European Union Referendum Bill Debate

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Department: HM Treasury
Tuesday 8th December 2015

(8 years, 5 months ago)

Commons Chamber
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Peter Grant Portrait Peter Grant
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I welcome the fact that the hon. Member for Stone (Sir William Cash) is inclined not to press at least one of his amendments. It seems to me that there is, and will be, a need for information about the likely consequences of an in vote and of an out vote. I do not think it is right that that should be left entirely to individual campaigns, because we already know that there are arguments about who runs the campaigns and how they are going to be funded, and by definition they will tell at best one half of the story. It is perfectly in order for the UK Government to publish appropriate information that sets out the background to the referendum. A survey done about a month ago indicated that the EU member state whose citizens are worst informed about what the EU actually means is the EU member state whose citizens are going to have a vote as to whether or not they are going to leave. We cannot allow that to continue; we cannot allow the referendum to come upon us with a significant number of our citizens not really understanding what they are voting for, not because they cannot predict what the future might be if we leave, and not because they cannot predict what the future might be if we stay, but because they do not actually know what the present is. Too many people do not understand what the EU does for good or for bad right now. If we simply leave this to partisan partial campaigns, people are going to end up confused rather than better informed. Incidentally, it is one reason why this might be the time to extend the franchise, because we think that 16 and 17-year-olds do not understand it, but that their lack of understanding probably puts them less far behind adults than in most other election campaigns. That vote has been and gone, however, so we will leave it at that.

I do find it a bit surprising and ironic—I will not go as far as to say hypocritical—that, as we saw when the Bill went through its earlier stages, so many Conservatives express the concern that during a referendum campaign a Government might publish information that was a wee bit one-sided. Most Members would not have received what a number of SNP Members received shortly before the referendum last year, which was a glossy full-colour booklet published by Her Majesty’s Government making sure that we understood the wonderful benefits that accrued to us from membership of the United Kingdom. The UK Government recently advertised for a post, in the Department for International Development of all places, whose main job would be to persuade the Scots how lucky we were to be part of the Union. As long as that kind of stuff goes on, I do not think that we need to take any lessons from anybody on the Government Benches about the dangers of letting Governments get involved in a partial way in a referendum campaign.

Bernard Jenkin Portrait Mr Bernard Jenkin (Harwich and North Essex) (Con)
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The Committee I chaired in the last Parliament, the Public Administration Committee, conducted an inquiry into civil service impartiality in referendums in respect of the Scottish referendum. It is one thing if there is a Government in Edinburgh on one side of the argument and a Government in London on the other, each publishing arguments for and against a particular proposition, but where will the balance be in this referendum, given that there is only one United Kingdom Government who will only be on one side of the argument?

Peter Grant Portrait Peter Grant
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It is perfectly in order for the UK Government to take an impartial, neutral stance once we get closer to the referendum. We do not know what stance they will take. There is a question as to whether it was appropriate for somebody else’s Government to interfere in our referendum, but I know that that is not an argument we will win just now. However, that degree of interference probably contributed to the fact that on most days these Benches are significantly more crowded than they were before. If the Government do not produce information, as opposed to campaigning opinion, about how the EU works now, who will produce it? If we are happy for the two opposing camps to produce the information, then they can go ahead and do it, but we know before we start that all that will happen is that people will be drawn to believing statements of fact because of their opinion of the politician or TV personality who has associated their name with them, rather than being presented with a factual, well-researched document that sets out how things are just now.

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Peter Grant Portrait Peter Grant
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My own personal views about how political campaigns and parties are funded probably would not get a huge amount of support here, but that might be something for a ten-minute rule Bill some time over the next four and a half years. The hon. Gentleman makes a valid point. It is important that nobody has the opportunity to buy a referendum any more than anyone should be given the right to buy electoral success. I certainly would not want to see us going the way of America where people need billions of dollars behind them before they can even stand for election.

We are still not addressing the fundamental problem that, no matter how well or badly funded the individual campaigns are, if we are starting from the position of having the least well-informed electorate in Europe on this important issue, someone is going to have to provide the necessary information to bring people up to a better level of understanding of, for example, what “ever closer union” means and does not mean—because it does not mean what it keeps being presented as meaning, even by the Prime Minister.

