European Union Referendum Bill

Christopher Chope Excerpts

Tuesday 16th June 2015 Commons Chamber

[Mr McFadden]

My hon. Friend makes a good point. All these models need to be examined to see what their strengths and weaknesses might be.

Aside from its regular work on the Budget and the autumn statement, the OBR already produces a longer-term fiscal sustainability report on future trends and pressures, the latest edition of which was published just a few days ago, so it already ranges more widely than the work we are most familiar with on Budgets and autumn statements. Our amendment asks the OBR to produce a report on the implications for the public finances of a British exit. For example, can we assume that the UK would save all its budget contribution to the EU, as claimed by the advocates of exit, or could we expect to contribute some or most of that in return for continued access to the single market? Some countries outside the EU but part of the European free trade area have to make substantial contributions for access to the market. Are there other effects to take into account, such as the implications for the public finances of any migration changes as a result of exit? Would exit have any impact on the long-term demographics of the country that might in turn impact on the public finances? There are a number of issues that the OBR might want to consider that could impact on the public finances.

[Mr Christopher Chope (Christchurch) (Con)]

Will the right hon. Gentleman explain why he and his party objected to my Bill in the last Parliament calling for an independent audit of the economic costs and benefits of our current membership of the EU? Is that not the most fundamental issue about which the public want to be informed before the referendum?

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[Sir William Cash]

I seem to have spurred my right hon. and learned Friend to a passionate pursuit of his arguments, because he does not want what I am proposing at all. The fact is that the Electoral Commission says the proposal to remove section 125

“could mean that governments and others will be free to spend unlimited amounts of public funds promoting an outcome at the referendum right up until polling day.”

It goes on to say:

“In the Commission’s view, there is a risk that the use of significant amounts of public money for promotional activity could give an unfair advantage to one side of the argument. Unlimited government spending would also undermine the principle of having spending limits for registered campaigns.”

We have already heard about the interference in the Scottish referendum, and what the right hon. Member for Gordon (Alex Salmond) said is completely right.

[Mr Chope]

Does my hon. Friend agree that it is ironic that the section 125 provisions were adopted by the Venice Commission in the following year and are now universal best practice, and that the Venice Commission has endorsed the fact that there should be a prohibition on Government expenditure in the four weeks of the referendum campaign?

[Sir William Cash]

That is absolutely right. I was going to refer to that, but I am grateful to my hon. Friend for making the point.

I want to refer to what section 125 actually does say, because the proposal is to remove that tonight, in the face of our opposition. The explanatory notes accompanying the Bill state what they do:

“These Explanatory Notes have been prepared by the Foreign and Commonwealth Office…to help inform debate”

and

“in order to assist the reader of the Bill”.

However, paragraph 52 of the notes gives no explanation and simply says:

“Paragraph 25 provides that section 125 of the 2000 Act does not apply for the purposes of this referendum”,

and then mentions a consequential amendment. There is no explanation at all. That itself is a reason for our being concerned about the way this is being done.

I want to return to the question of what we are repealing. What is in the 2000 Act is very sound. It refers to

“any material which—

(a) provides general information about a referendum to which this Part applies;

(b) deals with any of the issues raised by any question on which such a referendum is being held;

(c) puts any arguments for or against any particular answer to any such question; or

(d) is designed to encourage voting at such a referendum.”

It is very comprehensive.

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[Mr Chope]

Do the figures my hon. Friend is referring to include Government expenditure? The Minister, responding to the debate on the previous group of amendments, said the Government should not be a lead campaigner in a referendum, thereby implying that it will be a campaigner and spend Government resources. Are Government resources restricted in any way?

[Sir Edward Leigh]

That is why this debate is important. When the Minister replies, we want further and better particulars. We really want to know whether Government expenditure will be a part of this. The Government have enormous resources through all the Government Departments and it would be unfair if there was a mismatch in total spend for both sides of the argument. The yes campaign in 1975 spent the equivalent in today’s money of £11 million, compared with £1 million by the no side. The no side in 1975 were outspent 10:1, and that simply cannot be fair. Such things may have been more accepted in those more forgiving days, but I do not think they would be accepted now when there is widespread disillusionment about politics and a widespread feeling, which may be unfair and I know the Government want to act in an entirely honourable way, that the result could be fixed by the political establishment. The political establishment, encompassed by all the leading political parties except UKIP, big business and the European Commission, could have a massive and decisive preponderance of spending.

The 2000 Act provides for an entirely different regulation to what existed in 1975. It still looks far more likely that one side will have much higher spending limits than the other, which is inimical to our sense of democratic fair play. It is possible that the voters will be—or could feel, which is just as important—overwhelmed by spending on one side. Spending caps in constituency elections are basically equal. I know this is a UK-wide referendum, but that actually makes it more important, because there is huge interest both within and outside the country. The coverage in the European press is massive and will only get greater, and the European Commission and foreign Governments are very exercised about it. It is incumbent on the Minister to tell us what he plans to do about it and how he will address the problem I have articulated. If I am wrong, I am happy to listen to the Government and to be reassured, but they have to reassure the Committee.

Aside from the inherent inequality, there are deeper concerns about the potential effects. Let us consider the results of the Scottish referendum and the following general election: one side can win a referendum, but afterwards, if people feel the arguments were not entirely fair, there can be a massive shift of opinion. If a yes result is secured through massive overspend, there is a danger—dare I say it?—of a UKIP backlash, just as we have seen an SNP backlash, and this tidal wave can overwhelm people. It is essential, therefore, that there is a feeling of fairness. We need an open debate in which both sides are funded broadly the same and can put their arguments. If the yes campaign wins by the force of its arguments, I, as a democrat, would be the first to accept that it won fair and square, but there has to be a feeling of fairness.

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[John Redwood]

I am afraid that I do share some of the hon. Lady’s worries. I would like to see that clearly stated in writing and as an act of policy from the EU itself. That would probably be much appreciated in many sections of the United Kingdom, so that we can be sure that there would not be clumsy, unwarranted or unwelcome interference. It would be a double irony if the EU were using our money to do it. That is what makes it particularly difficult. UK taxpayers of both views would be paying the money to the EU, but only one side of the argument would be funded by that money.

[Mr Chope]

Surely the Government could do something on this front. They could ask the European Commission and the European Union not to intervene and not to fund the referendum campaign. They could then get a written undertaking from the Commission not to use European Union funds. That is outside the scope of the Bill, but the Minister could give such an undertaking.

[John Redwood]

Indeed. I am speaking to amendment 10 tabled by my hon. Friend the Member for Stone (Sir William Cash), who seeks to clarify this point and prevent the use or abuse of EU money. I hope that the Minister will respond and that he will have his own proposals on Report. The Electoral Commission has given exceedingly good advice across the board on this referendum. It seemed to suggest that it would not be right for the EU to give money for the campaign, and it would be nice to have a reassurance that the Government share that view and accept the advice of that august body, which is there to guide us.

There is an additional issue with EU money, to which some colleagues have referred. What do we do about the EU money that is routed to bodies or organisations within the UK that choose to make a donation to a referendum campaign? That is another difficulty. As I understand it, such a donation would be perfectly legal because the organisation giving the money would be able to say that it had other sources of money and it was not a direct gift of EU money to the referendum campaign. Such a body may be swayed by the fact that it had had generous access to EU moneys in the past. While one would hope that none of them were donating for that reason, people would suspect that a body in receipt of substantial EU moneys in the normal course of business that saw fit to give money to the campaign to stay in would hope that the EU would be better disposed to it when it put in its next application for money.