European Union Referendum Bill

Debate between Lord Lamont of Lerwick and Lord Davies of Stamford

Monday 23rd November 2015 Lords Chamber

[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.

European Union Referendum Bill

Debate between Lord Lamont of Lerwick and Lord Davies of Stamford

Wednesday 4th November 2015 Lords Chamber

[Lord Lamont of Lerwick]

I am glad that I have his agreement—or perhaps I have not, but we shall hear in a minute. The provision seems fundamentally flawed. I do not see why the Government just picked up that legislation and incorporated it into this. It seems not to make any sense whatever.

[Lord Davies of Stamford (Lab)]

My Lords, Amendment 58 is in my name and that of my noble friend Lord Liddle, who apologises that he cannot be present today. Before I address the substance of the amendment, perhaps I may say how much I agree with the noble Lord, Lord Hannay, in his amendment and therefore agree with what the noble Lords, Lord Lamont and Lord Forsyth, said about it—that is an interesting axis of agreement across the Floor of the Chamber which does not often occur.

The noble Lord, Lord Forsyth, asked why we should bring in political parties. I was astonished by that. No one is bringing in political parties; political parties are there; political parties are part of our democracy; political parties are part of every sophisticated democracy in the world. Political parties expect to take part in political campaigns, in elections or in referenda. It would be quite extraordinary if a political party was not interested in a major political campaign.

[Lord Davies of Stamford]

I have an interesting experience of political parties. I have talked for some time about that in the past, but I shall not delay the Committee on that subject today.

I was actually quoting the noble Lord, Lord Lamont, who asked, “Why bring in political parties?”. That was an extraordinary thing to say, because political parties are part of the structure of our system and part of our national life. It is inconceivable to me that you could have a body of men and women—

[Lord Lamont of Lerwick]

My Lords—

[Lord Davies of Stamford]

I will give way in a second, but let me just complete my sentence, or my paragraph.

It would be extraordinary if you had a body of men and women who were interested in public life and the choices facing the nation and who wanted to play their part in determining the future history of our country, and a big referendum of the importance which this referendum represents came along and they did not take part in that campaign or have any views at all. The Conservative Party has of course decided to opt out of this campaign, but that is because of the peculiar situation in which it finds itself where the leadership of the party is terrified by the Eurosceptics. That has been the history of our relationship with the European Union during the past five years: everything is vetoed by the Eurosceptics and the Government are often paralysed by them. The Government are continually coming up with some ploy to buy off the Eurosceptics and, on this occasion, the Government have decided not to have their own party take part in a campaign. It is an extraordinarily anomalous position, in which a major party is supposedly silent on the great issue of the day. Just because the Conservative Party has got itself into this mess and this absurdity is no reason to deny the important role of political parties generally in a democracy or to handicap other political parties that are in no way responsible for the shambles of the Conservative Party and prevent them doing what they should have a natural right to do in any democratic election or electoral campaign.

[Lord Lamont of Lerwick]

My Lords—

--- Later in debate ---

[Lord Davies of Stamford]

In relation to the principles of our public life and our constitution, I like to think that I take positions that are consistent. Therefore my answer to the question must be yes. Political parties have an essential part to play in our democracy and their position should be respected. They should not be in any way suffocated by being told that they cannot have any money for a campaign that they genuinely believe in and where their members are willing to support them financially.

As for the complaints that the noble Lord always makes about the treatment of UKIP, in this case he does not have the ground that he normally has for complaint, because the amount of money available to UKIP—

[Lord Lamont of Lerwick]

My Lords—

[Lord Davies of Stamford]

I must finish my sentence—and it will only be a sentence on this occasion. The amount of money available to the noble Lord’s party in the referendum campaign will be a function of the votes cast for his party and not a function of the number of MPs elected with his party label. If that was the case, he really would be in a bad situation. I give way once again to the noble Lord, Lord Lamont.

[Lord Lamont of Lerwick]

I am most grateful to the noble Lord for giving way. Again I stress that this amendment I have been supporting has nothing to do with political parties participating. It has everything to do with spending limits. My question to the noble Lord is: if in a general election the laws provided that what each party could spend in a general election was related to how it had done last time, would he think that that was fair?

[Lord Davies of Stamford]

We could argue this for a very long time but we actually have a consensus. Until this issue arose, there was a general consensus in public life in favour of the 2000 Act. Therefore, it is quite right that we should base ourselves in this campaign on that consensus and on the practice over the last 15 years. With that, I will leave that subject—I will not take any more interventions on anything else—and turn to Amendment 58.

Amendment 58 is very important because it is all about the Government being straight with the public—which I do not think they are planning to be at the moment. They have launched a very complicated negotiation, which many of us have many thoughts about, and they hope that it will result in a deal. If it results in a deal, they intend to call a referendum and to advise the public to vote for that deal. If they do not get the deal, of course none of those things will happen.

I totally understand that while the Government are negotiating they do not want to give a running commentary—that is the Government’s phrase, not mine. I even understand why they are a bit reticent about saying exactly what their aims are in the negotiation. In fact, Eurosceptics will always say that they are not aiming high enough and will always say that whatever they get is not adequate. So they are wasting their time, but I can understand why they have got themselves in this position.

However, I cannot understand any hesitation about the Government’s duty, once they have a deal—if they have a deal—to be absolutely straight with the British public about what that deal is and to make an official, authoritative declaration to the British public of what that deal consists of. We cannot possibly have a situation in which knowledge of the deal comes out through unattributed and deniable press briefings from special advisers and spin doctors and so on. We need a clear government document when the day comes, if that deal arises.