European Union Referendum (Date of Referendum etc.) Regulations 2016

Lord Lawson of Blaby Excerpts

Wednesday 2nd March 2016 Lords Chamber

[Lord Lawson of Blaby (Con)]

My Lords, in well over 40 years as a Member of one House or another of this Parliament of ours, I have never before known such a blatant campaigning document—not least one that is so economical with the truth—masquerade as a Government White Paper. The title itself, I have to say, is a lie—The Best of Both Worlds: The United Kingdom’s Special Status in a Reformed European Union. The European Union has manifestly not been reformed, and, such is the nature of the beast, is almost certainly unreformable. Britain’s so-called special status may well, should we remain in the European Union, prove to be not the best but the worst of both worlds. It is certainly very much worse than being outside the European Union.

Those of us who wish to leave the EU are asked to say what our alternative is to our membership, so I will answer that question. The alternative to being a member of the European Union is not being a member of the European Union. It may come as a great shock to the little Europeans in our midst, but most of the world, including significantly the fastest-growing countries in the world, are not in the European Union. As one who for a number of years had responsibility for the conduct of economic policy in this country, I have little doubt that we would prosper more if we were not a member of the European Union.

As for the contents of the White Paper, there is one curious and significant omission. It fails to mention the single most important feature of the Brussels agreement of 19 February—namely, the declaration:

“Member States not participating in the further deepening of the economic and monetary union will not create obstacles to but facilitate such further deepening”.

Thus, at a stroke, we have given up our ability to veto a further transfer of powers from the United Kingdom to the European Union—should we remain in the European Union—that it believes is necessary for further economic integration. Not so much White Paper as white flag. Moreover, it completely undermines the claim in the White Paper that more powers cannot be transferred from the United Kingdom to the European Union without the United Kingdom agreeing.

What then of the exit mechanism in the welcome event of the referendum being won by the leavers? There is much talk of having to invoke Article 50 of the Lisbon treaty and of the process taking up to 10 years or even more. This is balderdash. If it requires Article 50 to leave the EU, the 1975 referendum would have been a fraud as the Lisbon treaty dates back only to 2007. Article 50 refers to the EU’s recommended procedure for negotiating the nature of the relationship of a member that has left the EU with the surviving European Union.

As the Prime Minister has frequently pointed out, Parliament is sovereign and we can at any time leave the European Union by repealing the European Communities Act 1972, which makes UK law subordinate to European law. Indeed, Article 50 of the Lisbon treaty states:

“Any Member State may decide to withdraw from the Union in accordance with its own constitutional requirements”.

In the case of the United Kingdom, our only constitutional requirement is the repeal of the 1972 Act.

Among the many grossly misleading scare stories peddled by the Government—whose only argument, I regret, is Project Fear, with nothing positive at all—is that we would have to renegotiate all our trade agreements with countries outside the European Union. The plain truth is that we have nothing to fear but fear itself. The great bulk of our trade with the rest of the world is regulated by our membership of the WTO and would remain wholly unchanged.

[Lord Mandelson]

Does the noble Lord accept that 60% of British exports are covered by the free trade agreements negotiated and won by the European Union on our behalf—60%?

[Lord Lawson of Blaby]

The great majority of the agreements we are party to through the WTO and its predecessor, GATT, were concluded before 1995, when, at that time, the European Union or its predecessor was not even a member of the WTO or GATT.

As for the argument that you need to be a member of the so-called single market to trade with the single market, that is an equal nonsense. Indeed, exports into the single market from countries outside it have, for many years now, grown much faster than UK exports to the single market. After all, the weighted average of the European Union’s common external tariff is only 3.6%. The prospect of our not being able to secure a far better free trade agreement than little Switzerland is minimal.

Certainly the future is uncertain. That, after all, is its nature. But the uncertainty surrounding Britain’s future within the European Union, should we decide to stay, is far more worrying than regaining our freedom. The EU’s blundering route to political union—for that is what it is all about; that is the purpose of the whole enterprise—will continue and, even though we have secured an opt-out from political union, we will remain shackled to it: a sort of colonial status.

This referendum debate is not primarily about economics. It is about whether we in this country wish to take control of our own affairs and to be a self-governing democracy with a global rather than a merely European perspective.

[Baroness Ludford (LD)]

Before the noble Lord sits down, could I press him to spell out what his alternative is? He is the chairman of one of the leave organisations. He always raises a laugh—I have had the privilege of hearing it several times now—when he says that the alternative to being in is being out. But what does that freedom consist of? What kind of deal would he conclude?