People need to understand which aspects of immigration to the UK the European Union is involved in and which aspects it is not involved in. They need to understand which aspects of our welcoming of refugees, or our failure to welcome them, involve a European Union decision, and which aspects come under the auspices of the United Nations, for example. These are massively important issues, and the debate in this Chamber over the last months has not always helped to increase public understanding and appreciation of what the European Union does and does not do.

If there are concerns that the Government might not be impartial, or that they might be over-enthusiastic towards one side or the other, I would be quite happy for the Electoral Commission to publish guidance and to require the Government and everyone else to comply with it. It would be inappropriate to ask the Electoral Commission to scrutinise, veto or censor Government documents in the first place, but it would be perfectly in order for it to issue guidance on the conduct of the referendum, including on the kind of information that could and should be funded and published by the Government.

I find myself in the strange position of almost telling Government Back Benchers that they are wrong because the amendment seems to be based on an unwillingness to trust Her Majesty’s Government. I am not the biggest fan of this Government, and I am not the biggest believer that we can trust them, but if they cannot be trusted to present a fair case to the public in this matter, we are in trouble. The media will not present such a case; the print media absolutely will not do so. The political campaigns will not do so because it is not their job to be impartial. It is their job to be partisan, although perhaps not in a party political sense, on the issues that they are campaigning on.

I welcome the fact, if it is confirmed, that the hon. Member for Stone is to withdraw his amendment (a) to Lords amendment 5. I hope that he will not press his amendment to Lords amendment 6 as well. There is a crying need for reliable, well-researched information to be put into the public domain. Let us not forget that, a few yards from here, we have one of the most highly regarded research facilities anywhere in the world. It is highly regarded not only for the quality of its research and the speed with which it is done but, most importantly, for its impartiality. If we cannot rely on the research facilities within this House to provide reliable, well-documented information, who can we rely on?

Bernard Jenkin Portrait Mr Jenkin
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I point out to the hon. Member for Glenrothes (Peter Grant) that, whether he thinks it an irony, an accident or something more sinister, it is the people who are in favour of Britain remaining in the European Union who are championing Lords amendment 6, while those who support the leave campaign regard it as a bit of a Trojan horse that would enable the publication of a lot of subjective judgments loaded in favour of one side and not the other.

I referred to the report published at the end of the last Parliament by the Public Administration Committee entitled “Lessons for Civil Service impartiality from the Scottish independence referendum.” The reason that we produced the report was to look at the question of impartiality. There is a rather modern, corrosive view that the concept of impartiality, when applied to civil servants, means simply that they should be prepared to work for whichever party happens to be in office, that by so doing they are therefore impartial and that their conduct can then be quite partial and loaded under the Armstrong doctrine, which states that they have to support the Government of the day. Actually, I think most people in this country regard impartiality as a rather more imprecise quality, with a higher moral tone. They see it as having something to do with objectivity, with balance and with not being compromised into becoming a mere cheerleader for one point of view or another.

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William Cash Portrait Sir William Cash
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My hon. Friend should bear in mind that the White Paper that led to the European Communities Act 1972, which went through by only six votes in this House, contained a very precise promise that the use of the veto in our national interest would never be abandoned, because to abandon it would be to endanger the very fabric of the European Community itself. Is that not an example of how unreliable White Papers and other Government reports can be?

Bernard Jenkin Portrait Mr Jenkin
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Indeed, but it is unavoidable that the Government are going to produce information of this kind.

The second duty, in Lords amendment 6, is not something that I expected to see. The Lords amendment asks the Government to produce judgments and opinions on a vast topic, using examples that, by their very nature, will be subjective. I am not at all surprised that the Electoral Commission has decided that it would be far beyond its competence to make a judgment about what such a document might be. The Government have accepted this amendment, but if they are to justify retaining it—as I expect them to do—they will have to answer some questions about it.

What do the Government mean by the word “publish” in the amendment? It would be one thing to place a learned, detailed and technical paper in the Library of the House of Commons in order to present the depth of analysis that the hon. Member for Glenrothes believes would be justified, but would the Government produce such a subjective document in a form that could be circulated to every household? How would we feel about that, 10 weeks before a referendum? It is reasonable for the Government to explain the outcome of their negotiations, but it would not be reasonable for them to use public money to present their entire world view on European Union membership as part of a campaign to remain in the EU.

