The progressive case against Lords reform

We know democracy is deeper than elections. We should honour that.

We know democracy is deeper than elections. We should honour that.

The House of Lords needs changing. But does it need this particular reform? Labour pledged this week that it will back Liberal Democrat proposals for an 80 per cent elected chamber. There are five reasons why the left might not think this is such a good idea.

1) Elections are not always and everywhere good. There are certain advantages to having legislators that are insulated from polls, Twitter tidal waves and yes, even voters. Experience demonstrates it breeds conviction politics. Whips are less of a threat, and amendments are more likely to be introduced and won. Significant changes - including blocking the government's attempts to limit trial by jury - have been won by the Lords. The welfare and NHS legislation is just the latest example.

Even if you agree with the principle that Lords should face the electorate, the current proposals would only allow future Lords to serve one term for fifteen years. As Lord Dobbs points out, this means that they will never be subject to genuine electoral accountability. When you can't get re-elected, you may as well do what you were going to do anyway.

2) You shouldn't look at how to design a chamber until you've decided what that chamber is for. At the moment there are whole bunch of unanswered questions. As Jesse Norman astutely points out (£), it makes no sense to consider the issue of electing the House of Lords before we've resolved devolution in Scotland. Who exactly will be governed by the House, and how? Do we want the Lords to be a pool of specialist knowledge providing scrutiny as it does now, or do we want a stronger check on an executive that is often criticised for having too much power, making us more like the US?

If electing our Lords really does give the second chamber more legitimacy, then power will be more dispersed and that may well result in more paralysis. People are already frustrated with governments for not being different or radical enough. With a rival second chamber, this may well get worse. What if the left wanted to come in and set up a universal care service? Or pursue more meaningful devolution? Radical agendas will almost certainly be harder to implement.

3) Ironically, we may see a decrease in diversity. Think of disabled peers like Baroness Jane Campbell. It is much harder for them to fight and win an election than it is to get an appointment. Similarly, we can say goodbye to crossbench MPs and the valuable independence they bring. To get elected to the Lords, you'll have to be a member of a political party - and presumably we'll be presented with candidates who couldn't quite make it to the first chamber.

Democracy is about a lot more than being able to vote. One of the most common criticisms of politicians is that we come from increasingly homogenous backgrounds, turning politics into a career rather than a service. Standing for election often requires wealth. Increasingly you have to be in a position to offer free labour through internships and live in London. Right now the Lords is relatively diverse, at least in terms of experience. If we create an elected second chamber without addressing who stands for election and how, we can expect more of the same.

4) Lords reform is not the public's priority right now. No one talks about the constitution on the doorstep. People are worried about their jobs, their homes and their families. We've already had the AV referendum - spending our time debating technical legislation may look like more navel gazing, especially when the Lords are relatively popular. Research by Meg Russell at UCL shows that the Lords were held in higher esteem than the Commons even before the expenses scandal broke. Shaking it up risks making politics look less relevant, not more.

5) It may hand a huge amount of power to the Liberal Democrats. If the second house became more significant, the LibDems' role as kingmaker would become even more important. And let's not forget that this whole programme is their deal anyway. As Andrew Neil points out, Lords reform is their prize for supporting the Conservative's constitutional boundaries that damage Labour.

Hereditary peers are embarrassing, but what if we could find some way of making appointments with legitimacy. What if we had a chamber that was picked to be more representative - the head of trades in industry, charities, our leaders in art, business, and education. That would bring the wealth of British experience to the table in decision making, whilst preserving a distinctive second chamber that didn't rival the first. The public already believes that legislative scrutiny and listening are more important than votes. We know democracy is deeper than elections. We should honour that.

Rowenna Davis is a journalist and author of Tangled up in Blue: Blue Labour and the Struggle for Labour's Soul, published by Ruskin Publishing at £8.99. She is also a Labour councillor.

Rowenna Davis is Labour PPC for Southampton Itchen and a councillor for Peckham

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What is the EU customs union and will Brexit make us leave?

International trade secretary Liam Fox's job makes more sense if we leave the customs union. 

Brexiteers and Remoaners alike have spent the winter months talking of leaving the "customs union", and how this should be weighed up against the benefits of controlling immigration. But what does it actually mean, and how is it different from the EU single market?

Imagine a medieval town, with a busy marketplace where traders are buying and selling wares. Now imagine that the town is also protected by a city wall, with guards ready to slap charges on any outside traders who want to come in. That's how the customs union works.  

In essence, a customs union is an agreement between countries not to impose tariffs on imports from within the club, and at the same time impose common tariffs on goods coming in from outsiders. In other words, the countries decide to trade collectively with each other, and bargain collectively with everyone else. 

The EU isn't the only customs union, or even the first in Europe. In the 19th century, German-speaking states organised the Zollverein, or German Customs Union, which in turn paved the way for the unification of Germany. Other customs unions today include the Eurasian Economic Union of central Asian states and Russia. The EU also has a customs union with Turkey.

What is special about the EU customs union is the level of co-operation, with member states sharing commercial policies, and the size. So how would leaving it affect the UK post-Brexit?

The EU customs union in practice

The EU, acting on behalf of the UK and other member states, has negotiated trade deals with countries around the world which take years to complete. The EU is still mired in talks to try to pull off the controversial Transatlantic Trade and Investment Partnership (TTIP) with the US, and a similar EU-Japan trade deal. These two deals alone would cover a third of all EU trade.

The point of these deals is to make it easier for the EU's exporters to sell abroad, keep imports relatively cheap and at the same time protect the member states' own businesses and consumers as much as possible. 

The rules of the customs union require member states to let the EU negotiate on their behalf, rather than trying to cut their own deals. In theory, if the UK walks away from the customs union, we walk away from all these trade deals, but we also get a chance to strike our own. 

What are the UK's options?

The UK could perhaps come to an agreement with the EU where it continues to remain inside the customs union. But some analysts believe that door has already shut. 

One of Theresa May’s first acts as Prime Minister was to appoint Liam Fox, the Brexiteer, as the secretary of state for international trade. Why would she appoint him, so the logic goes, if there were no international trade deals to talk about? And Fox can only do this if the UK is outside the customs union. 

(Conversely, former Lib Dem leader Nick Clegg argues May will realise the customs union is too valuable and Fox will be gone within two years).

Fox has himself said the UK should leave the customs union but later seemed to backtrack, saying it is "important to have continuity in trade".

If the UK does leave the customs union, it will have the freedom to negotiate, but will it fare better or worse than the EU bloc?

On the one hand, the UK, as a single voice, can make speedy decisions, whereas the EU has a lengthy consultative process (the Belgian region of Wallonia recently blocked the entire EU-Canada trade deal). Incoming US President Donald Trump has already said he will try to come to a deal quickly

On the other, the UK economy is far smaller, and trade negotiators may discover they have far less leverage acting alone. 

Unintended consequences

There is also the question of the UK’s membership of the World Trade Organisation, which is currently governed by its membership of the customs union. According to the Institute for Government: “Many countries will want to be clear about the UK’s membership of the WTO before they open negotiations.”

And then there is the question of policing trade outside of the customs union. For example, if it was significantly cheaper to import goods from China into Ireland, a customs union member, than Northern Ireland, a smuggling network might emerge.

 

Julia Rampen is the editor of The Staggers, The New Statesman's online rolling politics blog. She was previously deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines.