European Union Referendum Bill

Lord Stoddart of Swindon Excerpts

Wednesday 18th November 2015 Lords Chamber

[Lord Hamilton of Epsom]

My noble friend is absolutely right. If the Conservative Party had decided to support the “staying in” campaign it would have been £25 million to £11 million, which is extraordinarily disproportionate in the circumstances.

I do not know what the thinking is behind this. I cannot understand where everybody is coming from. This is a referendum on whether we stay in the EU or whether we leave. It is nothing to do with how we all voted in the last election. How can the whole basis of financing be based on that? It is quite beyond me.

[Lord Stoddart of Swindon (Ind Lab)]

My Lords, I support the amendment because it is absolutely necessary. I support it very much because I took part in the last referendum in 1975. The claim that those of us who wanted to come out at that stage have always been able to make—of course, some, like myself, remain of the opinion that we should come out as soon as possible—was that we were on the outside, outgunned in finance by £20 million to £1 million. That was why the in side was able to convince the people that they should remain—by money, not by any other means. In spite of that, 33% of the voting population voted to come out, so there is all to play for when we get to the referendum.

It is important that we get balance. The system that has just been outlined, where the funding is dependent on the votes cast in the last election, is absurd. What is even more absurd is that the Conservative Party, which would get about £9 million, I think, is not going to use it. I have never had much respect for the thinking of the Tory party, but this really takes the biscuit. We have a party led by a Prime Minister, who is negotiating with his partners in Europe and is apparently agreeing with his party that it should be outspent by the other parties. That seems absolutely crazy. I would have thought that the Tory party would be up in arms about it, sending in resolutions, demonstrating outside the headquarters and all that sort of thing so that we could have a bit of fairness.

So I agree with this amendment and for other reasons, too. In 1975 the Tory party campaigned to stay in Europe, as of course did the Liberals—I think they were called the Liberals then, not the Lib Dems—and big business. I well remember that Sir Donald Stokes, who later became Lord Stokes, wrote to all my former constituents in Swindon, because there was a BLMC factory there, warning them that if they voted to come out their jobs would be at stake. That, of course, was a lie because at that time we had a surplus in car exports to the continent. However, by 1975, we were in deficit. That deficit had grown to a huge figure of £69 billion overall per annum. My constituents were told not only by Sir Donald Stokes but by those running other big businesses in Swindon and elsewhere that coming out would harm their prospects. Of course, that is where the big money came from—big business.

It is essential that there should be fairness between the campaigns. The amendment of the noble Lord, Lord Forsyth, would ensure that that happens, or at least go a long way to do so. If it does not, once again we will hear the losing side say, “We were outgunned by the others on finance”. Therefore, I hope that the Government will accept the amendment. The Tory party may be able to exert influence over the Government by saying to them, “Look here, you have this opportunity. You really must take it so that there is a proper balance between the parties during the referendum”.

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[Viscount Ridley (Con)]

My Lords, I would like to speak briefly in support of the amendments from both my noble friends.

As my noble friend Lord Hamilton said, the Commission’s denial that it will campaign is belied by the evidence. We cannot take that promise on trust. Jonathan Faull stated in a letter dated 4 September that:

“The Commission will play the role that it is given by the treaties, notably to promote the general interest of the EU”.

That could be interpreted as campaigning or it could be seen as being more innocent than that. On 2 October, Jean Claude Juncker said that the European Commission would have,

“input into information activities in the run-up to the UK referendum”.

As my noble friend Lord Hamilton said, in the Irish referendum in 2009 and the Croatian referendum in 2012, it was very clear that the European Commission did use finance to, in the case of Croatia, foster an,

“increased level of public and political support to the EU”.

The EU institutions have budgets worth £3.1 billion, which include clauses allowing promotion of the EU.

In this country, the European Communities Act 1972 allows EU institutions to engage in activities that are authorised by EU law. To the extent that they are operating under EU law, EU institutions are exempt from UK campaign controls. The Electoral Commission says that it has no regulatory powers that could be used directly against these institutions if they do undertake such activity. That question needs to be addressed.

On Amendment 21, from my noble friend Lord Forsyth, I agree that judicial review is clearly a nuclear option that is not going to do much good if these rules are transgressed. If purdah is to be taken seriously, a more effective, prompter enforcement mechanism must be found.

[Lord Stoddart of Swindon]

My Lords, I do not want to say too much at this time of night but I want to make a couple of points.

First, on the amendment from the noble Lord, Lord Hamilton, the Commission can interfere, as he said, in all sorts of ways. One of the ways—this has some relationship to the alterations that were made earlier to the franchise—is through its entry into primary and secondary schools with what some of us would term propaganda material. The Education Act 1996 makes it clear in Clauses 406 and 407 that there should be balance. In spite of that, the Government, according to their Answers to my Written Questions, seem not to be very concerned with this and will do nothing to ensure that schools and head teachers make sure that there is balance on the question of Britain’s membership of the European Union.

