European Union Referendum Bill

Lord Lea of Crondall Excerpts

Monday 23rd November 2015 Lords Chamber

[Lord Pearson of Rannoch]

My Lords, I think I am addressing it. I am going into the fundamental reasons why the amendment is misguided. I will continue, if I may. Only 9% of our economy goes to the single market and this is the percentage of our exports and economy for which we would have to follow EU rules. Of course we would, just as it pays to put the steering wheel on the left if you are selling a car to the United States.

Talking of cars, Europhiles give our car industry as one which would suffer if we left the EU. Once again, I remind noble Lords of Global Britain’s briefing note No. 96, which shows why that is nonsense. We import twice as many cars from the single market as we export to it—1.4 million in and 0.6 million out. EU manufacturers actually own 53% of our domestic car market. Why would they want to impose a tariff against their own profitable business? Indeed, I can go further and recommend that Europhiles particularly, and our civil servants, should take a little time to read the Global Britain briefing notes, which briefly but comprehensively destroy the economic case for staying in the EU.

In conclusion, the amendment makes the basic Europhile mistake of thinking that any area of our national life is funded by the EU, whereas of course for every £1 it sends us at the moment we have sent it £2.63. According to the latest Pink Book figures for 2014, we sent £19.994 billion gross in 2014 and the EU sent us back £7.665 billion for things such as our research budget, structural funds, farmers and so forth, as covered by the amendment. That leaves our net contribution at £12.329 billion per annum. That is £34 million a day, which goes down the drain in Brussels. Or we could look at it as the annual salaries of 352,257 policemen—of whom we could do with a few more right now—or nurses or any other public servant your Lordships may care to mention, at £35,000 a year each.

I would rather welcome the amendment if it were honestly fulfilled because the voters would understand better what a complete disaster is our membership of the European Union and they might even start to ask what is the point of the European Union itself. They might start to see it for what it is. It is an emperor whose clothes have long since fallen off.

[Lord Lea of Crondall (Lab)]

My Lords, it would appear that despite our best efforts, this whole objective of some degree of dispassionate analysis will nevertheless wind up as a dog’s breakfast. We have to persist in trying to follow what the noble Lord, Lord Hannay, accurately described as the distinction between things that are facts and things that are for debate between the two opposing camps. A good example in the Brexit scenario is one that I will cover now.

A key distinction behind these amendments is similar to what Mr Rumsfeld would have described as the difference between a known known and a known unknown. I have an example. I have in my hand a copy of the pamphlet that I helped to put together entitled Europe and Your Rights at Work. Since Maastricht, there have been 10 or a dozen very important reforms that are now on the statute book, such as protection when a business changes hands, equal rights for part-time workers, maternity and paternity rights, equal rights for fixed-term workers, four weeks’ paid holiday—although that falls under the health and safety regime. Other reforms include having a voice at work, European Works Councils, the posting of workers in Europe and health and safety at work.

Those were negotiated—I did a lot of that myself for some years—in Brussels between the leaders of the trade unions and the leaders of the employers. The result is that, despite the sound and fury at the beginning, we do not hear too much complaint now because everyone, including the employers, appreciates that they are a useful floor for employment rights in this country.

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[Lord Grocott (Lab)]

Of course, my noble friend is quite right that these measures could be repealed, but they could also be extended and improved on by a British Government. If we are looking for good conditions for people at work, I would say that a huge advance in recent years was that wonderful national minimum wage introduced not by the EU but by the last Labour Government. Ultimately, the terms and conditions of people at work about whom he and I care most passionately are better protected by a Labour Government in Britain than by any decision in Brussels.

[Lord Lea of Crondall]

I have the highest respect for my noble friend but I am afraid that on this one he is wrong. In international trade, employers will claim we are at a competitive disadvantage if we do not do things together. This is what Europe is about. That is what Delors pointed out in Bournemouth in 1988.

If we were to say to an employer in Holland, Italy or Spain, “You can lead the race to the bottom”, all the employers, one by one, would scream that they had to go in that direction. I will be calling for a European identity card the way I am going, but if we had a floor for all European workers in all these areas, the comparison with the minimum wage—although we do not have a European minimum wage—would be valid in that all workers and employers would be protected. If noble Lords will allow me to conceptualise, we will have a European ring-fence—let us not start getting into the argument about competition with China or Japan; it is a good argument but quite different from the one we are considering at the moment. This is for the parties in the referendum debate to discuss, and they are valid points to discuss.

Another factor that will determine how Brexit would work would be, no doubt, the majority in the country and the state of agitation on how best to progress matters on the Back Benches of the Conservative Party—and indeed, the Labour Party, the Liberal Democrats and everybody else in the House of Commons. To get to the nub of the point for this debate, and maybe to add some value to what I am about to say, we have a difficulty which would have been avoided if we had followed what we called in an earlier debate the OBR-type of authorship because all these amendments look to HMG to produce these studies. How will Ministers avoid the charge of cherry picking, as and when they deal with what are, with good will all round—and there will not be an oversupply of that—difficult analytical distinctions between things that we know and things that are going to be debated?

In conclusion, I will try to answer my own question.

[Lord Foulkes of Cumnock]

You are the only one who understands it.

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[Lord Lea of Crondall]

For once in his life, my noble friend may care to pay a little more attention to what I am about to say, and he may even be convinced by it. I think that there is scope for an inter-party agreement on the preparation of a statement of intent, as it were, between the two camps that neither will accuse the other, or even the Government, of bias, if not dishonesty, simply as a consequence of having conducted an insufficiently robust analysis of the distinction between the facts—the known knowns—and the unknowns. What I am saying may prove to be true or untrue, but on the percentage chance that it is true, can we follow up the worries of the noble Lord, Lord Hannay, about tsunamis by saying that they will be prevented only if we can avoid charges of bad faith when these reports are published? Therefore, the leaders of the two campaigns should swear an oath—as in ancient Rome, or some such—that they will accept that the assessment is dispassionate and that neither side will try to shoot the messenger, as and when these surveys are produced.

