Wednesday 6th December 2017
(6 years, 11 months ago)
Commons ChamberEuropean Union (Withdrawal) Act 2018 View all European Union (Withdrawal) Act 2018 Debates Read Hansard Text Amendment Paper: Committee of the whole House Amendments as at 6 December 2017 - (6 Dec 2017)
17:14 - The Committee divided: - Ayes: 296 / Noes: 316 - Question accordingly negatived.
19:56 - The Committee divided: - Ayes: 288 / Noes: 316 - Question accordingly negatived.
20:11 - The Committee divided: - Ayes: 287 / Noes: 312 - Question accordingly negatived.
20:29 - The Committee divided: - Ayes: 286 / Noes: 311 - Question accordingly negatived.
Jenny Chapman
No, I do not agree with that at all and I will not be tempted into some kind of debate about it. If the hon. Gentleman wants to make a speech to that effect, he is very welcome to do so, but I will not agree with him.
Those elements of the agreement matter not only because they were necessary to bring lasting peace, but because they have enabled the economic rebirth of Northern Ireland. Nothing harms the prospects of young people or businesses like uncertainty and instability. Northern Ireland benefits from natural beauty, the ingenuity, creativity and resilience of its people, and a shared determination to never return to the suffering of the past. As a non-partisan coalition of businesses put it, we must ensure that
“society in Northern Ireland does not become collateral damage in any Brexit discussions.”
The Northern Ireland Committee of the Irish Congress of Trade Unions, the Confederation of British Industry in Northern Ireland, the Northern Ireland Council for Voluntary Action and the Ulster Farmers Union got it right when they produced an agreed position on the Brexit negotiations. They say that an “open frictionless border” must be maintained between Ireland and Northern Ireland, and between Great Britain and the island of Ireland. They say that
“Brexit must not be used as a pretext to dismantle hard won workers’ rights or to drive down employment standards”.
On this and on many other issues, the Labour party is as one with the people of Northern Ireland. There must be no hard border, the preservation of the common travel area between Ireland and the UK, no undermining of the Good Friday agreement, and full involvement of workers’ representatives, business and the community and voluntary sectors in articulating the concerns and protecting the interests of all citizens of Northern Ireland.
Indeed, everybody sensible who examines this issue in any depth soon reaches the conclusion that the Government must do what they have as yet failed to do and answer the question of how they plan to achieve their objective of no physical infrastructure and no customs border, as outlined in their position paper earlier this year. But answer it they must, because a hardening of the border will undoubtedly harm business and the economy. I was left in no doubt about that when I met farmers and business leaders in Northern Ireland recently. It will also harm the everyday lives of those who frequently cross the border for social, cultural, leisure, educational or health reasons. Whether it is because of the outstanding work that has been done by CAWT—co-operation and working together—in recent years to make sure that the border is not a barrier to accessing healthcare or the thriving agri-food trade that makes up 33% of north-south trade, avoiding a hard border must be our ambition.
If we are to have non-negotiable issues, the avoidance of a hard border in Northern Ireland should be the thickest and most indelible of red lines. As the Brexit Select Committee said in its report:
“We also recognise the unique challenges posed by the need to preserve the peace settlement in Northern Ireland, including issues that go far beyond trade and customs.”
Everybody knows that this is not just about moving butter; it is about daily life and identity for thousands of people. The Select Committee goes on to ask: how will the Government avoid a hard border if no deal is reached by 29 March 2019?
Continued progress in Northern Ireland goes hand in hand with prosperity and stability. The Good Friday agreement and subsequent agreements have provided certainty about the continuation of an approach to the future of Northern Ireland that is shared between the British and Irish Governments and the people of Northern Ireland. Putting a commitment to the agreement on the face of the Bill and preventing Ministers from legislating in any way that is contrary to the agreement would provide some of the clarity, certainty and reassurance that the businesses and citizens of Northern Ireland say they need.
Let us pause to reflect on the heart of the issue that the Good Friday agreement settled: the violence between communities and traditions that raged for generations and that took and scarred so many lives in Northern Ireland. Today, the people of Northern Ireland, so many of whom were affected by the troubles, will be watching, waiting and hoping that the Government can offer a cast-iron guarantee that the Good Friday agreement will be protected and preserved in every sense. There has been much talk of red lines as we have debated Brexit since the vote to leave. Maintaining our commitment to the Good Friday agreement and guaranteeing that Ministers cannot legislate incompatibly with it should be a red line for every last one of us in this Parliament.
The Parliamentary Under-Secretary of State for Exiting the European Union (Mr Robin Walker)
It is a pleasure to follow the hon. Member for Darlington (Jenny Chapman) and I echo many of the sentiments she has voiced from the Dispatch Box.
I have reordered my speech so that I can turn quickly to the new clause tabled by the hon. Member for North Down (Lady Hermon) and to the importance of the Belfast/Good Friday agreement. First, I will speak briefly to clause 10 stand part. As those who have studied the Bill will recognise, clause 10 is very short. Schedule 2, which relates to it, is rather more complex and we have a huge number of amendments to schedule 2. I therefore ask whether interventions on those various amendments can wait until we have dealt with the important issue of the Belfast/Good Friday agreement.