Even now, the EU is seeking to advertise itself in our countryside. It wants farmers to put up huge advertising boards, saying, “You are getting all this money from the EU; you should be grateful and should therefore advertise the fact that this money is coming from the EU”. Not many farmers are going to be fooled by that, because they will know that, for every pound we get, we have first to give the EU three, so the grants to farmers are in fact some of our own money coming back. The rest of it, or much of it, goes to other farmers to subsidise their much less well-farmed areas.

There are all sorts of ways in which the EU can intervene in our affairs. It does so and it will continue do so. One way or another, by hook or by crook, the EU will interfere in the referendum when it comes.

[Lord Willoughby de Broke]

My Lords, I want to pick up on the point made by the noble Lord, Lord Stoddart. As a farmer—I declare my interest as a farmer—I remember getting this directive that we must advertise that we are getting money from the EU through the single farm payment, or what now is the basic payment scheme. Of course, my noble friend Lord Pearson made the point it is not EU money at all. It is money that is given to the EU by the British taxpayer—mulcted from the British taxpayer—and recycled through Brussels, who tell us what to do with it. It seems completely absurd that we have to put up a big sign on our fields saying how generous it is of the EU to give us this money. It is not. I, of course, alter those signs slightly to put a different twist on them.

On the broader point of the noble Lord, Lord Hamilton—he made the case, I will not repeat it—it is essential that this provision be included in the Bill. Of course, the EU Commission has form when it comes to referendums, as we have heard, and I will not repeat the point. It is essential that Mr Jonathan Faull’s letter not be taken as gospel and that is the end of the story. Again, it is about fairness and the referendum’s being seen to be fair. It will not be seen to be fair if the EU Commission starts chucking its weight about, which it has always done and wishes to do in this case.

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[Baroness Anelay of St Johns]

My Lords, Amendment 13, tabled by my noble friend Lord Hamilton, relates to the role of the EU institutions during the referendum. It follows the wording of a similar amendment that my noble friend tabled in Committee. The concern that he and other noble friends have expressed is that EU institutions may have an undue influence on the outcome of the referendum.

Although there are differing views on that, it is no doubt a legitimate concern and certainly one which the Government share. This is a referendum to be held on Britain’s membership of the European Union. It is therefore clear that the impression of outside interference or direct campaigning by overseas bodies with a vested interest would undermine public trust in the outcome. It would also be completely counterproductive; I think that people would see through it.

That is why the Government have ensured that sensible controls will apply on who can spend money to influence the referendum and how they can be funded. Some 44 of the Bill’s 62 pages relate to exactly these issues.

Campaigners at the referendum can accept money only from individuals or bodies who have a sufficient connection to the UK or to Gibraltar. In Committee, I went through in detail issues relating to permitted donors and permitted participants—I think that it would be wrong if I tried to go through that again on Report.

As the EU institutions are not eligible donors, a permitted participant would be committing an offence if they accepted money from the EU institutions to campaign. I should re-emphasise that permitted participants cannot accept donations of more than £500 from EU institutions. In part, therefore, my noble friend’s amendment is unnecessary.

The amendment has another arm to it, which applies directly to the EU institutions and would prevent them actively engaging in campaigning.

[Lord Stoddart of Swindon]

My Lords—

[Baroness Anelay of St Johns]

My Lords, I wonder whether I might address my noble friend’s point, because we are on Report and I am trying to give an answer to questions put by him in speaking to his amendments.

Specifically on that point, in the letter that the European Commission wrote—I refer to the letter that was circulated—the last part states that,

“the referendum itself and the related campaigns are a matter for the British government and the British people in which the Commission, in view of its institutional role, cannot and will not take an active part”.

I gave an undertaking, which the Government have fulfilled and will continue to fulfil, that we will engage at a diplomatic level with the European Commission to ensure that that is observed in spirit as well as in the letter.

[Lord Stoddart of Swindon]

On the question of EU institutions that broke the rules, what sanctions could be used against them?

[Baroness Anelay of St Johns]

I am saying that we are working with the European institutions and they should not break the rules. That, of course, is a matter of interstate agreement.

Where the institutions are operating in their official capacity within our jurisdiction they are afforded immunities and privileges under EU law. I know that the noble Lord has previously referred to that. However, as the Government have already made clear, the best way to prevent EU institutions from influencing the outcome of the referendum is through the process of constructive dialogue. That is what we have been doing and will firmly continue to do. That is why I circulated the letters. Indeed, I note that a written question was put in the summer or the spring—I suppose you could call it autumn in parliamentary terms; I always wonder what the seasons are—and on 4 September an answer was given by President Juncker on behalf of the Commission. He simply said that the Commission does not campaign in national referendums. We will hold him to that, and that is exactly the point.