European Union Bill

Lord Wallace of Saltaire Excerpts

Wednesday 13th July 2011 Lords Chamber

13A: Because the decisions concerned would involve an increase in the competences or powers of the European Union in relation to the United Kingdom and should therefore require approval by referendum as well as by Act.

[Lord Wallace of Saltaire]

My Lords, we now turn to the list of decisions in the existing treaties which were previously subject to the requirement of approval by Act and by referendum under Clause 6 but which for the most part would require approval only by Act as a result of your Lordships’ amendments. As with the previous amendments, the Government listened carefully to the arguments put forward after the amendments were agreed by a vote of 214 to 209 in this House. The other place considered these issues further two days ago after having examined in detail the make-up of Clause 6 during its consideration at the start of this year. It has disagreed with your Lordships’ amendments on the basis of our opposition to these changes and by consensus. In so doing, the shadow Europe Minister, Wayne David, said:

“Of course, Members in the other place are entitled to their views, but we have reservations about the proposal that referendums should be confined to these three subject areas, and it is important to put on the record that my comments set out the Labour party’s position”.—[Official Report, Commons, 11/7/11; col. 75.]

It now falls to your Lordships' House to consider whether to insist on its amendments on the basis of the approval of this clause, twice over, by the other place. I would be particularly interested to learn from noble Lords on the Front Bench opposite whether they will reflect the Labour Party’s position today or continue to adopt a different approach.

In moving the amendments on Report, the noble Lord, Lord Hannay of Chiswick, stated that,

“the long list of potential referendums is excessive and disproportionate”.—[Official Report, 13/6/11; col. 552.]

While I appreciate that there are strongly held views on this issue, I should like briefly to repeat why the Government do not agree with this view. The coalition’s programme for government sets out at the start of the section on Europe that,

“no further powers should be transferred to Brussels without a referendum”.

All the decisions listed in Clause 6 in its previous form would constitute such a transfer, as recognised by the other place in its reason for disagreement. As we have made clear previously, Clause 6 consists of five self-standing decisions of great sensitivity, such as on whether to join the euro or to give up national border controls, and seven sensitive national vetoes using a passerelle and avoiding formal treaty changes.

We are debating this Bill in the context of a wide malaise within the European public across most EU member states and a worrying disconnect between the Brussels institutions and the national publics of the member states. Michel Barnier, European Commissioner for the Internal Market, said in a recent speech in Berlin:

“For 60 years we have been building Europe for its citizens and in their name; but too often we have been doing it without them. A malaise has taken hold and the gap between Europe and its citizens has gradually widened”—

that is to say, not just within the UK but across the EU. The deference on which Europe was built, which was given to managerial élites in Brussels on behalf of its peoples but without their informed understanding and consent, and through which substantial powers were transferred to Brussels, has now disappeared. We have to rebuild public confidence in institutionalised co-operation among European Governments. We have to carry our voters with us, not sweep through complex multilateral commitments over their heads.

Successive Governments in Britain have failed to make the case for positive European engagement over the past 20 years or more. Suspicions of French and German intentions, woven into an anti-European narrative, have been endlessly recycled in much of the British media. Some noble Lords might like to reflect on whether there ever was a Faustian pact with the Murdoch press in its Anglo-Saxon but anti-European stance, whereby it would support British Governments so long as they maintained an opposition to stronger European co-operation and in particular to international regulation of media ownership and competition.

If I may speak as a Liberal Democrat, I am entirely comfortable with the constructive approach that this coalition is taking to relations with our European neighbours, large and small, and its positive engagement with the institutions of the European Union. However, it will take us time to regenerate public confidence and to rebuild public trust. The provisions of the Bill, including those of Clause 6, are there to reassure our sceptical citizens that the British Government will not attempt to slip past them unexplained further transfers of power or competence to institutions which at present, sadly, inspire limited loyalty and widespread mistrust.

The other place has now considered the scope of Clause 6 on two occasions. In both cases the other place has approved that the scope of the referendum requirement should incorporate the 12 decisions. On the second occasion it did so by overwhelming consensus. It now, therefore, falls to your Lordships’ House to consider whether or not to insist on its amendments, but I beg to move that it accepts the view of the other place.

