken under Article 48(6) is a very clear symptom of a disease which seemed to be caught by the Government when they sat down to draft this Bill. Instead of opting for a very simple Bill, which would have subjected actual treaty changes to a referendum requirement—changes either to the Treaty on European Union or the Treaty on the Functioning of the European Union—they included a large mass of other material, including Article 48(6). That is likely to multiply by quite a lot the damaging effect that this Bill, if enacted, would have. I hope that the Government will think again about the inclusion of these issues within the scope of the Bill and thus be willing to look kindly on this amendment.

One relevant point is that when this House ratified the Lisbon treaty and conveyed our instrument of ratification, which helped, along with the other 26, to bring it into force, we approved a whole series of ways of implementing Lisbon, of which the Article 48(6) issue is one very small part. We deposited our instrument of ratification and Lisbon came into force and the coalition Government accepted that. However, I think that the Government need to pause for a minute to think about whether we are really acting in good faith when we alter the means by which we will deal with these decisions somewhere along the line and introduce a different method of doing so. Noble Lords will gather that this argument does not apply at all to a decision to have a referendum on a change to the treaty. There would be no question of bad faith about that. I think that we would be quite wrong to do so, but if we wish to subject a future treaty change, a change to the Treaty on European Union or the Treaty on the Functioning of the European Union, to a referendum requirement, that is absolutely our own business. We can decide that and cannot be accused of bad faith.

However, when we start tinkering with the way in which we shall approve items that are, as it were, subcontracted under Lisbon to the Council acting by unanimity, and impose new requirements which were not there when we deposited the instrument of ratification, we are taking real risks with that intangible concept—but one which is important within the European Union—which is the confidence that every member state has in the good faith of the other member states.

I say that not because I have thought of that problem off the top of my head, but because it was brought to the attention of the committee set up in the other place to scrutinise European legislation, when it held an inquiry into the sovereignty issue, by the now retired director-general of legal services to the Council Secretariat, a man of extraordinary brilliance who gave successive British Governments massively good and helpful advice on many occasions. In his testimony, which is on the record for anyone to read in the proceedings of Mr Cash's committee, he very delicately said that if the British Government systematically involve themselves in subjecting decisions taken under Lisbon to a referendum requirement, at some stage there is a real risk that the issue of good faith will be raised.

I hope that the Government will look very carefully at this matter and see that we need to cut away a good deal of the areas listed for requirement—among them, most particularly, the one we are discussing now.

[Lord Foulkes of Cumnock]

My Lords, I support the amendment moved with such charming and disarming modesty by the noble Lord, Lord Kerr of Kinlochard. Only someone with a highland title could be so disarming and modest as well as eloquent in moving such an amendment.

I speak with reluctance because I was waiting to see who was going to spring up to defend the Bill and speak against the amendment. As my noble friend Lord Kinnock says from a sedentary position, “There won't be many of them”. I have been trying to find out over the past few days and weeks who is behind the Bill, who is the architect of it, who is the genesis of it, who is pushing it, who is keen to see it go through. I even had a conversation with the noble Lord, Lord Tebbit, and he certainly did not claim any responsibility for the Bill. At Second Reading, we had a number of contributions, almost none of them in favour of the Bill. Even those who were in favour were somewhat embarrassed and reluctant.

I wonder why we are taking up so much time in this House and in Parliament when there are so many other things that should be occupying our attention. The noble Lord, Lord Kerr, made a very eloquent Shakespearian beginning to his speech. If I can get a little bit of Shakespeare right, it made me think:

“Why should we, in the compass of a pale,

Keep law and form and due proportion …

When our sea-walled garden, the whole land,

Is full of weeds, her fairest flowers choked up,

Her fruit-trees all unpruned”.

A lot of things are happening outside in our land, this sea-walled garden, that need our attention, but we are being asked to spend so much time on this, it is really quite unbelievable.

I did not speak on Second Reading because I was at my first meeting of the European Union Select Committee. Excellent work is being done there scrutinising legislation that comes from the European Union. It is generally acknowledged that this House, in this Parliament, in this country scrutinises European legislation better than any other house of any other parliament in the European Union, something of which we should be proud. That makes it even more ridiculous that we are being asked to consider this Bill.

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[Lord Hannay of Chiswick]

I just want to help the noble Lord, Lord Pearson, if I can. Yes, pretty well all the accession treaties do not transfer powers to Brussels, and there have been quite a lot of them.

[Lord Lester of Herne Hill]

Another example is that, in the protocol to the treaty of Lisbon, there is a provision giving power to national parliaments to be able to refer to the Luxembourg court issues where the national parliament considers that the principle of proportionality is being breached by legislative proposals emanating from Brussels. That is an example of where the treaty of Lisbon enhances the powers of national parliaments.

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[Lord Stoddart of Swindon]

I am glad that the noble Lord has clarified that because I well remember that when the Lisbon treaty was going through the House of Commons an amendment was moved by the Liberal Democrats to the effect that we should have a referendum on whether we should stay in or get out of the European Union. If I am not mistaken, the Liberal Democrats walked out of a Sitting of Parliament on that very issue. Therefore, we have to get this into perspective. I know that some people are against referendums.

[Lord Hannay of Chiswick]

The noble Lord raised two issues that he will recognise, after listening to the debate, are not very apposite. First, it is slightly ironic that he is nailing himself to the mast of the Conservative manifesto. Still, I suppose that there have been stranger bedfellows. The point that we are discussing in the amendment moved by my noble friend is about an article in the treaty that precludes the transfer of powers. The noble Lord’s argument is therefore irrelevant. Secondly, the noble Lord joined together everyone who spoke in favour of the amendment as people who are resisting the giving of powers to Parliament or a referendum. I am sorry to disappoint the noble Lord, but I am, as regards the amendments that I shall move, entirely content to give more powers to Parliament in this matter than were given at the ratification of the Lisbon treaty. There is no question of some of us opposing the giving of powers to Parliament. The difficulty is over giving powers through a referendum on matters that are pretty trivial and, frankly, on which it will be very difficult to carry out a reasonable consultation.

[Lord Stoddart of Swindon]

I hear what the noble Lord says. His career and mine have been perfectly different. I am in favour of a certain number of referendums on very important issues. He says that the Bill will allow referendums on trivialities. I do not see that in the Bill at all and I am quite sure that any referendums would be on major matters that would involve the transfer of significant powers to the European Union.

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[Lord Hannay of Chiswick]

I am most grateful to the noble Lord for giving way. Can he tell us whether any other member state has a referendum requirement for an Article 48(6) decision? I believe that the answer is no, but I am sure that the Government will be better informed than I am. Perhaps he would also note that the example he gave about the ability to fine by the European Court of Justice was in a treaty revision. That treaty revision would fall under a quite separate provision of this Bill, which we have not yet discussed but which we will come on to discuss, and will have nothing whatever to do with Article 48(6). Therefore, it merely reinforces the argument that the Article 48(6) reference is otiose.

[Lord Howell of Guildford]

I was just about to make points on the question raised. It would have been reasonable—I would not put it higher than that—for the noble Lord, whose wisdom I respect, to have allowed me to go ahead with what I was saying rather than interrupt me to say something that I was about to say and so lengthen the whole business: we have already been on this debate for two and a quarter hours. I plead with your Lordships that if we could just restrain ourselves a little we would make some progress.

I was turning to the important point about what other countries do when they are trying to get through treaty changes. That seemed to be absent from the attitude of many of the understandable critics among your Lordships about what is going on in the European Union. We heard speeches at Second Reading and in this debate implying that we were stepping out alone and marginalising Britain, that this was a completely different pattern and that we would cause the fury of other European member states. Incidentally, I am not sure that I can answer fully the noble Lord’s perfectly justifiable question on the consultations we have had and at what level with our European partners but I can assure noble Lords that all our posts in Europe have been fully briefed on this and have discussed it with their opposite numbers.