Clause 10 and schedule 2 are straightforward but essential. They provide the devolved Administrations with the powers they need to prepare our statute book for leaving the EU by dealing with deficiencies in retained EU law, ensuring ongoing compliance with international obligations and implementing the withdrawal agreement. As we set out in the White Paper, the task of preparing our statute book for exit is one that we share with the devolved Administrations. The law that will be preserved under the Bill has effect in areas that are devolved, as well as those that are not. We will leave the EU as one United Kingdom, but devolution is a vital part of that United Kingdom, and it is right that ensuring that there is certainty and continuity should be a shared and collective endeavour in which every Parliament and Assembly plays its part.
It is absolutely right, therefore, that we equip the devolved Administrations with the powers they need to correct the laws for which they are responsible, just as it is right for the UK Government to have powers to correct those laws that affect the UK as a whole. It is important, as we have, to set the parameters for those powers. We believe that we have achieved the right balance by focusing on the specific aims of the powers and by applying safeguards. That will ensure, for instance, that they are not used in ways that might disrupt the ongoing EU negotiations or the workings of our internal market. Today is an opportunity for the Committee to examine how we have struck that balance, and I will continue to listen with great interest to the views of Members across the Committee.
I am grateful for the contributions that have been made by committees in the devolved legislatures to the debate that we are having today. I am also grateful to those who gave evidence to those committees. These are complex matters and I welcome their engagement and the attention that these issues have been given. We will consider carefully all the evidence that has been put forward by those committees in today’s debate.
We have heard a huge amount in this debate about the importance of the Belfast agreement. I say to the hon. Member for North Down that we appreciate enormously the attention and work she has put into the new clause. Her new clause seeks to clarify that any Ministers using the powers in the Bill would have to have regard to, and abide by, the Belfast agreement. We absolutely recognise the importance of the issue that she raises. I think I can safely say that her opening speech was one of the most powerful evocations of the importance of that agreement. I pay tribute to her for the courage and clarity of her remarks.
Mr Pat McFadden (Wolverhampton South East) (Lab)
The Minister has told us that he is not going to accept new clause 70. Timing is important, too. Does he realise the signal that will be sent out if Ministers ask their party to vote against it at the end of this debate?
Mr Walker
Let me reiterate to the right hon. Gentleman that we are absolutely committed to the Belfast/Good Friday agreement.
I will now turn to some of the technical detail on new clause 70, because it is important to reflect that, as I said at the beginning, we support the principles behind it.
Mr Walker
If my right hon. Friend will give me a moment, she may be interested in what I have to say next.
I do appreciate the enormous effort that the hon. Member for North Down has put into drafting new clause 70, but we could not currently accept it. There are some concerns around it. It goes further than requiring Ministers and devolved Departments to have regard to the key principles. Subsection (4)(a) would require the Secretary of State to refuse consent to reserved provisions in devolved legislation unless the provision is necessary only as a direct consequence of the UK’s exit from the EU. This would place a much greater constraint on the provision than can be made for Northern Ireland as compared with the rest of the UK, even in circumstances where there is no impact on the Belfast agreement. As I said earlier, this Bill cannot be used to amend the Belfast agreement. It would create doubt and uncertainty on the use of these powers if we suggested otherwise. The Northern Ireland Act can be amended only in the very limited circumstances that I have already addressed.
I therefore urge the hon. Lady to withdraw the motion, but to work with us. We will work with Members across the House to absolutely ensure that the Belfast agreement is respected as we move forward.
Lady Hermon
I have a very high regard for the Minister, but I have to say that I am profoundly disappointed by what he has said. I am not a legislative draftsman. Technically, there may be difficulties with this new clause, but, for goodness’ sake, the Government absolutely have to put the principles of the Good Friday agreement into this Bill. That is where the Government need to stand with all the people of Northern Ireland and say to them that, even if we are leaving Europe, as we are doing—Brexit is going to happen—we are not going to allow that decision to undermine the sterling work and the peace and stability of the Good Friday agreement. I am pleading with the Government to give a commitment that they will look at the technicalities, and change the technicalities, but accept this new clause this afternoon.
Mr Walker
Our commitment to the Belfast agreement is absolutely clear. We are committed to it. We are not changing it as a result of this Bill. The Bill would not allow us to do that. We are protecting the Northern Ireland Act in this Bill. We will work with the hon. Lady and with hon. Gentlemen and hon. Ladies in all parts of the House to secure the legacy of the Belfast agreement.
Mr Kenneth Clarke
My hon. Friend keeps reiterating, with ever greater passion, the Government’s 110% commitment to the Belfast agreement. The reason for not putting it into the Bill is, with great respect, an extremely obscure drafting point, which I have tried to follow but cannot quite, because the provision that he refers to is extremely narrow indeed. It applies to possibilities that may arise after withdrawal from Europe—minor consequences. If there is anything wrong with the drafting, the Government can correct that on Report and they will probably not meet any passionate resistance from anyone in the House. In view of what the Minister said, the Government should show their commitment by accepting the new clause, and all this other footnote stuff can be sorted out at a later stage.
Mr Walker
I have great respect for my right hon. and learned Friend. On the point that he makes, the Government have absolutely accepted their commitments to the Belfast agreement. It is already a matter of international law. We are committed to that agreement. It is annexed to the British-Irish treaty, and we will continue to respect it in the way in which we approach this whole issue. We will work across the House, as we always have, constructively to ensure that the approach that we take is absolutely in line with the Belfast agreement, and we have done that throughout this process.
