Tuesday 8th May 2018
(6 years, 7 months ago)
Lords ChamberEuropean Union (Withdrawal) Act 2018 View all European Union (Withdrawal) Act 2018 Debates Read Hansard Text Amendment Paper: HL Bill 79-R-VI Sixth marshalled list for Report (PDF, 210KB) - (3 May 2018)
16:05 - Division on Amendment 93 - Ayes: 298 / Noes: 227 - Amendment 93 agreed.
17:01 - Division on Amendment 95 - Ayes: 311 / Noes: 233 - Amendment 95 agreed.
19:37 - Division on Amendment 110A - Ayes: 245 / Noes: 218 - Amendment 110A agreed.
20:56 - Division on Amendment 70 - Ayes: 225 / Noes: 194 - Amendment 70 agreed.
Baroness Hayter of Kentish Town (Lab)
My Lords, I am delighted to speak in support of the key Amendment 93, to which my noble and learned friend Lord Goldsmith added his name and which was moved so biblically and effectively by the right reverend Prelate the Bishop of Leeds. Of course, at that time, I had not only a brilliant legal adviser on my right, but a theological one—my noble friend Lord Griffiths—who has now left the Chamber. I said, “I have to have a biblical quote”, but I am afraid he has a sense of humour and said, “The people who were wandering aimlessly in the pre-Brexit wilderness were soon squabbling among themselves, ignoring the advice of their leader”, and so on. But I will leave my noble friend’s helpful comments for another time.
I say this particularly in answer to the noble and learned Lord, Lord Brown, and my noble friend Lord Adonis. This is an important and meaningful amendment because it would restrict the pretty wide powers given to Ministers in the Bill. That is why we need to pass it. We have on a number of occasions, on this Bill and the Nuclear Safeguards Bill, expressed our surprise that nowhere in the referendum process—in the immediate aftermath, nor in this legislation or any other—did the Government ever spell out that the Article 50 process automatically triggered our exit from Euratom. I will not repeat the costs and dangers of that eventuality given earlier debates on it, particularly the input at that point of the noble Lord, Lord Teverson.
However, equally unremarked on and unmentioned by the Government, or by the Brexiteers during the campaign, was the similar removal of the UK from a swathe of agencies, many of which, as we have heard, we helped to construct and all of which have served this country well. Colleagues will already know, from medical researchers who have been in touch, patient groups, health professionals and the pharmaceutical industry, of the risks of being outside the European Medicines Agency, quite apart from the loss of jobs and specialisms that are now moving to Holland. But the same could be said about the European Food Safety Agency, often referred to, but not today, by my noble friend Lord Rooker; the environment agency, emphasised by the noble Baroness, Lady McIntosh, and my noble friend Lord Whitty; the railways and aviation agencies, often referred to by my noble friend Lord Berkeley; the European Chemicals Agency, which has been mentioned; and, of course, Eurojust, suggested by the noble Baroness, Lady Ludford, and Europol, mentioned by the noble Lord, Lord Cormack.
The commonality is that any mention of those agencies in this House and beyond has included a plea for us to remain members, associates or partners with whichever such agency is in the frame. Sometimes this means following the same rules—as the Government have now accepted for clinical trials—to assist in monitoring; for safety; for easy and rapid transport, as for medical isotopes; to facilitate trade and exchange; to enable skilled persons to undertake checks or repairs; or, as my noble friend Lord Haskel said, to guarantee safe products for users and consumers.
For some of the agencies it might mean paying money in, as the Prime Minister acknowledged. For some it might mean harmonising assurance, governance or penalties for rule-breaking. But for all it will mean a willingness to adapt and respond to requirements, usually simply to maintain our existing rules and practice. What is clear is that, given the wide powers in the Bill for Ministers, we must ensure that none of those powers is used to frustrate our continued involvement with such agencies, whether because, for example, we set different sanctions for breaches, raise fees or charges in a different way that makes it difficult to move along in their way of working, or apply variant rules or any other similar change. That is why it is critical to circumscribe the powers in the Bill so that they cannot be used to prevent us having necessary EU rules or ways of working that would frustrate our participation in any of these agencies. We do not want the powers to be used for that reason, hence the very simple amendment.
The noble Lord, Lord Hannay, had it right: the Bill should not be used to frustrate the intention, should that be the Government’s wish, to stay in these agencies for the good of the whole country. It is, as the right reverend Prelate the Bishop of Leeds said in his introduction, entirely in line with what the Prime Minister said in Mansion House and it would allow this country to continue such relationships where that continuation is in the national interest.
The Minister of State, Department for Exiting the European Union (Lord Callanan) (Con)
My Lords, I understand the sentiment behind Amendment 93 tabled by the right reverend Prelate the Bishop of Leeds— I assure him that I am not one of those who regard him as a hypocritical remoaner. However, I must make it clear that the Government consider its inclusion in the Bill to be both completely unnecessary and totally inappropriate.
Once we leave the EU, this Parliament—and the devolved Administrations, where appropriate—will be free to change the law where they decide it is right to do so. As such, nothing done by this Bill, or any other Act of Parliament, can bind the actions of future Parliaments. A provision which essentially provides that future Parliaments can mirror EU law, which this Bill neither requires nor prevents, is therefore completely unnecessary. Nor does the Bill prevent Parliament approving any future relationship between the UK and the EU, including its agencies and institutions.
If the intended effect of the amendment is to preserve the sovereignty of Parliament, it is also completely unnecessary. The amendment may have been tabled with one eye on the withdrawal agreement, but my ministerial colleagues and I have been clear throughout the Bill’s passage, both within this House and in the other place, that its aim is just to create a functioning statute book as we depart from the EU—a point well made by the noble and learned Lord, Lord Brown of Eaton-under-Heywood. For the avoidance of any doubt, the Bill does not seek pre-emptively to legislate for or against any final withdrawal agreement or future relationship with the EU. On this point, I am surprised to find myself in agreement with the noble Lord, Lord Adonis, probably for the first time in the Bill’s passage. On this narrow point, he is right. Incidentally, we have accepted many amendments put forward in this House and by its committees. We have tabled more than 100 amendments responding to concerns raised by various Members of your Lordships’ House, so it is not quite true that we always reject everything that is said.
Lord Adonis
My Lords, there will be further opportunities for the noble Lord to accept amendments in due course, particularly on membership of the single market.
Lord Callanan
We will come to that debate later.
Let me make it clear: if there is a role for any EU agency as part of the withdrawal agreement, it will be legislated for under the withdrawal agreement and implementation Bill which we are planning to introduce later in the year. The same principle applies to the future relationship which will, as necessary, be legislated for in due course.
The inclusion of this amendment would make this position less clear than it is at the moment. It may also create an odd presumption that, since the Bill does not prevent the amendment’s intended effect being achieved, the specific inclusion of the new clause would mean that the UK will seek to mirror the laws of the EU after our departure or to continue its current participation in EU agencies. That may not be the right reverend Prelate’s intention, but the amendment could be read as going even further and attempting to save, or partially save, the European Communities Act for the purposes of mirroring changes in EU law after exit. If that is the case, it could be seen as allowing a wide discretionary power to keep pace with EU law. This would also be a wholly inappropriate approach when we do not yet know the outcome of the negotiations.
As I have highlighted during our previous debates on the Bill, the UK has a long-standing tradition of ensuring that our rights and traditional liberties are protected domestically. The UK leads the world in many areas in setting and upholding high standards across our statute book; for example, in areas such as consumer protection, environmental standards and workers’ rights—a point well made by my noble friend Lord Baker. I believe that all Members of Parliament, in this House and in the other place, are invested in the continuation of this legacy. It is in Parliament that we are better able to address and legislate for the specific needs and ideas of the UK.
In our negotiations, we are seeking a deep and special partnership with the EU, and our relationship with its agencies and bodies is being evaluated on this basis. I assure the House that where there is a demonstrable national interest in pursuing a continued relationship with an agency or other EU body, the Government will carefully examine whether we should pursue this. In response to the questions raised by my noble friend Lady McIntosh, participation in the European Environment Agency is of course a matter for the negotiations, but if we do negotiate participation we will, of course, make the appropriate financial contribution.
Viscount Hailsham (Con)
Will my noble friend help the House in one respect? I am trying to understand whether the amendment in any way obliges the Government to do anything or in any way prevents them doing anything. It seems to me entirely neutral in its effect. Can he help us?
Lord Callanan
I think I covered that in what I said earlier: we believe it to be unnecessary and pointless.
Going back to my noble friend Lady McIntosh’s questions, the second question she asked me was about contracts of employment of staff employed in those agencies. Of course, these are a matter for those agencies, but the rights of those UK citizens, as UK citizens in other EU countries, are guaranteed in the agreement we reached with the EU in December. The noble Lord, Lord Whitty, asked me about the membership of agencies ending in March 2019. As set out in the agreement reached in March, during the implementation period common rules will remain in place and the UK may continue to participate in EU agencies where the presence of the UK is necessary and in the interests of the Union or where the discussion concerns acts addressed to the UK and its citizens.