--- Later in debate ---

[Lord Kerr of Kinlochard (CB)]

Being privileged, as I am, to sit behind the heirs and disciples of Thatcher, I have been thinking about how she would have reacted to this White Paper and this debate. When she sent me to be her negotiator in Brussels, her instructions were quite simple: find out what the children are doing and tell them to stop it. She was clear that we should be in every room, playing a central part, with a seat at the table and banging the table. She was certainly not sentimental, but she knew what solidarity meant. She was extremely generous to González because she understood how important EU accession was for the consolidation of democracy in Spain, so she sided with Kohl—not her natural instinct—and against Giscard to ensure that Spain got into the club. She never forgot that in the Falklands crisis when Reagan wobbled, Mitterrand was the first foreign head of government to ring and promise full support, which he delivered. In her Bruges speech, which is well-remembered throughout central Europe now, she said that she was convinced that the great cities of central Europe would again escape from the iron curtain and enjoy membership of the community of western democracies and the four freedoms that go with it. What she would do, were she here now, is only speculation. I suspect that she would be bustling over to Brussels to sort out this Schengen nonsense and to do something about Syria—and deal with the 10 million displaced people and 5 million refugees. I do not think she would be glorying in standing aside and not being involved. Although it was ruthlessly unsentimental and not always fun, she felt that we should have a seat at the table and felt a sense of solidarity. Sometimes these days I miss that.

Speaking late in the debate has the disadvantage that all the points one wanted to make have already been made by one’s own side, but it does permit one to comment on points made by the other side. I dare to venture a comment on points made by the noble Lords, Lord Lawson of Blaby and Lord Howard of Lympne—and possibly their disciple, the Diogenes of Swindon, the noble Lord, Lord Stoddart. This is on the theme of Thatcher’s heirs.

I have tremendous respect for the noble Lord, Lord Lawson, who put up with me as his Private Secretary for far too long, and who was excessively polite about a document I drafted for him, which—to put it mildly—did not advance his career. But today Homer may have nodded. The noble Lord, Lord Lawson, claimed that the White Paper which we are debating contained a major lacuna because it did not refer to the sentence of page 12 of the European Council conclusions text, which states that,

“Member states not participating in the further deepening of economic monetary union will not create obstacles to but will facilitate such further deepening while this process will, conversely, respect the rights and competences of the non-participating Member States”.

I think he may have missed paragraph 2.12 in the White Paper, which seems to me to summarise fairly that sentence.

On the substantive point, I am surprised: the noble Lord, Lord Lawson, like the current Chancellor, has always argued with ruthless logic—inexorable logic—that the eurozone, in order to survive, needs to deepen and strengthen. So why is he complaining when in this text member states not participating in the further deepening of economic and monetary union will not create obstacles to a process which he believes is in their interest and in ours?

[Lord Lawson of Blaby]

If the noble Lord will allow me, he has made two mistakes, not one. In the first place, it is in the interest of the peoples of Europe not to try to make a success of the eurozone and monetary union, but to abandon it. It has been a complete disaster; it will be in the interests of the people of Europe to abandon it. Secondly, I said that “facilitating the deepening” means that if they think that further powers should go from the member states, including the United Kingdom, to the centre in order to facilitate a further deepening, we are obliged to go along with that.

[Lord Kerr of Kinlochard]

On the second point, I have to correct the noble Lord. The sentence is clearly about further integration inside the eurozone without additional powers being passed by member states outside the eurozone. On the first point, I can only apologise. I had myself thought that the former Chancellor, the noble Lord, Lord Lawson, agreed with the present Chancellor that it was in the interests of the UK that the eurozone market should not collapse and that it was in the interests of the UK economy that these arrangements should survive. That is the policy of this Government. I had thought it was a policy supported by the noble Lord, Lord Lawson.

The exchange with the noble Lord, Lord Mandelson, did not quite bring out the fact that of course we could trade with other third countries on WTO terms. The terms that we trade on now, which have been secured by the EU, are much better than WTO terms, because they have been secured using the muscle of a market of 500 million people. That is a fairly fundamental point. The key point on trade is that if we leave, we lose.

The argument of the noble Lord, Lord Howard, on the other hand, did seem to contain a lacuna, which I greatly welcomed; this time he did not advance what I call the Maurice Sendak theory. The Sendak argument—I call it that in tribute to that great literary work, Where the Wild Things Are—is one that the noble Lord has advanced in public several times; I heard him explaining it on the radio the other day. I think it is a view held by Mr Cummings—not the cartoonist but the conspirator. The argument is that if the nation votes to leave on 23 June, we should not leave but should stay firmly where we are, saying and doing nothing, not invoking Article 50, and the wild things will all come rushing to us as supplicants, saying, to quote from the great book:

“Oh please don’t go—we’ll eat you up—we love you so!”

This is a theory that Mr Boris Johnson advanced a few months ago and then resiled from a few months ago, and then advanced again a fortnight ago and then resiled from this week; his bicycle wobbles but he remains vertical. Sadly, the wild things are fiction. The fact is that the other member states are fed up with us. To them, this week’s European Council on the refugee crisis is much more important than was the Council, and the conclusions, that we are debating now.

