European Council

Lord Wallace of Tankerness Excerpts

Wednesday 29th June 2016 Lords Chamber

[Baroness Smith of Basildon (Lab)]

My Lords, I thank the noble Baroness for repeating that Statement, although I think it poses more questions than it answers. In the light of the comments made by the noble and learned Lord, Lord Keen of Elie—I see he has now left the Chamber—even more questions have been raised.

First, I want to express our horror at the appalling, evil attack on Istanbul airport last night. Yet again, we are shocked by the hatred that leads to such vicious, indiscriminate violence and murder. Our thoughts are with all those who have been affected, because such horror will never leave them.

Turning to the detail of the Statement, although it includes other issues, clearly, the one that affects us most is that of our leaving the EU. Nevertheless, I noted the comments on the agreement made with Turkey in March. I hope that the Prime Minister, in discussing that agreement, raised the issue of the shocking conditions in the camps in which refugees are being held in Turkey. Did he raise that issue, and if so what response did he receive?

What this Statement reinforces is the massive uncertainty that our country faces. It is clear that the first enemy of our stability and security as a nation is that uncertainty, which has many different forms. There is economic uncertainty for businesses large and small and for consumers. There is uncertainty about who will be the next Prime Minister and whether another general election is looming. There is uncertainty about the Brexit negotiations. At the same time there is uncertainty, now increased, for many local communities where those who do not look or sound British enough are now feeling very vulnerable.

I was going to say that at no point should we forget the uncertainty of British citizens living across Europe, but from the comments just made in Questions by the noble and learned Lord, Lord Keen, it appears that they are to be some kind of negotiating tool in discussions on whether EU citizens living and working in this country are to be allowed to remain. The degree of uncertainty that that will cause in those communities across the country is shocking. Given that negotiations could go on for years, we will have people living or working in this country who do not know what their future holds. We need an explanation or clarification from the Government as a matter of urgency.

The Prime Minister referred in the Statement to estimates of a slowdown in eurozone economic growth of between 0.3% and 0.5%, caused largely by a predicted slowdown in the UK economy because of our trade with the EU. If that is the predicted slowdown for the eurozone, what is the predicted slowdown for the UK economy? If the EU is able to predict such a slowdown across the whole eurozone, I am sure the Government have considered it and made predictions. Can the noble Baroness comment on the report in the business section of today’s Daily Telegraph—not my normal reading material, I confess—that Vodafone and easyJet are now considering moving their headquarters out of the UK, with thousands of jobs leaving these shores, and that Visa could also relocate hundreds of jobs to EU countries? The noble Lord, Lord Glentoran, laughs and suggests that I read the Daily Mirror. I can tell him that I do read the Daily Mirror and I commend to him an article from last Friday by the historian Dan Snow about our historic links with Europe and the dangers now presented to this country by this Prime Minister. On the question of jobs, rather than waiting for a new Prime Minister, can the noble Baroness tell me what action the Government are taking today to protect jobs here in the UK?

I welcome the section in the Statement about our relationship with our European partners and its importance over so many years; it is part of our history and part of their history. We should never forget the tremendous contribution of our European allies in the Second World War, particularly in the Battle of Britain, when the role of both Polish and Czechoslovakian aircrew was critical. Perhaps I may tell the noble Baroness about men such as Tony Liskutin. He was a true hero. He first fought with the Czech air force and then with the French. He then joined the RAF to fight on D-day—subsequently teaching our own noble Lord, Lord Tunnicliffe, to fly. However, today, their descendants and families are facing despicable attacks here in the UK. The Prime Minister said in his Statement:

“We are a proud, multi-faith, multi-ethnic society”,

and predicted that,

“we will stay that way”.

I say to the noble Baroness and to the Government that just saying something does not make it happen. You have to do more than that. So, again, rather than just waiting for a new Prime Minister, what practical steps are the Government taking today, and have Ministers discussed this wave of increased attacks?

In the section of the Statement headed “Next Steps”, the Prime Minister said:

“First, there was a … reassurance that until Britain leaves, we are a full member. That means that we are entitled to all the benefits of membership and full participation until the point at which we leave”.

I have to tell the noble Baroness that it does not feel like that. If that is the case, why was the Prime Minister not allowed to attend the most crucial session for the UK in which issues relating to the Brexit vote were discussed? Is the noble Baroness now able to answer two questions that she was unable to answer on Monday? Now that the noble Lord, Lord Hill, has resigned as the EU Commissioner for financial stability and services, when will he be replaced and can she provide an assurance that a new British commissioner will be appointed? Furthermore, if we are still entitled to full membership—as the Prime Minister was assured—is she confident that the UK will still hold next year’s EU presidency? Can she update us on that situation since Monday?

As a nation, we have been able to hold our heads high. We had a European and international outlook on our role in the world and the influence we could bring to bear for the greater good. However, today, not only do we face profound economic change but our long-held cultural and social cohesion faces enormous challenges and risks. We all have friends and neighbours who today feel more vulnerable. The only way we can deal with this is to unite around that common purpose of decency and tolerance. As I said on Monday, at times like this we have to rise to the challenge to ensure that what unites us is bigger, better and stronger than what divides us. That is the only way we can face and tackle these challenges.

