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Contrary to the arguments put by noble Lords from the other side of the House, a reasonable balance has been adopted by this Bill. Those of us who are

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perhaps on the other side of the argument would make the point that there are many areas which this Bill does not address where we can still see scope for power being transferred.

Lord Faulks: My Lords, I rise to comment on the European public prosecutor, the subject of an amendment by my noble friend Lord Goodhart who is not in his place. The potential establishment of the European public prosecutor finds its origins in concerns about budgetary fraud and the improper diversion of grants and aids. The purpose is to improve co-operation and to co-ordinate legal action among member states. It would potentially involve the establishment of a uniform code of criminal offences of fraud against the EC budget applicable in all member states and a uniform set of procedural rules applicable in investigations. Together that would constitute a so-called corpus juris, which would be enforced by the European public prosecutor's office. I regard this as a significant potential change as a lawyer, but also not as a lawyer.

It seems that the rationale behind the potential establishment of the EPPO ought on the face of it to attract the support of the United Kingdom. Nevertheless, it would amount to a substantial change in criminal jurisdiction. The idea of national prosecutors on secondment from the EPPO in the UK is a significant alteration to our system, which provides that it is for the Crown to prosecute criminal offences. Once established, there would inevitably be steps taken to introduce rules which might not sit easily with our common law systems.

Article 86 provides that an EPP,

This means that we would give up control of a fundamental part of our judicial system; namely, the decision on who can be prosecuted for what and, equally important, the decision not to prosecute in some circumstances. It is now the province of the CPS. The EPP will initially be concerned with only crimes affecting the financial interests of the union, although that definition is likely to prove particularly elusive. However, by a passerelle in the treaty, the powers of the EPP can be extended to cover any serious crime with a cross-border dimension, which gives it a potentially very wide remit. One has to think only of the problems with the European arrest warrant, to which my noble friend Lord Lamont referred, and the definition of serious crimes.

The creation of an EPP has not met with much enthusiasm from our friends on the other side of the House. When the matter was discussed at length in 2002 and 2003, Justice said it thought that a European court of criminal justice would have to be established. The Law Society of England and Wales and the Law Society of Scotland did not think a case had been made out for it. The European Union Committee of your Lordships' House concluded that a European public prosecutor was not a realistic and practical way forward, stating:

"The benefits of creating another body and in particular an EPP, whose existence and processes could cut across national criminal laws and procedure and which might not be accountable to democratically elected representatives, have yet to be clearly and convincingly demonstrated".



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While even the most ardent Eurosceptic would support all reasonable steps to improve the detection and punishment of fraud in relation to grants and aids, surely this can be better achieved by co-operation between member states in the sharing of information and evidence, and access to information, rather than by the creation of a supranational prosecuting body.

It is suggested that there should be harmonisation of criminal procedures if there is to be an EPP office. The problems with harmonising procedures have been confronted by the courts in this country in the context of the ECHR. For example, Articles 5 and 6 of the convention have had to be interpreted by the courts as to whether they respect or are in total harmony with the right to a fair trial and the right to protect suspects. The courts have had considerable difficulty in the attempt to try to harmonise systems with different origins. It is not impossible that there could be a real conflict between the CPS and its view of what is within its province and the national prosecutor for the European public prosecutor trying to do the same thing.

If a future Government want us to join in with the establishment of a new EPP office, I suggest that the case should be made to Parliament and to the British people. It may not be their everyday obsession, but they should and can be educated, and not just by the Daily Express, about the question of a European public prosecutor. It is an important matter that goes to the fundamentals of justice. This amendment seeks to take away the safeguards that are fundamental to the Bill and to the philosophy underlying it.

Lord Triesman: My Lords, we on this Bench have a great deal of sympathy with the noble Lords, Lord Kerr and Lord Hannay, and much of what I say will probably reflect some of the arguments they have made. Like many other noble Lords, I have found this grouping about as unhelpful as it could possibly be. It mixes together propositions that would reduce the scope for referenda, propositions that would increase the scope for referenda, and does not deal with any of the principles that might guide a move in either direction. So, as briefly as I can, let me summarise what I think the amendments we are discussing actually are. In the midst of all the Second Reading speeches we have heard, we probably ought to try to focus on the amendments.

The first amendments, from Amendment 30 onwards, which the mover of the amendment did address, discuss the situations under which a referendum and Act are required and seek to limit the issue of whether the UK should adopt the euro as its currency. That is to some extent elaborated in further amendments. From Amendment 32 onwards we see amendments that would remove the requirement for a referendum and an Act on the list of Clause 6 decisions and change them so that they would simply require an Act of Parliament. That is a proposition where this Front Bench also has an amendment, and with which I strongly agree.

Indeed, in some of the discussions, including the one just introduced by the noble Lord, Lord Faulks, I have found it hard to understand the rationale for the proposition that has been made at all. In almost every

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area that has been described, the Government would plainly have the capacity to say no and to insist on unanimity. If we wished to reject a proposal to change our judicial system, and I can see perfectly well why we should argue that that might be the case, we should-to paraphrase the wife of a recent American president-just say no. It is not hard; it is not a complicated piece of electoral practice. Just say no. There are a number of areas where it is perfectly possible to do so.

