European Union Referendum Bill

Lord Lawson of Blaby Excerpts

Tuesday 13th October 2015 Lords Chamber

[Lord Lawson of Blaby (Con)]

My Lords, I can certainly speak another language: my home is in France, so I can tell the noble Lord that all is not lost.

I start by saying that I warmly welcome the Bill and warmly commend the Prime Minister for saying clearly that fundamental reform of the European Union is needed. So far, it is not entirely clear what reforms he has in mind. Perhaps my noble friend will tell us in her wind-up speech today. The problem is that if it is not made clear, it will come to be believed—quite wrongly, I am sure—that he is engaged in a fishing expedition and that whatever fishes he happens to catch, whatever tiddlers they may be, he will say that that is what he always wanted. It would not be good for the negotiation if that impression were to get about.

The bottom line is that the European Union is a political project, not an economic project. That is not a disgrace, but it is a fact. It is a political project known as “ever closer union”. It is a project which we do not share. The Prime Minister says that he wishes to have an opt-out from ever closer union. In a sense, we already have one. The fact that we are not members of the eurozone—we have retained our own currency and have not accepted the euro—shows that we do not accept it, but actually an opt-out for the United Kingdom, even if it is formally stated, is totally meaningless. What is needed is for the European Union explicitly to resile from ever closer union—the creation of a united states of Europe—as its objective. Otherwise, as long as the European Union maintains this objective, there will continue to be European Union legislation to which we are subject, whether or not we formally have an opt-out from ever closer union. That is a meaningless phrase.

It should not be too difficult for the European Union to resile from that objective because, although it is profoundly desired by the European elites, it is not desired by most of the peoples of Europe. Indeed, one of the least attractive and most pronounced characteristics of the European movement is a contempt for democracy. The existence of a democratic deficit within the European Union has been well acknowledged on all sides.

Of course, there is a counterpart to this democratic deficit, which might be called a bureaucratic surplus. It is a particular problem for this country. The regulatory burden imposed by membership of the European Union in the case of the United Kingdom has been calculated to cost something like £25 billion a year. That is a huge burden and no economic advantages outweigh it. I have no doubt that overall the European Union does more harm economically than good for member states as a whole, not just for this country. That is perhaps not surprising because, since it is a political venture, whether there is an economic benefit would be purely coincidental. You only have to look at the performance of the European Union, particularly the eurozone, to see that it has not been a howling economic success.

It is said that by leaving the European Union we would still be bound by European Union regulations but would no longer have any influence over them. That is tosh for two reasons. First, while we have never had as much influence over European Union regulations as we fondly believe, since crossing the watershed of the creation of the eurozone our influence is dramatically diminished and will diminish further. There is now a eurozone bloc vote, which means that we have been and will continue to be overruled time and time again. Secondly, 85% of our GDP has nothing to do with the European Union. Our exports to the European Union are roughly 15% of our GDP, and the other 85% is either the domestic economy or exports to other countries. Although we would certainly have to accept European Union regulation when trading with the European Union—just as we must accept American regulation when trading in the United States, which our banks do a great deal—the great bulk of our economy would not be bound by this morass of European Union overregulation.

It is also said that outside the single market we would be unable to export to the European Union. Of course, that, too, is tosh. Exports to the European Union from outside it have in fact, over the past five years, increased by twice as much as exports from the United Kingdom to the rest of the European Union. In any event, I have little doubt that outside it we would be able to negotiate a free trade agreement with the European Union. The United Kingdom even now is a £300 billion a year market for the rest of the European Union. That is exactly the same as the rest of the European Union sells to the United States. We are massive, and that is why comparisons with Norway do not really apply. We would do a far better deal than Norway could because of the size of the UK market, which is so important to the rest of the European Union.

I recall that many people in business and banking said that if we did not join the euro and stayed with sterling it would be a disaster for the United Kingdom. They now say exactly the same about membership of the European Union. The same suspects say exactly the same thing. They were wrong then and they are wrong now. Let us not be afraid. There will be a whole lot of scare stories. We have heard some today. Above all, let us not be little Europeans. Let our horizon be global. The future growth of the world economy is going to happen much more outside Europe, as countries in Asia, Latin America, Africa and elsewhere grow faster as they gradually catch up with the western world. We in this country have better worldwide links because of our history—and, to some extent, the language, but they are interconnected—than any other country in Europe. Let us concentrate on them. The time has come to rediscover our national self-confidence, to abandon a political project that we do not share and to embrace a global future.

