(6 years, 10 months ago)
Lords ChamberIt is important to bear in mind any possible outcome. We plan for all eventualities, but of course we are planning for a full and special partnership and we hope that will be the outcome.
My Lords, discussions are meant to be taking place within the UK as well as with the EU 27. Indeed, the Government promised back in March that there would be “intensive discussions” with the devolved Administrations, but at the moment we know that they are not minded to pass the consent Motions on the withdrawal Bill. Can the Minister undertake to update the House on those discussions before we get to the withdrawal Bill, when, obviously, we will want to know whether consent is likely to be given or withheld?
As the noble Baroness correctly observed, we have regular discussions with the devolved Administrations; I myself chaired a meeting with the devolved Ministers from Scotland and Wales and officials from the Northern Ireland Office in December, when we discussed ongoing EU business. Separate discussions take place with them on the withdrawal Bill and its implications. Those discussions are detailed, and I am sure that we will want to update the House as soon as we have a conclusion.
(6 years, 11 months ago)
Lords ChamberMy noble friend makes a very important point, and we keep these matters under constant review. Some of the statements and issues that have arisen recently through social media are of great concern, and other members of the Government are taking forward policies in this area.
My Lords, does the Minister accept that the groups that have already been mentioned fear that they will be less protected without the European Charter of Fundamental Rights, which this Government are removing? They are not reassured by the bundle of extracts produced by the Government—this issue appears in umpteen different bits of legislation—and they cannot see why a charter setting out their rights should not be included in the withdrawal Bill. What sort of comfort can the Minister offer them?
I thank the noble Baroness for her question but they need have no fears. The European Charter of Fundamental Rights merely codifies existing rights; it does not provide any new rights. We have set out a detailed analysis of the rights and how they will be protected in UK law. As I said, we go much further than EU law requires us to do in a whole range of areas, including equalities protection.
(6 years, 11 months ago)
Lords ChamberI was particularly fond of his “Spitting Image” puppet at the time, and I am delighted to see that he has lost none of his robustness.
The noble Lord, Lord Tebbit, talks about this being a waste of time. This morning, the new negotiating mandate came out from the European Union and it talked about a much shorter transition period than I think the Government have been thinking about. Perhaps we could ask the Minister to make sure that the negotiations take place with a little more speed than they have been doing so that we are fit to end the transition period at the end of December 2020.
Of course, we are very keen to get on with the negotiations as quickly as possible. As I understand it, the European Commission this morning proposed an implementation period of around 21 months. The Government have stated that we would prefer a period of around 24 months, so it seems to me that the positions are not too far apart, and we shall have some interesting negotiations on the subject.
(6 years, 11 months ago)
Lords ChamberI, too, thank my noble friend Lord Whitty and his colleagues for their excellent report, for his introduction and for getting this debate immediately following the EU’s decision that trade talks can now start. Like others, I pay tribute to the sector for its 4 million jobs, its £6 billion trade surplus with the EU, and its contribution to our economy, to many other industries and to the way that much of the world does business.
As we have heard, our economy depends on services, which are likely to comprise the majority of our exports by 2021. Those will mostly be non-financial ones such as information technology, telecoms, broadcasting, fashion—I am pleased to say—tourism, education, accountancy and law. Despite that, there is no response to the report. This is somewhat surprising given the Minister’s assertion in a Written Answer to me that the Government,
“are fully focused on making the UK’s exit from the EU, and our new trading relationship with the world, a success”,
by minimising,
“the regulatory barriers for … services between the UK and the EU”.
It is hard to think how the Government could achieve this, given the paucity of data and despite their claim to have been undertaking vigorous and extensive analysis to inform our understanding of how EU exit will affect the UK.
The truth is that those so-called sectoral analyses are neither evidence-based nor forward-looking, as my noble friend Lord Berkeley also found on his trip down to Parliament Street. I saw the one on postal services. I will not disclose what it says but I can tell the House that it had far less in it than what Royal Mail had already told me. As with many of the other reports, the interests of consumers in this sector were ignored. There appear to have been no meetings with consumer bodies, while on legal services the department met only the trade bodies and not the regulators that protect the public and consumer interests.
