European Union Bill

I am not a Latin scholar, but I have a feeling that there is a Latin phrase to describe what the noble Lord is doing, which is projecting from a particular area which has its particular features and qualities, with which we are all quite familiar, on to the general case for free markets and expansion of trade, which we all seek, as we have done throughout the history of our membership of the European Union and will continue to do. I suppose that the noble Lord’s proposition is that the interweaving of political pressures and the defence and security industries operates just the same as everything else. I do not believe that it does; I just have to disagree with him. In this case, we are dealing with different pressures which are evident to those who examine these patterns. There are dangers as well as gains. Retaining unanimity does not prevent product list changes, but it ensures that we can oppose any decisions that seek to install greater, inappropriate levels of protectionism for products—weapons, equipment, trucks, APVs and all the rest—that we feel should not be exempt from single market provisions. This allows us to take decisions on the basis of what would be best for the effectiveness of the single market and our own defence industry. Unanimity enables us to oppose removal of any products in the list where that would have unwelcome consequences for the UK and might prevent us from acting quickly to secure the right equipment for our troops in times of urgent need. I reassure noble Lords that, despite the doubts that have been expressed, the Government fully support the goal of better value for money through collective arrangements for identifying gaps and procuring equipment, pooling our multinational capabilities and forces wherever we can. However, in the support of our Armed Forces and their capabilities, any initiative that had the potential to reduce our ability to protect our operational advantages and freedom of action in protecting the essential interests of security will be a matter for serious concern. We must ensure we can sustain our defence industrial capacity in sectors deemed essential to our national security interests, such as military equipment for counterterrorism or cryptographic equipment. Retention of the veto provides this safeguard. I am not arguing that the noble Lord, Lord Davies of Stamford, who speaks with passion on these matters, is wrong in the general point he has made so eloquently. I am saying that there are arguments on both sides and that the potential consequences could have a serious impact. Given the national security implications, it is right that any move to qualified majority voting be subjected to the highest level of scrutiny. That is not to say that it will not be achieved in part but it must be subjected to the highest level of scrutiny. If there were ever a proposal to remove a veto in this area and if a future Government felt inclined to agree, it should have the support of Parliament and the people before being allowed to proceed. The chance of a future Government agreeing to give up this veto in practice is vanishingly small. The chances of this being proposed as a separate one-off move are zero. A remote possibility is that it could be put forward as part of a package of transfers of competence and powers to the EU, however undesirable it seems to us at present that it should be so. That would be the sort of event where people rightly want and expect their say. If denied their say people would feel that, once again, powers were being transferred without adequate public accountability. For those reasons, although I salute the feeling and validity of half of the noble Lord’s argument, I hope that he respects my half of the argument and I ask him to consider what he has said and withdraw his amendment.