Further Discussions with the European Union under Article 50 of the Treaty on European Union

Lord Wallace of Saltaire Excerpts

Wednesday 27th February 2019 Lords Chamber

[Lord Farmer]

The issue is sovereignty, which, as I said, was not mentioned yesterday and I do not think it has been mentioned today.

[Lord Wallace of Saltaire (LD)]

It has.

[Lord Farmer]

That was the main issue, according to the polling, behind people voting to leave. It was not about trade and the economy, where the UK would benefit more from being outside the EU than from being part of it. When the Prime Minister’s Statement was repeated in the House yesterday, much was said in the exchanges that followed about trade and economics, but no one mentioned the fundamental importance of sovereignty to those who voted leave. Our silence in this area makes us seem very out of touch, so I shall take a little time to spell out why so many wanted to leave the European form of federal government—not, I might add, to leave the continent of Europe itself. I have not heard anyone express an interest in pulling up the drawbridge or stopping the flows of trade which so many forms of business value greatly.

Many noble Lords, perhaps particularly those on the Benches opposite, will be familiar with the erstwhile Viscount Stansgate, Mr Tony Benn, and his five questions for people of power. I must admit, I never thought I would be quoting this particular political giant, but he makes a powerful point. His five questions were,

“what power do you have; where did you get it; in whose interests do you exercise it; to whom are you accountable; and, how can we get rid of you?”.

They will also be aware of his maxim:

“Anyone who cannot answer the last of those questions does not live in a democratic system”.—[Official Report, Commons, 16/11/98; col. 685.]


We cannot get rid of President Juncker, President Tusk, Monsieur Barnier, Herr Selmayr or the European Commission. But, according to the House of Commons Library, the democratic deficit of the European Union is much wider and deeper than this. Its main characteristics are:

“The increased use of qualified majority voting … for the adoption of legislation in the Council; limiting Member States’ powers by removing their veto in the Council of Ministers; expanding the policy areas in which the EU has a role, sometimes excluding any action by Member States (EU ‘exclusive competence’); an increase in executive power and a decrease in national parliamentary control with deeper EU”,


regulation.

--- Later in debate ---

[Lord Farmer]

I believe that the system until now has been that each country has a veto, and, as I say, the qualified majority voting would now override that veto. I will carry on about the democratic deficit. The Library document goes on:

“The EU’s executive, the Commission, is unelected; the EP is too weak compared with the Council and Commission”,


and elections to it are not really European elections. Electorates vote on the basis of their support for domestic parties, and turnout is low. It has fallen by 30% since the first elections in 1979. The European Union,

“is too distant from voters”,

and,

“adopts policies that are not supported by a majority of EU citizens; the Court of Justice makes law rather than interpreting it; there is a lack of transparency in the Council’s adoption of legislation and in certain appointments (e.g. EU Commissioners); EU law has primacy over national law and constitutions”.

Unsurprisingly, the latest Eurobarometer survey shows that among the EU 28 countries only 42% tend to trust the EU versus 48% who do not, and the UK lags very far behind—53% of those in the UK do not tend to trust the EU versus 31% who do. This, like so many other things, could be blamed on Brexit, but even back in spring 2015 the United Kingdom had one of the lowest trust ratings of the EU’s institutions across the 28 nations. Only 27% tended to trust the European Commission, compared with the EU 28 average of 40%, and only 29% tended to trust the European Parliament, compared with the EU average of 43%.

National leaders are also painfully aware that the EU is in urgent need of reform. According to Tim Shipman’s book about the road to Brexit, All Out War, Merkel was consulted before David Cameron gave his Bloomberg speech pledging an in/out referendum in the Conservative 2015 election manifesto and she,

“urged him to ‘couch the speech in an argument about Europe having to change’”.

He fell in with this, taking,

“Merkel’s advice on how to pitch his call for reform”,

in that speech, by saying:

“I am not a British isolationist. I don’t just want a better deal for Britain, I want a better deal for Europe too”.


That completely sums up my own position.

As I said at the beginning of my speech, we have to lift our heads and see beyond the current entrenched positions. The painful reality and process of Brexit will or should exert enormous moral pressure on the European Union to reform so that continental citizens are better served—otherwise, we could be the first of many to leave. This is another reason why holding a second referendum would be so damaging. Instead of sending the message that democracy and sovereignty matter, and sowing unchokeable seeds of reform, we would instead be saying that they have to be traded off so that we can stay in thrall to a status quo that really serves only the elites who prop it up. In our own and countless other electorates, there would forever be that recognition that democracy ain’t what it seems to be.

[Lord Wallace of Saltaire]

My Lords—

[Lord Farmer]

Noble Lords will be pleased to know that I am finishing my speech. As a metals trader for more than half a century—I shall change tone here—I want to finish by saying something about trade. In the financial markets, there is a fear of global stagnation. I read this afternoon about the American factory output being disappointing again. While this has very little to do with our leaving the EU, Brexit could be a can opener for new trade initiatives. By breathing life into a world somewhat obsessed by tariffs, it will potentially end up boosting the global economy by breaking up the rather sedentary three big blocs of the US, China and the EU. The world needs competition to be encouraged and Britain could be an agent for that. So instead of a harbinger of doom, Brexit could be a force for reform, both economically and politically, but we have to get on with delivering it. It is, after all, the will of the people.