So the Government are aiming for new trade deals with no thought about the wider public or consumer interest and with scant attention to evidence. Indeed, when I heard that Mr Trump had banned the American public health agency from using various words including “evidence-based”, I wondered whether he was referring to our Government, whose whole approach is in stark contrast to that of the EU, where a 30-page European Parliament paper details the effect of Brexit on services. As my noble friend Lady Donaghy said, good data is vital if we want to know where we are going.
We now face a momentous decision about what sort of trading nation—indeed, what sort of society—we want after March 2019. Is it to be some freewheeling, buccaneering economy rewarding the richest and the devil take the hindmost, free of consumer, environmental, safety and worker protection? Some seem to think so. The Sun reported:
“Ministers want to scrap EU laws which limit the working week to 48 hours”,
and might even put at risk the paid holidays we all enjoy.
Following Mr Rees-Mogg’s call for regulatory divergence to be a red line, the Foreign Secretary now envisages a deal giving Britain the power to ditch EU laws—code for lower standards. It is unclear whether Mr Johnson recognises that, in order to trade with the US, we would have to abide by its rules, as the noble Lord, Lord Green, indicated, over which we would have no say—a true vassal state—or whether he is simply seeking to undermine the Prime Minister.
Do we want that deregulated economy or do we want a consensual, profit-sharing, more equitable nation, preserving the environment, ensuring protection for consumers and treating workers with respect? The EU 27 fear that it might be the former, with lower standards ending a level playing field. Apart from their suspicion that that is our vision, there is distrust of the Brexit Secretary. He was even named in a resolution in which the European Parliament, which has to endorse the withdrawal deal, noted that,
“comments ... like those by David Davis calling the outcome of phase one of the negotiations a mere ‘statement of intent’, risk to undermine the good faith that has been built during the negotiations”.
That is a serious criticism of our main negotiator.
Aside from the report before us today, there appears to be no analysis of the mechanism, let alone the cost, of leaving the internal market, despite the warnings from the sector of failure to protect its interests. Most urgently, the sector calls for a rapid agreement on transition on the same terms as now. We on this side are clear that the priority must be a transition within the single market and a customs union, abiding by the common rules of both. This is what industry wants and our economy needs while we negotiate a longer-term relationship. It is also what the EU expects. Its guidelines for moving forward focus on the transition period with the UK in the single market and customs union, maintaining the four freedoms and the jurisdiction of the ECJ. The sooner the Government accept that the better, and the happier our importers and exporters will be. And the sooner the Government accept that an ambitious trade policy and regulatory divergence are mutually incompatible, the easier it will be for them to start serious talks.
I turn to some specific sectors. The UK, as we know, is the largest legal services market in Europe. The market is worth £30 billion and employs more than a third of a million people. The Law Society and Bar Council have spelled out their worries about Brexit, while the Legal Services Consumer Panel, on behalf of clients, has raised the problem that, with no agreement, consumers would not be able to be represented by UK lawyers in EU courts and could lose the protection of confidentiality with their lawyers. Furthermore, civil, family and commercial judgments are currently enforced throughout the EU, allowing consumers to sue or defend themselves in their home courts. With family disputes, the mutual recognition of divorce, maintenance and adoption orders is vital in protecting children and family rights. So a rapid settlement is needed—or else, from April 2019, a child might be taken out of this country with existing court orders suddenly failing to be recognised elsewhere. For these reasons, and that of mutual recognition of lawyers’ qualifications, audience and practice rights, a no-deal scenario would be a major setback for legal services and for their clients.
A particular issue arises with insolvency. At the moment, the regime gives confidence to investors about their ability to recoup money, through the mutual recognition of appointments, so that liquidators can rapidly freeze or capture assets across the EU which are due to creditors here or in another EU country.