The noble Baroness will understand that these risks and challenges can only be increased by uncertainty. I deeply regret that the noble and learned Lord, Lord Keen, in his answers today, has increased that uncertainty. I therefore hope that the noble Baroness will today be able to address these questions and tell us when the Government will clarify the comments made by the noble and learned Lord.

[Lord Wallace of Tankerness (LD)]

My Lords, I, too, thank the Leader of the House for repeating the Prime Minister’s Statement. I share the outrage expressed about the terrorist atrocity perpetrated in Istanbul yesterday. On behalf of these Benches, I offer condolences to the bereaved and say that our thoughts are very much with those suffering injury.

I do not intend to rehearse the sentiments I expressed on behalf of these Benches on Monday—people know the position of my party on the referendum and its result, which we respect—but the Prime Minister, I am sure, had a very difficult task at the Council yesterday. The result of the referendum was not what he had campaigned for and I am sure he would not be human if he did not feel some tinge of discomfort when he walked out the door, knowing that people were going to talk about him as soon as the door was closed. However, I suspect that whatever difficulties he had will pale into insignificance compared with the difficulty our next Prime Minister, whoever that may be, will have when he attends meetings to discuss Brexit.

[Noble Lords]

Or she.

[Lord Wallace of Tankerness]

Or she. The difficulty will be knowing what they are negotiating about, because the leave that Mr Nigel Farage campaigned for is not the leave that the honourable Member for Uxbridge and South Ruislip, Mr Johnson, campaigned for. Can the noble Baroness tell the House whether the new Whitehall unit she referred to will be preparing dossiers on all the varied positions, whether 57 varieties or more? Will it be putting those forward to the incoming Administration, setting out what the implications are for each of the leave varieties and addressing some of their fundamental contradictions?

I am also concerned that, as we go forward, there will be growing dissatisfaction and frustration as people realise that much of what they have been promised will not be possible. That must pose a threat to liberal democracy in this country, indeed, to parliamentary democracy, which is based on attention to evidence, reasoned debate, willingness to compromise and tolerance. I note that the Statement emphasised that we are not turning our back on Europe and that the European Union is not turning its back on us. This is important as we move forward, so we can demonstrate that there can be constructive discussions on the future.

We know that following this Statement there will be a Statement from the Home Office on hate crime. I share the deep concerns that have been expressed in your Lordships’ House about the surge of resentment, intimidation and blatant racism that we have seen in this country since last Thursday. This is not our Britain. We want a Britain which is a country of tolerance and acceptance. Words are not enough, we want some reassurances of increased police awareness and activity, not just in London but throughout the country.

I have some specific questions about our immediate relationship with the European Union, picking up on what the noble Baroness, Lady Smith of Basildon, said. The Prime Minister confirmed in the other place on Monday that he will appoint a new Commissioner to fill the vacancy. Can the Minister give us an indication of when the position will be filled and what the process will be for appointing a new Commissioner? Following questions on Monday, I wrote to her yesterday querying not when but how Article 50 might be triggered. What are the United Kingdom’s own constitutional requirements in terms of paragraph 1 of Article 50? If she cannot answer today, will she indicate that she will be in a position to do so when we debate these matters next Tuesday? Again, noting what the noble Baroness, Lady Smith, said about the presidency of the Council of the European Union, which we are due to take up a year this week, can the Minister give us an indication of the Government’s position on that? Indeed, does she think it wise for us to go down that road and, if so, what in the world would we be putting on the agenda? We need a real indication of the Government’s assessment and analysis of that situation.

Finally, it is clear that many people in English regions and in Wales felt let down and left behind, not just by Europe but by politicians and decision-makers at home. People in the north-east and south-west of England voted against London, I believe, as much as against the European Union. But the sad reality is that the alternatives offered by the leave campaign will do nothing much to help those in England’s poorer regions. Those who promised that we can spend the money we get back from Europe on the NHS and wider public services are also people who believe in shrinking the state. There seems to be a fundamental contradiction here. Will the Leader look again at disproportionate cuts in local authority budgets and public investment in places such as Cornwall, the north-east and the north-west? Will the Government address with more urgency investment in training, further education and skills? Will she say how we might be able to secure the hopes and aspirations of younger people, who voted in such numbers to remain in the European Union?

These are domestic issues. They do not have to await negotiation with 27 other EU countries, nor do we need negotiation with 27 other EU countries to determine whether European Union citizens currently living and working in the United Kingdom can stay here post-Brexit. This is something we can do ourselves and surely the Government must start addressing these issues now.

[Baroness Stowell of Beeston]

My Lords, it is clear that there are very strong views and feelings right now following the referendum result last week. I understand that. A very important event has taken place and a very important decision has been made. While I feel it is absolutely right that we follow this clear instruction that has come from the British people to leave the European Union, it is important, as the Prime Minister stressed in his Statement, that we are not turning our back on Europe or our European partners, and we must work together with Europe to ensure that we continue our shared security and that we do so in a way that promotes and protects the prosperity of the United Kingdom and all the people living in all parts of the United Kingdom.