Stephen Doughty
I, too, share the serious disappointment expressed by the hon. Member for North Down (Lady Hermon). I reiterate the comments that have just been made by the Father of the House. It would send the strongest signal if the Government accepted the new clause, coming back to the House to correct any technical deficiencies at a later stage. The Government are going to ask Members to vote against the principle of the Belfast agreement, which is an extraordinary thing to do. [Interruption.] No matter what the Minister says, that is a very dangerous situation.
Mr Walker
Let me make it clear to the hon. Gentleman that no one who supports the Bill will vote against any principles in the Belfast agreement. It is absolutely clear that the Belfast agreement is protected and is something that we intend absolutely to continue to deliver on. We cannot accept an amendment that, in this case, would create doubt about the protection of the Northern Ireland Act. We need to ensure that through this process we create continuity and certainty. I again urge the hon. Member for North Down not to press the new clause, because our commitment is absolute. We will meet that commitment to the Belfast agreement. If she does press the new clause to a vote, that could create the wrong impression for some people outside the House.
Vernon Coaker (Gedling) (Lab)
In all honesty, no one in the House who has ever been a Minister or has had any responsibility at all understands what the Minister is talking about. Minister after Minister has accepted amendments with which they agreed, then asked their draftsmen to sort out any technical issues. Instead of doing the sensible thing and doing that, the Minister and Government Whips—if, as I hope, the hon. Member for North Down (Lady Hermon) pushes the new clause to a vote—will ask their MPs to vote against the principles of the Good Friday agreement. That is how it will be seen by people who look at votes in the House.
Mr Walker
Let me repeat to the hon. Gentleman what I have made very, very clear: no one in the House would be voting against those principles. The Government absolutely support those principles, which are enshrined in the Northern Ireland Act, which is protected under the Bill.
Dr Murrison
I urge the Minister to hold his ground. My principal difficulty with new clause 70 is that it is purely declaratory. He has made it as clear as he possibly can that the Government are committed to the Good Friday agreement, as are we all. The Minister and his colleagues have resisted declaratory amendments to the Bill, and they should do so again on this occasion.
Mr Walker
I am grateful to my hon. Friend, who chairs the Select Committee on Northern Ireland Affairs. I was pleased to give evidence to his Committee the other day on the importance of these issues. I can assure hon. Members across the House that we absolutely have put the importance of no hard border in Northern Ireland and the importance of our commitments under the Belfast agreement at the heart of our approach from the beginning.
Lady Hermon
I am grateful to the Minister for giving way once again. I have to say to him ever so gently but firmly that that is a high-risk strategy. The message will be sent from the House that there is no support in the Government for the principles of the Good Friday agreement if that is not taken up—[Interruption.] Would the hon. Member for North Antrim (Ian Paisley) give me a moment? It would be enormously helpful—it is the principles of the Good Friday agreement: that is what new clause 70 embodies. It does not expand on them—it reflects the principles of the agreement—so will the Minister, instead of putting that high-risk strategy to the House, give a clear commitment that he will take away my new clause and work on it, with a view positively to reflect the tone and spirit in which it was drafted in the first place?
Mr Walker
I absolutely give the commitment that we will take away the hon. Lady’s new clause and will ensure throughout the whole of the process that we protect the principles of the Good Friday/Belfast agreement. That is something that we are absolutely committed to doing and I can tell the hon. Lady that nobody in this House will be voting against any principles in the Belfast agreement. It is crucial that we make that point clear.
Owen Smith
I am grateful to the Minister, who is being extremely generous with his time. We do not for a minute doubt his commitment to the Good Friday/Belfast agreement. However, we on the Opposition Benches take incredibly seriously our bipartisan approach on Northern Ireland, and in that context I put it to him that he must listen to the statement from the hon. Member for North Down (Lady Hermon), who says that in Northern Ireland this will be perceived as a backward step in support for the Good Friday/Belfast agreement by the Conservative Government. That is why he must think again.
Mr Walker
I am grateful to the hon. Gentleman for his intervention, and for his comment earlier. I agree that we should continue to work on this issue in a bipartisan way, and not just in a bipartisan way but with all parties in Northern Ireland, and with the hon. Member for North Down, in taking this issue forward and providing all assurances that the legal protections in international law and the Northern Ireland Act, as well as all our commitments under the Belfast agreement, are met.
Sir Jeffrey M. Donaldson
May I just say to the Minister that I have not had a single email, letter or phone call, or any contact, from my 100,000 constituents in Northern Ireland asking me to vote for this new clause? The idea that people in Northern Ireland are sitting back with bated breath waiting for the new clause of the hon. Member for North Down (Lady Hermon) to be passed so that the Good Friday/Belfast agreement can be secured is unreal.
Mr Walker
The Good Friday/Belfast agreement is and will continue to be secure.
I want to move on, and will turn to amendment 89, tabled by the hon. Member for Arfon (Hywel Williams), along with amendments 313 to 316, tabled by the hon. Member for Aberavon (Stephen Kinnock). These amendments would prevent UK Ministers from being able to use powers in the Bill in areas of otherwise devolved competence. Additionally, the hon. Member for North East Fife (Stephen Gethins), whom we have heard from today, has tabled amendments 161 to 163, which would require the consent of devolved Administrations for UK Ministers to exercise their powers in devolved areas.