9.15 pm

Lord Waddington: Does not the noble Lord appreciate that there is a very strong feeling in the country that, very often, the Government have not said no and have allowed the transference of power when there was no interest whatever to the people of the country? The most obvious example was the previous Government giving up half the rebate. What conceivable benefit did the people of this country get from that surrender, when it was given on the promise of a reform of the CAP which never took place?

Lord Triesman: I appreciate the point that the noble Lord, Lord Waddington, makes, but that was not a surrender of any power or competence. It might be regarded as the wrong judgment to have made about national assets, but it was nothing to do with a power or a competence. It may be felt that past Governments have acceded too willingly to arrangements that they did not like-that point was made very early in the debate this evening-but in almost every one of these areas it is perfectly possible, should this Government wish, simply to say no. They can achieve, without large rafts of legislation, the same result with a word of no more than two letters.

Amendment 40 and subsequent amendments would delete various decisions which would require both an Act and a referendum before a Minister could vote in favour of them. As a result of them, there would be no decisions which required both mechanisms. Our Amendment 40 would delete a number of the paragraphs from Clause 6(5) along with those that others have identified.

We completely agree with the proposition that a referendum would be required in the case of the euro, but we have also previously mentioned other major constitutional reforms as a second possible decision area requiring a referendum. I shall not speak to the amendments in the next group, Amendments 39A and 39B, other than to mention that in them we identify the way in which those issues might be selected as issues for a referendum. It is not a hollow premise; we are testing out ways in which, apart from the euro, other major constitutional changes might also be considered.

We agree entirely with the case for holding a referendum over the euro and we also believe that there are significant constitutional issues-although we know as a result of an earlier debate that they will not include accession of other countries-which might attract a referendum. Indeed, your Lordships' committee was also clear that this could be appropriate in a number of circumstances. I immediately recognise that somebody will say, "Well, how is it we determine what should count as significant? What will that word mean when the decision is taken?"

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Looking at the Bill, the mechanism which is currently envisaged seems to me to be wholly inadequate. It has fault lines built into it to the extent that I believe that it will not work. I know that the noble Lord, Lord Howell, and I have not agreed about this; I fear, with the greatest of respect to him, that we will not agree about it this evening. Even as alumni of the same college, we will not find that we achieve agreement this evening, because the decisions which would so limit the role of Parliament extend so widely through this clause that it is very easy to see, in the contemporary political circumstances, how they would give rise to a continuous pattern of dissent which I do not think would make the British people feel any more comfortable that their view was being taken seriously or even sought, as has been suggested.

I make this point because it was clear in the intervention, for example, of the noble Lord, Lord Blackwell, who is not in his place. It was made equally clear by the noble Lord, Lord Pearson, and other noble Lords on our previous day in Committee. Their objections to the development of the European Union have been so profound and so marked that almost any opportunity would give rise to triggering the whole sequence that is contained in the Bill-judicial review at the very least.

In this Bill we have the potential to make sure that widespread and protracted campaigning will take place on every issue, not because a practical issue is always involved but because that is the way in which it is possible to organise resistance to the change. It may be that the change merits resistance. I am not arguing that that will never be the case, but it is simply an armoury of tactical approaches that become available for anybody who wants to slow down or block any kind of change at all. If I were of the same mind as some of those noble Lords, I would say "fair enough". Give me those tactical options and I would probably choose to use them, and of course they will be used in that way.

The practical route seems to be where a degree of independence is possible in determining what is a significant issue so that those issues can be put through the whole process, including a referendum. In Amendments 39A and 39B, we canvassed those possibilities-either a Joint Committee of both Houses or an independent review commission. We would then begin to reach some kind of reality about what it is sensible to do or not to do outside the remit of Parliament itself.

I have listened intently to all that has been said about the role of Parliament as contrasted with the role that might be taken in the conduct of referendums and I find myself in agreement essentially with the proposition of the noble Lord, Lord Dykes, about the diminution of the role of Parliament. I will come back to the point about reconnection with the electorate because it is important. However, as the noble Lord, Lord Kerr, said in his opening speech, we will see changes taking place or being suggested in small amounts and pretty much continuously as adjustments of this variable architecture become possible. I acknowledge that that is what many people have objected to.



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Parliament, apparently, would gain the confidence of the electorate if it ceased to do the job that it had been elected to do. How that will achieve greater confidence in Parliament completely bemuses me. I have to acknowledge that. There may be many criticisms of Parliament and parliamentarians, but the one criticism that I doubt we will hear anywhere is that people believe that we should give up doing the job that we are expected to do and franchise it to somebody else.

Lord Waddington: Does not the noble Lord agree that Members of Parliament are elected to exercise the powers that they have inherited, not to give away those powers in perpetuity?

Lord Triesman: My Lords, I broadly do agree, but that does not alter the general proposition that MPs are expected to take a dynamic and full political role in determining the outcomes of debates in these areas. Whether the determination goes in the direction of giving away no more powers or giving away more powers, that is the job of a sovereign Parliament and people working in a sovereign Parliament.

