European Union Bill
Lord Taverne Excerpts(13 years ago)
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Lord Lamont of Lerwick
It is not a question of not using the powers; they are there to serve a purpose. The Government have indicated that they will not move further forward in any of these areas and they are enshrining in legislation obstacles to this ever happening in the future. Given the competence creep and the way in which power has seeped directly and indirectly, openly and less openly, to Brussels, I totally support the Government’s objective, and I have given the best answer that I can think of to the noble Lord.
Lord Taverne
If my noble friend is saying that the present Government are not going to use these powers, the conclusion is surely that the Bill is intended to affect not the present Parliament but a future Parliament. Is that not totally unprecedented?
Lord Lamont of Lerwick
I do not accept that. I agree that it is designed to have an impact on the future and to prevent the creep of powers to Brussels. That is wholly right, because we have seen again and again how power has gone to Brussels, sometimes by indirect means and sometimes by means that some of us regard as questionable. We have seen again and again how referenda results have sometimes been rejected, and questions have been put again and again to the people of other countries until we had the right answer. This Bill is trying to say that we should not have a further transfer of powers, that we have had enough of those transfers, that there are plenty of powers to deal with problems that arise, and that we do not need any more powers as all the tasks of the European Union can be addressed through existing powers. We are therefore drawing a line in the sand, as long as there is a Conservative Government or a Conservative-Liberal Government. Future Governments can, of course, choose to repeal this legislation if they want to. That is their prerogative. We will, no doubt, address the sunset clauses later, but I do not go along with them. It is perfectly legitimate to state, “We are passing this legislation now and we intend it to remain”.
Lord Howell of Guildford
It does not dilute our power to veto. Our power to veto is there unless it is removed by other transfers, which of course would trigger a referendum. However, if the power to veto is there, there is no dilution. We have heard from noble Lords who have spoken in this debate of the small but undoubted change in the proportion of the population of the total European Union that would result in this country if a number of other countries acceded. That is true, but the veto remains. There has been no transfer of power of any description or kind, which is what this Bill is concerned with.
I also wanted to say that any accession treaty provides Parliament with the full power and the opportunity to scrutinise the accession treaty, which we have done in the past. If it was so minded—a point that meets the concerns of the noble Lord, Lord Stoddart—a Parliament could legislate for a referendum. It remains the power of Parliament to do so. It is perfectly free to say, “Here is an issue on which we think there should be a referendum”.
Lord Taverne
Is the point made by the noble Lord, Lord Davies, not correct? If an accession reduces the voting power under majority voting procedure of the UK, that must mean a decline in power of the UK Parliament.
Lord Howell of Guildford
It does not alter the fact that the United Kingdom will continue to have a veto, as other countries will, unless we surrender positions of unanimity by abandoning our veto. That would be the position. It is perfectly true that there would be very marginal and small changes in the pattern of weighting, but there is no particular reason why they should involve a loss of power or a transfer of competence. They do not do so. The noble Lord, who is very experienced in these things, was talking about patterns in which all sorts of alliances are formed or not formed. All sorts of gatherings and countings of votes take place when Ministers go into these negotiations. That will continue as before. The accession of another country does not alter that pattern in any way.
The noble Lord, Lord Pearson, asked about the ways in which immigration or financial regulations might be affected by the arrival in the European Union of a new member state. He will recall that when Bulgaria and Romania joined the EU, we put transitional arrangements in place. We had the perfect power and legislative opportunity to do so, and we can do so again. Nothing in the treaty of accession prevents us from doing so and nothing has prevented us from doing so in the past.
I emphasise, as the noble Lord, Lord Triesman, and other noble Lords have asked me to, that, as with all previous Governments regardless of their political composition, we are strong supporters of future enlargement. Like some noble Lords, I remember the considerable uplift in spirits when first there was the fall of the Berlin wall and the Soviet empire and then when the processes of enlargement embraced one after another of its former satellite countries. We all worked, planned and hoped for these things. Some of us thought that we would never see them in our lifetime, but they did occur.
EU enlargement helps to create stability, security and prosperity across Europe—we have never disputed that—and serves to spread democracy, human rights, the rule of law and fair rules for workers and businesses. These standards are high although they are not always achieved. I am grateful to the noble Lord, Lord Pearson, for reminding us of a joke—which, frankly, I had heard before—about the standards of the EU itself. The EU is not, of course, a country; it is a vast confederal structure. It is a unique institution in the 20th and 21st centuries but it is not a country, and perhaps it is a little distorting to suggest that it should be judged in the same way as a nation state. However, that we favour enlargement in the way in which it has come about so far—and in the way in which it might come about in the future—should not raise one iota of doubt for a single minute.
Whenever a candidate country meets the EU accession criteria and it is decided that it is ready to join the EU, we will support its entry. The Government will present its case to Parliament through the introduction of a Bill that will be debated in both Houses and passed or not passed into an Act according to the will of Parliament.
I have little to add to the strong points that have been put by a number of noble Lords as to the fact that transfers of powers and competencies do not arise in the precise form in which we are dealing with them in the Bill; there is no competence or power transfer. The commitment in the coalition government programme for government is to have a referendum on treaties that change a power or competence from the UK to the EU. Treaties that merely allow a new country to accede do not meet this requirement. On that basis, I urge noble Lords to consider what I have said on this matter and to withdraw the amendment.
Baroness Williams of Crosby
My Lords, my noble friend Lord Taverne and I have a difficulty. A number of speeches addressing this group of amendments have moved somewhat between the groups. There have been references to later amendments. We are not quite sure whether this debate is meant to comprise the list of things being put forward by the Front Bench of the Labour Party, including this amendment as well as the others that fall within the same general area, or whether we are supposed to limit ourselves entirely to the single market. In that case, a great many speeches have been rather close to being out of order. Perhaps the Government will indicate whether they wish this debate to be limited to the single market or to take a number of these amendments together, in which case my noble friend Lord Taverne and I both wish to say something.
Lord Wallace of Saltaire
I understood the noble Lord, Lord Triesman, to say that as this group and the following group of amendments cover a number of similar issues he had touched on some of the broader issues behind them. It was not my intention to go into the detail on all of them as the noble Baroness has just done.
Lord Taverne
My Lords, some very important issues are raised by these amendments. If they are now to be considered and debated, I do not see how we can possibly break for dinner.
Lord Triesman
My Lords, we have been urged by the usual channels to make sure that the business is handled as effectively as possible. For those reasons I spoke to group three, which has broadly related economics based arguments. I spoke to nothing else. I was kindly reminded that I would need to move the amendment at the end and, in due course, formally move the next two amendments. However, I spoke to the economic group, group three. I hope I have now made it clear.
European Union Bill
Lord Taverne Excerpts(13 years ago)
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Lord Taverne
My Lords, the previous two speakers eloquently demonstrated the importance of these amendments. They made a passionate plea for a much more sensible and enlightened policy towards Europe. I will deal with one particular aspect: Amendment 23F and the banking crisis.
There are two aspects to the current financial crisis in Europe: sovereign debt and bank liquidity. Many continental banks are undercapitalised. They need more rigorous stress tests as a basis for recapitalisation. National regulation and supervision have failed. We need a special EU-wide resolution regime. We need new, more effective European regulation. If we have that, it will of course give new powers to Brussels and that, as I understand it, would trigger a referendum. The question arises: what sort of question would be posed in a referendum dealing with bank regulation?
Leaving that aside, it will mean that in the course of negotiations taking place in Europe, when negotiators are being very careful and thinking that they can achieve something without triggering a referendum in Denmark or Ireland, or an adverse ruling of the German constitutional court, our negotiators will have to have regard to the fact that there will have to be a referendum. They will be inhibited and looking over their shoulders: they will be negotiating with their hands behind their back. Since this will be an obstacle to reaching a very important area of agreement, the likelihood is that we will be bypassed.
Already we are being bypassed in many important respects. While John Major wanted to be outside the eurozone in a multipolar Europe, it seems that Mr Cameron has more or less accepted that there will be a small but very powerful unit in Europe. We will find that being in the outside lane of a much less congenial Europe is not a particularly effective experience for very important aspects of our economy. I have heard Treasury officials saying that we are now in the same position as Latvia, asking what agreements are being reached in rooms where the important people are meeting.
A story was told at a conference I went to about an occasion when Gordon Brown insisted on being present with eurozone Ministers. They said that they would meet him, but the press outside were speculating on how long he would last: would he be out in five minutes? In fact, that was precisely what happened: after hearing him for five minutes, they thanked him, said that they must now have their private meeting and asked him to leave. He could not face the press after five minutes, so he stayed in the lavatory for half an hour.
It is not very dignified to be outside the corridors of power. This, however, will be much worse. Obviously there were problems about joining the eurozone, but the regulation of banks will affect the City profoundly, and it will be another case where we are likely to be bypassed.
Lord Hannay of Chiswick
My Lords, I will address Amendments 23C, 23D and 23E, as did the noble Lord, Lord Deben, who gave us a brilliant illustration of why flexibility in this area is not only desirable but necessary.