I would like to take this opportunity to stress a simple but important fact: the concurrent powers in the Bill do not undermine the devolution settlement. Rather they give the UK Government and devolved Administrations the tools required to respond to the shared challenge of ensuring the operability of our statute book in a collaborative way. This reflects current practice. Concurrent functions have always been a normal part of our devolution arrangements and they are an important tool in ensuring that we can work together in the most efficient way. Take, for instance, new schedule 3A to the Government of Wales Act 2006, which lists no fewer than 34 laws containing concurrent functions for UK and Welsh Ministers, including powers to make subordinate legislation. We should not forget that section 2(2) of the European Communities Act 1972 is concurrent and is routinely used to make a single set of regulations to implement directives relating to devolved matters, such as the Marine Strategy Regulations 2010. Removing the concurrent tool would remove the vital flexibility from which we and the devolved Administrations already benefit in preparing our statute book. Such flexibility and greater efficiency will be crucial if we are to achieve the considerable task ahead of having a complete and functioning statute book on exit day.
Amendments 161 to 163, tabled by the hon. Member for North East Fife, would add to the process additional layers that have not previously been needed for equivalent powers by requiring consent from devolved Ministers. This might render the Government and the devolved Administrations unable to ready the statute book for exit day, and they therefore threaten the legal certainty that the Bill is meant to deliver.
Let me remind Members on both sides of the Committee that the Government have already committed that we will not normally legislate to amend EU-derived domestic law relating to devolved matters using any of the powers in the Bill without the agreement of the devolved Administrations. The powers build on the existing successful ways of working between the UK Government and the devolved Administrations, and the Government have committed to this ongoing collaborative working. I therefore urge those hon. Members not to press their amendments.
I now turn to amendments 158, 159, 318, 320 and 321, tabled by the hon. Members for Cardiff South and Penarth (Stephen Doughty) and for Aberavon. Taken together, the amendments would prevent amendment of the devolution statutes using the powers in clauses 7 to 9 and 17. In addition, amendment 160, in the name of the hon. Member for North East Fife, would require the consent of Scottish or Welsh Ministers if the Scotland Act 1998 or the Government of Wales Act 2006 were amended using the power in clause 9.
I want to start by saying that I have listened to and I am grateful for the debate we have already had on these amendments both in this Parliament and in Committees in other Parliaments. The Committee is right to pay careful attention to any changes to the devolution settlements, so I thank the hon. Members who have tabled these amendments and the Committees of the devolved legislatures that have drafted some of them for drawing attention to these issues.
A number of references in the provisions of the devolution statutes will not make sense once we leave the EU and will need correcting to ensure our statute book continues to function. We recognise the standing of these Acts, and for this reason we have corrected as many deficiencies as possible in the Bill—in part 2 of schedule 3. As Members will no doubt have noticed, these corrections are technical and I stress that they are devolution-neutral. They do not substantively change the boundaries of competence; nor will any of the corrections that are still to be made.
I want to reassure the Committee that we intend to correct the remaining deficiencies by working collaboratively and transparently with the devolved Administrations. Where possible, this will include correcting deficiencies using the existing powers such Acts already contain for amending the reservation schedules. This process with the devolved Administrations is already under way.
Specifically on the power to implement the withdrawal agreement—the topic of amendment 320, in the name of the hon. Member for Aberavon—it can be used to modify the devolution statutes only where it is appropriate to implement the agreement that will result from our negotiations with the EU. It cannot be used to modify them in any other way, and it simply is not true that any UK Minister can make any change they like to the devolution settlements. I hope I have reassured the Committee that the Government do understand that concern, but the amendment does not support our aim of a smooth and orderly exit.
Similarly, amendments 159 and 319 seek to restrict the use of the international obligations power to modify the Scotland Act or the Government of Wales Act. I want to be clear that these powers cannot be used to unpick or substantively change the devolution settlements. As I am sure the Committee will recognise, it is quite normal to use delegated powers in such a way. They have previously been used to amend the devolution statutes to ensure that our laws reflect the most accurate position in law, and ultimately to ensure that we fulfil our international obligations.
Jenny Chapman
I am slightly concerned that the Minister will sit down before he has had a chance to make any comment on amendment 338, in my name and those of my right hon. and hon. Friends, which would prevent Ministers from legislating in any way incompatible with the Good Friday agreement. I am sorry to refer him back to that, but I am concerned that he has not yet said anything about this amendment.
Mr Walker
I apologise to the hon. Lady. I think I mentioned that amendment in the run-up to addressing the detail of new clause 70 in the name of the hon. Member for North Down, but let me say that Ministers will not and cannot legislate incompatibly with the Good Friday agreement. We are bound by that agreement, and I have been very clear that this Government remain absolutely committed to the Good Friday agreement and have already put our obligations under it at the heart of our commitments.
On amendment 160 in the name of the hon. Member for North East Fife, I want to comment on the fact that such powers have previously been used, because it is important to recognise that this issue has already been addressed. For instance, the Treaty of Lisbon (Changes in Terminology) Order 2011, which was made under section 2(2) of the European Communities Act, amended the Scotland Act 1998, the Northern Ireland Act 1998 and the Government of Wales Act 2006 to give effect to new terminology relating to the European Union. Leaving the EU will require changes of a similar technical nature across the settlements, and that is what the powers enable.
Stephen Gethins
I thank the Minister for going into such detail. Earlier today, the Secretary of State for Scotland said he would be introducing changes. To which amendments might those changes refer and when might they take place?
