European Union Referendum Bill

Lord Lamont of Lerwick Excerpts

Monday 23rd November 2015 Lords Chamber

[Lord Mackay of Clashfern]

No, because that is all done under the authority of the 1972 Act by subsequent amendments under it. We had a lot of discussion about this last time and I do not want to start that up again if I can avoid it. Some of the devolution statutes had reference to Acts, for example, but they all flow from the 1972 Act. That Act is the authority for applying European law in the UK. That is why the courts of the UK are obliged to follow it because that is the law laid down by the Parliament of the UK. If that law were repealed, it would become a question of international law, and the rules of international law do not apply to domestic law except in so far as they are incorporated. It is only then as treaty obligations that the state proceeds thereafter.

[Lord Lamont of Lerwick (Con)]

My Lords, I was intrigued that the noble Lord, Lord Kerr, did not deny authorship of Article 50 of the treaty. I am rather sceptical that he is the author because Commissioner Christophersen assured me that he was the author of Article 50 and that through it he had laid a deep trap for the British. The noble Lord always had a great reputation for masterminding so much in Brussels, but I am not sure that Article 50 is actually his creation.

The noble Lord, Lord Kerr, made a powerful speech against my noble friend Lord Hamilton, and my noble friend Lord Hamilton made a powerful speech against the noble Lord, Lord Kerr. That seems to illustrate that the amendment the noble Lord is putting forward is really one of the arguments being used by those who wish to remain in. Their argument is that it is going to create an enormous amount of uncertainty, that it is incredibly complicated, that we have got all these trade negotiations and the repeal of British legislation has to take place before we can feel the effects of being outside. This seems to me to be what the campaign ought to be about. For the noble Lord, Lord Kerr, to think that the Government ought to publish a document detailing all this is to invite the Government to publish a document taking one side of the referendum question.

The amendment is redundant because of the government Amendment 24B and particularly subsection (1)(b) of the proposed new clause to which the noble Lord, Lord Kerr, referred, in which the Government have said—slightly to my distress—that they are going to bring forward examples of countries that do not have membership of the European Union. No doubt they will have in that that Norway is governed by fax, something that I absolutely dispute despite the intervention of the noble Baroness from the Liberal Benches. This amendment, requiring a report that would be pure propaganda, is therefore completely inappropriate when we have subsection (1)(b) of the proposed new clause inserted by Amendment 24B, which it would duplicate.

To go back to Article 50 and address the alarmism, I accept that there is going to be a degree of uncertainty. That uncertainty is going to be one of the arguments deployed by the people who do not wish us to leave. However, we are, as the noble Lord, Lord Green, pointed out, going to have two years in which these negotiations take place. The roof is not going to fall in nor will the buildings crumble while these negotiations go on. I am unsure whether we repeal the European Communities Act 1972 at the beginning of the process or at the end, but I should imagine that things would remain during the period of the negotiation for at least two years, and, as the noble Lord, Lord Kerr, has said, the two-year period is extendable. Life would probably go on much as it is now while the negotiations took place.

The noble Lord, Lord Kerr, tried to chill our blood even further by saying that we would be left alone in the room with the Commission. My goodness, that is one of the things that I regret that the Government did not try to achieve in the negotiations. They have done nothing to reduce the power of the Commission. If we had just one reform in the EU it should have been to reduce or get rid of the Commission’s power of initiating legislation. I do not see why civil servants should have the right to initiate legislation in the way that they do.

The image that, rightly or wrongly, I have of the Commission was reinforced by the way that the noble Lord, Lord Kerr, portrayed it. I do not believe that the Commission is going to act in some way completely divorced from the political will of member states. The noble Lord, Lord Kerr, said that there are some European Union countries that have an unfavourable balance of trade with the UK. I do not know which they are. There cannot be very many since we have a socking balance unfavourable to us. I cannot believe that Germany, which seems to call the shots within the European Union on almost every issue today, will not be able to persuade Slovenia, or whichever country it is, that it ought to come into line with the outcome of the negotiations. I do not believe that the Commission can act without political will. I believe that the Economics Minister of Germany has already publicly stated that he believes that Britain could get a free trade arrangement with the EU if it left. If Germany thinks that, there is a good chance that we could get it. However, all this is an argument for the referendum. It should not be in particular amendments to the legislation.