Then there are the creative industries. We heard about a much broader approach from the right reverend Prelate the Bishop of Leeds. I will not go through what he said or tackle that issue, but I welcome and endorse the importance of what he said. As we heard from the noble Lords, Lord Aberdare and Lord German, the music industry generated export revenues of £2.5 billion in 2016. In that industry, tours are vital for building fan bases and revenue. Loss of freedom of movement would be hugely detrimental to this sector. The Government must recognise the specific needs of musicians and seek an early answer to the threat of visas being required for EU performances, and must ensure that the EU’s high-level protection for copyright works is maintained post Brexit.
Architecture and its 80,000 people contribute £5 billion a year to the economy and £500 million-worth of exports. A bad Brexit could cut EU exports by a third. The industry relies on international talent, mutual recognition of qualifications and non-tariff barriers. What comfort can the Minister offer it?
The Government do not appear to have the faintest idea of what they want for the service sector. David Davis told Andrew Marr that he wanted a Canada-plus-plus-plus—CETA hardly touches on services—but then he also said that he would not be negotiating sectoral deals. It is hard to know what he means. Furthermore, given that many sectors are dependent on EU agencies, as we have heard, run by boards comprising only EU members, what are the Government trying to achieve regarding UK participation post Brexit?
The service sector depends on the EU regulatory framework, particularly mutual recognition of qualifications and intellectual property, and the free flow of data. Will the Government commit to retaining regulatory alignment and ensure mutual recognition of professional qualifications, which is so crucial to our architects, lawyers, engineers and accountants? These sectors, as we have heard, are highly dependent on talent and the freedom to recruit skilled practitioners. How do the Government propose to safeguard these?
In addition to the new EU Committee’s report, Deal or No Deal, my noble friend Lord Whitty’s report has warned of the crippling impact no deal could have on services. What is the Government’s assessment of the impact on services of no deal, which would restrict the movement of people and forbid trade with the EU on a preferential basis? Finally, will the Government undertake to refuse any agreement whereby Gibraltar’s inclusion in the transitional arrangements is subject to a veto by Spain? Indeed, will the Minister acknowledge the key role that services play in the economy of Gibraltar and undertake to uphold any regime that protects them?
It is shameful that the Government have not responded to the report. As my noble friend Lord Liddle noted, the Government have given least thought to this sector in even contemplating the way in which they want to move forward. So I hope that the Minister will now spell out the future that the Government envisage for our vital service sector post Brexit, suggest to his colleagues that we need a White Paper on their approach and commit the Government to do whatever it takes, even if unacceptable to Mr Rees-Mogg and Boris Johnson, to safeguard the future of these industries.
(6 years, 11 months ago)
Lords ChamberAs the noble Baroness is aware, special arrangements have always applied between Northern Ireland and the Republic of Ireland, given the troubled history of that island. I repeat that we are not ruling out the idea—but she will know, as well as I do, how difficult it would be to achieve consensus in the 27 to change the treaties to enable that to happen. It would set a precedent that citizens from non-EU member states can have EU citizenship, with its rights and obligations. I am sure she will agree that it is difficult to see how that would come about.
My Lords, on Thursday the noble Lord, Lord Ashton of Hyde, said in regard to the likely problems of our youth orchestras in travelling to the EU after March 2019:
“Much more important is the visa requirements that will be needed after Brexit”.—[Official Report, 7/12/17; col. 1156.]
Can the Minister update the House on such anticipated problems, of youth and amateur orchestras needing visas to go to the EU after Brexit, and outline the steps being taken to mitigate this problem?
These are of course matters that will be discussed in the next phase of the negotiation. As I said in response to an earlier question, the noble Baroness will have to wait for the proposals for a new immigration system that the Home Office will announce in due course.
(6 years, 11 months ago)
Lords ChamberMy Lords, all that without a blush. I thank the Minister for repeating a somewhat embarrassing response, given yesterday’s climbdown. Indeed, it seems that the only negotiations taking place are between the Government and the DUP, or within the Government, which is part of the Prime Minister’s failure in the election campaign.