Mr Walker
I cannot say at this stage, but let me repeat that in both this debate and the debate on clause 11, we have been clear that we are listening to the Committee and engaging with it, and we will give the matters raised careful consideration. I think the comments made by the Secretary of State for Scotland reflect that approach. It is important that we move forward together with all the devolved Administrations and ensure that the United Kingdom and each part of it can deal properly with their statute book.
Anna Soubry
I know the Minister wants to make progress, but I have grave fears. Is there not some way we can sort out the business of new clause 70? I am not saying that the hon. Member for North Down (Lady Hermon) should withdraw it, but it seems to me that there is a better way. I do not know whether the hon. Lady has met the Minister and the Solicitor General, but we should put a meeting together and get it sorted out—get the assurances. I trust the Minister and what he says at the Dispatch Box, but there is going to be a big problem with misinterpreting any vote against the new clause. It needs to be sorted, and I suggest that the hon. Lady and the Minister meet to see whether this can be sorted out.
Mr Walker
I am happy to take up my right hon. Friend’s suggestion, and to work with the hon. Member for North Down and Members in all parts of the House. The hon. Lady has expressed a strong position and I will work with her to ensure that, as we go through this process, we do everything in our power to continue to protect the Good Friday agreement. My right hon. Friend makes a constructive suggestion, which I welcome.
Clause 17 is the subject of amendment 321, tabled by the hon. Member for Aberavon, whom we have missed in these debates. I emphasise that we have sought to include the majority of consequential amendments needed to the devolution settlements in the Bill, in schedule 3 part 2, but we must be equipped to fix any additional problems that come to light and this standard power, constrained by case law, is the right way to do any tidying up—for example, of cross-references—that could be needed as a result of the Bill coming into force.
The hon. Gentleman also tabled amendments 322 to 327, which would constrain Welsh Ministers’ ability to modify the Government of Wales Act 2006, including removing their ability to correct those parts of the Act that currently fall within devolved responsibility. The 2006 Act is, for the most part, a protected enactment, which means that it cannot generally be modified by the devolved institutions. That makes sense, because the Act sets out how powers are devolved to Wales, but there are certain exceptions to that protection: that is, where it is agreed that it should be within the legislative competence of the Assembly to modify that Act. That was agreed by this Parliament and the National Assembly for Wales when the 2006 Act was passed and again when the Wales Act 2017 was passed.
Ensuring that devolved Ministers have those powers follows the reasoning and decisions made in enacting those Acts and respects the decision of this House and that of the National Assembly for Wales in giving consent. We think it right that, in those areas, Welsh Ministers should be able to use their power to correct deficiencies. Where Welsh Ministers need to make corrections to the 2006 Act, the National Assembly will of course have the ability to scrutinise any changes and to set out the approach to scrutiny that it proposes to take. We do not think, therefore, that the amendments would place a reasonable restriction on Welsh Ministers, as it would put them at significant disadvantage in ensuring that the 2006 Act is fit for purpose, legally sound, and reflects the context of leaving the European Union. I urge the hon. Member for Aberavon not to press those amendments.
Stephen Doughty
The cross-party amendments would not have been tabled, or indeed recommended by the Welsh and Scottish Governments, if everything was hunky-dory and fine in the negotiations between the UK Government and the devolved Administrations. We got some movement from the Secretary of State for Scotland this morning. Will the Under-Secretary of State also move on amendment 158, which stands in my name, and perhaps on some of the other concerns that the Welsh and Scottish Governments have set out so clearly?
Mr Walker
I absolutely respect the effort of, and have referred a number of times to the evidence collected by, Committees; some of these amendments are tabled by Committees, and we respect that. We want to engage with them, which is why I am trying to give a comprehensive response on all these matters. I hope that the hon. Gentleman will be pleased with some of the things I have to say. We absolutely want to engage with the Committees, because I recognise that we are talking about important institutions that we need to engage with successfully. With that in mind, I have been to give evidence to Committees of the Assembly and the Scottish Parliament, so I say to the hon. Gentleman: keep listening.
Stephen Gethins
I am grateful to the Minister for his detailed responses. He talks about consulting. In an internal market, about which the Minister has spoken, there are different states that have an equal say. What will the arbitration mechanism be and will the Government go further than merely consulting the devolved Administrations?
Mr Walker
As we discussed in great detail on day 4, direct Government-to-Government contact is happening on those issues. We have the JMC process—it will meet next week—and I hope that we can all agree ways to move forward that allow this to be delivered for each part of the UK. The consultation process will ensure that we take the approach that works best for the UK as a whole and takes into account the needs of each part of the UK. It will also ensure that existing common approaches are not undermined while we work through with the devolved Administrations where they will and will not apply.
Deidre Brock
The Minister failed to answer the question that my hon. Friend the Member for North East Fife (Stephen Gethins) asked. What will the arbitration mechanism be for deciding that?
Mr Walker
I do not want to pre-empt the agreement that I believe can and will be reached in the not-too-distant future through the JMC process. That is not what we are legislating for. We are legislating for providing continuity and certainty across the UK. I have just described how we can ensure that that delivers for every part of the UK. That is important.
