EU: UK Convergence Programme — Motion to Approve

Part of the debate – in the House of Lords at 6:02 pm on 4 February 2010.

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Photo of Lord Dykes Lord Dykes Spokesperson for Foreign and Commonwealth Affairs, Spokesperson for Environment, Food and Rural Affairs 6:02, 4 February 2010

My Lords, I thank the House for giving me the opportunity to intervene in the gap today to make two or three brief points. I was looking forward to the opportunity of having a go at the Minister representing the Government in this debate on a number of points if time had allowed. However, I am unable to do so not only because of lack of time but because the Minister has been saved-I think that he probably arranged it personally-by the foolish article that has appeared in the business section of today's Times, with similar comments in earlier pages. The article contains whingeing, selfish and greedy City comments-I say this advisedly and deliberately as a City person myself, having had a career there over many years-saying that they have got it wrong. Once again, it represents narrow, vested interests, which annoy so many people in the nation. As the Minister has been saved by those comments, I do not need to go into any of that.

Looking back on these matters since 2008 and considering the current difficult circumstances, everyone objectively has to admit-it needs to be said-that, from the United Kingdom's point of view, the Government have handled this global crisis reasonably well. They have co-ordinated with other Governments-not only with America but with European Governments as well-in so doing and have also had the approval of EU machinery, allowing for some differences regarding percentages and amounts of money. That is the basic fact that we have to register today, and it was the reality when this first started. We know that when the global financial crisis began, politicians of other parties left their party conferences and rushed back to London to support the Government in dealing with a crisis that this country had not known since before the war. Since then, of course, all politicians from other parties are entitled to disagree on many details, and they have done so. The basic fact remains that objectively speaking, most professional people observing and dealing with the global financial crisis would say that the Administration have done what any Government probably would have done in the circumstances.

That includes quantitative easing. It may be that that should have gone on for a bit longer; only time will tell. Between now and the general election, there is the artificial period of pretending not to say too many harsh things that is the prerogative of all the parties presenting themselves for the general election whenever it may come, up to the beginning of June if that is the maximum period. Many differences will come out later, but the basic reality is that the public needed the confidence of knowing that there was general business community support for the Government's measures and a willingness to accept an overlarge and extravagant deficit for the time being, provided that there would be subsequent measures to reduce it as time went on.

I also agree very much with the comments of the noble Lord, Lord Sewel, because the amendment tabled by the Conservatives is nonsensical. What other Government would have been able to do anything different from that which was done by this Government since the crisis broke in 2008? I end by saying-one of my favourite themes-that there is only one coy little reference to membership of the euro in that little box on page 34. The most important subject, which is not really mentioned in the report, is given a brief glancing reference. It has not been dealt with in more than 10 years of hesitation and procrastination. We are missing out in joining the most successful and strongest currency in the world, despite the crisis now affecting certain individual members-some people say "fringe" members, meaning geographically rather than other. That will be resolved, as the collective strength of the eurozone is massive, as are the physical and financial services available both in assets and revenue to deal with these matters.

Perhaps the Minister could enhance his reputation today in this way, allowing for the fact that I praised him on the Times article, when I was currying favour for this purpose. With his body language, perhaps he can give us a few indications that the review, which was last done in 2003, will be carried out in 2010 in a positive note, even if it takes a few years to achieve the objective of becoming a member of the eurozone.