Lord Radice: Does my noble friend think it is because they do not really trust themselves to be parliamentarians? They want to bind themselves-it is the Odysseus complex, or whatever it is-because they do not really trust themselves. Does he think that that could be what it is all about?

Lord Triesman: My Lords, that may be one explanation. The other may well be that they do not have the courage to do it on all occasions and they are afraid of the kicking that they will get from much of the media if they actually fight the case out. That is very much more likely to happen, I am afraid.

Lord Flight: I think it was one of the noble Lord's colleagues who made the point that it was the Wilson Government who first used the vehicle of the referendum because they were unable to take the decision themselves. I just make the point that as a young person who participated in it at that time I thought that it was absolutely correct. The fact that it may have been born of weak political circumstances was irrelevant. I grew up thinking that it was a crucial constitutional matter and the sort of issue that ordinary people should have a chance to have a direct say in.

Lord Triesman: I could not agree more with the noble Lord, Lord Flight. I took part in that referendum as a young activist in the Labour Party who believed strongly that we should retain our relationship with Europe. Many of my colleagues were not only in disagreement with me but in pretty hostile disagreement with me. The thing that I remember most about that, apart from the dissent that it opened up-our problem, our party-was that it was a fundamental and critical constitutional issue for the United Kingdom and exactly the sort of thing that I would have believed would be defined as significant in the sense that I have tried to present to your Lordships' House this evening.



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Lord Tomlinson: There is an important further point to be made. This big, important constitutional issue was devised by those who opposed our membership of the European Union in order to be able to vent all their feelings. It was going to resolve the question. Was it not the fact that the same people who lost in the referendum came back within a few years trying to get a different result?

Lord Triesman: My Lords, it is of course entirely true. That is the other conclusion that one should draw from some referenda-that whatever the decision of the British people taken in a sovereign way, it does not stop anybody from coming back on future occasions.

Lord Flight: My Lords-

Lord Triesman: I should really try to make some progress, if I may.

Lord Stoddart of Swindon: My Lords-

Lord Triesman: As it is you, David, how could I refuse?

Lord Stoddart of Swindon: I was one of those who was never in favour of joining the common market and opposed it during the referendum. In relation to the intervention from the noble Lord, Lord Tomlinson, the reason why there has been continuous opposition is that the story has changed. As the European Union has become more powerful, the greater the resistance has been from those who originally opposed it and, indeed, a hell of a lot more who now oppose it.

Lord Triesman: I suspect that the noble Lord has a slightly different experience of political life to mine, if that is the conclusion that he draws. My conclusion is that you can fight either side in a referendum and find that within a short period you did not like the result, whether things have changed or not, and the opportunity to fight it again will occur. It may very well be, for example, that some of those people who thought that the proposal to change the electoral system should not have been defeated as heavily as it fortunately was last Thursday will come back and conclude that they should have another go on another occasion. I shall not be wholly surprised if they decide that that is what they are going to do, even at the cost of having the experience repeated.

The point about reconnecting with the electorate is very critical. The electorate is dismayed with Parliament and parliamentarians on occasions, for a raft of reasons, and I shall not bore your Lordships by going through all those reasons in the recent past. As I said earlier, I do not think that a feeling of greater warmth towards parliamentarians will be achieved by parliamentarians giving up work in some of the areas that would be regarded as being the nitty gritty, not the big constitutional issues at all. I have looked through the list in Clause 6(5)-paragraphs (c), (d), (f), (g) and (h). I mention those because I am an inveterate campaigner on behalf of all sorts of causes, including those of the party I have the privilege to represent. I have thought hard about having any one of those paragraphs, let alone any combination of them, about how the campaign on

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them would be fought and what the doorstep would be like as you went around trying to do that kind of political work. It is not because of the ignorance or foolishness of the electorate; that is not the reason at all. Yet there is an expectation that many of those issues will have so much fine-grained detail within them that the electorate expects someone to have done a lot of this work, especially if they have elected those people to come here and do it. In our case, we are not elected but they nonetheless have a healthy respect for the work that this House can do because of the knowledge and expertise that we know is in it.

I suspect that, on most of those issues, you would get far greater traction on the doorstep by discussing the Eurovision Song Contest than you would ever get by a serious attempt to discuss some of these issues in detail. As most noble Lords who have campaigned in politics will know, I know that the kinds of discussions you have on the doorstep are real ones: about wider economic issues and a wide variety of issues. However, it is not typically the case that people want to get into a large number of sub-clauses under the arrangements of Article 312(2) of the European constitution. In fact, to my dismay, I have never had that raised with me anywhere. I look forward to the occasion when it might be.

Lord Pearson of Rannoch: My Lords-

Lord Tomlinson: If you went to Rannoch Moor, they talk of nothing else.

Lord Pearson of Rannoch: Is the noble Lord not making the mistake commonly made by the political class in this country, which contains many distinguished Members of your Lordships' House-

Lord Tomlinson: Including yourself.