Amendments 168 and 175 are related to the amendments I have just discussed. They would remove the restrictions on devolved authorities using the correcting power and the withdrawal agreement power to confer functions that correspond to EU tertiary legislation. Examples of tertiary legislation include the vast majority of the technical detail of financial services law, which is set out in a form of tertiary legislation known as binding technical standards. They are functions that are currently exercised at EU level. Just as with direct, retained EU laws, the rules made under them apply uniformly across the UK. We therefore believe that where such functions need to continue, it is right and consistent with our overall approach for the decisions about who should exercise them to sit at UK level. Of course, it will be possible for UK Ministers to confer such functions on the devolved Administrations or devolved public bodies, if we agree together that that is appropriate. That will be subject to the wider negotiations on shared frameworks.
I will deal with amendments 166 and 170, again tabled by the hon. Member for North East Fife and amendment 173, which the hon. Member for Cardiff South and Penarth tabled. They would allow the devolved Administrations to sub-delegate the powers conferred on them by schedule 2. We do not advocate prohibiting sub-delegation by the devolved Administrations in every circumstance. It is explicit on the face of the Bill that sub-delegation is permitted for rules and procedures for courts and tribunals. Rather, it is our view that these powers should not be broader than is appropriate, and that sub-delegation by devolved Administrations should therefore not be admitted in every circumstance. However, as I said to the Committees, I should welcome any examples of areas in which Members believe that sub-delegation by devolved Administrations would be needed, and I will take away and consider any examples that are provided today. We are having discussions with the devolved Administrations as well, so they will also have opportunities to provide such examples.
Amendment 317 would take the unusual step of conferring on Welsh Ministers the power to make consequential and transitional provision. That is because the corresponding amendment to clause 17 would prevent UK Ministers from using the power in relation to matters that are within the competence of Welsh Ministers. It is not normal to confer such powers on devolved Ministers in an Act of Parliament. The Wales Act 2017 contained the power, but conferred it only on UK Ministers. Despite the great constitutional significance of that Act, there were neither calls for the power to be taken from UK Ministers in relation to devolved matters in Wales, nor calls for it to be granted to Welsh Ministers.
In the interests of transparency and accountability, we have sought to include in the Bill a number of significant consequential and transitional provisions that are necessary in relation to devolved matters. I should welcome any further explanation of instances in which devolved Administrations would need to make such types of consequential amendment. We do not currently think that there is any need for the power to be conferred on devolved Ministers as a result of the Bill that would reverse usual practice, and I urge Members not to press the amendment to a vote.
Let me finally deal with amendments 169, 172 and 176. I thank Members for their careful consideration of these technical provisions. The amendments relate to clauses that provide safeguards to ensure that due consideration is given when Ministers in devolved Administrations use their powers in ways that have implications for the rest of the UK. The amendments would, in effect, convert the requirements for devolved Ministers to gain the consent of UK Ministers when exercising the powers in certain circumstances into consultation requirements.
Let me turn first to the requirements included for international obligations and withdrawal agreement powers. Here the safeguards are focused principally on obligations that will need to be met at a UK level: the management of UK-wide quotas and our UK obligations under the World Trade Organisation agreement. We therefore believe that there is an important role for the UK Government to play in agreeing such amendments in these limited circumstances, given the broader consequences for other parts of the UK. Indeed, where the powers exist in order to implement the UK’s international agreements, it is important that that can be done expeditiously and fairly within the UK so that we can meet those international obligations, and that requires a common view across the UK.
Again, we have taken the view that the right approach is to require consent for that purpose. A requirement of consent provides a clear and decisive process for us to ensure that the interests of each part of the UK are taken into account. The requirements included for the correcting power are primarily concerned with our relationship with the EU. It is right that we consider any use of such powers that could prejudice the EU negotiations, and that is why we think it is right to include the consent requirements in the Bill.
I have made it clear that the Government stand ready to listen to those who have sincere suggestions for how we might improve the Bill. Today we have had a useful debate on this subject, and hon. Members have made the case that requiring consent might not be the right approach to the practical problem that I have described in relation to the correcting power in particular. Scottish Conservative Members and others have expressed concern about the issue. However, I assure the Committee that we will take away and carefully reflect on the suggestions that have been made today, and consider whether sufficient assurances can be provided through different means.
Karin Smyth
May I take the Minister back to new clause 70? Given the signals and impressions given by the House over many years in relation to British-Irish relations, he will appreciate the importance of what is happening today. Can he tell us when the Government decided not to accept the new clause? I understand that it was tabled several weeks ago. Did the Government make that decision before the weekend, or in the last few days?
Mr Walker
The Government have made their position absolutely clear, but let me again reiterate our firm commitment to the principles of the Belfast agreement, and to ensuring that we respect and meet those principles throughout this process. I have offered to meet the hon. Member for North Down to continue this conversation and ensure that we do everything we can to meet those commitments throughout the process. I think it is important that we are listening and responding to these debates on behalf of the whole United Kingdom.
I conclude by extending my gratitude to Members for their thoughtful consideration of all these provisions. To allow us the time to consider the comments made and their important practical implications, including for our negotiations, I urge Members not to press their amendments today, but I reiterate the offer to continue to work with the hon. Lady and all others across this House, to ensure that we deliver on the principles and our commitments under the Belfast agreement.
Several hon. Members rose—
Lady Hermon
This has been a wonderful debate, and I greatly appreciate the contributions from all sides, even when they disagreed with new clause 70 and even when they were made by Members of the DUP who disagreed with new clause 70. Despite my disappointment, which is real, and that of other Members, the greater objective is to maintain the Good Friday agreement and its respect and integrity, and to ensure that we do nothing in this House that gives succour to dissident republicans or increases the risk of terrorism. I will therefore not press the new clause to a vote.