I have, off and on, had quite a few dealings with the issue of energy in the European Union, and I have to say that we have got it comprehensively wrong. In the 1970s we fought desperately—of course, Mr Tony Benn was the Minister at the time—to avoid the European Union having any responsibility in this field whatever in case it stole our oil, which it was never going to be able to do because European law is perfectly clear on that point, and so we prevented any policy emerging then. Then, when the Single European Act was passed, we allowed—I agree that by then we were not favouring it—energy to be kept out of the single market at that stage because of the objections of the French and the Germans, and that was a disastrous mistake. Now, when we have discovered that we are not one of the three major oil and gas producers in the world, we have discovered, surprisingly, that we could do with a common energy policy, but it is quite difficult to get; and, as the noble Lord, Lord Deben, has said, it is in an area of shared competence. So it may very well be that, sometime in the not too distant future, we will want to support some changes that will give more powers to Brussels in the area of energy security, competition, interconnectors and all these things; yet here we are subjecting all that to a referendum requirement under which the no campaign would no doubt say yet again, “This is the European Union coming to take all our North Sea oil”, and so on. The result may very well be negative because that campaign would be very emotive. Heaven knows what the Scots would think about it—quite a lot, I should think.
I do really feel that this illustrates the case for flexibility—and the same is true on climate change. It is rather clear that the European Union will struggle under its current institutional arrangements to find a way forward through the next 30, 40 or 50 years on climate change. Things are going to be very different. Crises are going to emerge and Europe is going to have to find a response to them. Some of those responses may involve new powers for the Union as a whole. And yet again, this will be made extraordinarily difficult by the provisions of the Bill.
I am not saying that these particular amendments are the last words in wisdom on this particular issue, but I do really think that the Government ought to be taking this a bit more seriously. We have not had a single serious response from the Government since we began this Committee stage on any point that has been raised. I am waiting now for the response to this debate to have, for the first time, a serious response to the substance, because we have not had it so far. Those are issues of major importance. I think that if the Government were to go away and reflect on this now, they would see the wisdom, at the very least, of truncating the list of issues on which there need to be referendums.
Lord Lamont of Lerwick
My Lords, I want to make one simple and brief point, but before I do that perhaps I may respond partly to what the noble Lord, Lord Taverne, said because I was a little puzzled by it. He is a former Treasury Minister and chairman of a think tank in the City. He was referring to the two aspects of the banking system in crisis being capital and liquidity, with which I totally agree. But he was, I think, arguing that perhaps we need more European attention to capital. That was quite a surprising thing to suggest because, as he will remember, not long before the Irish banking crisis struck and the Irish banks were revealed as hopelessly undercapitalised, we had stress tests carried out on the European banks—a separate exercise in the European Union and in Britain. The European Union banking tests revealed that no bank had a problem with capital other than one bank in Germany. That was shortly before the crisis was fully revealed in all its horror in Ireland.
I agree with the noble Lord that there is a separate aspect of liquidity which the European Central Bank has, in a skilful and constructive way, provided to the European banking system. Equally, the Bank of England has also exercised its national function well. He did not make the case for further European competence or the transfer of power or competence from this country to Europe by merit of that alone.
The noble Lord went on to make the familiar point about the eurozone and whether we were marginalised by not being in it. It is of course true that eurozone Ministers may make certain decisions affecting themselves in which we do not participate. We do not participate in meetings of the Federal Reserve Bank, although its decisions affect us. However, anything that eurozone Ministers decide to do that is governed by the rules of the single market or competition law continues to be governed by the rules of the single market and competition policy. He was careful to say that issues would arise if we were proposing to join the euro but the implication of his argument was that in order to gain influence we should join the euro, which I am sure he does not really subscribe to. Very few people will own up to arguing that we should join the euro today.
Lord Taverne
I was not arguing that we should join the euro today. On the earlier question, I defer to my noble friend’s greater experience in these financial fields. However, a large number of economists have taken the view that what is needed at the moment are much more effective stress tests for European banks on a euro-wide basis. For example, I dare say my noble friend has read economist Willem Buiter’s considerable contribution to Citigroup’s paper on the subject. He is not alone in this because a large number of economists are concerned that only through a much more rigorous euro-wide stress test system will the banking liquidity part of the problem be adequately resolved.
Lord Lamont of Lerwick
I think the stress tests refer to capital rather than liquidity, which is a slightly shorter-term issue. I agree with the noble Lord and Willem Buiter that we need proper stress tests. However, the previous stress tests that were applied within the EU were revealed in all their nakedness as thoroughly inadequate.