Motion B1

Moved by

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[Lord Triesman]

My Lords, we are taking part in this debate this evening because the House of Commons did not accept Amendment 15. The noble Lord, Lord Empey, made the point that the other place may have been indifferent because relatively few Members were there. I ask him not to make that judgment in general about things that happen at the other end. When most debates are conducted, you see the camera sweep around without many people being there. It is entirely possible that you could regard this as indifference to almost everything, or you could say that it is the nature of the life of this place. I certainly do not think that the House could accept what he commended to us—that we should send no messages that are in any sense disagreeable to people in the other place. Such a supine response from this House to matters on which we feel amendments are needed would surely be exactly the opposite of the role that this House should play, and ample argument for its having no role at all.

What is fundamental at this stage is that this legislation takes us, in several constitutional areas, into waters that are—I candidly submit to the House—unknown. We are being invited to change from a system that is fundamentally parliamentary in the main thrust of its work to a system that is plebiscitary. It will on one reading lead to a significant number of plebiscites—that is entirely possible—or on another to very few, as the noble Lord, Lord Lamont, suggested. That is also entirely possible; I do not know which it will be. What I do know is that it will be fundamentally different from the way in which we have conducted parliamentary debate on key issues over many generations.

There is a fundamental constitutional change in that Parliament will offer the public votes—either frequently or infrequently, depending on which reading one takes—on whether to overturn the decisions that it has taken as a result of major debates and major opportunities to review changes in Europe in both Houses. Inevitably, there will be a fundamental change in how we conduct our relationship with Europe as a whole. That is what is intended. Some people advocate that, while others of us believe that this is a disproportionate way of trying to do that. None the less, these are all fundamental changes.

I suggest to the House that, in sailing into these waters, the reality is that we do not know how it will play out. Least of all do we know in what circumstances it will play out. We do not know which things will provide the most significant changes, although we have reason to believe that the present difficulties in European nation state economies give us ample evidence that they will be the tapestry against which all of this will play out. We do not know how the constitutional matters will play out. I doubt anybody here has the temerity to suggest that they know in which circumstances all these matters will play out either.

I entirely understand the argument that there are some things, even against the background that I have described, that are so important to the people of the United Kingdom that they will insist on having a say on them. It is also true that the Government of the day will be bound, in those circumstances, to try to make judgments of their own about what the interests of the country are at any time. There is no point to a parliamentary democracy where the Government of the day say, on some quite critical issues, “We will not be finally responsible for taking judgments about what the interests of our country are”. That would be a peculiar country to live in and one in which the notion of fundamental democracy had been considerably eroded. Variations by subsequent Governments in subsequent Parliaments, of the kind that are suggested in this amendment, seem just to be prudent as a means of allowing the possibility of dealing with circumstances as they arise in a way that is more flexible—I am not afraid of that word—in all of those circumstances.

I am wholly in agreement with the noble Baroness, Lady Williams, when she says that a significant number of these issues will be judged in general elections. When people look at the questions that must be resolved, they will look at them in general elections. For those who say “Trust in the people”, my trust is at its highest point when they decide which Government they want in a general election. That is a fundamental form of trust. I accept that there will be circumstances in which a referendum would be absolutely right. I hope I have been clear from this side of the House that these include such matters as defence policy, Schengen and the euro. There is a raft of policies where I can see that that would be entirely true. However, I do not believe that, in comparison with a general election and the decisions that are taken, the people of the country—in whom, inevitably, trust must be placed in all such circumstances—believe it is somehow better to replicate “The X Factor” than to deal with real politics in real circumstances. “The X Factor” may be fine as a form of entertainment, but it is hardly a way of dealing with the national interest when it must be dealt with under stress or duress.

