European Union Referendum Bill Debate

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Department: HM Treasury

European Union Referendum Bill

Mark Spencer Excerpts
Tuesday 16th June 2015

(9 years, 4 months ago)

Commons Chamber
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William Cash Portrait Sir William Cash
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I respond merely by saying that there are those who once described the Foreign Office as the Common and Foreignwealth Office, but that is another story.

Mark Spencer Portrait Mark Spencer (Sherwood) (Con)
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Will my hon. Friend help me to understand his amendment 10? It appears to bar people who want to engage in the process by donating to the in or out campaign from doing so because of their business interests. For example, a large agricultural company that was receiving basic payment scheme money from the European Union would not be able to donate to an in or out campaign because it was getting that assistance. The same could be said for many industrial companies that may receive grants to extend their factories, or other such support mechanisms.

William Cash Portrait Sir William Cash
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It is a question of the manner in which the funds or support are provided. As far as I am concerned, the framework of amendment 10 is to do with campaign funding and donations. The interstices and tentacles of the European Union are so extensive that we will keep bumping into these problems. The scale of the moneys in question is so huge that we have to be sure about this. The determination of the European Union bodies to keep Britain in the European Union is such that they will stop at nothing to use every means that they legally can to ensure that the money goes where they want it for the yes campaign.

I will confer with my colleagues on what we do about amendments 9 and 10.

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We were not particularly in favour of the referendum; we did not see it as necessary. If it is going to happen, however, it has to be fair and be seen to be fair. It will not be enough—certainly for some nations represented here—for the Government to say, “It’s fair—and you know it is because we are telling you it is.” In one or two tiny corners of these islands, trust in Her Majesty’s Government is not exactly at 100%. How the Government conduct themselves during this referendum, particularly in respect of a voluntary or compulsory purdah, could go a long way towards changing the trust in which they are held. That trust could increase or it could be damaged even more than at present.
Mark Spencer Portrait Mark Spencer
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Would the hon. Gentleman extend his remarks to other charities, such as animal welfare charities? Those might have a strong view on how our relationship with the EU affects their ability to do their work on animal welfare or ivory imports, for example.

Peter Grant Portrait Peter Grant
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Like many Members on these Benches, I am not comfortable with the very severe restrictions that have been put on what charitable organisations can and cannot do. A phrase I have often used at hustings is, “If I say we should give money to the poor, I’ll be called a saint. If, however, I ask why they were poor in the first place, they would call me a communist.” There is a dividing line between any kind of socially beneficial charitable work and getting political. Asking why we have food banks, for example, very quickly becomes a political matter. The hon. Gentleman makes a very valid point, but I am saying that specifically in relation to organisations that work on behalf of citizens—some of them will have a vote in the referendum, but shamefully it looks as though some may not—we have to be very careful not unintentionally to prevent them from doing the job for which they were originally constituted.

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Gerald Howarth Portrait Sir Gerald Howarth
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It is quite clear that the right hon. Member for Gordon (Alex Salmond) is only distressed because he has not been invited. If he speaks to me very nicely, I might arrange for a wee ticket to be sent to him.

This is a very important subject. I want to put on the record my appreciation for the Prime Minister’s having kept his word to the British people that there would be a referendum on Britain’s future in the European Union. That he has brought forward the Bill so early in the Parliament is highly commendable and indicative of his determination. It is indicative of the current spirit of the Conservative party that this moment is completely unlike 1992, in that we are airing our differences of view and our different concerns in this Committee debate in an amicable spirit, as we try to find the best way through.

There is unanimity in this Chamber that if the referendum is to be successful, it must be fair. Not only do we have to arrange provisions to ensure that it is fair, to the best of our ability; it must be seen by the British people to be fair. There would be nothing worse than to carry out this extensive operation and hold the referendum and, in the end, for people on whichever side of the argument not to be satisfied that the conditions that we in this House laid down for the conduct of the referendum had been fulfilled.

It is right and proper for us to be as precise in framing the rules for the referendum as possible. It is in that spirit that I support amendment 53, which was tabled by my hon. Friend the Member for Gainsborough (Sir Edward Leigh), who is no longer in his place, and amendment 10, which was tabled by my hon. Friend the Member for Stone (Sir William Cash) and to which I am a signatory.

My hon. Friend the Member for Stone says that the Electoral Commission does not believe that it is necessary to include amendment 10, which would limit the capacity of the European Commission to have any involvement whatsoever in the referendum. The Electoral Commission has made a number of important and valid suggestions, but I need to be persuaded on that point. We all know from our constituencies that when a project has been funded in any way by the European Union, those socking great stars are plastered all over it as though it has been funded by the EU. Of course, all of us in this Committee know that it has not been funded by the EU at all, but by the British taxpayer with money that we have given to the European Commission, some of which it kindly gives back to us.

We need to be very clear that we do not want the European Commission, in any shape or form, sticking its oar into our domestic debate about whether we should continue to be a member of the European Union or seek our fortune elsewhere.

Mark Spencer Portrait Mark Spencer
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I wonder whether my hon. Friend will clarify his remarks, because I think that amendment 10 could have unintended consequences. Many companies and businesses that have received European funding for a project, such as an extension to a factory to create more employment, would be barred from the process and would not be able to fund one side of the argument or the other. Even if they felt passionately that we should be in or out, they would be excluded by the amendment.

Gerald Howarth Portrait Sir Gerald Howarth
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I heard my hon. Friend’s intervention on my hon. Friend the Member for Stone, and he makes a valid point that we need to address. However, the purpose of amendment 10 is crystal clear: it is to stop the European Commission getting involved or funding third parties to get involved in the campaign. If a company in his constituency that received support under a European Commission scheme five years ago, three years ago, last year or whenever chose to back one side or the other, one would not be able to say that it was doing so because it had received money from the European Commission, but if the European Commission started to fund organisations that were involved in the campaign, that would be unacceptable. We do not want it interfering.

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Jacob Rees-Mogg Portrait Mr Rees-Mogg
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That is a moot point that was discussed at length during the Scottish referendum campaign and to which I had better not revert.

I want to concentrate on the power, influence and resources of Governments.

Mark Spencer Portrait Mark Spencer
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I acknowledge my hon. Friend’s cynicism about the Government taking a view one way or another, but does he accept that the Government could express their view neutrally and thereby help to inform the electorate? It is vital that the electorate are informed and can make a decision based on informed opinion, and surely the Government could have a role in making sure that the Great British public are fully informed in both directions.

Jacob Rees-Mogg Portrait Mr Rees-Mogg
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No, I am afraid that I fundamentally disagree with my hon. Friend. There are stages in this process. That is what the Bill and the Minister’s letter are trying to get at. The Government will have their renegotiation and then come back with a package saying it is a triumph, whatever is in the package. It might have three loaves and two fishes, or it might give us complete control of our own destiny—whichever it is, the Government will say it is a triumph. That will be the Government’s answer, and they can tell the electorate what they have managed to do. From then on, however, it will become a matter of straightforward politics whether someone believes the Government and agrees with what they have done. I approve of the adversarial system in this country. We do not develop our arguments and get to the answer we want by getting authoritative documents from the Government. Actually, such documents always contain a bias. It might not be obvious on first reading, but, reading through the detail, one will see the way the Government want people to go, and that will bolster the position they have set for themselves.

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Jacob Rees-Mogg Portrait Mr Rees-Mogg
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I am well aware of my hon. Friend’s amendment, and I think the Government need to be thinking along those lines. I am going to support the Government this evening; I am not going to vote with my friends in the SNP on this occasion, or indeed with my hon. Friend the Member for Stone, which is more of a break with the habits of a lifetime. There is an important “but”, and I think other hon. Members on the Government Benches share my view: because the Government have made a mistake at this stage, they now need to come back with something better than we would have needed had they not made this mistake. Therefore, the Government’s position of purdah must be a stricter one than they might have been able to get away with had they simply amended the existing restrictions rather than taking them all away and having a completely clean base from which they could have done anything.

Mark Spencer Portrait Mark Spencer
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Surely my hon. Friend will recognise that in the period before the referendum our relationship with the EU will still be fluid and there may be matters that need the attention of the Government and that could be crucial to an industry or sector of the economy. If he goes down the route of this period of purdah, the Prime Minister might not be able to do a deal or make an announcement on something of fundamental importance to the economy during that period.

Jacob Rees-Mogg Portrait Mr Rees-Mogg
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I was making a slightly different point. I was saying that it is going to need to be tougher than the Government would have got away with had they come through with a limited change at an earlier stage. The Government said they would scrap the whole of section 125, and there is now suspicion that there was an ulterior motive for that. To allay that suspicion, the Government have to be very specific about the exemptions they want. It might be an exemption to vote in the Council of Ministers, and that would not be unreasonable, but would I give them an exemption to announce from the hilltops that they had lots of money from the EU to build a new factory in a key swing area of the country? No, I would not; I would think that would be about fiddling the result, if they wanted a yes.