In conclusion therefore, while I fully understand the intentions behind the amendment, I do not believe that anything would be gained from its acceptance in the Bill, apart from confusion.
Lord Woolf (CB)
Before the Minister sits down, can he help me on one matter? I am sure there is an easy answer to it. The Bill is exceptional in its regulatory power. Whereas I see the strong force of what is being submitted by the noble and learned Lord, Lord Brown, I wonder if it has the effect of curtailing these very wide Henry VIII clauses.
Lord Callanan
I do not believe that it does curtail our powers under the SI provisions of the Bill, on which we have had separate, long discussions.
In conclusion, I do not believe that anything would be gained from its acceptance in the Bill apart from confusion and uncertainty. I therefore hope that the right reverend Prelate will feel able to withdraw his amendment.
The Lord Bishop of Leeds
My Lords, I thank the Minister for his response and all those who have spoken in the debate. I often find myself changing my mind when I hear good argument but I cannot assure the House that I have done that in this case. The Minister referred to the sentiment behind the amendment, but it is not sentiment: what I offered was a rationale, not a sentiment. The intention behind it is as I stated in my speech. I take the comment of the noble Lord, Lord Baker, about “common sense”, but every time I hear the phrase I begin to worry. Usually, common sense is so common and so thinly spread that it does not always apply in the specific, and as they say, the devil lies in the detail. So I am not sure that it is enough just to be sure that things will continue, or that we can continue to hope.
The noble Lord, Lord Adonis, said that it is not good for businesses and so on to be in the wilderness. I totally agree, but my point in using that metaphor is that we are, whether we like it or not, going to find ourselves in some sort of wilderness, because it will take a long time to work this through. It will not be that suddenly on day one, whether we stay or leave, everything in the garden is rosy. I am just being realistic about that. Finally, I find the repeated charge that this House is trying to impose on the Government, or tell the Government what to do, tiresome. It seems to me—I may be simple—that the remit and responsibility of this House is to send back to the Government and to the other House arguments that may make them think again. Otherwise, we have no purpose. So, while I take the comments seriously, I wish to test the opinion of the House.
Lord Callanan
“( ) an enactment contained in any Order in Council made in exercise of Her Majesty’s Prerogative,”
Lord Callanan
My Lords, we have just debated an important issue, and later I shall turn to some other very substantive matters. Nevertheless, I ask for a moment of the House’s time while I make the case for the five government amendments in this group, especially for the noble Lord, Lord Adonis, who apparently does not believe that we are tabling any amendments to the Bill.
These are all consequential amendments on the status provisions that we debated on day two of Report, and which I am pleased to say that the House accepted without a Division. I know the House will look again at these complex provisions at Third Reading but, as I said on day two, I hope there will be no further amendments beyond anything that relates to additional matters where the distinction between primary and subordinate legislation is important, and therefore we should insert that distinction between retained principal direct EU legislation and retained minor direct EU legislation.
Amendments 93A, 93B and 93C clarify types of legislation that are included in the definition of “enactments” in the Bill. This definition includes a non-exhaustive list of enactments. The new status clause provides that enactments are to retain the same status as they had before exit day. The intention behind the provision was to address the concerns of some noble Lords about the effect that the Bill has on domestic legislation via Clause 2 and whether it changed the status of that legislation. As part of the Government’s commitment to ensuring clarity and certainty, we have tabled the amendments to make it clear that these additional types of legislation all continue to have exactly the same status that they had before our exit from the EU. The amendments clarify that Church Measures, Orders in Council made in exercise of Her Majesty’s prerogative and devolved enactments made in exercise of the prerogative are within the definition of “enactments” and therefore will retain the same status that they held prior to exit day. The Government have of course consulted with the Church of England, the Palace and devolved authorities before tabling the amendments. The amendments also make it clear that in the highly unlikely case that any of these instruments are related to the EU and contain deficiencies, the Government could correct those deficiencies if appropriate, although in these cases it is likely that others would use their own existing mechanisms to so do.
Amendments 112BA and 112BB simply insert the new definitions of “retained principal direct EU legislation” and “retained minor direct EU legislation” into the Interpretation Act so that the terms do not need to be defined in future legislation. I hope noble Lords will find nothing to object to in this group, and I beg to move.
Lord Goldsmith (Lab)
My Lords, I understand and am grateful for what the Minister has said about the purpose behind the amendments. He is quite right that, for example, the first three amendments identify as enactments things, including Church Measures, that would normally be regarded as such but were not included. My question for him is simply this: he said in moving the amendment that one of the advantages of the amendments would be to enable deficiencies, if there were connections with EU law, to be corrected through secondary legislation. Could he explain how these amendments will enable that to be done? I did not quite follow that.
Lord Callanan
As I said, we think it is highly unlikely that any of these instruments that are related to the EU will contain deficiencies. If appropriate, we could use secondary legislation powers to correct those deficiencies but, as I said, in virtually every case it is likely that others—the devolved Administrations, the Church and so on—would want to use their own existing measures to do so.
Lord Callanan
“( ) an enactment contained in, or in an instrument made under, a Measure of the Church Assembly or of the General Synod of the Church of England,”
Lord Callanan
Baroness Hayter of Kentish Town
My Lords, I will restrain myself from entering into a longer debate on this issue. I agree with my noble friend Lord Grocott that this is an important Bill, but it will also affect the negotiations, and part of that will be affected by the timetable.
It is interesting that at various times when we have discussed the promised vote on the final deal—it is not just a matter of leaving but of our future relationship with the EU after we have left—the Minister has said that he hoped that the vote, in both Houses, would take place before the European Parliament has had its say, but that he could not definitely promise that it would, because our parliamentary timetable might not be flexible enough to fit in with that of the European Parliament. I cannot say that I accept that argument, because after all, we control our business and when we have votes—not necessarily how late at night they happen, but effectively we control our timetable. However, if the Minister was correct in the assumption that the European Parliament’s vote might not be at a predictable time—it may be delayed because talks are still going on—it may suddenly be brought forward.
Here, I will answer the point raised by the noble Lord, Lord Butler. It seems essential that the deal has to be agreed before April, when the European Parliament will go into recess, because under Article 50 the deal has to be agreed and have the consent of the European Parliament. If the European Parliament is to recess, adjourn or prorogue before its elections, the deal has to get consent before then. Therefore, there is a timetable, and it has to go before the European Parliament. I have had various legal advice about what happens if the European Parliament does not give its consent—it seems quite complicated—but certainly Article 50 says that it has to give consent. Therefore, the negotiations could go on a bit later than everyone wants, and the European Parliament will have to prorogue for its own elections and will have no authority thereafter. The date on which we leave could be fixed by the words in an Act of Parliament which will be passed in August or whenever, some months after those events, and that seems a very unhelpful position for our negotiators to be in.
I am sure that there will be late-night sessions and lots of consultations, with people ringing back for instructions as the negotiations go on—there are people who have been through all this. I hope that we have trained the Minister well in coping with late nights here, because he may well have more of those, but there could be very long nights as the negotiations go on. If one side—our negotiators—were curtailed by a strict date in the Act, that would put us at a disadvantage. The other side is not so constrained. The European Parliament can meet at very short notice when a decision has been taken.
However, I interpret Article 50 slightly differently. It says:
“The Treaties shall cease to apply to the State in question from the date of entry into force of the withdrawal agreement or, failing that, two years after … notification”.
So, without having to go to the Council for a unanimous decision, the withdrawal agreement could contain a leaving date of a week or two weeks after the two-year period, which would allow the last-minute arrangements to be made. If that is what the withdrawal agreement specifies, if that suits all the parties and if our Government would like to sign up to it, it would seem silly not to be able to do that.
It is important that we enable the negotiators to get the best possible deal, setting out exactly how we leave and exactly what our future terms of trade will be. If the amendment is passed, it will remove the straitjacket that the Government inserted at the behest not of the negotiators but of certain ardent Brexiteers. Let us remove that straitjacket, make the task easier for the negotiators and reflect what our own EU Committee said:
“The rigidity of the Article 50 deadline of 29 March 2019 … makes a no deal outcome more likely … enshrining the same deadline in domestic law would not be … in the national interest”.
I am sure that the Government want to put the national interest first and I certainly believe that this House will want to do so. Therefore, we strongly support the amendment moved by the noble Duke, the Duke of Wellington, and we urge everyone to go into the Lobby behind him.
Lord Callanan
My Lords, I thank all noble Lords for their contributions to this debate. Exit day has been discussed at length throughout the passage of this Bill. Set dates such as this are often crucial to the functioning of any legislation, but I would like to take this opportunity to remind noble Lords of the particular importance of exit day in this Bill.
Exit day is the moment in time when the European Communities Act is repealed. It is the point at which EU laws are converted into UK law, when the deficiencies in retained EU law emerge and when a range of other effects are triggered under the Bill. However, I reiterate that exit day within the Bill does not affect our departure from the EU, which is a matter of international law under the Article 50 process, as my noble friend the Duke of Wellington and the noble Baroness, Lady Hayter, made clear. What it does affect, however, is whether we leave the EU in a smooth and orderly fashion.