Lord Pearson of Rannoch: Including myself? That is very generous. The mistake is in taking the line, "Really, the people won't be interested in this. They shouldn't be troubled with this as they won't understand it". Yet if you take almost any referendum on anything to do with the European public prosecutor's office, that will be of considerable interest to the British people. They do not like it and do not want it in any form whatever. The turnout on the most supremely boring of any imaginable subject-the recent AV referendum-was 43 per cent, which really surprised people. I have to put it to the noble Lord that the British people may not only be fed up with their political class but be beginning to have doubt in our system of representative parliamentary democracy. They may want a much greater say on matters in future, like the Swiss have, for example. What is wrong with that system to reconnect the people? That is the system to reconnect them and not, I am afraid, the approach of the noble Lord.

Lord Triesman: It is terribly tempting to go into experiences of Swiss referenda in the cantons. Sadly for the House, I have some experience of them. That is what tells me that I should not retell it here because it is not exactly what the noble Lord, Lord Pearson, thinks it might be. I hope that the House is not

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misunderstanding my point, which is not that people are unable to grasp complex ideas or are uninterested in them. It is that, in general, I believe they have a sentiment which suggests that the really critical things should be put before them but that there is also a responsibility on parliamentarians to do a high level of detailed work and to get some of that work done.

Lord Lamont of Lerwick: The noble Lord says that he has never been asked on the doorstep about Article 312(2). Of course not, but if he called it the European budget people would understand exactly what he was talking about. Is it not the case that subsection (5) refers to all these different provisions in the TFEU by their complicated numbers but they actually come down to about five or six simple areas that are perfectly comprehensible, like a European army, a public prosecutor and our borders? If the noble Lord thinks that it is appropriate to have a referendum on a complicated issue like the single currency, why can we not have one on the European army?

Lord Triesman: That may well be one of the substantive issues that people might concede was necessary, but it is also true-and I was grateful to the noble Lord, Lord Ahmad, when he made the point about the interest that we rightly take in the defence of this country-that we already undertake a great deal of what we do in the defence of this country inside alliances about which the British people are not asked at all other than in general elections. They are certainly asked in the context of whether we are willing to sustain an independent nuclear deterrent-another issue that had ramifications inside the Labour Party, I readily acknowledge-

Baroness Nicholson of Winterbourne: I-

Lord Triesman: Let me try to finish my sentence. Generally speaking, we have undertaken our defence, either in NATO or in NATO plus one or two others, often under the command of Americans or of others, quite frequently these days with people drawn from the Nordic countries in military command. We have developed alliances, I should add, often in circumstances that are stressful and rapidly moving, when UN decisions have required it and when there have been potential massive attacks on civilians. In those sorts of circumstances and against the economic background in which we are all living at the moment, I did not take huge umbrage when the Prime Minister, Mr Cameron, suggested that the United Kingdom and France might co-operate on the use of aircraft carriers. I did not think that that was a terrible threat to the UK's security.

Baroness Nicholson of Winterbourne: Does the noble Lord agree, when he makes a comparison between the United Kingdom exercising a great deal of authority inside other alliances, that there is a bit of a difference between, say, NATO or the UN and the European Union? None of the other alliances of which we are an important member has the acquis communautaire, and none therefore binds us so tightly into legal provisions that we accept and implement. It is therefore a different story with the EU, and that is what the Bill addresses.



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Lord Kerr of Kinlochard: I-

Lord Stoddart of Swindon: Order. You cannot intervene on an intervention.

Lord Triesman: I have a feeling that I am going to give way instantly.

Lord Kerr of Kinlochard: I cannot let the noble Baroness get away with that. The North Atlantic treaty says that when we go to war, our forces will be under foreign command. The supreme commander is an American general. That is fact. The Western European Union treaty, the revised Brussels treaty, says that when any of the parties to the treaty is attacked, we are all at war. These are huge transfers of sovereignty that were done, of course, without a referendum-quite rightly.

The noble Lord, Lord Lamont, talks about a European army but that is not what the treaty says. It might in the end be what someone comes up with, but the treaty talks about a European defence force; the noble Baroness, Lady Nicholson, correctly read out the treaty passage. It seems almost inconceivable to me, though I would like it very much if it were true, that non-aligned and neutral countries-the Irish, the Austrians, the Swedes, the Finns-would wish to get into any kind of binding defence arrangement remotely like the ones that we are already a member of, the Western European Union and NATO. We are dealing with a very remote contingency here. It would be a momentous national decision for us.

Lord Triesman: My Lords, that makes the point that I wished to make about the character of the alliances, even in an area that is as sensitive for us as defence. I suspect that most people would conclude that our membership of those alliances has been absolutely fundamental to the security of our country and would not wish to see them shaken. Were there to be some absolutely massive change in the architecture of defence, it might be so substantive as to require a mechanism that is contained in an amendment and has been in past undertakings that we have made. However, it would be a fairly extraordinary event that looked as though it were even more significant than the arrangements that we have under the provisions of the NATO treaty.

Lord Pearson of Rannoch: Surely the noble Lord must agree that, as the noble Baroness, Lady Nicholson, said, these other organisations do not make our law. We can leave them tomorrow if we want, with far greater ease than we can leave the European Union. The EU makes our law, which is a difference. We would be in a very different position with an EU army from the one we are in with NATO.