It is surreal that any UK Government could decide not to act on a no referendum. It is even more surreal that the French press, which believes that Mr Cameron got away with murder, could agree that in the event of a no, murder should be followed by massacre.

--- Later in debate ---

[Lord Faulks]

With great respect to my noble friend, I am not sure that going over the entire jurisprudence of the European court would help, either at this time of night or at all, in terms of answering this fundamental question. We, the Government, submit that the answer is clear: this is a binding agreement.

May I also advance the argument that we are better off in the EU? The Government believe that the UK will be better off. The Government’s long-term economic plan is delivering economic security for families and businesses, underpinned by sound public finances. We plan to do this by investing in the UK’s future, addressing the productivity challenge and rebalancing the economy towards trade and investment. With turbulence in the global economy, membership of the EU supports this plan by giving British business access to the free-trade single market, and dozens of trade deals across the world.

Through our EU membership, we already have trading agreements with more than 50 countries. Concluding all the trade deals currently under way could ultimately be worth more than £20 billion a year to the United Kingdom GDP. Once these deals are completed, around three-quarters of UK exports to non-EU countries would be covered by an EU-negotiated free-trade agreement. Of course, we could make other deals—whether we could make them on better terms must be seriously in doubt. This Government’s deal keeps the EU moving firmly in the right direction and hard-wires competitiveness.

Would we be safer in the EU? The Government believe that we would. Our EU membership allows the UK to work closely with other countries to fight cross-border crime and terrorism, giving us strength in numbers in a dangerous world. Our new settlement reiterates that the responsibility for national security rests solely with national Governments and that EU institutions will fully respect the national security interests of member states.

The Government believe that the UK will be stronger in the EU because we can play a leading role in one of the world’s largest organisations from within, helping to make the big decisions that affect us. Membership of the EU, like our membership of NATO and the UN, amplifies the UK’s power and influence on the world stage. At a time when we are, as many noble Lords have pointed out, faced with an increasing range of serious threats, co-operation at an international level is more important than ever.

This is a significant package of measures, delivering changes that are substantial, legally binding and irreversible in the sense that they can be changed only if all 28 member states agree. Of course it will not solve all the problems with the EU. In that sense, it should be seen as an important step on the road to EU reform —a point made by my noble friend Lord Howell, in his thoughtful speech—rather than the destination.

As to leaving the EU, noble Lords will be aware of the discussion elsewhere about a vote to leave being a means of securing further concessions in the renegotiation process, ahead of a second vote. That appears to have been briefly the view of the Mayor of London and is still the view of Mr Dominic Cummings.

The noble Baroness, Lady Morgan of Ely, asked if there was any contingency planning for Brexit. The Civil Service is working full-time to support the Government’s position, and the Government’s view is that the UK will be stronger, safer and better off remaining in a reformed EU. I want to be very clear on behalf of the Government: a vote to leave is exactly that—a vote to leave. The Government cannot ignore the democratic decision that will be made on 23 June; there is no option on the ballot paper to have a second renegotiation or to hold a second referendum. The Prime Minister has been explicit that a vote to leave would trigger Article 50 of the treaty. It would begin the process of a British exit from the EU.

[Lord Lawson of Blaby]

On the point that the Minister has just made, it is not a matter for the Prime Minister to decide whether Article 50 is invoked in the event of a referendum for leaving; it is a matter for Cabinet. The Cabinet will have to have before it papers setting out all the various options, and it will be for Cabinet to decide which of those options it wants to pick up.

[Lord Faulks]

Whatever the process, it is clear that Article 50 will have to be adopted. The EU treaties, which the UK is signed up to, set out a legal process for EU member states to leave. My noble friend Lord Lawson suggests that we can simply ignore that process by repealing domestic legislation in the form of the European Communities Act, which is the piece of legislation that incorporated the treaty into our domestic law, but if we simply did that and ignored the UK’s international obligations, we would be violating the rule of law. It would hardly be a good way to begin a negotiation with 27 other member states to get a good deal for Britain by breaking international law.

The public would expect that if we were to leave, we would do so, as we have traditionally done, in accordance with the law and following the terms of the treaties. A vote to leave would start the clock on a two-year period to negotiate the arrangements for the UK’s exit. I should also be clear about what would happen if that deal to leave was not done within two years. Our current access to the single market would cease immediately after two years and our current trade agreements with 53 countries around the world would lapse.

The Government have made our position clear: the UK’s national interest—the interests of every individual, family, business, community and nation within our United Kingdom—will be best served by our country remaining part of a reformed EU. There was almost total agreement across the House today that we should let the British people have their say on 23 June. Clearly, then, there is no reason to wait. Let us give each side time to make their case, then let us put the question to the British people. Let us settle this issue for a generation, and let us vote to remain.

There is a Motion to approve the statutory instrument before the whole House. I beg to move.