The definition of exit day, and how it is to be set out, has been amended significantly since the Bill was introduced to the other place by my right honourable friend the Secretary of State for Exiting the European Union on 13 July last year. My noble friend Lady Goldie has previously described the sequence of events which led us to the current drafting and I will not test the patience of your Lordships by repeating the arguments she made in Committee. What I will say, however, is that, crucially, the Bill left the other place reflecting the reality of international law under the Treaty on European Union. I see no reason, therefore, to change the Bill any further. The final drafting also reflected the concerns of Members of the other place who had been on both sides of the referendum campaign. That fact sits at the core of my opposition to Amendments 74, 95 and 99 in the name of the noble Duke, the Duke of Wellington.
As has been stated on many occasions during Report, this House reviews the legislation sent to it by the other place and highlights—often very well—areas where it does not think due consideration has been given. This point was well made by the noble Lord, Lord Grocott, as a leaver from the West Midlands. As a leaver from the north-east, also an area underrepresented in this House, I have considerable sympathy with his arguments. I therefore cannot why these amendments are seeking to restore something like the original drafting of the Bill when that drafting was considered at great length, on many occasions, and was rejected by the other place.
I also do not agree with Amendment 96 in the name of the noble Lord, Lord Wigley. The Bill is designed to provide continuity and certainty in domestic law as we leave the EU. This must be true in a scenario where we have a deal with the EU, but it must also be true in the unlikely event that there is no agreement between the EU and ourselves. While this is not what anybody on either side is hoping for, it would be irresponsible and out of keeping with the remainder of the Bill not to prepare for that unlikely event. In that circumstance, it would be vital that the Bill did not make reference to concepts which are contingent upon a successful negotiated outcome, such as an implementation period. That would prevent the Bill achieving its objective as agreed at Second Reading, because in that scenario further primary legislation would be required to alter exit day and provide for an operable statute book. Even in the Government’s preferred scenario of a successfully negotiated withdrawal agreement, including of course an implementation period, the noble Lord’s amendment presumes that no substantive provisions of this Bill will be required until the end of that implementation period.
While I do not want to be drawn into a discussion about the legal construction of the implementation period, which will be a matter for the withdrawal agreement and implementation Bill—I have no doubt we will have great fun in our opportunity to consider that—I do not think that the noble Lord can be certain in his assumption. This is the real issue with the noble Lord’s amendment: it attempts to use this Bill to legislate for the implementation period. But the Government have been quite clear that the implementation period will be a matter for the withdrawal agreement and implementation Bill once we have agreement. This Bill is deliberately and carefully agnostic about whatever deal we strike with the EU, prejudging neither success nor failure in negotiations.
Of course, we hope and expect to be successful in these negotiations, and our continuing progress demonstrates good movement towards that goal. I hope that noble Lords will reflect the compromise reached by the elected House, and therefore I respectfully ask the noble Duke to withdraw his amendment.
The Duke of Wellington
My Lords, I will respond first to the pertinent question from the noble Lord, Lord Butler. I did not mean to imply that, under the Article 50 process, there could not be a longer extension. I just feel that, as a practical matter, it is unlikely to be practical to extend for more than a few weeks, because the European Parliament will indeed be dissolved in late April prior to the European elections in May 2019.
Lord Callanan
Lord Callanan
“(6A) In this Act references to anything which is retained EU law by virtue of section 4 include references to any modifications, made by or under this Act or by other domestic law from time to time, of the rights, powers, liabilities, obligations, restrictions, remedies or procedures concerned.”
Lord Callanan
“Anything which is retained EU law by virtue of section 4 | Section 14(6A)” |
Lord Callanan
Lord Callanan
“Time limit for making certain provision
4A(1) Subject to sub-paragraph (2), no regulations may be made under paragraph 1 after the end of the period of two years beginning with exit day.(2) After the end of that period, regulations may be made under paragraph 1 for the purposes of—(a) revoking any provision made under that paragraph,(b) altering the amount of any of the fees or charges that are to be charged under any provision made under that paragraph,(c) altering how any of the fees or charges that are to be charged under any provision made under that paragraph are to be determined, or(d) otherwise altering the fees or charges that may be charged in relation to anything in respect of which fees or charges may be charged under any provision made under that paragraph.(3) This paragraph does not affect the continuation in force of any regulations made at or before the end of the period mentioned in sub- paragraph (1) (including the exercise after the end of that period of any power conferred by regulations made under that paragraph at or before the end of that period).”
Lord Callanan
“( ) paragraphs 3A, 3B, 19(2)(b), 40(b), 43(2)(c) and (d) and (4) of Schedule 3 (and section 11 (4A) and (5) so far as relating to those paragraphs),”
Lord Callanan
Lord Callanan
Lord Goldsmith
My Lords, this amendment deals with a point that we raised and discussed in Committee. It may be that this group will not take too long, although that will depend upon what the Minister has to say. The important point about this is that the Bill as drafted would mean that at the moment Royal Assent was given, certain things would happen, including that the jurisdiction of the CJEU would come to an end. We raised the point that, given that it appeared likely that during an implementation period the Court of Justice of the European Union would continue, by agreement, to have certain jurisdiction, it would be important not to see the CJEU’s jurisdiction fall off a cliff edge, as it were. It may be that the noble and learned Lord the Minister will be able to reassure us that they will deal with this so as to ensure that if the CJEU continues to have jurisdiction in certain circumstances—which, as I say, I believe is a likely outcome of the continuation of the discussions—the Bill will not have taken away the ability to do that.
Amendment 109 would not allow Clause 6—which, among other things, brings the CJEU’s jurisdiction to an end—to come into effect until,
“the expiration of transitional arrangements agreed between the United Kingdom and the European Union”.
The amendment focuses on transitional arrangements that are in fact agreed, not hypothetical arrangements. It would achieve no mischief because transitional arrangements would in fact be agreed and we would be saying simply that the jurisdiction of the CJEU should not come to an end until the end of that period.
The Minister may put forward some alternative way of achieving the same effect. I will listen very carefully, as will other noble Lords, to what he has to say about that. For the time being, I beg to move.
The Advocate-General for Scotland (Lord Keen of Elie) (Con)
My Lords, in light of the observations made by the noble and learned Lord in moving this amendment, I will make one observation at this stage in response to his invitation to me.
Part Four of the withdrawal agreement so far agreed between the United Kingdom and the EU sets out:
“During the transition period, the Union law applicable pursuant to paragraph 1 shall produce in respect of and in the United Kingdom the same legal effects as those which it produces within the Union and its Member States and shall be interpreted and applied in accordance with the same methods and general principles as those applicable within the Union”.
That would mean that during the implementation period—assuming that that is actually agreed—the CJEU will continue to fulfil the role it currently does with regard to the UK’s legal structure. This effect will be provided for under the withdrawal agreement and implementation Bill. I do not know whether that assists the noble and learned Lord but that is the position as set out.
I add only that given the terms of the noble and learned Lord’s amendment—and I appreciate that it has been deliberately framed in this way:
“A Minister of the Crown may not appoint a day on which section 6 is to come in force unless this day follows the expiration of transitional arrangements agreed between the United Kingdom and the European Union”,
if that amendment was passed, it would throw into doubt what would happen if there were no transitional arrangements. That is not an outcome that we seek but it is a distinct possibility and would mean either that Section 6 did not come into force at all or that potentially we would be thrown back into the billowing mists of uncertain inference. So I have that objection but I thought it might assist noble Lords if I made clear our position with regard to the implementation period. I hope that that responds to the noble and learned Lord’s observation.
Lord Goldsmith
My Lords, I cannot agree with the point raised by the Minister about the wording of the amendment. The amendment says that a day may not be appointed,
“unless this day follows the expiration of transitional arrangements agreed between the United Kingdom and the European Union”.
If in fact no arrangements have been agreed between the United Kingdom and the European Union, it would seem that effect could be given to the amendment.
Be that as it may, the important point is that, as I understand it, the Minister has said two things. He has said, first, that if an implementation agreement is agreed, it will include continuing jurisdiction of some sort for the Court of Justice of the European Union and, secondly, that the Government will make sure that that jurisdiction is provided under the terms of legislation to be brought forward; I think the implementation Bill is what the Minister has in mind. If that is right and the Government are telling us that they intend that legislation will incorporate a continuing jurisdiction if that is agreed, that would deal with the mischief that this amendment was designed to deal with.
If that is the position—it would be very helpful if the noble and learned Lord could confirm whether it is—I would then be able to beg leave to withdraw the amendment. I am watching his body language but I have been fooled by that before, so I would be grateful if he clarified whether what I have said is right.
Lord Keen of Elie
It is of course the position that there is no certainty that there will be an implementation agreement. In that event, I would seek to differ with the noble and learned Lord about the interpretation of his amendment but that is a matter of little moment, I agree. However, in the event of there being an implementation agreement that follows the terms of the withdrawal agreement in outline, which noble Lords have seen, then during the transition period the Union law applicable pursuant to paragraph 1 will produce the same effect in the United Kingdom as in the remainder of the EU. That would extend to the jurisdiction of the CJEU in respect of the matter of the interpretation and effect of such law. The noble and learned Lord is quite right that it would be the intention of Her Majesty’s Government, in those circumstances, to ensure that such a provision was expressed in the withdrawal agreement Bill.