As the Prime Minister has been at pains to say, the precise relationship between the United Kingdom and Europe in the future will be one for his successor to decide and is not one that he, in his remaining few weeks as Prime Minister, will be taking the lead on. It is very important that this Government make a big contribution to maintaining the stability of this country in a very uncertain time. I do not dispute that it is a very uncertain time for people, and that is reflected in different ways.

Picking up on the first point raised by the noble Baroness and the noble and learned Lord about the status of British people living in Europe and of European citizens living and working in this country, the first and most important thing to say is, whether you are a Brit living and working abroad or whether you are a European citizen living and working in this country, you are making a valuable contribution. Certainly, the EU citizens living and working in this country are making a vital contribution to our country. The Prime Minister has been at pains to stress that right now nothing is affected by the result of the referendum last week. I very much heard and understand the House’s anxiety about free movement between this country and other European Union member states. We are not trying to negotiate about people’s individual status in the way that some noble Lords are trying to interpret what was said previously. We are saying that although at this moment nothing has changed—all rights are protected—we are going to have to work through a period of deciding the impact of the referendum result. Some of the impacts will come from our negotiations and discussions with Europe in the future and some may sit outside these. Over the next weeks and months, it will be uncertain. We have got to work together to try to provide what reassurance we can that people’s rights are not changed at this time. That is very important.

The noble Baroness also referred to uncertainty around the impact of the result of the referendum on the economy and jobs. To repeat what I have said, and I say this as someone who campaigned for us to remain in the European Union, it is vital for us in getting as soon as we can to that point of greater stability that we focus our energies on our negotiations for the future of this country in terms of its relationship with Europe. We cannot ignore the fact that there is a significant effect from that referendum decision that will lead ultimately to us leaving the European Union. The Government were of course leading the remain camp. We did forecast that there would be potential economic difficulties as a result of any decision to leave. However, in the light of this decision we must now ensure that we mitigate any immediate volatility arising. Over the weekend we have seen from the steps that were taken by the Bank of England and its work in co-operation with other institutions that its contingency planning has had a good impact on the markets in terms of providing some reassurance.

In the weeks that follow we clearly need to prepare for the new Prime Minister being in place and outlining what kind of relationship we want in the future with Europe and how that relationship will work, particularly in respect of the single market and whether we are going to be in it. Between now and then, the Prime Minister, the Secretary of State for Business, Innovation and Skills, the Chancellor and others will continue to have meetings with business leaders. The fact that we have a strong economy and are able to withstand this period of uncertainty is also helping stability. The unit that the Prime Minister has set up in Whitehall is there to make sure that at the point at which the new Prime Minister is in place they have at their disposal as much factual information as possible so that when they have got a clear vision of what kind of relationship the UK will have with Europe in the future they can move swiftly to the point of triggering Article 50.

The noble Baroness raised questions about the increase in hate crimes or demonstrations of racism against people. As I said on Monday, these are wholly and utterly abhorrent. Together we must make it clear to anybody who is trying to use the referendum result to promote racism that we reject that—we in the United Kingdom have not given up on our values. The fact that a majority of people in this country has decided not to be a member of the European Union any more does not mean that we should stop promoting the important values of this country. My noble friend Lord Ahmad will say more in the Statement that follows.

The noble Lord, Lord Campbell-Savours, is pointing to the clock. The Companion makes it clear that, if necessary, I can go beyond 20 minutes in order to respond to some of the points that have been raised. I will respond to them, but that will not in any way reduce the time allocated for Back-Benchers.

The noble Baroness and the noble and learned Lord asked some specific questions about the UK Commissioner in the European Union. The Prime Minister has made it absolutely clear that we are a fully paid-up member of the European Union until we stop being a fully paid-up member of the European Union and therefore have some entitlements, which include a Commissioner. He has raised this with the President of the Commission and we hope very soon to come forward with a nominee for that post. As for questions about next year’s EU presidency, I understand clearly that we need to get that resolved soon. I expect it will be done in short order, but I do not have any further information to offer at this time.

The noble and learned Lord asked about Article 50. Article 50 is the legal route we will follow in order to exit from the European Union, and I think we have all become familiar with the idea that triggering Article 50 will start that process formally. The Prime Minister has made it clear that he will not be triggering it and that it will be a matter for his successor. But in his view it is important that they are clear, at the point at which they trigger Article 50, about the kind of relationship the United Kingdom should have with the European Union. That will assist in the negotiations.

As for Parliament’s role in that process, as noble Lords heard me say on Monday, I am very keen to ensure that this House plays an important part between now and the start of any Article 50 process. Neither I nor the current Prime Minister can prescribe what role there might be for Parliament in deciding what the next Prime Minister will come forward with to take to Brussels in terms of the specifics of that process, but as I said on Monday, this House in particular has a wealth of knowledge, experience, expertise and wisdom, and I want to ensure that we use that as best we can. However, I want us to use it and channel it to secure a long-term successful future for the United Kingdom, while recognising that the people of this country have decided that our future will not be as a full member of the European Union.