Anne Main Portrait Mrs Main
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Is my hon. Friend clear about what is meant by the Government’s response? Does it refer to a response achieved through collective responsibility? What would happen if there were dissenting members of the Government who did not agree with that response?

Bernard Jenkin Portrait Mr Jenkin
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That is a good question. We all expect that, before long, there will be agreement among Ministers that some will not be toeing the Government line on this question. It is too big a question for it to be otherwise. The reason that we have referendums is that the questions split parties. We could not have a general election on a question that split the parties on both sides of the House. It would be impossible to decide on the issue in that way.

It would be absurd to have a referendum and then try to corral all the Ministers into one point of view. The precedent in 1975 was that collective responsibility was abandoned, although that does not mean there is not still a Government view—there is a Government view and a dissenting view. That is how it will work in this case, assuming that a vast number of Ministers do not leave the Government’s view too isolated to be any longer credible as being that of a Government.

Simon Hoare Portrait Simon Hoare (North Dorset) (Con)
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Does my hon. Friend not agree that the country at large still has trust in “the Government”—in the governance of this country— whether or not we think it is right to hold that view? Our electorate would therefore find it strange if, during a referendum campaign, they could not point to what the Government’s view was. The Government of the day would continue after the referendum, and people will want to know what the Government, whether collective or otherwise, think about the issue.

Bernard Jenkin Portrait Mr Jenkin
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I am grateful to my hon. Friend for his intervention. I have already said that the first publication is perfectly justified, as the Government are entitled to explain what they have negotiated and to give their opinion on that. If he would like to do so, he might explain how they are going to give

“information about rights, and obligations, that arise under European Union law as a result of the United Kingdom’s membership of the European Union”

in a concise and simple fashion which is not loaded. Perhaps he could tell us which countries should be used as

“examples of countries that do not have membership of the European Union”

in order to explain the consequences of leaving the European Union. We are talking about very subjective judgments, and of course that is what the debate between the yes and the no campaigns will be about.

My hon. Friend is right to say that people trust what the Government say, which is exactly why what they say should be curtailed and limited: it has a disproportionate effect on the voters. There is absolutely no doubt about that. If a leader of a party says something, that has less of an effect than if the Prime Minister says something. That is why we have a purdah period, and the House has forced the Government to accept that there will be a proper purdah period. Otherwise, if we have what we had in 1975, whereby the Government can carry on regardless, being the Government and yet expressing partisan views on one side of the argument and not the other, an unfair referendum would be created. That is why all referendums throughout the world have systems to try to contain what Governments do during the final phases of the referendum, in order to try to create some fairness.

Steve Baker Portrait Mr Steve Baker (Wycombe) (Con)
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I wonder whether my hon. Friend has seen, as I have, the poster produced by the pro-EU BSE—Britain Stronger in Europe—campaign which co-opts the Governor of the Bank of England under the headline “Think UK’s economy is stronger in Europe”. BSE has also co-opted the President of the United States and the Prime Minister of India. Does my hon. Friend share my concern that it appears that the campaign to remain in is willing to co-opt public officials, who ought not to be dragged into one side of such a campaign?

Bernard Jenkin Portrait Mr Jenkin
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I have to be mindful about whether that is taking us beyond the scope of what we are discussing, but it reminds me of a very controversial element of the Government’s conduct of the Scottish referendum, and I have some sympathy with arguments that have been made on this point. I refer to the use of a permanent secretary to give a speech on behalf of the Government’s view while this was purporting to be the publication of advice to Ministers. Such advice should never be published. On any orthodox analysis, the opinions of civil servants in the form of advice to Ministers should never be published, but this was used as part of the propaganda. Many Scottish National party Members would regard that as a gross misuse of civil servants during a referendum period, and we need to try to avoid that.

I leave two questions for the Minister as he responds to this debate on Lords amendments 5 and 6. First, what does “publish” actually mean? What do the Government intend to do by way of the publication of these two reports? Are they just to be White Papers or are they to be propaganda circulated by the Government in some way much more widely? Secondly, how will he ensure that this is done in the highest spirit of impartiality, using that word in the way most people would expect it to be used? How is he going to ensure that these publications are genuinely objective and not just a means of advancing one side of the argument against the other?