Lord Triesman: My Lords, the noble Lord, Lord Kerr, made the point that the arrangements made under the NATO treaty, about its command structure and the obligations on members, have the effect, whether described as law or not, of determining how we behave in the defence of this country. It is impossible to argue that that is not substantively the case.



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As I said earlier, this clause provides, more than anything else, the opportunity for continuous internal division and splits-not harmonisation or bringing people back to political activism and political understanding but rather the alternative. If the argument flows in the other direction-that we will never use it, or that the process of being bound to the mast is not really there and we will sail by without anybody noticing that it is happening-the Government should, out of courtesy to the House, simply make a statement that this is a form of dressing up a political proposal for people who feel disenfranchised in any respect by what has happened in the development of the European Union. They should say that that is what it is for; it is not at all for anything practical. That is really the status of this clause.

Lord Howell of Guildford: My Lords, this has been a very wide-ranging debate, covering all these amendments. Some very wise and profound observations have been made. It would be quite wrong not to say that many of the points raised feed into the arguments, the presentation of the Bill and how Ministers should think about it. There are matters on which to reflect, which we will no doubt come back to again and again. Indeed, on the track record so far, we are likely to come round this course several times.

There are still some serious misunderstandings about the nature and purposes of the Bill. It ranges over several extremely complex issues. The whole EU structure and its legislative underpinnings are enormously complex and have grown over decades from a series of legislation, treaty-making and so on. I do not disguise that for a moment. If noble Lords would find it useful, I am willing to put on record that I am very open, as are my colleagues, to any degree of informal discussions to elucidate what is intended by the Bill, since some noble Lords are perhaps, in their own words, still confused about aspects of it. These amendments are wide-ranging but they nearly all have the same broad objective. They are designed to remove requirements for a referendum or Acts of Parliament from the list of decisions in Clause 6. As the noble Lord, Lord Hannay, rightly said, their intention is to shorten the list. I want to explain why we should not shorten the list and to deal particularly with the passerelles.

9.45 pm

Lord Hannay of Chiswick: I know that it is late but will the noble Lord please not say that these amendments are designed to remove the requirement for an Act of Parliament? Not a single amendment being moved tonight requires the removal of the need for an Act of Parliament. The people who are moving these amendments, including myself, accept that the Lisbon treaty procedures of merely requiring resolutions from the two Houses are inadequate and that there needs to be an Act of Parliament when these powers are shifted-if they ever were, and they could be so only with the agreement of the British Government of the day. Therefore, can we please not have the misunderstanding that this is about more than removing a referendum requirement? That is all that these amendments set out to do.



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Lord Howell of Guildford: I accept that. I note that I had already crossed out the words "Act of Parliament" in my notes in anticipating that comment. Unfortunately, in the excitement, I put those words in, so I take them out again. However, when we come to the minutiae, there may be some qualification even to what I am saying.

I want to try to explain why shortening the list is not the right thing to do, and to deal particularly with the passerelle provisions, on which the noble Lord, Lord Kerr, commented with his enormous expertise and hinterland of understanding of these things, having been in at the creation of not all the passerelles-some have existed for many years but never been used-but of those that we dealt with in the Lisbon treaty, which we had first seen given birth to in the constitution, which unfortunately came to a sticky end.

I say as a preliminary that all this discussion about referendum requirements against treaty changes and for certain decisions where no treaty change is required, and for giving up vetoes-in other words, allowing the right to be outvoted on certain issues-takes place against a background of huge areas of existing power and competence in the European Union. When one thinks of the enormous range of areas where the European Union can legislate, and where we can develop all kinds of positive ideas and initiatives to enable it to deal with entirely new global conditions of the 21st century, I am always left a little bewildered that we should come back again and again to the probably, I suspect, fairly marginal areas-these may be very small areas indeed-where there is supposed to be a tremendous yen for new treaties and extending the competences and powers of the European Union. These are areas in the margin of the real world of the European Union, where many of us have been involved over many years, and where enormous tasks have yet to be carried out which do not require yet a further extension of the powers and competences of the European Union. I say that just as background; I want to come back to that point in more detail a little later on.

I turn more specifically to the amendments. Of course I am very pleased that the signatories to the amendment have accepted the principle that a decision on whether to join the euro is of such fundamental importance that the people should decide. I have argued before-Ministers have argued, the Government have argued and the Bill argues-that the referendum requirement is a vital part of rebuilding trust with the British people. We perfectly accept the point made by the Constitution Committee of your Lordships' House that referenda should not be used, as it put it, as a "tactical device", and that referenda should, as we argue, be used for more critical issues of fundamental importance. We therefore come down to a central question running through all this debate-what are the critical issues? What are the fundamental problems and matters on which it would be right for people to be consulted before powers are pushed away or-whether through treaties, various procedures, the passerelle device or simply a decision of this Government-they decide to give away a certain power or move in a certain direction?