[Baroness Ludford (LD)]

My Lords, I back up what the noble Lord, Lord Hannay, said, with which I entirely agree. To make the noble Lord, Lord Pearson of Rannoch, happy, I should say that my receipt of a pension from the European Parliament is on my declaration of interests. As far as I know, I do not have to mention it every time we discuss the EU, as that would bore the House greatly.

I wish to amplify two of the points in Amendment 24C, in the name, principally, of the noble Lord, Lord Hannay. The Prime Minister said recently that the EU was essential—I cannot remember whether he said “essential”, but he at least meant that it was very important—to the UK’s national security. I think that is the first time he has made that very valid point. Therefore, it is important that the report the Government promise to publish in the very welcome amendment tabled by the noble Baroness, Lady Anelay, should cover the law enforcement, security and justice point because the public have a right to know what that consists of. For instance, the report should state that we are a full member of Europol and not stray into the domain covered by Amendment 25, in the name of the noble Lord, Lord Kerr, by implying that if we are not in the EU we will not be a full member of Europol, as Norway is not—it has a sort of observer status. The same applies to referring to Eurojust as a sort of club of prosecutors which makes sure that we catch, and can prosecute, these major criminals.

As the noble Lord, Lord Hannay, said, we have full membership of the European arrest warrant. We could even push for reform. I wish that Ministers, the Government and the Commission would take up the report that I wrote as one of my last acts in the European Parliament. This was about multilateral reform of the European arrest warrant. We could not do that simply as law takers outside the EU, even if we had some kind of other arrangement.

On proposed new paragraph (d) in Amendment 24C and the rights of UK citizens living in another country, a lot of work is being done here, to which the UK, being in the European Union, has a great deal to contribute. This work is about complementing the rights of free movement. We have maybe 2 million citizens living in the rest of the EU. We can take a leading part, with our strong civil as well as criminal legal traditions, in influencing the work on the mutual recognition of documents and of civil partnerships and marriages, including of course same-sex marriages, and on the rights that help our citizens in their daily lives in other EU countries.

It is important that our citizens understand the full implications of those EU measures, and the rights and obligations that arise under EU law enabling us to help defend our national security and ourselves against terrorism, to catch criminals and to help people taking advantage of free-movement rights through civil-law issues. I hope the Minister will say that the report will have some focus on these sectors of law enforcement, security and justice, including civil justice.

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[Lord Lamont of Lerwick]

By interrupting, the noble Baroness illustrated exactly my point. She just said that it is more complicated than I had said. I am saying that government by fax is an oversimplification as well. These things are not capable of a single interpretation; they cannot all be reduced to numbers. In this debate, we have a series of people with different motives putting forward different lists that they think would help their case.

The noble Lord, Lord Lea, had an interesting exchange with the noble Lord, Lord Grocott. The noble Lord, Lord Grocott, responded to the reference of the noble Lord, Lord Lea, to various rights that existed, and made the point: could not the UK Parliament just legislate for each of those rights? I thought that the noble Lord, Lord Lea, did not answer that question satisfactorily.

It reminded me of a conversation I had many years ago with a friend before we joined the European Economic Community. My friend was an enthusiastic supporter of joining; I was a bit sceptical. I voted to join and made my maiden speech in the House of Commons in favour of joining, but I objected to the argument that my friend put forward for joining the EEC, as it then was. He said, “The reason for joining the EEC is that we can irreversibly freeze into law capitalism, free markets and deregulation”. That is how the EEC appeared at the time: it was something that appealed to economic liberals.

Of course, the whole nature of the EU changed as it involved and we had what the noble Lord, Lord Lea, referred to as the Delors doctrine, which was that you would enshrine permanently in EU law certain social rights. That is why the TUC changed its mind over membership, I think. The noble Lord, Lord Grocott, was quite right to say that you can have all those lists put forward in different amendments, but actually the UK Parliament is perfectly capable of implementing whatever rights or limitations on rights it wishes. That is one of the fundamental points about the EU and one of the fundamental objections to it: it is so difficult to repeal legislation because it is enshrined almost in aspic.

[Lord Lea of Crondall]

My point was that employers would not be happy to do that just as one country because they would become less competitive; they want to do it as a continent. I know that the noble Lord will not think that a good argument, but that was the point being made.

[Lord Lamont of Lerwick]

I know that the noble Lord made the point about acting together, but I do not think that it really answers the point made to him by the noble Lord, Lord Grocott. These lists are highly selective. In the amendment moved by the noble Lord, Lord Hannay, all right, some items stand on their own, but let us take paragraph (e) in Amendment 24C, which covers,

“law enforcement, security and justice in the United Kingdom and in the devolved jurisdictions”.

Of course there will be arguments both ways. One noble Baroness referred to the European arrest warrant as though that were self-evidently all in one direction, but a published analysis of it might give rise to a lot of argument about the rights of people who are wrongly prosecuted, or of the innocent who are extradited.

Many people have anxieties about the whole theory of parity of esteem of the justice systems of different countries in the EU. Can anyone really say that the justice systems of Bulgaria or Romania are equal to ours—that we have as much confidence in them as we do in our own UK system—and that therefore there should be automaticity of extradition? I say that because the idea that these things can be reduced to simple formulae, to black and white or to one particular viewpoint is not correct.