George Howarth Portrait Mr George Howarth (Knowsley) (Lab)
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Does the hon. Gentleman not accept that the Governor of the Bank of England giving advice, for example, with the Monetary Policy Committee on interest rates, is in a very different position from other public officials, because his advice is often made public? It is perfectly clear that if he has any advice on this, it should be a matter of public interest.

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Bernard Jenkin Portrait Mr Jenkin
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The Governor of the Bank of England is a different case. He is not a civil servant, so he is not bound by the civil service code and he does not advise Ministers as a private civil servant—he gives his advice very publicly. Although I was prompted by that example, I think it is reasonable for the Governor, judiciously, soberly and carefully to proffer his advice. I think his advice on the currency question in the Scottish referendum was very germane, but I do not think it was necessary for the permanent secretary at the Treasury to give similar advice. On the speech that the Governor made on the European Union, the remarkable thing about it was how little he was prepared to say which supported the Government’s view. He did not put himself out on a limb. It was an incredible damp squib of a speech as far as the remain campaign was concerned, and it had extraordinarily little impact, because he was very careful about what he said. That might be because he sees that both business and the country are divided on whether we should remain in the EU and that the arguments are much more finely divided than on the currency question in the Scottish referendum.

I wish to deal with Lords amendment 13 and amendment (a) proposed thereto, which stands in my name and that of my hon. Friend the Member for Stone and other colleagues. This relates to another startling change made in the other place on the designation of organisations to campaign for or against the particular proposition. I should declare an interest here—it is not a remunerated interest. I am a director of the company Vote Leave, which will be applying for designation

The Lords amendment added a provision that suggests that it is perfectly okay for the Electoral Commission to designate one campaign supporting one proposition but not another campaign supporting the opposite proposition. The reason why that has been put into the Bill is perfectly understandable; in the 2011 referendum in Wales there was no application from a no campaign and therefore it was impossible for the Electoral Commission to designate a yes campaign, even though there was a very respectable yes campaign. It was suspected that there was an element of sabotage by the no campaign, because it wanted to prevent the yes campaign from getting designation as the no campaign was going to be incredibly weak, whether or not it was designated.

The result of this provision, which was included in the Scottish legislation passed by the Scottish Parliament in order to prevent the same thing from recurring, is extraordinary. It offers the possibility that the Electoral Commission “may” designate one campaign and not another without any restraining factors. In good faith, I do not think we should question the bona fides of the Electoral Commission as to whether it would ever do such a thing, but this is what the Lords amendment actually contemplates. It would be unconscionable, in this of all referendums, for there to be only one designated campaign. It would be intolerable if Parliament let this go on to the statute book without even a discussion about what the consequence would be. It would completely invalidate the result, it would destroy the purpose of having a referendum and it would mean that this issue was not settled in a fair manner at all. We have framed an amendment to the new clause, which I hope will at least draw the Minister out to explain how everything might work.

Kevin Foster Portrait Kevin Foster (Torbay) (Con)
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Let me thank my hon. Friend for giving way, and say that I am enjoying listening to his observations. Does he agree that, if the Electoral Commission was to take the bizarre decision to designate only one campaign when there was clearly a coherent and legitimate campaign for the other side, it would be clearly open to judicial review on that point?

Bernard Jenkin Portrait Mr Jenkin
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I am waiting to hear what the Minister has to say on that point. The proposed amendment changes the wording. It now says that it should be allowed to make that decision only if

“no permitted participant makes an application to be designated under section 109 as representing those campaigning for that outcome except for a permitted participant whose application the Commission states is, in its opinion, vexatious or frivolous.”

That would mean that, provided there are two legitimate applications for designation, the obligation would be clear in the Bill that the commission has to designate two campaigns. That is not clear in the Bill at the moment. If one such campaign was “vexatious or frivolous” and was clearly just there to spoil in some respects, the Electoral Commission would have to justify its action. I hope the Minister will tell us that he can accept our amendment. If he cannot do so, I hope that he will make it clear that the substance of the amendment should be understood, and that it would be unconscionable to have only one campaign designated in this referendum. If an application is made in such a way as to be construed as vexatious or frivolous, such an application would have to be considered. We should be in no doubt that there will be an application in respect of both sides of this campaign.