Lord Goldsmith
My Lords, in those circumstances I beg leave to withdraw the amendment.
Baroness Hayter of Kentish Town
My Lords, the House has heard the pleas of the heart if not of the head. I think I have said before that, although I was born in Germany, I sadly do not qualify for a German passport or else I would be doing the same as many others. So many people are doing it because they fear and regret losing their EU citizenship. As the noble Lord, Lord Kerr, quite rightly said, in the treaties EU citizenship is an add-on. Only people who are citizens of a member state have EU citizenship, with all the rights, protections and consular protections that brings. They have to be a citizen of a member state. Sadly, that change will come and we will not be EU citizens.
I would like to leave a thought with the Minister. We have not treated the whole of this aspect sufficiently seriously. We have not reached out to EU nationals living here and to people who are losing their rights as EU citizens. We have still not told EU citizens living here—unless I missed it—whether they will be able to continue to vote in our local government elections. We know they will not be allowed to vote in the European Parliament elections—that is fairly obvious—but there are other changes that the Government have been very lax and slow in spelling out.
The plea behind some of the feelings that we are having is to listen to the current EU citizens. If there is one plea that I would leave with our negotiators, it is that we need a withdrawal deal that puts citizens at its heart, not as an add-on, and that we should do everything that can be done to keep the links that we already have with agencies, education and so on. That would help to make a withdrawal deal that would enable British citizens, even if they will not have that lovely treasured purple passport, still feel as if they are continentals—full associates, if you like—with the rest of the EU.
Lord Keen of Elie
My Lords, this is of course an important issue that has already been covered in depth, both in this Chamber and in the other place. I welcome the opportunity to discuss it further with the noble Lord, Lord Wigley, when we exchange views on the interpretation of the Vienna Convention on the Interpretation of Treaties, particularly Article 70 thereof. I acknowledge fully his interest in this area, the depth with which he has examined it and the importance that he underlines with regard to this matter.
Nevertheless the position remains, as summarised eloquently by the noble Lord, Lord Kerr of Kinlochard, that there is no provision in EU law for the concept of associate EU citizenship. It is clear that EU citizenship is tied to citizenship of a member state. The European Commission itself has referred to the additional rights and responsibilities attributed to the nationals of EU member states by virtue of EU citizenship, which they automatically attain under the provisions of the EU treaties. I emphasise the EU treaties because to take such a matter forward it would be necessary to contemplate the amendment of the EU treaties in a quite radical way, in order to attempt to confer on citizens of non-EU members the status of EU citizenship or something connected to it. However, we are willing to listen. Noble Lords may recollect that the European Parliament mentioned the idea of some associate citizenship; it has never elaborated upon that but if it wishes to, we are listening, and we would listen to that. I wish to make that clear.
The position of the Republic of Ireland emerges as the consequence of bilateral treaties that predate our entry into what was then the EEC and Ireland’s entry into the same, and that is not directly affected by our exit from what is now the EU. My understanding is that those arrangements continue in force.
With regard to the wider issue raised by the noble Baroness, Lady Hayter—the matter of voting rights, for example—during the course of the earlier negotiations we attempted to negotiate with regard to the exchange of voting rights, but at that stage the Commission declined to do so. That is something that we would wish to carry forward but the Commission was not prepared to engage in that discussion at that stage of the negotiation. Again, we remain open on these matters.
The citizens’ rights agreement reached in December, which is now set out in the draft withdrawal agreement, provides certainty for UK nationals in the EU regarding their rights following our exit. The agreement with the EU protects the rights of EU citizens and their family members living in the UK on exit day and indeed vice versa. To that extent, it will give citizens certainty about a wide range of rights including residence rights, healthcare rights and pension and other benefit rights. That will mean that UK nationals who are legally resident in the EU by the end of the implementation period will continue to benefit from most of the rights that stem from their EU citizenship today. As I say, associate EU citizenship does not make up part of the citizens’ rights agreement, and indeed by attempting to make it a negotiating objective we would be setting ourselves what is, frankly, an impossible target. The consequence would be that, should the amendment pass and the Government fail to adopt such an impossible negotiating position, our entire post-exit statute book would be put at severe risk. There would appear to be no sensible point in attempting to do that.
I stress that with regard to this matter we are in listening mode. Reference was made to the suggestion of further litigation in this area. A case is going on in Holland at present. It was referred by the Dutch Government to the Amsterdam Court of Appeal, which has heard the appeal and is due to deliver its judgment later in June. We do not believe that is going to affect the matter at all but we await the judgment of that court. At present, though, we must proceed with the ultimate goal: to deal with Brexit in the easiest manner possible so far as citizenship is concerned.
Lord Adonis
My Lords, could the Minister tell us what the case at the Amsterdam Court of Appeal is?
Lord Keen of Elie
My Lords, it was an application about the rights of certain UK citizens resident in Holland having rights post Brexit in Holland. The objective of the case was clearly to secure a reference to the CJEU for the interpretation of certain treaty matters. When that proceeded, it is my understanding that the Dutch Government then intervened in the proceedings and they were the subject of a hearing before the Court of Appeal in Amsterdam. That matter is not yet advised, so that is where it stands. I am afraid I cannot give further details of the case but I understand that it was partly funded by lawyers in the UK. I hope that assists the noble Lord.
As I say, at present we, the EU and the Commission are quite clear on what the concept of EU citizenship means, that the source is the EU treaties, and that there is no provision at present for associate citizenship. If during the course of negotiation the Commission or other bodies in the EU come forward with such proposals, we will of course listen to them. At this stage, though, I invite the noble Lord to withdraw his amendment.
Lord Wigley
My Lords, I am grateful to everyone who has taken part in this debate: the noble Viscount, Lord Hailsham, the noble Lords, Lord Kerr of Kinlochard, Lord Dykes and Lord Green, the noble Baronesses, Lady Hayter and Lady Ludford, and the noble and learned Baroness, Lady Butler-Sloss. It has been a short but worthwhile debate. Some of those participating in it have seen weaknesses in the amendment, and I accept that there is room for criticism in that direction and that it is a challenge with regard to the status quo within which we are operating.
None the less, I feel that some benefit has come out of the debate, in that the Minister has indicated that the Government would be in listening mode, both in terms of the negotiations that are going on and in terms of what may or may not come forward from the European Parliament itself on this matter, bearing in mind that Mr Verhofstadt has indicated fairly strong feelings in that direction. If it were possible for some form of associate citizenship to develop out of this—if indeed we leave the EU, which I would regret but is likely to happen—that could retain our links for the period while we are outside the EU directly, I am sure that would be of interest to a large number of people, particularly to young people, as has been mentioned in this debate, because they identify with the European dream. The European dimension is part of their identity and they would like to have some access to it in a more formal way. On the basis of the comments made by the Minister, which I welcome as far as he was able to go, I beg leave to withdraw the amendment.
Baroness Hayter of Kentish Town
It is not a shame. What were the words? “Kindness, care and consideration”. It is because we share the objectives of that best possible deal that we should make sure that our mandate and agreement serve the whole country, the economy and the regions. At this stage, we should not support one particular approach to that. I urge the House to abstain on the amendment.
Lord Callanan
My Lords, before I address the amendment I will say a brief word, if the House will permit me, about the previous group, which we did not get a chance to speak on. I did not have the opportunity earlier to announce that the Government intend to consult further on ambulatory references—about which I am sure noble Lords are concerned—particularly in relation to contracts. Subject to the outcome of that consultation, further legislation might be brought forward under the consequential powers in the Bill.
Lord Carrington of Fulham (Con)
We intended to cover this under the previous group of amendments, as my noble friend said. This is a very important although highly technical area, transposing European law into English law for the sake of contract agreements. Under the way this is currently phrased in the Bill, there is a danger that the UK version of the EU law would be transposed into EU versions of EU law. The amendments are concerned with consulting on how this can be avoided, so that international contracts made under UK law can continue to be made under UK law for the benefit of the City of London, financial services and the accountancy and legal professions in London. With that, I congratulate my noble friend on this consultation and greatly welcome it.
Lord Callanan
I thank my noble friend for his support. [Laughter.] Noble Lords laugh, but this is an important issue that actually is something to do with the contents of the Bill, unlike some of the other amendments we are considering. I thank the noble Baroness, Lady Hayter, for her somewhat grudging support of our position. Since the Foreign Secretary was mentioned so much, I think it only fair we should mention the sterling performance of the shadow foreign secretary, Emily Thornberry, this morning on the radio, who, in rejecting the so-called EEA/Norway model, set out for us with great clarity what the Labour Party’s position is. She said that they “kind of want to stay in the same kind of place”, effectively.
Amendments 110A and 112BC seek to make continued participation in the EEA a negotiating objective for the Government. The UK is a party to the EEA agreement by virtue of its membership of the EU. At the March European Council we agreed with the EU that the UK is to be treated as an EU member state for the purposes of international agreements for the duration of the time-limited implementation period. This means that international agreements to which the UK is a party by virtue of our EU membership will continue to apply to the UK as they do now. This includes the EEA agreement. The agreement reached at the March European Council on the application of international agreements throughout the implementation period is a positive and significant step and will enable us to secure continuity in our relationships with Norway, Iceland and Liechtenstein for that period.
Once the implementation period ends, we will no longer be participants in the EU’s international agreements, including the EEA agreement. We will instead seek to put in place new arrangements to secure our future relationship with Norway, Iceland and Liechtenstein outside the EU. Seeking to negotiate to remain in the EEA agreement would not pass the first test that the Prime Minister set out for our future economic partnership with the EU. It would not deliver control of our borders or our laws. On borders, it would mean we would have to continue to accept all four freedoms of the single market, including freedom of movement. On laws, it would mean the UK having to implement new EU legislation on which, in future, we will have little influence and, of course, no vote. This would not deliver on the British people’s desire as expressed in the referendum to have more direct control over decisions that affect their daily lives.
Some noble Lords think that the EEA would be the right relationship for the UK to have with the EU. I and the Government simply do not agree. As I set out, it is not right for the UK, nor, necessarily, would it be right for Norway, Iceland and Liechtenstein, whose institutions were not designed to accommodate a member like the UK. Other noble Lords view the EEA as the right course because they believe the Government should seek any port in a storm. The Government are entering negotiations convinced of success and we will secure the right deal for the UK. I cannot support an amendment that rejects before even starting our objective of seeking the broadest and deepest possible partnership with the EU, covering more sectors and co-operating more fully than any free trade agreement anywhere in the world today. Therefore, I ask the noble Lord to withdraw his amendment.
Lord Alli
My Lords, I thank everyone who participated in the debate. We have had a full debate and it was encouraging to hear the voice of business come through, particularly as it is often stifled by rhetoric and dogma. I thank the Minister for what he said. Clearly, I disagree with him. The noble Lord, Lord Kerr, and my noble friend Lord Mandelson, best set out the kind of negotiation one would expect to have with the EEA, which would be different. In the absence of anything else, this is where we are left. I also thank my own Front Benchers for their courtesy and the way they handled this difficult situation, with many of us on this side of the House wanting to vote for this amendment. It has been a privilege to work with them. I want to say that on the record.
I will highlight a couple of other people from the debate. It will be my only opportunity, and that of many in this House, to say thank you to the noble Baroness, Lady Altmann, who has done an extraordinary job managing to herd the cats that are non-aligned on this Bill with regular updates and emails. I am sure that noble Lords who have had those will join me in thanking her for the work she has done. I highlight two speeches above anything else. It is very brave to speak against your own party when you do not normally do so. The contributions of the noble Baronesses, Lady Verma and Lady McGregor-Smith, were exemplary. To take something you believe in and to say and make those arguments against the wishes of your own party shows real bravery and independence. It has been a real privilege to be on the same amendment as them.
I am sure it will be of no surprise to the Minister that I reject his thesis entirely. I also reject the notion that if those of us in business and services wait long enough, the Government will come up with something to tell us about their trade negotiations. It simply does not wash. I ask my side to take the examples of the noble Baronesses, Lady Verma and Lady McGregor-Smith. Be brave and vote—as they say in Ireland, vote often if you can. I beg to test the opinion of the House.
Lord Callanan
Baroness Smith of Basildon (Lab)
My Lords, I rise to support Amendment 70. There is not really much left to say as noble Lords have addressed so many of the points. I do not wish to delay the House, and I would like to hear what the Leader of the House has to say.
Having served in both Houses, the difference in how statutory instruments are treated is very familiar to us, as mentioned by my noble friend Lord Davies. I always said in the House of Commons that when a statutory instrument committee came along and you were asked to take part, you would ask, “Why me, and how long will it take?” In this House, we have had more speakers on this debate than we had on the previous one on the EEA. That shows the level of interest and excitement generated by statutory instruments in your Lordships’ House. Someone may have said, “So many SIs and so little time”.
As we progress on the road to Brexit, as the noble Lord, Lord Bilimoria, said, this House and the other place will clearly have to address a huge number of SIs. The concern is that we have to get this right. The consequences of making mistakes against the Government’s intention of ensuring that EU law can be transposed into UK law are very serious. Those SIs have to be accurate and they have to be properly considered.
In Committee, the noble Baroness confirmed that the Government intend to publish draft SIs “where possible and appropriate”. If you look at the website, there are a few drafts—not many, but a few. There are illustrative examples, and I am grateful for those. They are helpful, but there is no way of knowing whether those examples are representative of the statutory instruments that are to come, particularly given the drive to reduce the overall number by packaging up multiple issues in one statutory instrument. I have raised this issue with the Government over some time. I gave evidence on it to the Select Committee in the other place and I gave evidence to our Constitution Committee, and it is really important that we have those draft SIs for, if nothing else, the appearance of accuracy, so that we know we are getting it right.
As I said, the noble Baroness made helpful comments on this about publishing draft SIs. However, I have to say that I am not convinced that “where possible and appropriate” is good enough. Can she go one step further and guarantee that SIs will always be published in draft form prior to being introduced into either House, unless of course they are made under urgent procedure? That is another discussion and there would obviously have to be very good reasons why they were urgent. Having those draft SIs is absolutely essential—not for delaying but for giving them proper consideration. It is much harder to rectify mistakes at later opportunities than if we deal with them straightaway.
The noble Baroness argued previously that the Committee stage amendments of the noble Lord, Lord Lisvane, were unnecessary, and she said then that if both committees were to reach the same recommendation,
“the Government’s expectation is that such recommendations are likely to be accepted”.—[Official Report, 19/3/18; col. 154.]
I understand that that is the intention, but “expectation” and “likely to be accepted” are a bit woolly for legislation. I do not think that is adequate. We hope that would be the case but, as the noble Baroness told us at the time, there would be a problem if the two committees disagreed or if the Government decided not to accept the proposed upgrade to the affirmative procedure. It is a limited upgrade; I would not get too excited about the affirmative procedure being too intrusive. We recognise that it is a step in the right direction. The noble Baroness told the House that she hoped the latter scenario—that the Government would not accept a proposed upgrade from one House—would be very rare. Again, it is very speculative. How rare does she think that occurrence will be? Could she outline the steps she would expect Ministers to take in the event of it becoming a reality?
All of us want to see EU law on the UK statute book as accurately and as quickly as possible, but to do that we must have confidence in the process and procedures that we have in place. We cannot do it on a wing and a prayer. If we do not get this right, there will be serious consequences, which will be far harder to rectify or amend later. I hope the Minister can give some reassurances on that issue in the course of her comments.
The Lord Privy Seal (Baroness Evans of Bowes Park) (Con)
My Lords, I thank all noble Lords for their contributions to this debate. The Government take parliamentary scrutiny of the powers afforded them very seriously, which is why, from the outset, I have made clear our view that both Houses should be treated equally when it comes to the sifting process proposed by the Commons Procedure Committee. The Government have already accepted amendments, although they only included a committee in the other place, and the government amendments that we have just discussed would extend that process to your Lordships’ House. We have listened carefully to the views of the House and numerous committees on ways in which to improve this Bill. Among other amendments, we have removed the Clause 8 power altogether and sunset the consequential power and the power to make new fees or charges. The correcting power has been prohibited from creating public authorities or amending the devolution statutes, and we have provided that regulations should be amendable only in the same way as primary legislation.
Having heard the views of the House in Committee, I am pleased to confirm that the Government have tabled amendments that we will debate shortly to extend the sifting committee’s remit to instruments made under the power contained in Clause 17(1). I hope that noble Lords will see this as further evidence of the Government’s willingness to listen to the case put by this House and, in particular, by the DPRRC. I believe that we have made clear our commitment to ensuring that this House can rigorously scrutinise the secondary legislation that will flow from this Bill.
The government amendments allow the changes to the SLSC’s order of reference, agreed by the Procedure Committee, to be put into practice following Royal Assent. I am sure that noble Lords on all sides will want to consider the committee’s report in good time. As I have said before, the agreement reached regarding the SLSC taking on the new and vital role as the sifting committee demonstrates the constructive collaboration of the House. I remain grateful to other members of the Procedure Committee and the SLSC for their support in this decision.
A number of noble Lords have made it clear that they would like further reassurance that the recommendations of the sifting committees will be taken seriously by the Government. I am happy to repeat what I said in Committee—that if both sifting committees were to make the same well considered and no doubt persuasive recommendation that an SI should move from the negative to the affirmative procedure, I assure the House that the Government’s expectation is that such recommendations are likely to be accepted. Where the two committees disagree, the situation would, of course, need to be carefully considered on its merits. The noble Baroness, Lady Smith, tempted me to speculate on how often the Government would disagree with a recommendation coming from both committees. Clearly, I cannot usefully do that, but I can say that the Government are not placing shackles on their ability to make a recommendation to upgrade the procedure if they so wish. It is right that this is the case, but I repeat my view—I expect that to be a rare occurrence. I can confirm that on the very rare occurrence, one hopes, when that happened, and the Government did not agree with a recommendation to use the affirmative procedure, we would fully expect to publicly set out our reasons to the committee concerned.