I will, however, accept the very nice invitation to tea with the Minister, but I do not just want tea and buns. I want a commitment from him now—I want him to intervene on me—that the Good Friday agreement will be preserved in some other form, if not today.
Mr Robin Walker
I give the hon. Lady that commitment. The Good Friday agreement is an absolute commitment that we stand by and it will be preserved. I will work with the hon. Lady, as I have been invited to do, to ensure that through the whole of the process we deliver on the principles.
Lady Hermon
I will take that as a commitment that at tea we will agree that the Good Friday agreement will be written into the next Bill—perhaps the withdrawal Bill. The Minister just has to nod.
Mr Walker
As I said to the hon. Lady in the Northern Ireland Affairs Committee, we are in the process of negotiating the withdrawal agreement and therefore we cannot pre-empt the detail of the Bill. Clearly, we want to enshrine the principles in the withdrawal agreement and that Bill will legislate for that. There is a logic to what she says and I am happy to follow up and discuss it further.
Lady Hermon
With that, I beg to ask leave to withdraw the new clause.
Clause, by leave, withdrawn.
Clause 10 ordered to stand part of the Bill.
Schedule 2
Corresponding powers involving devolved authorities
Amendment proposed: 167, page 17, line 9, at end insert—
“(3) This paragraph does not apply to regulations made under this Part by the Scottish Ministers or the Welsh Ministers.”—(Stephen Gethins.)
This amendment would provide that the power of the Scottish Ministers and the Welsh Ministers to make regulations under Part 1 of Schedule 2 extends to amending directly applicable EU law incorporated into UK law, in line with a Minister of the Crown’s power in Clause 7.
Question put, That the amendment be made.
Mike Gapes
I was here for seven hours on Monday before I spoke, so I feel that I can say at least a few words today.
We face a fundamental choice in this debate. Are we still a parliamentary democracy, or do we simply—because of a very narrow vote on 23 June 2016—take our eyes off of the detail and go like lemmings towards anything in order to implement a decision that is thought to be irreversible? The leave campaign told us that it was about taking back control. The reality is that this Parliament must assert itself and take back control from an overweening and incompetent Executive who want Henry VIII powers in their Bill and wish us just to be supine—to lie down and accept anything that they come forward with.
That is why my hon. Friend the Member for Nottingham East (Mr Leslie) tabled new clause 17, which I am delighted to support. It would mean that there has to be an independent assessment of the costs of the Government’s proposals. We in this House—this democratic Parliament —can then assert centuries-old tradition against overweening Executive power. We can decide democratically. We can assert and take back control. That is why we need to vote for new clause 17 and support the associated amendments.
The Parliamentary Under-Secretary of State for Exiting the European Union (Mr Steve Baker)
I thank right hon. and hon. Members for their participation in this debate. I congratulate the hon. Member for Nottingham East (Mr Leslie) on his new clause, because he has achieved a considerable widening of the debate’s scope, which has led to a wide range of contributions.
Clause 12 is not about paying any negotiated financial settlement. It is about ensuring that Parliament has authorised the Government and the devolved Administrations to incur expenditure under this Bill. It is also about the preparation for the making of statutory instruments under the powers of the Bill or under existing powers to make subordinate legislation as modified by or under the Bill. The clause has two functions. The main text of the clause is concerned with parliamentary approval for the Government to spend money. The clause also gives effect to schedule 4, which is concerned with fees and charges by which the Government, devolved Administrations and arm’s-length bodies raise money.
Clause 12 and schedule 4 will ensure that all the money that might flow into and out of the Exchequer as a consequence of this Bill is proper and respects the long-established rules for the relationship between this House and the Treasury, as laid down in the 1932 Public Accounts Committee concordat and the Treasury guidance in “Managing public money”.
Taking back control of functions the UK has long delegated to European Union institutions may cost money. That expenditure will come from the use of the powers in the Bill. Although at this stage in the negotiations it is too early to say precisely what that expenditure will be, it might involve expanding public authorities in the UK, recruitment at those authorities or setting up new IT systems. That is not to say that the UK cannot perform those functions more efficiently and, crucially, at a lower cost than the European Union, but clearly we cannot say that it will cost the Government nothing at all to carry out the new responsibilities. It is therefore vital that the financial aspects of taking back control and preparing to take a fully independent position on the world stage are put on a sound and proper footing.
Stephen Timms
Does the Minister accept that we should hope that those fees and charges will be lower than those that have been paid until now to EU institutions?
Mr Baker
I am happy to tell the right hon. Gentleman that, as a good Conservative, I certainly hope to reduce the costs on businesses and individuals. I will come to his amendments in a moment.
New clause 17 and amendment 54 show an understandable desire to protect the role of this House, but they are not necessary. The Government have always been clear that the negotiated financial settlement will be part of our withdrawal agreement and that the House will be given a vote on that agreement. My right hon. Friend the Secretary of State for Exiting the European Union was very clear on 13 November when he announced the withdrawal agreement and implementation Bill. He said that, as one of the principal elements of our agreement with the EU, we expect that legislation to include authorisation to pay any financial settlement that is negotiated with the EU. The Bill we are debating today is about ensuring that the statute book is operational on exit day, not about paying any settlement. The same argument applies to new clause 80.