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[Lord Davies of Stamford]

My understanding is that from the very moment you initiate the process you invoke Article 50, which sets out the procedure to be followed. I have certainly read Article 50, and that is the way I read it. I do not think that any interpretation we have heard this evening, including from the noble and learned Lord, the former Lord Chancellor, is inconsistent with that reading. The fact is that we must act in good faith in these matters. If we do not act in good faith out of moral principle, we should do so out of sheer selfish pragmatism because we will need to get a deal with the people who account for about 50% of our exports in the event that we want to leave the present arrangements we have with them. The idea that we start off by breaking an international agreement solemnly entered into is quite extraordinary.

The second extraordinary thing—I have heard this argument before and I hope I will not hear it again, although I am sure I will; I expect that it will be in the Daily Mail every day during the campaign—is that because we have a balance of payments deficit with the rest of the European Union, we have more leverage on them in these negotiations than they have on us. That is complete nonsense. I dealt with this argument before, and I used an analogy, which no one quarrelled with at the time, to try to make clear that the fact of having a deficit or a surplus is neither here nor there. What is important is the proportion of one’s total exports and, behind that, the proportion of one’s GDP which is exposed in a negotiation of this kind and which could therefore be subject to something nasty happening to it, such as having tariffs imposed or no longer being able to be sold at the same favourable terms as competitors could offer the relevant customers. The proportion of exposure of gross domestic product, and the employment that goes with it, is important.

[Lord Lamont of Lerwick]

I am very sorry to ask the noble Lord a question, when he has made it so abundantly clear so many times before to the schoolchildren what the real situation is. However, when he says that what matters is the percentage of GDP represented by a market, does he seriously advance the position that Germany would not care if it did not get access to its largest customer for exports just because that is a smaller percentage of German GDP than our exports are to it?

[Lord Davies of Stamford]

Everybody would be a loser in this game. I do not hide in any sense my conviction that we would all be losers. It would be a very sad day if we broke up the European Union or moved out of it. Therefore my point is that the Germans would lose, but we would lose more.

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I am also conscious that our Armed Forces are engaged in recruiting soldiers from abroad, largely from Commonwealth countries, because we cannot find enough here. That is a problem that we have in Britain. It is a problem of not providing the skills and right motivation for our young people, and we should pay more attention to that. If we invested more in making sure that our population had the right motivation and skills, the important pull factor that we have for so many of our semi-skilled workforces and public services would be a great deal less than before. That is one of the most important aspects in the current pull factor in British migration.

[Lord Lamont of Lerwick]

My Lords, the noble Lord, Lord Wallace, has made some very interesting comments. I learnt two things. First, I understand now why migration was not included in the review of competences. He explained that that was because the word used was “population”, whereas had one asked the question about movement of labour or migration, perhaps it would have been different. Secondly, the noble Lord made quite a persuasive case, on one ground, for the necessity of migration and the inevitability of a degree of migration. I found it interesting that he was a regular watcher of Migration Watch. I was fascinated to hear that. But the arguments that the noble Lord put forward are the very things that would be considered in the Government’s publication if the amendments in the name of the noble Lord, Lord Green, were accepted.

I was somewhat neutral towards the amendment in the name of the noble Lord, Lord Green, because I have been trying to argue that all these reports that have been called for are the issues that ought to be debated during the referendum campaign. But everybody else has been coming forward and saying we ought to include this and that. When I look at the list compiled by the noble Lord, Lord Hannay, of things that ought to be considered in the publication, the one thing that is obviously missing is migration. Why did the noble Lord, Lord Hannay, not say that the publication ought to include migration?

I have been converted to the amendment in the name of the noble Lord, Lord Green, both by the noble Lord, Lord Wallace, and the noble Lord, Lord Hannay. I wish the noble Lord, Lord Hannay, were here to support it.

[Lord Hamilton of Epsom]

My Lords, I, too, would like to say some words in support of the noble Lord, Lord Green. He says that we have to level with the public on this and I think that is absolutely right. Net migration into this country last year was 330,000 people. That is a very large number of people. I totally accept that perhaps only half of them came from the EU but this is certainly something that we have to address.

I am particularly interested, as was the noble Lord, Lord Wallace, in Amendment 27. I would like to know from my noble friend the Minister exactly what the mechanics are with regard to people who have come from outside as part of this refugee crisis into somewhere such as France, who then apply for a French passport, which then enables them to come to the United Kingdom under the free movement of labour. Can she fill us in about how this process takes place? This is obviously an extremely worrying aspect of these migration flows. At the moment we are in a position to say that we are not members of Schengen and we can probably do something not to have to accept any of these people. But of course, if they are given European passports, that is rather a different story. Can she give us an insight into her understanding of this process?