Amendments 70 and 77 in the name of the noble Lords, Lord Lisvane, Lord Norton and Lord Sharkey, and the noble Baroness, Lady Smith of Basildon, propose an alternative sifting process. There are two significant differences between the process proposed in Amendment 70 and that proposed by the Commons Procedure Committee, the consequences of which would put at risk our ability to achieve this Bill’s fundamental aim: a functional statute book on exit day and, indeed, for this House to exercise timely and effective scrutiny. The first would make the sifting committee’s determinations binding on the Government unless the House decided to disagree with its committee. The second is that the amendment would build into the sifting committee process a mechanism for the House as a whole to make a binding determination, irrespective of the decision of the committee to which it has delegated the responsibility for making recommendations. Such determinations raise several serious problems. The first is the potential for disagreement between the Houses, and I note that Amendment 71 involves the same problem, to which I shall come in a moment.
The second risk, which is potentially more serious in practical terms, is the delays which this process could create. Given that this House and the other place do not often sit on Fridays, 10 sitting days is already likely to stretch across three weeks. The addition of an extra five-day period, during which each House could overrule its own sifting committee, potentially extends this process into a fourth week. Of course, if any of this were to occur around either House’s normal recesses, the period would be longer still. Then, after that, any negative instrument would still have a praying period of 40 days during which, as now, a debate could be sought. In addition, any affirmative instrument would be subject to the usual scrutiny procedures and laid before Parliament until it could be accommodated in the parliamentary schedule.
Lord Callanan
“Committee of the National Assembly for Wales to sift certain regulations involving Welsh Ministers
3A_(1) Sub-paragraph (2) applies if the Welsh Ministers are to make a statutory instrument to which paragraph 1(9) applies and are of the opinion that the appropriate procedure for the instrument is for it to be subject to annulment in pursuance of a resolution of the National Assembly for Wales.(2) The Welsh Ministers may not make the instrument so that it is subject to that procedure unless—(a) condition 1 is met, and(b) either condition 2 or 3 is met.(3) Condition 1 is that the Welsh Ministers—(a) have made a statement in writing to the effect that in their opinion the instrument should be subject to annulment in pursuance of a resolution of the National Assembly for Wales, and(b) have laid before the Assembly—(i) a draft of the instrument, and (ii) a memorandum setting out the statement and the reasons for the Welsh Ministers’ opinion.(4) Condition 2 is that a committee of the National Assembly for Wales charged with doing so has made a recommendation as to the appropriate procedure for the instrument.(5) Condition 3 is that the period of 14 days beginning with the first day after the day on which the draft instrument was laid before the National Assembly for Wales as mentioned in sub-paragraph (3) has ended without any recommendation being made as mentioned in sub- paragraph (4).(6) In calculating the period of 14 days, no account is to be taken of any time during which the National Assembly for Wales is—(a) dissolved, or(b) in recess for more than four days.(7) Nothing in this paragraph prevents the Welsh Ministers from deciding at any time before a statutory instrument to which paragraph 1(9) applies is made that another procedure should apply to the instrument (whether under paragraph 1(9) or 4B).(8) Section 6(1) of the Statutory Instruments Act 1946 as applied by section 11A of that Act (alternative procedure for certain instruments laid in draft before the Assembly) does not apply in relation to any statutory instrument to which this paragraph applies.(9) The references in this paragraph to paragraph 1(9) do not include references to paragraph 1(9) as applied by paragraph 7(5)(for which see paragraph 13A).”
Baroness Smith of Basildon
My Lords, the amendment is self-explanatory. If urgent regulations have to be laid, having an explanation and clarity from the Minister as to why it is urgent is always helpful. It is fairly simple and straightforward. I hope the noble Baroness will say that she is prepared to accept the amendment.
Baroness Evans of Bowes Park
I thank noble Lords for this very brief debate. As I indicated in Committee, the Government have reflected on this point further and decided to table their own amendments to achieve the same aims as the noble Lord’s amendments. The Government have always said that we expect Ministers to use the Bill’s urgent procedure rarely. This might be where, for example, corrections to the statute book are required very close to exit day and where the impact of not making these corrections would be significant.
The Government have always been committed to ensuring an appropriate level of scrutiny is afforded to the Bill’s provisions. I remind noble Lords that the made affirmative procedure still requires debates and potentially votes in both Houses. We have always wanted to be transparent about how this unusual process will work and it is for that reason that we have clarified the time period in which a made affirmative SI must be debated. In response to the persuasive case made by noble Lords in Committee, where the Government choose to use the urgent procedure we are happy to commit in statute to supplementing any declaration of urgency with a commitment to making a statement explaining why this was considered to be appropriate. In response to the question asked by the noble Lord, Lord Sharkey, Ministers will write as soon as is practicable. This is in addition to the obligation to make a statement.
While the Government cannot accept the noble Lord’s amendment for technical reasons, I hope noble Lords will be content to accept those tabled by the Government in its place and that the noble Lord, Lord Sharkey, will feel able to withdraw his amendment accordingly.
Lord Sharkey
I thank the noble Baroness the Leader of the House for Amendment 83N and for agreeing with us that it is in fact necessary. With that, I beg leave to withdraw the amendment.
Lord Callanan
Lord Callanan
Lord Callanan
Lord Callanan
Lord Callanan
Lord Callanan
“Committee of the National Assembly for Wales to sift certain regulations involving Welsh Ministers
13A_ Paragraph 3A applies to regulations under Part 3 of Schedule 2 as it applies to regulations under Part 1 of that Schedule but as if—(a) the references to paragraph 1(9) were references to paragraph 1(9) as applied by paragraph 7(5),(b) the reference to paragraph 4B were a reference to that paragraph as applied by paragraph 14(6A), and(c) paragraph 3A(9) were omitted.”
Lord Callanan
Lord Callanan
“Anticipatory exercise of powers in relation to retained EU law
18A_ Any power to make regulations under this Act which modify retained direct EU legislation, anything which is retained EU law by virtue of section 4 or any other retained EU law is capable of being exercised before exit day so that the regulations come into force on or after exit day.”
Lord Goldsmith
My Lords, the amendments have been moved so powerfully and comprehensively by the noble Lord, Lord Low of Dalston, supported by the noble and learned Lord, Lord Wallace of Tankerness, and my noble friends Lady Lister of Burtersett and Lord Cashman that I do not want to spend much of the House’s time commenting on them. I just want to make a few points. First, I congratulate the noble Lord, Lord Low of Dalston, on the new advisory role that he mentioned—or, perhaps even more, the Equality and Human Rights Commission for taking him in that advisory role. That will be very valuable for the commission.
Secondly, I very much support what the noble and learned Lord, Lord Wallace of Tankerness, said about the benefit of statements that Ministers have to make; that focuses their minds on what they are doing. I know from my own experience that that is a valuable example from the Human Rights Act, and I have no doubt that it will be very useful here.
Thirdly, on the point made by my noble friend Lord Cashman, we are talking not about preventing amendments being made to the level of protection, but preventing them being made through delegated legislation without considerably more care and scrutiny. That takes me to my final point. Amendment 11, which has already been referred to, moved by my noble friend Lady Hayter of Kentish Town, will be doing exactly that. It is a very important amendment that was accepted in your Lordships’ House. It will be one of the ways in which the very important continuing protection for equality may be maintained.
I support the amendment and look forward to hearing what the Minister says in opposition.
Lord Callanan
My Lords, I am grateful to the noble Lord, Lord Low, for his time and consideration on the important issue of how we maintain our equality protections as and after we leave the EU. I appreciate the discussions on this topic that he has had with the Bill officials and my ministerial colleagues. Before addressing the noble Lord’s Amendments 83A and 83E, the Government have reflected on our conversations with him, and today tabled amendments that will extend the statements regarding the Equality Act under Schedule 7 to SIs made under the consequential power in Clause 17(1).
This and other amendments we debated in Committee have sought to reflect in statute the political commitment that the Government have already made in this area—we will maintain the existing protections in and under the Equality Acts 2006 and 2010 after our exit from the EU. Following requests for assurances on this point in the debate in the other place, we tabled an amendment that will secure transparency in this area by requiring ministerial Statements about the amendment made to the Equality Acts by every piece of secondary legislation made under key delegated powers in this Bill.
The statements will, in effect, flag up any amendments made to the Equality Acts, and secondary legislation made under those Acts, while ensuring that Ministers confirm in developing their draft legislation that they have had due regard for the need to eliminate discrimination and other conduct prohibited under the 2010 Act.
As previously stated, the language of a political commitment does not translate to the statute book. So while our commitment to existing equality protections works perfectly well politically, and indeed in the wider world outside this place, these terms do not and could not have a sufficiently clear and precise meaning for the purposes of statute. These statements as tabled in the other place—
Lord Wallace of Tankerness
The Minister is repeating what he said in response to my Amendment 30. It was pointed out by me and the noble Baroness, Lady Lister, that the word “protection” has a statutory basis in the 2006 legislation.