Yesterday unravelled over regulatory alignment. However, just as Scotland, Wales and London are saying, “If such a deal is good enough for Ireland, it is good enough for us”, so also if there is to be regulatory alignment with the EU, which we support, surely it must be UK-wide. Can the Minister ask the Prime Minister to rethink her hasty decision to rule out remaining in the customs union regardless of cost, border controls and checks—and indeed, Northern Ireland?
I thank the noble Baroness for her question, but I am slightly perplexed by the attitude of the Opposition Front Bench in another place. John McDonnell has said:
“I think people will interpret membership of the single market as not respecting that referendum”.
Barry Gardiner, the Shadow International Trade Secretary, has said that a permanent customs union is “deeply unattractive”:
“As a transitional phase, a customs unions agreement might be thought to have some merit. However, as an end point it is deeply unattractive”.
He has also argued that remaining in the customs union would be a “disaster”. Perhaps the noble Baroness should talk to her colleagues before she criticises us.
(6 years, 11 months ago)
Lords ChamberI thank the Minister for reading out that Statement. Has the Minister read the 58 reports? Assuming he has, does the evidence within these analyses show that leaving the customs union will benefit our economy?
I have not read all the reports, although I have read very many of them. These documents are constantly being updated and collated. New information is coming to light and new facts are emerging, all of which inform our negotiating position. The Government have been very clear that we are leaving the customs union and the single market. I believe that this will be firmly in the country’s best interests.
(7 years ago)
Lords ChamberUnsurprisingly, the noble Lord will find that in fact I do not agree with him. He should not necessarily believe everything he reads in the press and the media—particularly those bits for which he is responsible.
I am sorry to do this, but I had hoped that the Minister was going to make a statement. The last time he was at the Dispatch Box he will recall that I rose to correct something that he had said. I am loath to do this in front of the noble Lord, Lord Pannick, who knows this better than me. The Minister was requested by the noble Viscount, Lord Ridley, to,
“confirm that the judgment of the Supreme Court in the case brought by Gina Miller confirms in precise terms that Article 50 is irreversible”.—[Official Report, 13/11/17; col. 1845.]
The Minister said, “I can confirm that”—but it is clearly not the case. Paragraph 26 of the judgment makes it clear that, although the Government asserted as a matter of law and not just of policy that it was irreversible, the Supreme Court judges ruled that they took no view on that. They did not express a view at that point on the legal assertion that the Government made. Will the Minister take this opportunity to clarify from the Dispatch Box the position that, when the Government made the legal claim that it was irrevocable, it was not what the Supreme Court found—it made no view on it?
My Lords, I am happy to confirm that, as a matter of firm policy, our notification of Article 50 will not be withdrawn. This was the position the Government put forward—
(7 years ago)
Lords ChamberI thank the Minister for repeating the Statement, and I give the warmest of welcomes to the announcement that the withdrawal agreement will now be implemented by means of primary legislation—something for which this House has long argued. However, there remain serious questions in regard to the withdrawal Bill and the current negotiations.
First, what on earth is this gimmick of an amendment to fix, down to the exact minute, the timing of our departure from the EU? Is it a panic measure for the Prime Minister to reassure doubters in her own party that she can deliver a workable Brexit—a response perhaps to the Johnson/Gove letter—rather than a serious piece of British legislation or diplomatic sensitivity, or was she jinxed by the speech of the noble Lord, Lord Kerr, or is it to undermine the opposition amendment that it should be Parliament, not a Minister, that decides the exit date?
Certainly, the government amendment would have Parliament fix the date, but it would decide it now, well before the withdrawal deal is complete, with imperfect knowledge of what will be needed by way of preparation or even whether a more suitable date, such as 5 April—the traditional start of our tax year—is available and with no thought to what might be happening at the time. It does not allow for an earlier date, nor does it give any room for manoeuvre for, for example, another foot and mouth crisis, a general election or some other national issue, let alone any decision by the 27 to extend the talks by a few days if they thought that we were on the edge of a breakthrough.