Let me just go through some of the immense hurdles, some of which are higher than anything we are proposing here, which many other member states already practise. In Austria, the President must certify that treaty changes are in conformity with the Austrian constitution. If changes are judged to be a revision of the federal constitution, a referendum is required. In Denmark, a referendum is constitutionally required if the treaty transfers competences to the EU and is not voted on by five-sixths of the majority in Parliament. In France, a referendum is required if a treaty change necessitates a constitutional amendment, and incidentally I notice that the French require a referendum on future accession treaties, which of course do not arise in this Bill. That may be to the dismay of some, and we can debate it later. In Ireland, a referendum is required if a treaty is thought to alter the scope and objectives of the European Union, as we know. In Lithuania, a referendum is mandatory according to the constitution if treaty changes involve the partial transfer of competences of government bodies to the institutions of the European Union. In Slovakia, a referendum would be held on a treaty which relinquished sovereignty to the European Union, although there is a rider that the Slovakian constitutional court can also consider the case. Similar referendums may be required in the Czech Republic, Greece and the Netherlands. I suspect that that is not the end of the list because I do not think I have mentioned the German position.

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[Lord Wallace of Saltaire]

We have had a technical debate—thank goodness, in a sense. I shall dash back home and get my European Union juriste linguiste dictionary and look at one or two translations of terms, particularly “power” and “competence”. I recall some years ago, in the early discussions on Schengen and British border controls, explaining to a French audience the difference between border checks and border controls, the former being selective and the latter systematic. It was explained to me that the translation into French of “check” is “contrôle” and the translation of “control” is “contrôle”. The subtlety of the English language did not easily play in French. This may be part of what we are getting at here.

The amendment raises some interesting questions about parliamentary sovereignty, as the noble Lord, Lord Davies of Stamford, recognised, and about the evolution of judicial review. I take it as given that ministerial decisions will be made in the first place to Parliament. Noble Lords will be well aware that the Government are taking through, as part of a package that includes this Bill, a number of measures to improve parliamentary scrutiny of new legislation. Ministerial decisions would, therefore, go in the first instance to the scrutiny committees of both Houses and would be examined fully by both Houses.

In the evolution of judicial review, which, as we all recognise, has become a good deal more active in recent years, whereas ministerial judgments are frequently subject to judicial review, judicial review of parliamentary decisions is a great deal more hesitant. The Solicitor-General said in the other place:

“Judicial review has increasingly become part of the legal armoury since the second world war. Ministers, whether of the present Government or the last, are not above the law, and it is for our independent judiciary to arbitrate, through judicial review cases, in disputes between the citizen and the state. The courts apply the laws enacted by Parliament, and Parliament can make, amend and repeal legislation as it thinks fit”.—[Official Report, Commons, 18/1/11; col. 691.]

The evolution of judicial review, it seems to me as a non-lawyer, is therefore likely to take a rather different approach to ministerial judgments on executive issues and ministerial Statements, which have been thoroughly scrutinised and accepted by Parliament. I hope that that begins to explain why, in the Government’s opinion, this amendment is not necessary. I have absolutely no doubt that there will be those who will wish to apply for judicial review of all ministerial decisions related to the sharing of powers within the EU. We have seen that already. That is precisely why one of the measures that we are taking to try to rebuild public trust in our engagement with the EU is to propose a strengthening of parliamentary engagement and scrutiny to ensure that the Government are not trying to slip things past people but are being increasingly transparent.