We begin with a puzzlement as to why the other one-way irreversible decisions in Clause 6 that we are

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talking about and I shall come to in detail are considered any less important in the minds of noble Lords than the euro. I find it difficult, as do a number of noble Lords who have spoken with great precision and accuracy, to conceive that the monetary independence of the UK should be considered essential to our national identity and economic interest-an argument apparently accepted by the supporters of the amendments-but not the UK's military independence and commitments to NATO, if it were decided to establish a common EU defence that might well conflict with those commitments. We have held many debates in this House in the past four or five years about the dangers of that.

Why consider just the euro but not the impact that joining the European public prosecutor's office could have on the UK's judicial independence, as my noble friend Lord Faulks clearly emphasised. I want to refer to that in much more detail. I note that the previous Government opposed that. The present Government are against it. Many of the Nordic countries think that it is an extremely bad idea. There is very little support at all for the proposition. Yet the suggestion that there should be a safeguard against what would be a major incursion into the criminal justice system in this country is not seen as important. I cannot give all the details, because I know that there are different views on this. What about the UK's ability to police its own borders? This is a red-hot issue, yet for some reason it is not included in the list.

Allow me to elaborate on some of my remarks. A decision on whether to join a common EU defence is fundamental, as it could result in a common EU army-the noble Lord, Lord Kerr, said that that may not happen immediately; but it could happen-and in giving the EU the power and legal right to decide on the deployment of UK civilian and military assets in a way that is not the case with NATO. It is of course perfectly true that operational command is under an American supreme commander, and that on the battlefield decisions and powers may be taken that can subordinate British forces to others. However, the suggestion that we should move in a new direction and be aligned with some of the European Union's ideas is a new departure. These would be huge decisions on which the British people should decide that are discussed on the doorstep.

It is reasonable to suggest that Parliament and the people are entitled to ask what extra benefit would be bought by moves of that kind. The UK has long valued its NATO membership and key bilateral defence relationships within Europe, of which the treaty with France announced last summer is one. The UK also values existing mechanisms for security and defence co-operation within the EU. Bilateral and multilateral co-operation is an essential part of our approach in the UK and to wider international defence-as has recently been shown in Libya and earlier off the coast of Somalia, through Operation Atalanta. All that is going on; all that is thoroughly sensible; all that is within the operational activities of the European Union and I find it hard to see why an advance into a completely new area of power delegation and power transfer should be brushed aside. It would be a major development.



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I turn to the issue of the public prosecutor, because a good many comments were made on that. It is coalition policy that we will not participate in the establishment of any European public prosecutor. We know that it is a sensitive issue, as was recorded by the House of Lords Select Committee on the European Union in its 16th report seven years ago. It is perfectly true-the noble Lord, Lord Goodhart, spoke with great expertise on this-that Article 86(2) provides only for the European public prosecutor to combat crimes affecting the financial interests of the Union. Although that is so, the participation of the UK in a European public prosecutor would mean giving up control of a fundamental part of our judicial system: the decision on who can be brought for prosecution in this country. That is not a small matter. That is a vital principle. As Article 86(2) states, a European public prosecutor,

In other words, a European public prosecutor would have power to prosecute in those member states within the prosecutor's jurisdiction.

In England and Wales, it is the responsibility of the Crown Prosecution Service to decide whether to prosecute and whether to take over any private prosecution, so powers granted to a European public prosecutor would cut across that well-established principle. As the noble Lord, Lord West of Spithead, when a Minister in the previous Government, informed this House:

"The Government have consistently opposed the creation of an EPP".-[Official Report, 1/3/10; col. WA325.]

Lord Kerr of Kinlochard: I agree with everything that the noble Lord, Faulks, said on the European public prosecutor. It seems to me highly unlikely ever to be suitable to a common-law country such as us or the Irish. I am delighted to hear the Minister say that it is coalition policy is to play no part in that. It was precisely because of such considerations that the article in the treaty specifically provides for a group of nine or more to go off to do their own thing, so we are in a rather unlikely scenario here when we come to the point on which a referendum requirement is imposed. That is the question of whether the European public prosecutor's office, set up to look after the financial interests of the Union and prosecute fraud against the Community budget-and unsuitable in this country as a vehicle for doing that-should extend its role to cross-border crime-human trafficking or whatever. That is a really unlikely contingency, because we will not be in the thing anyway. Surely, if we had an issue for a referendum, it should be: should we have common procedures for prosecuting people who traffick children? That issue is referendable. The issue of whether the European public prosecutor's office, in which we will be playing no part, should have its role extended into that area is a very rum one to choose to block. That is why the noble Lord, Lord Goodhart, was absolutely right to say that this provision in Clause 6 is completely inappropriate, although I agree with the noble Lord, Faulks, on the substance of the EPPO.

Lord Howell of Guildford: All these issues are interconnected. In Clause 6 there are two concerns about the surrender of our veto, and therefore the

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opportunity for others to outvote us on those matters and the agreement to go along with the public prosecutor proposal, which is, of course, already in the treaty. One is joining up with and adopting the European public prosecutor proposal; the other is the extension of the public prosecutor's competencies and the regime which might follow.