Mr Leslie
The Minister says that there will be an opportunity to vote on the finances, but only as part of the entirety of the proposed withdrawal agreement. Would it not be proper, as is the case with many other financial issues, for the House separately to authorise financial expenditure in relation to exiting the European Union? Surely the Government should commit to that power for the House of Commons, or will he deny us that opportunity?
Mr Baker
I am confused by the hon. Gentleman, because he is such a diligent Member of the House. I explained moments ago that we will bring forward the withdrawal agreement and implementation Bill, which will cover any financial settlement, among other withdrawal issues. I would of course expect that Bill to go through the normal legislative processes, during which he and other right hon. and hon. Gentlemen will have a full opportunity to scrutinise those provisions.
I turn to the amendments tabled by the right hon. Member for East Ham (Stephen Timms). The power in part 1 of schedule 4 can be used to create fees and charges of the type that amendment 153 is concerned with. That power can be used to establish new fees only in relation to functions being transferred to UK entities under the powers in this Bill. In most cases, one might expect that it will be replacing a fee set at EU level, but in some cases it may be right that it will be better value for the taxpayer and for users of the services to create a new fee to pay for functions that the UK previously funded through the EU budget.
Amendment 152 does not recognise the need for adjustments to other, peripheral aspects of the fees regime in connection with charging fees or other charges—for example, arrangements for refunds, which I think all Members can agree should be possible so as not to leave ordinary hard-working fee payers unfairly out of pocket. Furthermore, future Governments, in the fullness of time, may wish to simplify charges, amalgamate them, or charge less for one function or another.
Stephen Timms
In future it may be necessary to do all sorts of things, but surely the powers in this Bill should not be used to impose new charges on businesses that are not being paid at the moment.
Mr Baker
This Bill, first and foremost, is about exiting the European Union successfully, with certainty, continuity and control, as the right hon. Gentleman will know. I draw his attention to schedule 2(7), which makes it very clear that in the event that a provision imposed a fee or charge, or conferred a power to sub-delegate, it would go to the affirmative procedure and this House would have the opportunity to vote on it.
I turn to amendment 339 on sub-delegation. It is right that this House keeps strict control over all financial matters, but this Bill is about ensuring continuity. I remind the Committee that this power is available only if the public authority is taking on a new—[Interruption.]
The Temporary Chairman (David Hanson)
I am sorry to interrupt the Minister, but there is quite a lot of hubble and bubble from Members who have not been in the debate. Members who have been here for the past three hours wish to listen to the Minister’s response.
Mr Baker
Thank you, Mr Hanson.
The power is available only if the public authority is taking on a new function under this Bill, and the fees and charges must be in connection with that function. The amendment would force Ministers to exercise this power on behalf of public authorities, such as the Financial Conduct Authority, which this House has made statutorily independent from Ministers. The Government believe that it is right that where Parliament has already granted the power to set up rules within these independent regulators, fees and charges of the type envisaged by this power should continue to be exercised by those public authorities. For good reasons, they have been made independent of Government, and Parliament should have the option to maintain that status quo. I stress that the terms on which any public authority would be able to raise fees and other charges will be set in the statutory instrument that delegates the power to them; and that, as I said, any such delegation would trigger the affirmative procedure, ensuring that this House considers and approves any delegation of the power and how it would be exercised.
Amendment 340 on cost recovery has the disadvantage that it would prohibit what I hope Labour Members would consider to be progressive principles of ensuring a spreading of the burden of regulation. It also might not allow regulators to cover the cost of enforcement.
Clause 12 and schedule 4 are about delivering a successful EU exit with certainty, continuity and control. Clause 12 is not about enabling the payment of any negotiated financial settlement, and neither is schedule 4 about subverting the normal process of raising taxation. The amendments muddy the waters of what these provisions are for. These provisions are simply about ensuring that the financial aspects of taking back control and preparing to take a fully independent position on the world stage are put on a sound and proper footing.
Stella Creasy
The Minister said that he thought that all the amendments muddied the water, but he has also said that it was right that Parliament should have a vote on the money—on the divorce bill—and that there should be parliamentary oversight of any additional controls. Why then is he not going to accept amendments that simply ensure that that is the case? Just what kind of control is he seeking to take back?
Mr Baker
As the hon. Lady would expect me to say, what I want is Parliament to have proper control over our laws, our money, our borders and our trade policy. Having expressed my gratitude for her intervention, I hope that I have tackled right hon. and hon. Members’ concerns, and I urge them not to press the amendments.
Mr Leslie
I have heard what the Minister said. In fact, he even had the gall to use the phrase, “take back control” while simultaneously telling Parliament that it cannot have a separate, free-standing vote on this massive divorce bill, which will potentially cost the constituents of every single Member in the Chamber—every man, woman and child—up to £1,000 a head. They expect accountability for those decisions, and I want all those hon. Members, particularly those who advocated a hard Brexit, and who still potentially advocate going over the cliff edge into World Trade Organisation terrain, to walk through the Lobby and be held accountable for the amount of money that it will cost taxpayers for decades to come. That is why I do not wish to withdraw new clause 17. I believe that Parliament should exercise control over those amounts of money. Let us take back control and have accountability for those sums of money. I wish to push this to a vote.
Question put, That the clause be read a Second time.