William Cash Portrait Sir William Cash
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I endorse what my hon. Friend has just said. Let me repeat for the sake of clarity that these amendments are the result of ping-pong between the Commons and the Lords, which is not the best way for them to be considered. We have not had enough time to have a really good look at this matter, and I hope that the Minister will take that into account when he gives us the very full explanation on amendments 5, 6 and 13.

Bernard Jenkin Portrait Mr Jenkin
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In closing, let me add that in all three amendments we have been discussing the potential role of the Electoral Commission. In respect of amendments 5 and 6, the Electoral Commission has shrunk from the possibility of being given an obligation for which it is not fit. It is worth reminding ourselves that we have already developed one new role for the commission during the passage of this Bill, which is that it will give its advice about possible new regulations on the restriction of section 125 of the Political Parties, Elections and Referendums Act 2000 in respect of purdah. It did not want that obligation, but we gave it to it. Electoral commissions in countries such as Ireland or Denmark have a very much more active policing role in respect of fair referendums, and that is a role that we, in this country, have not set up the Electoral Commission to undertake.

William Cash Portrait Sir William Cash
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With both amendments 5 and 6, we need to bear in mind that a duty would be imposed. That duty would imply and carry with it the potential for judicial review. If there were any failure in carrying out that duty in the manner that was expected under all the precepts of administrative law, the Minister should accept that there is more than a high probability of a challenge in the courts. That challenge could arise not only because of the manner in which a report arose, but if any of the information were misleading in any way.

Bernard Jenkin Portrait Mr Jenkin
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I agree with my hon. Friend, and will add that, where the Electoral Commission clearly has a duty, its decision can be judiciously reviewed. In respect of the designation of only one campaign, I have absolutely no doubt that there would instantly be a judicial review, and I speak with knowledge aforethought.

In the absence of the duties on the Electoral Commission —for example, to provide for impartial and objective information from the Government—it is a moral imperative on Ministers to ensure that they undertake their obligations in the spirit of a fair referendum, and not to abuse the trust that this legislation places on them with regard to the publication of that information.

Alan Mak Portrait Mr Alan Mak (Havant) (Con)
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On 9 June, I began my parliamentary career with a maiden speech on this very Bill. I am incredibly grateful to be given the opportunity to speak again on this matter as the Bill makes its way through this House.

Deciding on whether we should continue to be a member of the European Union is one of the most important issues of our generation. We should be thankful about some elements of our relationship, particularly our access to the single market, and our non-involvement in Schengen and in the euro. There are other areas in which we are not getting a good deal, and the Prime Minister is right to renegotiate our relationship to request a better deal. He and the Secretary of State for Business, Innovation and Skills, along with other Members, have said that we should not be afraid to leave if we find that the deal is not good enough for our country and our future.

As the country makes its decision, and as the referendum period begins, I am mindful that the public will need information about the offer on the table. They will need factual and speculative information about what “in” and “out” mean, and about what our future might be under a different arrangement. The public will also need legal, political, financial and economic information. Above all, they will need a well-run and well-administered referendum, and therein lies a key role for the Electoral Commission. The public will also need information on what the Swiss and Norwegian models look like to see which would be a good fit for this country, and whether we are better off staying in a reformed European Union.

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Bernard Jenkin Portrait Mr Jenkin
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Who tabled amendment 6?

David Lidington Portrait Mr Lidington
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Amendment 6, as it currently stands, was tabled by my noble Friend Baroness Anelay, following debate in the Lords, as a way to try to build consensus in that House to enable it to give passage to the Bill.

Perhaps it would be useful for me to explain, in response to comments made in this debate, how the Government interpret the obligation imposed on us by the amendments and how we would propose to see those obligations implemented. By “rights”, as set out in amendment 6, we mean rights that the United Kingdom has as a member state of the European Union, and also the rights granted to individuals and businesses as a result of our membership, such as access to the single market. By “obligations”, we mean the things that our membership of the European Union commits us or obliges us to do. Most obviously, this is at member state level, but there would also be implications for businesses or individuals. An obvious example is our obligation as a member state to transpose EU law in particular areas and to accept the primacy of the EU so long as we are a member of the European Union. The duty written into amendment 6 does not require the Government to set out information about every single right and obligation. Such a report would not be meaningful, and the purpose of the duties is to provide useful and relevant factual information to allow for greater public understanding.

Amendment 6 requires the Government to describe some of the existing arrangements that other countries that are not EU members already have with the EU.