European Union (Referendum) Bill

Lord Tugendhat Excerpts

Friday 31st January 2014 Lords Chamber

[Lord Wigley (PC)]

My Lords, I will intervene briefly in this debate. The debate would be that much shorter if the noble Lord, Lord Dobbs, now indicated that he will accept the amendment. It is patently obvious that this sort of provision has to be made. If the wording is not absolutely right we can come back on Report or at a later stage to correct it, but surely the principle has to be accepted.

I come from a background in Wales where the main question will undoubtedly be an economic one: what effect will pulling out of the European Union have on jobs? I will refer briefly to three headings. The first, which was touched on by the noble Lord who moved the amendment, is in regard to agriculture. The Farmers’ Union of Wales came here last year to brief noble Lords on the effect of pulling out of the European Union. It indicated that some 80% of its business would be affected adversely if we pulled out of the European Union. That is a massive consideration, and a shadow that will hang over the industry until this is put to bed.

The second sector that I referred to is the motor sector. Last week I referred to Toyota. There are a number of other important motor companies in various parts of the United Kingdom that will be affected—as will jobs. I started my career working for the Ford Motor Company, and I know very well that companies such as that one do not have a time horizon three years ahead; they plan for a decade ahead, and longer. If there is uncertainty as regards the conditions in which companies that operate in the United Kingdom will trade after 2017, it will affect investment decisions. That has already been flagged up by companies from Japan, and we cannot ignore it. When voters come to vote in a referendum, they need to have the information available on how the Government interpret what the situation will be if we pull out, and on what the alternative is. Companies need to know that so that they can inform their employees and others who will be affected.

The third sector I referred to is an important one in my area: the nuclear power industry. In Anglesey the Wylfa B project is likely to go ahead, but the company from Japan that is involved in it has other interests, wanting possibly to build a nuclear power station in Lithuania or in other locations in mainland Europe. The issue is that if it decides to put more emphasis on mainland Europe because we are not part of the European Union, the likelihood will be that the contracts for manufacturing all the components that go into a nuclear power station would drift to Germany rather than to the United Kingdom. The Government have already indicated that they see the knock-on effect of their programme of building nuclear power stations as important, not just as regards the locations themselves but as regards the industries associated with that. They would be undermined and there would be uncertainty—and, goodness knows, with nuclear power stations the time horizon is even longer.

Therefore, those three sectors, the employees who currently work in them and the communities that depend upon them, need to know. We surely need to pass the Bill back with provision in it to ensure that that happens.

[Lord Tugendhat (Con)]

My Lords, I support the amendment put forward by the noble Lord, Lord Turnbull, for the reasons which he so eloquently set out. However, I will address a few remarks to my noble friend Lord Dobbs. My noble friend seeks to paint those who propose or support amendments as being opponents of the Bill who are seeking to deny the people of this country a referendum. However, that is not true. As I made clear in my speech at Second Reading, and again last week—

[Lord Dobbs]

I have never made that allegation. I have always accepted that there are men and women of great principle who are fighting the Bill from responsible positions. However, I have taken the advantage of pointing out—and others may conclude this—that some noble Lords may well oppose the Bill not for responsible, sensible and principled reasons but because they are simply determined to kill it. I have never whitewashed the entire opposition in the way my noble friend suggests.

[Lord Tugendhat]

My noble friend used the word “oppose”, but I do not oppose the Bill, and neither do I oppose a referendum. I have made it quite clear, as have other noble Lords, that I support a referendum on the basis put forward by the Prime Minister in his Bloomberg speech. It is precisely because I support a referendum that I believe that the terms of that referendum need to be as good as we can possibly make them. This will be a very important referendum—all noble Lords agree on that point. Therefore, if it is to be a very important referendum, the terms on which it is held have to be drawn up as carefully and objectively as possible. Because of that, it is very important that the people of this country should be able to make an objective choice based on as much information as possible. That must mean that they should be able, as far as possible, to balance the advantages and disadvantages of membership of the European Union against the advantages and disadvantages of the proposed new relationship.

I do not often invoke the noble Lord, Lord Pearson of Rannoch, but on this occasion I will do so. He points out, very frequently, that if we leave the European Union, there will still be trade between us and the European Union, and we will still deal very closely with it in economic matters. Of course he is right; one must not overstate the consequences of staying or leaving. However, it is undoubtedly the case that if we leave, the terms of the relationship will be different. Some people may think that they will be better, while others may think that they will be worse, but the British people need to be able to form a view based on as much information as possible. That is the purpose of this amendment, and I support it because I wish the Bill to be a better one.