[Lord Tyler (LD)]

My Lords, in the limited time available I want to concentrate on the franchise proposed in the Bill. Last Friday, as part of the Lord Speaker’s outreach programme, I spent an extremely interesting hour with the sixth form at Sir Thomas Rich’s School in Gloucester. The students were articulate, informed, inquisitive, mature, enthusiastic, committed and challenging—above all, they were clearly ready and willing to be full citizens in our democracy. In short, they were typical 16 and 17 year-olds. They were more knowledgeable than many of their 60, 70 or 80 year-old fellow citizens and they were quite ready to compete in debate with Members of Your Lordships’ House. Indeed, I think they would well match the noble Lord, Lord Lawson of Blaby.

I see that the noble Lord is in robust good health but I venture to suggest that the young citizens in Gloucester are likely to have longer experience of the outcome of this vote than he will. That is the big difference. When it comes to the referendum on the future of this country—as part of the European partnership of nations or adrift in the Atlantic—this age group will have a far greater personal, long-term interest than most of us here. It is unthinkable that they should be refused a vote. I do not have much time but I will give way to the noble Lord.

[Lord Lawson of Blaby]

I think it is deplorable or regrettable to have it suggested, as has been done on a number of occasions, that those of us of a certain age are not concerned about the future. Most of us are deeply concerned about the future, particularly those of us who have children and grandchildren.

[Lord Tyler]

I agree entirely with the noble Lord and I am absolutely concerned about the future of my children and grandchildren, as I am sure are other Members of your Lordships’ House, but that does not in any way weaken my point.

It is unthinkable that these young people, whose future is so much at stake, should be refused a vote. The Intergenerational Foundation has pointed out already how top-heavy our democracy is—as is, indeed, our demography. The argument that has been used in the past, that this age group is immature, ill-informed and not interested, is belied by the hard facts of 18 September 2014, which put paid to those objections. As noble Lords will know, the then Secretary of State for Scotland, my right honourable friend Michael Moore, negotiated the inclusion of this cohort in the franchise for the Scottish referendum. He persuaded his colleagues in the coalition Cabinet that this was a choice of such long-term significance—with little likelihood of early review or reversal—that they had to be involved.

They rose to the challenge: 109,593 registered, 75% of them voted and already the comparison has been made with the 54% of the later age group of 18 to 24 year-olds who turned out and the 72% of those in the 25 to 34 year-old cohort. As has been said often in this House, they debated the issues with great intelligence and personal integrity, ignoring vested interests. One of the best witnesses of that is the leader of the Conservatives in the Holyrood Parliament. Moreover, they seem to have voted with more balance and maturity, rejecting the myths of the separatists, unlike many middle-aged men in Scotland.

Ministers in both Houses have failed so far to produce any rational objection, having accepted it in the Scottish case, to the inclusion of these new citizens in the decision-making process. This morning I reread the Hansard for the debate in the other place and searched in vain for any explanation for this extraordinary position. The most moving speech in the other place was by Dr Sarah Wollaston, the Conservative Member of Parliament for Totnes, who argued that there should be a free vote on this issue. I noted today that a number of noble Lords in other parts of the House thought that might be appropriate. I hope that the Government will think very carefully about that.

Even in your Lordships’ House, this argument has been accepted on the similar referendum in Wales—that it should be on that extended franchise; with the help of my noble friend Lady Randerson, the coalition Cabinet agreed. More recently, on 15 July in this House, we accepted the strength of the case in relation to local authority elections by voting for the amendment that I moved to the Cities and Local Government Devolution Bill, with a majority of 221 to 154. Of course, it has already been fully enacted for local elections in Scotland.

I have no doubt that the claims of EU citizens working and living here, together with UK citizens working and living in other EU countries, will be successfully argued in the coming weeks in your Lordships' House. I hope so. Our conference a few weeks ago overwhelmingly voted for an amendment, to which I spoke, to support them.

However, the clearest case of all is that of young citizens whose future will be so dramatically affected by the huge implications of the referendum decision. Is this choice any less long term in its significance than that on the ballot paper on 18 September 2014 in Scotland? I dare Ministers to explain why Scottish and Welsh 16 and 17 year-olds are mature enough, interested enough and well informed enough to be allowed to vote for their futures but their English and Northern Irish counterparts are not. Ministers are fond of citing the essential elements that keep the United Kingdom united. What could be more significant that that solid building-block of our democracy, the franchise? Surely that is one of the things that holds the United Kingdom together. Can they really justify one electorate for Scotland and Wales and another for England and Northern Ireland?

The noble Baroness, Lady Anelay, said at the beginning that what is in the Bill is a starting point and basis for the franchise. I put it to your Lordships' House that we have to move from that starting point into a much more logical and rational position. It is unthinkable that Ministers should ignore the hint that even the Prime Minister has given that we will have to move in this direction, and I hope that they will recognise that they should accept the inevitable.