I also agreed with the noble Baroness, Lady Williams, when she responded to the noble Lord, Lord Lamont. This is an important point; I hope the House will not mind my repeating it. The noble Lord, Lord Lamont, is right when he says that the case for clauses that limit the life of legislation is far clearer in dealing with emergency legislation. You do not know whether you will need it in the future, and you are not 100 per cent sure that it will meet the intentions for which it was introduced. However, there is also a completely reasonable case for saying that, when we are taking such significant steps into the dark in constitutional terms, there needs to be a way to say, “How do we make sure that we’ve got the balance right in the interests of the country? How can we make sure that we are taking the right decisions in the right way against the right environmental circumstances?”. That is, after all, the function of government.

I cannot stand at this Dispatch Box and claim that I know with certainty where those new balances will lie. It is precisely my point that none of us knows where they will lie. However, this generation of politicians or the next will have to make those judgments. They will come around and they will have to be made. Politicians should be in a position to make them with the greatest confidence and authority that they can. It is critical to our country that they are successful in doing so.

I hope we will accept Amendment 15B. It is a much more limited suggestion than Amendment 15. It seems, in every respect, to grant flexibility without overriding the key provisions of the Bill in any significant way. It commends itself strongly to me on that basis. Most of all, it commends itself on the basis that, if it is true that the cause for dissatisfaction is the belief that Parliament has let too many of its roles and responsibilities go toward Europe and for those reasons fundamental constitutional change is needed—because that is the argument for this kind of fundamental constitutional change—let us be certain as time goes by that we have got it right, that the balances are right and that whatever the causes were we have not backed ourselves into a cul-de-sac or something worse.

[Lord Wallace of Saltaire]

My Lords, I thank the noble Lord—

[Lord Stoddart of Swindon]

My Lords—

[Lord Wallace of Saltaire]

We are now winding up.

[Lord Stoddart of Swindon]

If anyone wishes to challenge me and move that I no longer be heard, let them do so, but I wish to ask a question. If I had been allowed to do so without the very rude interruption of the Whip on the Bench, noble Lords would have saved themselves a lot of time. What I wanted to ask—and I am going to ask it now—is whether, when the amendment states that a future Government “may”, it means “shall”. We often have debates about what “may” and “shall” should mean, and I think it is important that before noble Lords vote, if there is going to be a vote, they know whether they are voting for something that commits the next Government to something or is permissive for the next Government. Now I will sit down and be quiet.

Could I just add that the Whip on the Bench did not intervene on the noble Lord, Lord Maclennan, who widened the debate on this very narrow amendment to the extent of whether we should be in or out? I think I have been extremely badly treated, and I hope that the Whip will apologise.

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[Lord Wallace of Saltaire]

My Lords, I start by thanking the noble Lord, Lord Goodhart, for the careful and conciliatory way in which he moved the amendment, now some time ago. I do not regard this as a wrecking amendment, but I do see it as an amendment that will confuse and complicate the principles behind this Bill, weaken their role and not help to reassure our sceptical citizens.

In answer to the insistent question of the noble Lord, Lord Stoddart, my reading of this amendment, which I am sure is that of the noble Lord, Lord Goodhart, is that it is intended to be a permissive power and not an obligatory power for the Secretary of State, which is why it says “may” and not “shall”.

In its favour, the amendment rejects the passive approach proposed by Amendment 15; that is to say, the amendment in lieu requires the Government to take a positive decision to seek to suspend some of the provisions of the Bill. It is permissive in that respect. A Government taking such a decision would undoubtedly be mindful of the possible reaction of the British people to such a move. It would therefore be open to a greater degree of transparency in terms of the motivation of the Government of the day that the original sunset clause would not, to the same degree. As the noble Lord, Lord Lamont, noted, it allows for the suspension of the requirement for an Act of Parliament before any of the decisions in Clause 6 are taken, depending on the terms in the order. So it risks diluting the increased engagement for Parliament, which is an important part of this Bill. The level to which Parliament and the people would be involved in these important decisions would then be in the hands of Ministers, a principle that runs against the spirit of the Bill.

A number of noble Lords suggested that the Bill was intended only to apply to future Governments. I remind noble Lords that in the next Session of this House, we will consider legislation under the terms of this Bill on Croatian accession and the European stability mechanism, and that the conditions of the Bill will apply to those.