Therefore, those are both areas where, because successive Governments have set themselves against them, one hopes that the matter will not arise. However, it is one of the issues involving big decisions-and they are big decisions; there are five such issues and I shall come to them in due course-where there would not be a treaty change but where, as Clause 6 suggests, the British Government should put the matter to the people in a referendum, and the public prosecution proposal is certainly one of them. Perhaps I may mention the big five issues. I do not want to take an unlimited amount of time over them, difficult as it is to cover all the issues.

10 pm

Lord Radice: The noble Lord may be right in what he has said-in fact, I think that he is-but there is a very simple answer. Cannot the Government just say no if they do not want any of these things to happen? That is surely the point.

Lord Howell of Guildford: It is not the point because, as your Lordships have been reminded in the debate in the past half hour, the proposition has been fundamentally questioned that the Government and even our parliamentary institution are always going to be the safeguard, ensuring that unconstitutional changes are not ceded and that powers and competence do not slip away, or creep away as some have said. Today, a majority in this country, so it seems-although we cannot be sure about the opinion polls-wish to have a greater say in these matters. It is not just a question of leaving it to the Government to say no.

I shall finish on the public prosecutor issue by saying that I continue to find it extremely difficult to understand why noble Lords opposite would wish to deny the British people the right to be consulted before any future Government decided to take such a sensitive and important decision on creating or extending-that is my point to the noble Lord, Lord Kerr-the powers of the European public prosecutor's office.

I was about to elaborate on what I call the big five issues-I shall come to some of the other veto issues in Clause 6-on all of which I think it would be perfectly reasonable to have a referendum. They are: UK agreement for the EU to move to a common EU defence; UK participation in the European public prosecutor, as we are currently discussing, and extending the powers of the public prosecutor, which we shall talk more about; the UK joining the euro, which does not appear in the amendment because noble Lords feel that that one is okay; and abolishing UK border controls under Schengen. These are vital, red-hot issues, all bound up with talk of red lines, which have been mentioned in the debate, and it is almost incomprehensible that noble Lords should suggest that they are not important, critical or fundamental. Of course they are.



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Because of the time and the fact that we have been debating this matter for some hours, I shall not elaborate on why the Schengen issues would also be very important and justify a referendum. However, we think that they would, and we believe that it is part of a need to restore trust that that should be on the statute book. If decisions are taken in this area by the British Government, there should be a referendum on them.

Baroness Williams of Crosby: I apologise for interrupting the Minister and shall be very brief. Given that a large part of his argument rested on the case that these were very important-in fact, he used the word "red-hot"-issues, can he say how we would sustain the argument that the referendum exercise would be inappropriate for important and red-hot domestic issues, such as council tax or taxation, because it would be for Parliament to make those decisions and not for a referendum of the people?

Lord Howell of Guildford: I can make the oversimple point that referenda have been used rather frequently, including by the previous Government and from the days of Harold Wilson onwards, as we heard. They have been used in this country and increasingly in other countries far more frequently than here. There is a more general point behind my noble friend's intervention which is that we now live in the internet age. We live in an era in which people still admire, despite its many faults, and still support the principle of parliamentary government, as I most certainly do. There is a constant pressure for wider consultation and empowerment. Sixty-three per cent of people in this country are on the web every morning. People want a say. There is greater pressure coming for referenda. We heard from my noble friend Lord Deben that he does not like referenda. I think that several of my noble friends do not and I suspect that many throughout your Lordships' House are not very happy about referenda. It is a question of balance and the balance has shifted. The shift is in the direction of a greater demand that fundamentally important issues, five of which I have just outlined-not one, but five-should be put to referenda.

I want to come in particular to the other items in Clause 6. There are six very important areas where noble Lords ask why they are there as they are issues that if decisions gave rise to treaty changes, they would be caught under Clauses 2 and 3. They are in Clause 6 because under the passerelle provisions, on which the noble Lord, Lord Kerr, is undoubtedly the leading expert, vetoes could be given up in those areas as well. The Government believe that the surrender of those vetoes would be transfers of power and that again there needs to be fundamental reassurance under this Bill and the beginnings of some kind of reconnection and support that there will be no further extensive and sometimes rather furtive concessions of powers and competences. We believe that these two should not be barred. The passerelle system should not be barred in any way, but if we look on it as a possible window for quicker procedures-I would question the quickness, incidentally, as I have some figures showing that it is very far from being quick-nevertheless one should put a lock on that window. That is all we are saying.

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We are not saying that the passerelle system should not be used but that there should be a lock to ensure that it does not provide the opportunity for power and competences to seep away. I add the point about the length of time taken. Passerelles are not the quick fix that some people suggest. In all the cases that one looks at about the future-of course, there is very little to look at in the past as most of these passerelles have never been used, which is for good reason-the evidence is that they would take six months or a year. They would have to clog up national Parliaments and would not be the easy way of getting round the issue of giving up vetoes.