Lord Callanan
I heard the point that the noble and learned Lord makes, but we are talking about the statements generally.
These statements, as tabled in the other place, applied only to Clauses 7(1), 8 and 9. The Government did not include other powers in this Bill because they are much more tightly constrained than those powers, and their exercise should not give rise to any amendments to the Equality Acts or any harassment, discrimination or other conduct prohibited under the Equality Act 2010. However, we have, as I said, reflected on this, and held discussions with the noble Lord, and we are happy to extend these statements to the consequential power in Clause 17(1). I hope that this will satisfy the noble Lord and that it will enable him to withdraw his amendment. However, this is not a matter on which we will be reflecting further before Third Reading. If he wishes to test the opinion of the House, he should do so now.
Lord Callanan
Lord Callanan
Lord Callanan
“Further explanatory statements in certain sub-delegation cases
22A(1) This paragraph applies where—(a) a statutory instrument containing regulations under section 7(1) or 9 or paragraph 1 of Schedule 4 which create a relevant sub-delegated power, or(b) a draft of such an instrument,is to be laid before each House of Parliament.(2) Before the instrument or draft is laid, the relevant Minister must make a statement explaining why it is appropriate to create a relevant sub-delegated power.(3) If the relevant Minister fails to make a statement required by sub-paragraph (2) before the instrument or draft is laid, a Minister of the Crown must make a statement explaining why the relevant Minister has failed to do so.(4) A statement under sub-paragraph (2) or (3) must be made in writing and be published in such manner as the Minister making it considers appropriate.(5) Sub-paragraphs (8) and (9) of paragraph 22 apply for the purposes of this paragraph as they apply for the purposes of that paragraph.(6) For the purposes of this paragraph references to creating a relevant sub-delegated power include (among other things) references to—(a) amending a power to legislate which is exercisable by statutory instrument by a relevant UK authority so that it becomes a relevant sub-delegated power, or(b) providing for any function of an EU entity or public authority in a member State of making an instrument of a legislative character to be exercisable instead as a relevant sub-delegated power by a public authority in the United Kingdom.(7) In this paragraph—“the relevant Minister” means the Minister of the Crown who makes, or is to make, the instrument;“relevant sub-delegated power” means a power to legislate which—(a) is not exercisable by any of the following—(i) statutory instrument,(ii) Scottish statutory instrument, or(iii) statutory rule, or(b) is so exercisable by a public authority other than a relevant UK authority;“relevant UK authority” means a Minister of the Crown, a member of the Scottish Government, the Welsh Ministers, the First Minister for Wales, the Counsel General to the Welsh Government or a Northern Ireland devolved authority.”
Lord Callanan
My Lords, throughout debates on this Bill we have been discussing the role of this Parliament in approving legislation. This arose in relation to the scrutiny of the powers in this Bill, and the Government have moved significantly to ensure greater transparency and scrutiny of the powers in the Bill—even if our efforts are not always appreciated by the noble Lord, Lord Adonis.
It also arose in relation to any sub-delegated legislative or quasi-legislative powers that might be exercised by Ministers, or devolved Ministers not directly accountable to this Parliament or the devolved legislatures. The Government are therefore tabling these amendments, which provide that Ministers must make written statements explaining the appropriateness of any relevant sub-delegation. These statements will be published alongside any SI creating a legislative power that is not to be exercised by Ministers by statutory instrument or devolved equivalent. I hope that noble Lords will agree that this will ensure that the House is provided with all the information required to forensically scrutinise any SIs providing for such sub-delegation.
To ensure that, once delegated, the exercise of such powers remains transparent, we have also required that a report on the exercise of each power should be laid before Parliament each year. I expect that relevant departmental Select Committees and committees of this House will take a close interest in these reports and use them as a basis to scrutinise and challenge both the bodies exercising these powers and sponsoring Ministers if Members of the other place or noble Lords are displeased by the way these powers are being used in practice.
I have stressed before why the Government think such sub-delegation can be appropriate. I shall try not to repeat myself too much, but Parliament has already granted legislative or quasi-legislative powers to a number of public authorities where this has previously been thought to be appropriate. In line with the Bill’s aim to provide continuity, Parliament should have the option of approving authorities such as the financial regulators or the Office of Gas and Electricity Markets to make binding rules and codes in their respective areas. I mention these examples because I hope they demonstrate the very technical areas where this has been done previously.
I also draw noble Lords’ attention to the draft SI published by DExEU and Her Majesty’s Treasury, which demonstrates how the Treasury might sub-delegate legislative functions to the financial regulators. My ministerial colleagues have discussed this with a number of noble Lords and, I hope, demonstrated that the Government’s approach here is an appropriate allocation of responsibilities that respects the existing framework set by Parliament, ensures democratic accountability for framework legislation that sets the direction of policy, and fits with the existing responsibilities of the regulators. In this case we will also be placing on top of this the provisions of these amendments.
The Government feel that this proposal balances the informed scrutiny by Parliament and Parliament’s ongoing monitoring of the exercise of legislative powers against the appropriate sub-delegation of some responsibilities. I beg to move.
Lord Callanan
“22AA(1) This paragraph applies where—(a) a Scottish statutory instrument containing regulations under Part 1 or 3 of Schedule 2 or paragraph 1 of Schedule 4 which create a relevant sub-delegated power, or(b) a draft of such an instrument,is to be laid before the Scottish Parliament.(2) Before the instrument or draft is laid, the Scottish Ministers must make a statement explaining why it is appropriate to create a relevant sub-delegated power.(3) If the Scottish Ministers fail to make a statement required by sub-paragraph (2) before the instrument or draft is laid, the Scottish Ministers must make a statement explaining why they have failed to do so.(4) A statement under sub-paragraph (2) or (3) must be made in writing and be published in such manner as the Scottish Ministers consider appropriate.(5) For the purposes of this paragraph references to creating a relevant sub- delegated power include (among other things) references to—(a) amending a power to legislate which is exercisable by Scottish statutory instrument by a member of the Scottish Government so that it becomes a relevant sub-delegated power, or(b) providing for any function of an EU entity or public authority in a member State of making an instrument of a legislative character to be exercisable instead as a relevant sub-delegated power by a public authority in the United Kingdom.(6) In this paragraph “relevant sub-delegated power” means a power to legislate which—(a) is not exercisable by Scottish statutory instrument, or(b) is so exercisable by a public authority other than a member of the Scottish Government.”
