European Union Bill

I am afraid that the noble Baroness is completely mistaken, as they have very much to do with the amendment. The amendment would have the effect of taking out of the scope of the Bill decisions falling under Article 48(6). If such decisions were no longer subject to a subsequent referendum, which would be the effect if the amendment of the noble Lord, Lord Kerr, was agreed to, the practical damage done to our country would be less. I hope that the noble Baroness can follow the logic of that. Perhaps she would like me to repeat the point. She is shaking her head, but I would be happy to do so if she does not understand the point because it is extremely important. I repeat to the noble Baroness that the effect of the Bill as currently drafted is not merely, as she might have supposed from hearing the declarations of her Prime Minister and her Foreign Secretary, to ensure that there is a referendum if ever we have treaty changes or grant increased competence to the European Union. The Bill would have the effect of requiring a referendum on decisions such as those that I have enumerated, including, for example, on police collaboration. The effect of the amendment of the noble Lord, Lord Kerr, and his colleagues would be that we would not need a referendum on those other matters, which are decisions not involving a transfer of powers. That is an important distinction to consider. I do not say that I would be happy with the Bill if it was simply amended in the way that the noble Lord, Lord Kerr, and his colleagues propose—I would still be very unhappy—but I would be less unhappy with it and the damage done to the national interest would be less, because the kinds of decisions that I am enumerating would be able to be reached. We would be able to take part in those decisions if this amendment went through. It is very important indeed that the noble Baroness understands that important distinction, and I am glad to have had the opportunity to go through it with her. Let me carry on with the next example in Schedule 1, which is, "““Article 89 (cross-border operation by competent authorities)””." Again, it is very possible to imagine scenarios in which some sensible, pragmatic arrangement needs to be reached with our European partners on cross-border issues, such as drugs, racketeering or human trafficking, which we are assured is a major problem. Under the Bill as currently drafted, such decisions could not be reached without a referendum, but they could be reached without a referendum if the amendment put forward by the noble Lord, Lord Kerr, and his colleagues was adopted. Perhaps the noble Baroness appreciates that point now. Another example is, "““adoption of certain environmental measures””." I totally agree with what the noble Lord, Lord Deben, said about that. It seems to me that it may very well be necessary, if we are to take any practical measures at all in defence of the environment, for us to reach agreement with our continental—and, indeed, Irish—neighbours. Once again, if we are half-serious about the European Union, that is an issue on which we should be able to do business without having to resort to a referendum the whole time. Another example that is quite interesting—I will come on to ““enhanced co-operation”” in a second—is, "““changes to list of military products exempt from internal market provisions””." Perhaps the coalition has not recognised this as yet, but we actually have a very major and successful defence industry—I know something about that—so it is very important indeed that, in so far as possible, our defence industry is able to sell its products within the European Union, where there are no problems of international conflict or anything of that sort. For that purpose, it could be a very good thing if the areas in which we are currently protected against single market legislation in the matter of defence goods should be reduced. That is something on which we may need to come to an agreement with others, so it would be absurd to have a referendum on a matter like that. Of course, once again, we all know that there never would be a referendum; if we enacted this Bill, we would simply be ensuring that, in practice, the Minister could never be party to an agreement. As I said on Second Reading, it is clear to me that the consequence of enacting this Bill, including its present provisions whereby Article 48(6) decisions would be covered by the requirement for a referendum, would be not to bring the European Union to a halt or to stop the EU doing any business; the consequence would be that we would be de facto excluded from any decisions that were taken. We would simply find that we had a Minister present who had become an embarrassment to us and a joke to others. The Minister would be completely paralysed and unable not only to take part in a decision but to have any influence on that decision. We all know that you can influence discussion, negotiation or the exchange of views only if you can contribute something. I made that point in an earlier intervention. If it is known from the outset that whatever is agreed you will not be a party to it, by definition you have no leverage on the result. The practical consequences of the Bill as drafted would be appalling. I congratulate the noble Lord, Lord Kerr, and his co-signatories on coming up with an amendment which would seriously mitigate the damage done by the Bill, though it would certainly not by any means remove all of it. However, it would at least reduce that damage, and in that sense is extremely welcome.