More seriously, it cuts across the Prime Minister’s Florence speech, which envisaged that should there be a “heads of agreement” on our future relationship with the EU by March 2019, we could contribute to the EU budget for a period, during which we would abide by existing EU processes, including of course the ECJ for some matters. However, Clause 6, with the Government’s new amendment, would disallow this from 11 o’clock on 29 March 2019. Will the Minister agree that it is for Parliament nearer the time to fix the date, not the Prime Minister or even Parliament now, regardless of the interests of business, consumers, the pound or any other contemporary event?
Secondly, on what basis are the Government negotiating if they are blind to the costs and benefits of each option? We thought they had done their homework but we are told now that perhaps those 58 impact assessments do not exist—they certainly have not been read by all the Ministers. Without these, on what basis are the Government taking decisions about this country’s future?
Thirdly, will the Minister say whether the Government will heed the excellent advice of his predecessor but one, the noble Lord, Lord Bridges? He has called for “honesty and clarity” and that,
“Ministers should stop pretending an implementation period will begin at the end of March 2019”.
Perhaps I should let the noble Lord, Lord Bridges, speak for himself, but it is too tempting to read out his words. He reminded the Government that implementation implies a treaty, well beyond the withdrawal deal, which will take years to negotiate and requires consent around the 27 parliaments. He urged the Government to clarify what they want to do with this supposed new-found freedom and to put some urgency—that is the word he used—into negotiations on the future framework.
Finally, on Northern Ireland, I wonder if the Government are regretting their “rash and reckless” ruling out of continued membership of the customs union. Even as the Government accept the introduction of a UK-EU border, albeit as “seamless and frictionless” as possible, they must realise that achieving this outside the customs union is a serious challenge. Had the Prime Minister not ruled out membership of the customs union, albeit from outside the European Union, then the apparently intractable conundrum in Northern Ireland might have been avoided, without David Davis having to reassert in this Statement his understandable rejection of a “new border” within the United Kingdom.
This week saw the commemoration of 11 November, a World War I date but, for my generation, with World War II resonance, and a reminder of all that the EU has done to end conflict in western Europe. We also commemorated the 9 November 1989 fall of the Berlin Wall and everything that the EU did to bed-in democracies in former Soviet territories, as earlier it had done with the former dictatorships in Spain, Greece and Portugal. I therefore ask the Minister how much the UK’s continued and future role in such developments will be ensured after Brexit, and how much this part of diplomacy features in Ministers’ thinking as they negotiate our future relationship with continental Europe.
My Lords, I am grateful to the Minister for repeating the Secretary of State’s Statement to the other place.
The Secretary of State seems to suggest that there has been a lot of activity and progress in recent weeks. That seems to be rather at odds with everything we have been hearing from Monsieur Barnier and the EU 27. One wonders who has been misled or has misunderstood what has happened in the past few weeks. The Secretary of State suggested that there has been a narrowing to only a few aspects of the remaining issues, which he then goes on to talk about: the budget and what the United Kingdom will have to pay as the divorce settlement; the rights of EU citizens; and the question of Ireland and Northern Ireland. Those are the same three issues that we have been looking at ever since the decision to leave the European Union was taken in June of last year. The idea that there has been a narrowing in these areas is interesting, but it is not yet clear what is really meant. In particular, in the context of the budget, we have heard frequently that the clock is ticking. However, while the clock is ticking, the value of sterling is falling—and every time sterling falls, the amount of money that the United Kingdom will owe in euros rises.
Instability in the Government is hugely damaging to the United Kingdom’s negotiations. What is the Prime Minister doing to ensure that her Government become more stable and secure and give a clearer sense to the 27 that they know what they are doing and that they have the same clarity of purpose as the 27? The Secretary of State suggested that it is important that both sides have confidence in the process and the shared outcome. However, the 27 have a clarity of purpose—we know what they are looking for—but do they know what the United Kingdom is looking for? It is not yet clear that they do.
The United Kingdom has been given two weeks to sort out our budget offer. What plans have Her Majesty’s Government put in place to ensure a solution so that, by December, progress can be made in phase 2? At present we have heard nothing at all from the Secretary of State. Is the Chancellor of the Exchequer in the loop? Is his input being asked for, or is the “flexible and constructive” approach that the Secretary of State is looking for required only of the Prime Minister, with the back-seat drivers of Gove and Johnson telling her what she should say or think?