Lord Callanan
“3A(1) Any power to make, confirm or approve subordinate legislation which—(a) was conferred before the day on which this Act is passed, and(b) is capable of being exercised to amend or repeal (or, as the case may be, result in the amendment or repeal of) an enactment contained in primary legislation,is to be read, so far as the context permits or requires, as being capable of being exercised to modify (or, as the case may be, result in the modification of) any retained direct EU legislation or anything which is retained EU law by virtue of section 4. (2) But sub-paragraph (1) does not apply if the power to make, confirm or approve subordinate legislation is only capable of being exercised to amend or repeal (or, as the case may be, result in the amendment or repeal of) an enactment contained in Northern Ireland legislation which is an Order in Council.3B_(1) Any subordinate legislation which—(a) is, or is to be, made, confirmed or approved by virtue of paragraph 3A, and(b) amends or revokes any retained direct principal EU legislation,is to be subject to the same procedure (if any) before Parliament, the Scottish Parliament, the National Assembly for Wales or the Northern Ireland Assembly as would apply to that legislation if it were amending or repealing an enactment contained in primary legislation.(2) Any subordinate legislation which—(a) is, or is to be, made, confirmed or approved by virtue of paragraph 3A, and(b) either—(i) modifies (otherwise than as a connected modification and otherwise than by way of amending or revoking it) any retained direct principal EU legislation, or(ii) modifies (otherwise than as a connected modification) anything which is retained EU law by virtue of section 4 ,is to be subject to the same procedure (if any) before Parliament, the Scottish Parliament, the National Assembly for Wales or the Northern Ireland Assembly as would apply to that legislation if it were amending or repealing an enactment contained in primary legislation.(3) Any subordinate legislation which—(a) is, or is to be, made, confirmed or approved by virtue of paragraph 3A, and(b) amends or revokes any retained direct minor EU legislation,is to be subject to the same procedure (if any) before Parliament, the Scottish Parliament, the National Assembly for Wales or the Northern Ireland Assembly as would apply to that legislation if it were amending or revoking an enactment contained in subordinate legislation made under a different power.(4) Any subordinate legislation which—(a) is, or is to be, made, confirmed or approved by virtue of paragraph 3A, and(b) modifies (otherwise than as a connected modification and otherwise than by way of amending or revoking it) any retained direct minor EU legislation,is to be subject to the same procedure (if any) before Parliament, the Scottish Parliament, the National Assembly for Wales or the Northern Ireland Assembly as would apply to that legislation if it were amending or revoking an enactment contained in subordinate legislation made under a different power.(5) Any subordinate legislation which—(a) is, or is to be, made, confirmed or approved by virtue of paragraph 3A, and(b) modifies as a connected modification any retained direct EU legislation or anything which is retained EU law by virtue of section 4,is to be subject to the same procedure (if any) before Parliament, the Scottish Parliament, the National Assembly for Wales or the Northern Ireland Assembly as would apply to the modification to which it is connected. (6) Any provision which may be made, confirmed or approved by virtue of paragraph 3A may be included in the same instrument as any other provision which may be so made, confirmed or approved.(7) Where more than one procedure of a kind falling within sub-paragraph (8) would otherwise apply in the same legislature for an instrument falling within sub-paragraph (6), the higher procedure is to apply in the legislature concerned.(8) The order of procedures is as follows (the highest first)—(a) a procedure which requires a statement of urgency before the instrument is made and the approval of the instrument after it is made to enable it to remain in force,(b) a procedure which requires the approval of the instrument in draft before it is made,(c) a procedure not falling within paragraph (a) which requires the approval of the instrument after it is made to enable it to come into, or remain in, force,(d) a procedure which provides for the annulment of the instrument after it is made,(e) a procedure not falling within any of the above paragraphs which provides for the laying of the instrument after it is made,(f) no procedure.(9) The references in this paragraph to amending or repealing an enactment contained in primary legislation or amending or revoking an enactment contained in subordinate legislation do not include references to amending or repealing or (as the case may be) amending or revoking an enactment contained in any Northern Ireland legislation which is an Order in Council.(10) In this paragraph “connected modification” means a modification which is supplementary, incidental, consequential, transitional or transitory, or a saving, in connection with—(a) another modification under the power of retained direct EU legislation or anything which is retained EU law by virtue of section 4, or(b) anything else done under the power.3C_(1) This paragraph applies to any power to make, confirm or approve subordinate legislation—(a) which was conferred before the day on which this Act is passed, and(b) is not capable of being exercised as mentioned in paragraph 3A(1)(b) or is only capable of being so exercised in relation to Northern Ireland legislation which is an Order in Council.(2) Any power to which this paragraph applies (other than a power to which sub-paragraph (4) applies) is to be read—(a) so far as is consistent with any retained direct principal EU legislation or anything which is retained EU law by virtue of section 4, and(b) so far as the context permits or requires,as being capable of being exercised to modify (or, as the case may be, result in the modification of) any retained direct minor EU legislation.(3) Any power to which this paragraph applies (other than a power to which sub-paragraph (4) applies) is to be read, so far as the context permits or requires, as being capable of being exercised to modify (or, as the case may be, result in the modification of)—(a) any retained direct principal EU legislation, or(b) anything which is retained EU law by virtue of section 4, so far as the modification is supplementary, incidental or consequential in connection with any modification of any retained direct minor EU legislation by virtue of sub-paragraph (2).(4) Any power to which this paragraph applies so far as it is a power to make, confirm or approve transitional, transitory or saving provision is to be read, so far as the context permits or requires, as being capable of being exercised to modify (or, as the case may be, result in the modification of)—(a) any retained direct EU legislation, or(b) anything which is retained EU law by virtue of section 4.3D_ Any subordinate legislation which is, or is to be, made, confirmed or approved by virtue of paragraph 3C(2), (3) or (4) is to be subject to the same procedure (if any) before Parliament, the Scottish Parliament, the National Assembly for Wales or the Northern Ireland Assembly as would apply to that legislation if it were doing anything else under the power.3E_ Any power to make, confirm or approve subordinate legislation which, immediately before exit day, is subject to an implied restriction that it is exercisable only compatibly with EU law is to be read on or after exit day without that restriction or any corresponding restriction in relation to compatibility with retained EU law.3F_(1) Paragraphs 3A to 3E and this paragraph—(a) do not prevent the conferral of wider powers,(b) do not apply so far as section 57(4) of the Scotland Act 1998, section 80(8) of the Government of Wales Act 2006 or section 24(3) of the Northern Ireland Act 1998 applies (or would apply when in force on and after exit day), and(c) are subject to any other provision made by or under this Act or any other enactment.(2) For the purposes of paragraphs 3A and 3C—(a) a power is conferred whether or not it is in force, and(b) a power in retained direct EU legislation is not conferred before the day on which this Act is passed.(3) A power which, by virtue of paragraph 3A or 3C or any Act of Parliament passed before, and in the same Session as, this Act, is capable of being exercised to modify any retained EU law is capable of being so exercised before exit day so as to come into force on or after exit day.”
Lord Callanan
Lord Keen of Elie
“(7) Paragraph 4 of Schedule 1 does not apply in relation to any proceedings begun within the period of two years beginning with exit day so far as the proceedings relate to anything which occurred before exit day.”
Lord Keen of Elie
My Lords, I rise to move the Government’s Amendment 117. The Bill’s approach to certain EU rights of challenge and associated remedies has already been scrutinised closely. We have debated at length the substantive provisions in the Bill covering this area and this House has made clear its views. I do not intend to go over old ground again in this speech. The amendment deals with the approach to transitional cases in one important area, where Francovich damages are being sought. I will say a little about the particular substantive provisions that this relates to.
Francovich damages are a specific form of remedy that exists in EU law. They are available in certain strictly limited circumstances where member states have breached EU law, for example where a member state has failed to properly transpose a directive. The Government remain firmly of the view that, after we leave the EU, Francovich damages will no longer be relevant when we cease to be bound to follow obligations that apply to member states. This is for the simple reason that the majority of Francovich cases in the UK have been brought on the grounds of non-implementation or insufficient implementation of a directive. The UK will no longer be under an obligation to implement directives after exit and the directives will not form part of our domestic law as retained EU law, so the ability to claim Francovich damages would not be possible for a post-exit cause of action. Paragraph 4 of Schedule 1 therefore removes the right to Francovich damages after exit day. The Government consider this outcome to be a natural consequence of the decision to leave the EU, while ensuring Parliament is sovereign.
The impact of these provisions on transitional cases is one area that the House urged us to think again on when we debated the matter in Committee. I concede that the noble Lords, Lord Davies of Stamford and Lord Carlile, made powerful arguments, in particular on the need to look again at cases where an individual’s course of action accrued before we left the EU. The amendment responds directly to that concern.
We remain of the view that it would not be reasonable for there to be a long tail of cases based on outdated elements of EU law continuing to process through our courts, potentially for many years after we leave the EU. That would not be conducive to the legal certainty this Bill aims for. The Bill will therefore set what the Government believe to be a clear and sensible cut-off point. The amendment we have brought forward will therefore delay the prohibition in the Bill on seeking Francovich damages in domestic law for two years after exit day. This will provide individuals with a fair and sensible opportunity to seek damages for pre-exit breaches of EU law. It also ensures that we continue to have a clear and certain cut-off point after which such challenges would end. I hope that the House supports the proposals that we have put forward, which I think provide important reassurance to individuals and businesses. I therefore beg to move.
Lord Beith
My Lords, I wonder whether the noble and learned Lord could help the House, or those of us who were not following quickly enough, as to how Amendment 117 relates to Amendment 116, which, as I understand it, the Government did not move, and what the effect would be of having Amendment 117 without Amendment 116. Would that affect the Francovich damages time limitation?
Lord Keen of Elie
My Lords, the intention with respect to Amendment 117 is that there should be a two-year period after exit, during which it will be possible for a claim to be made in respect of a right of action that accrued up to the point of Brexit. I hope that that clarifies the point.
Lord Beith
What was not clear to me was why the Government did not move the preceding amendment.
Lord Keen of Elie
That is probably attributable to a note that I have here saying, “Don’t move Amendment 116”.
Lord Goldsmith
I will try to help the noble and learned Lord. It might be because it is pre-empted by Amendment 19 on general principles of EU law, which the House passed at an earlier stage.
Lord Keen of Elie
It was moved by the noble Lord, Lord Pannick. Because it was passed, Amendment 116 does not arise.
Lord Callanan
Lord Goldsmith
My Lords, there is nothing more I want to say about that, but it would be inappropriate to finish immediately without from these Benches thanking everybody for the part that they have played in this Report stage as we move towards the conclusion of this Bill at Third Reading—and towards 10.40, which I notice it now is.
Lord Callanan
The House will be pleased to know that I shall not repeat all the arguments against the amendment, but, following on from the questions that the noble Lord asked me in Committee, it would perhaps be helpful for him to know that the Government intend to commence this provision of the Bill shortly after Royal Assent. That was a question that the noble Lord asked me in Committee and I wanted to be up front with the House about it.
Viscount Ridley (Con)
I had prepared an enormous speech on this amendment which your Lordships will be glad to hear I will not give, but after all that we have gone through so far on this Bill it is appropriate that some of us put on record our admiration for the endurance, patience, diligence and good manners of my noble friend Lord Callanan.
Lord Callanan
It is very kind of my noble friend to say so; I am very grateful for his comments. I look at the vast expanses of empty Benches on the other side; perhaps they do not share that sentiment, but it is nevertheless nice that we have finally reached the end of Report. I am sure that we will return to some of the issues in the future.