As the noble Lord, Lord Wallace, said, we should remember that the regulations that govern these issues are not only European but worldwide. The BIS has a crucial role—in fact the lead role—in determining the capital ratios of banks. I do not think that the argument about the failure of the banking systems is an argument per se for why the UK, which is outside the eurozone, ought to contemplate further integration in this field than has already been provided for. This area has to be addressed internationally and through many agencies.
The main point that I want to make about the debate is this. We have had some amazingly excellent speeches but there is confusion, or insufficient distinction, in these debates between the European Union acting to legislate or make a policy decision and it altering its own constitution—if I can use the word “constitution”; I know people who might object to that—or its own rules. People have made eloquent speeches about human trafficking, piracy and the environment, but not all the speeches have distinguished between the EU’s ability to act and to have a policy and its need for more powers.
The noble Baroness, who made a tremendously moving speech about human trafficking, did not actually demonstrate that more powers were needed. More agreement might be needed, and might be achievable within existing powers, but she did not demonstrate that more powers were needed. Equally, the noble Lord, Lord Davies, spoke about piracy but did not demonstrate that we could not have an EU policy on piracy within the existing competencies and powers of the EU. I appeal to the Minister to make that distinction when he addresses all these areas.
Where there are political and human problems—piracy, the environment, energy, human trafficking and all the other issues listed in the amendments—can the Minister distinguish between the EU’s ability to act, to legislate under its own rules and, quite separately, the need to change its own constitution? The people speaking for the amendments ought to have argued for a change in the European Union’s rules. With great respect to all those who spoke so movingly on the issues that mattered to them, not all of them made the case for a change in the rules of the EU. That seems to be the crucial point in this group of amendments.
European Union Bill
Lord Taverne Excerpts(13 years, 1 month ago)
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Lord Deben
Perhaps I may talk about the question of virginity. In the matter of air pollution, we do not have sovereignty over half the air pollution that affects my former constituents and the noble Lord’s neighbours. By pooling our sovereignty, we now share the sovereignty over all the air pollution and we can do something about it. By doing that, we have increased our sovereignty. If I may say so, the noble Lord really misleads people when he talks about sovereignty as if it is something that in the modern world means keeping everything. I remind him of the biblical concept that if you want to gain something, you share it, which surely is the point of the European Union.
Lord Taverne
Perhaps I may put two further examples to the noble Lord. He is very conscientious and I am sure that he read carefully every word that was spoken at Second Reading. What about the examples that have been given? The noble Lord, Lord Kerr, previously referred to defence equipment, an area in which we would have an enormous amount to gain if we shared sovereignty. Presently, we do not.
My second example, patents, was given by the noble Lord, Lord Liddle. Are these not perfect examples of where we gain enormously from sharing a certain amount of authority instead of keeping it entirely in a narrow sense?
Lord Pearson of Rannoch
I cannot accept those points from the noble Lords, Lord Deben and Lord Taverne. Why could we not have done these great things by intergovernmental collaboration? Why did we need to pool our sovereignty to achieve them? On the environment, if the noble Lord, Lord Deben, as he did in his speech, is going to extol his 16 years in the Ministry of Agriculture, Fisheries and Food as an Agriculture Minister, is he really going to tell your Lordships that he is all that proud of that? What about the common agricultural policy and the common fisheries policy? These are also examples of the EU’s environmental control over what used to be our sovereign territory.
Lord Stoddart of Swindon
I cannot confirm that now, but I will certainly check on it. However, there is little if any difference between what the constitution proposed and what was agreed in the Lisbon treaty.
Lord Taverne
My Lords, I apologise for speaking, but I have to leave at 5.50 pm. I thought that this debate would be over before then. I will briefly answer a point raised by the noble Lords, Lord Deben and Lord Davies. They asked why the Liberal Democrats had consented to this. One could also ask why some of the former Cabinet colleagues of the noble Lord, Lord Deben, who are now in the present Cabinet, have also consented to this. There is only one explanation: Homer nods. I have great respect for the other place, but in the deliberations there on the Bill the question of Article 48(6) was never raised. I have studied this; it was never properly debated. Many aspects of the Bill will be properly considered only when people outside the House read our proceedings. I trust that when my Liberal Democrat colleagues see the force of the arguments, they will recognise that there is no obligation under the coalition agreement to support legislation that is full of constitutional improprieties. When they realise that, I hope and trust that they will take the appropriate action.