In that sort of scenario I very much doubt that the British people would understand why they would be asked for their views on whether or not to give up the British veto on, for instance, common foreign and security policy by virtue of a treaty change but be not asked for their say before the British Government could do exactly the same thing through the passerelle procedure. That is why there is concern and why these matters are in Clause 6. I mentioned common foreign and security policy but there is a whole social policy area where there are very serious issues and the surrender of a veto would be a major surrender of power. The environment passerelle has been there since 1987. It has never been used, for the very good reason that countries do not want to use it because it takes time, is complicated and blocks up national parliamentary procedures throughout the European Union. The European Union's multiannual financial frameworks, introduced by the Lisbon treaty, are neither unimportant nor casual. They are highly important and giving up the veto over them would be a considerable departure and concession of power. The remaining vetoes concern not enhanced co-operation itself-which does not affect competence at all because it is not allowed to-but situations where, once we were in an enhanced co-operation operation, there might be pressure for it to go to QMV. All these areas are vital, not trivial. They are critical areas, in the language of the noble Lord, Lord Triesman, and there must be reassurance that they will not be, by a tick of a box, by launching into a long and complicated treaty procedure, or even by an Act of Parliament, simply turned into major concessions of power and competence.

I have not begun to answer every question and I will be happy to write to noble Lords about some of the very interesting amendments they tabled. I have in mind in particular the observations of my noble friend Lord Flight. As he said, they did not quite fit into the main thrust of many amendments from noble Lords opposite, but they were very interesting and raised important issues.

We have debated these matters very thoroughly and I will end by saying this. If one believes that the EU has enough competences and powers to proceed and to succeed, and that this is the context in which the UK can take the lead; that, far from being marginalised, we can continue to shape and be decisive in the European Union; and if one recognises that other countries are just as opposed to QMV and the moot case of passerelles-I mentioned Sweden, Spain, Ireland and Estonia, and there could be many others-one will see

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the case for the Bill. If noble Lords believe that all members of the EU are itching to bring forward new treaties, take new powers and extend competences, despite the fact that that would be a very slow and unpopular process in many countries and would clog up 27 national Parliaments, they will obviously disagree and there is nothing that I can do to persuade them otherwise.

If that is the way they see the future of Europe, and the future development of a successful and popular European Union that attracts and merits the public consensus in a way that it is not doing today, clearly they will also see the prospect of an endless treaty trickle that in my view would be a major contribution not to encouraging trust and support for a successful European Union but to undermining it. To noble Lords who insist on that view, there is nothing more than I can say, except that, in the view of the Government, such a procedure in future-a pattern that would come up against the proposals in the Bill if there were endless treaty changes appearing at all times-would be guaranteed to alienate people even more than they have been already, and would be profoundly hostile and not helpful to sound EU development.

Some noble Lords believe the opposite. The noble Lord, Lord Tomlinson, believes the opposite with great force and vigour. I always admire his energies, but I believe that his proposition that the Bill would somehow simultaneously weaken popular support for the European Union and respect for Parliament is 180 degrees wrong. The Bill points the way to much greater public confidence in Parliament and public commitment to the benefits of the European Union, and our role in it, in a completely changed world and international landscape. That is why I strongly urge noble Lords not to press their amendments, which do not add to the aims and goals of the Bill, or the aims and goals of a better and stronger European Union.

10.15 pm

Lord Kerr of Kinlochard: I thank the Minister for his disarming response to the debate. It was an interesting debate. I am a little sorry that the Front Bench has not associated itself with the defence of the ECJ that I rather inadequately attempted.

Lord Howell of Guildford: Much of what the noble Lord said on that matter is correct. There is no question of challenging the integrity of the very senior legal figures who have served their country and Europe very well, and I associate myself with some of the noble Lord's remarks, although some decisions coming out of the ECJ and the European Court of Human Rights are a different matter, and I would question them very strongly. However, I would not question that the personnel involved are men and women of integrity, uprightness and skill.

Lord Kerr of Kinlochard: I am grateful to the Minister. The most endearing feature of the debate was that it was the first of our debates in Committee where we all agreed on something. We all agreed that the grouping was insane. The Opposition Front Bench said that the grouping was insane, and the Minister said that the grouping was unfortunate. One wonders where the

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grouping comes from. Clearly nobody in the Chamber was in any way responsible for it. It came down from above. Perhaps it came out of Brussels or some dreadful place like that.

It was a difficult debate because of the amendments seeking to subtract, the amendments seeking to add and the amendments of very different weights. At the end of the previous short debate, there was, as the noble Lord, Lord Tomlinson, pointed out, a very significant move by the noble Lord, Lord Wallace of Saltaire, who indicated that he might be prepared to go away and think about something said in the debate. I urge the coalition to share this insight.

It would be extremely good if the Minister too would consider at the end of these debates whether there might not be something that he would be prepared to think about further. He has very kindly said that he would be happy to explain, meet informally and discuss,

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but that had slightly the ring of the schoolmaster: "If you guys only do your homework, you will in the end understand the wisdom of the Government's Bill". I am not sure that that is quite going to do the trick. I think it will be necessary to come back at a later stage to the scope of Clause 6, but for the moment, I withdraw the amendment.

Amendment 30 withdrawn.

Amendment 31 had been withdrawn from the Marshalled List.

Amendments 32 to 39 not moved.

House resumed.

House adjourned at 10.19 pm.


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