In the case of the judicial review brought by Mr Stuart Wheeler in connection with the treaty of Lisbon, the European Union (Amendment) Bill had received Royal Assent before the judgment of the court had been handed down. The issue was whether the Government should ratify before the process of judicial review had been completed. It is quite clear that a Government would not proceed to ratify a treaty amendment until a process of judicial review had been completed, although I think it unlikely in the extreme in the delicate relationship between our common-law judiciary and a sovereign Parliament—

[Lord Hannay of Chiswick]

The Minister has gone into an interesting point, which I wanted to ask about. The Stuart Wheeler case is relevant because there were attempts by a number of people to suggest that Parliament should suspend the completion of the ratification process until the judgment on the case was reached. The Government of the day declined that, correctly in my view, but the noble Lord is quite right that the deposit of the instrument of ratification took place after the court had ruled. It is not quite that the ratification was not complete; the deposit of the instrument of ratification, which is the last stage, had not happened. Am I taking it from him that the Government’s view will be in future that, if this sort of situation arises, they will not interrupt the parliamentary process of taking a decision on the European Union matter that is before them, so that the only impediment will be to the final deposit of an instrument of ratification and not to the completion of the parliamentary ratification?

[Lord Wallace of Saltaire]

My Lords, the noble Lord is raising a point whose subtlety is close to that with which juristes linguistes deal. My notes say that the Government would not complete ratification until a judicial review challenge had been taken. I have also been suggesting to noble Lords that a stronger parliamentary engagement and oversight in examining a ministerial judgment would make judicial practice in accepting claims for judicial review less likely in the future.

[Lord Hannay of Chiswick]

I do not think that we need pursue this matter this evening, but can the Minister be more precise when we come to that point at a later stage in the Bill? It is quite important. If the Government’s attitude is going to be that they will stop the process in Parliament while the legal process is going on, that is a completely different thing from saying that they will not complete the process by depositing an instrument of ratification until that is over. Will he clarify that point at a later stage or in writing?

[Lord Wallace of Saltaire]

I am happy to do so. I recognise that there are a number of complex judicial as well as parliamentary sovereignty issues at stake, some of which we will return to later, but I offer that assurance to the noble Lord and I hope that I have answered some of the questions raised by the noble Baroness.

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[Lord Wallace of Saltaire]

My Lords, I have scars on my back from the extent clause. I have tried on previous occasions to raise the question of the extent clause and the conditions under which UK legislation applies to the Crown dependencies. This is a very arcane area.

[Lord Hannay of Chiswick]

My Lords—

[Baroness Butler-Sloss]

My Lords—

[Baroness Anelay of St Johns]

My Lords, it is the custom of the House that two noble Lords should not be standing at the same time. We are in Committee; I wonder if the noble Lord, Lord Hannay, might take his seat.

[Lord Hannay of Chiswick]

I’m sorry?

[Baroness Anelay of St Johns]

I would be grateful if the noble Lord took his seat. I appreciate that he is the most courteous of Members of the House and simply did not hear me at that point. When making interventions in Committee, it is a matter of course that one does not need to interrupt a Minister in his or her flow. One is permitted in Committee to allow the Minister to complete an explanation before the next person gets up.

I appreciate that both the noble and learned Baroness, Lady Butler-Sloss, and the noble Lord, Lord Hannay, wish to ask questions. The noble Lord was on his feet first; perhaps the noble and learned Baroness might allow him to ask his further question first.

[Lord Hannay of Chiswick]

My Lords, I am grateful to the noble Baroness. I am sorry if I transgressed in some way. Strangely enough, I was actually trying to be helpful to the Minister—unusually, so far, in this Committee stage. The answer that he gave is correct. The circumstance that the noble Lord, Lord Davies, refers to is virtually unthinkable since EU law applies to Gibraltar because it is part of the EU, as in our treaty. The idea that you can then legislate for some tiny part of the EU is pretty alien to the way that Europe does its legislation. The Channel Islands and the others are in a completely different situation, as the Minister says, and European law does not apply to them.

I suggest that the Minister does not put Monaco into the same bracket as the French overseas territories. He will not be well received in the casino next time he goes—if he does.