As the noble Baroness, Lady Hayter, suggested, some thought is being given to putting 29 March 2019 in the Bill. Is that perhaps to do with the Brexiteers trying to pull the Prime Minister’s strings? Putting the date in the Bill is surely one of the worst things the Government could do. It would tie the Prime Minister’s hands and we should not support it.
In June, when we had the unnecessary general election that was supposed to be a Brexit election, the idea was that we would have a strong and stable Government leading the negotiations. How fanciful that now seems. Can the Minister assure us that the Prime Minister, the Secretary of State and the whole Cabinet are united in pushing, with one voice, for the best outcome for the United Kingdom? Do they have clarity of purpose? In getting the best deal for the United Kingdom, can they reassure in particular the citizens of Northern Ireland that the deal will be for the whole of the United Kingdom, and that our kingdom will remain united? It is not the European Commission that is jeopardising the integrity of the United Kingdom but Her Majesty’s Government’s unwillingness to have an agreement that will allow Ireland to remain without a closed border.
It is hugely important that the future relationship is clarified. That can be done only if Her Majesty’s Government have their own view of what that relationship should be. Can the Minister tell the House what the Government’s view is? Is there any clarity of purpose?
Finally, on citizens’ rights, many of us will welcome the idea that Her Majesty’s Government would like EU citizens to be able to vote in local elections. However, the Secretary of State points out that this is one of the rights of EU citizens that is enshrined in the treaties. Yes, it is—many of us passionately believe that we wanted to keep, still want to keep and do not want to throw away the rights of EU citizens. Does David Davis agree with us? Is he reluctant to see British citizens lose their citizenship rights? Would he prefer that the United Kingdom should remain part of the EU treaties? Have we made a huge mistake? Should we retain citizens’ rights by simply not leaving the European Union?
My noble friend makes an important point. The UK and Ireland benefited from a common travel area long before we were both members of the European Union.
My Lords, before we finish I ask the noble Lord to look at the report in Hansard of what he actually said. If I heard him correctly he said that the Supreme Court ruled that Article 50 was not revocable. My recollection was that it did not opine on this, and that it took from both sides, as I think is being acknowledged around the House: the Government said this, Gina Miller’s side said that, and it did not opine on it. When he has looked at his actual words in Hansard, should they need correction, perhaps he would either make a Statement or write to the House.
I will certainly look at that, but I am also aware of a European Commission statement that Article 50 benefits from similar arrangements.
(7 years ago)
Lords ChamberI thank the Minister for repeating the reply, although I regret its content. Not only could we not get the Written Statement except by getting it off Twitter—it does not seem to be on the website—there is also the creation of a new excuse for the non-immediate release, which of course runs counter to the Commons Motion.
I would make one point in answer to aspersions made in the other House, although I do not think the Minister was in any way party to this. The question was asked of my side, “Whose side are you on?”, implying that asking for information was somehow unpatriotic. I say to this House that it is because we are patriots that we need the information, to get as good a deal as possible from Brexit.
Has the Minister yet arranged to meet the noble Lord, Lord Jay, the chair of our EU Committee, as he indicated he would in his Answer to me on 2 November? Given the importance of parity of treatment between the two Houses, which is particularly relevant as we handle this most complicated of legislative, political and diplomatic tasks, can the Minister confirm that our EU Committee will receive the same information, on the same terms and at the same time, as the Commons Brexit Committee?
My Lords, I thank the noble Baroness for her questions and I can only apologise if the Written Ministerial Statement is not available to her. In response to her two questions, I can confirm that my office is in contact with the noble Lord, Lord Jay, and we are attempting to arrange a meeting as soon as possible in the near future. I also confirm to the House that we anticipate sharing the same information on the same basis with the Lords EU Committee as with the House of Commons Select Committee, subject to our being able to agree the terms of that disclosure.