European Union (Withdrawal) Bill

Baroness Ludford Excerpts

Committee: 10th sitting (Hansard - continued): House of Lords
Monday 26th March 2018 Lords Chamber

[Lord Jay of Ewelme (CB)]

My Lords, Amendments 337 and 341 are in my name. They have a simple aim: to ensure that if there is a breakdown in the negotiations leading to a no-deal Brexit, the position should be fully and properly considered by Parliament before any final decision is taken.

I am encouraged by all that the Government have said about their intention to ensure that there should not be a breakdown in the negotiations. The noble Baroness the Leader of the House has just reiterated that position to us this evening and I noted in particular that David Davis said, over the weekend, that it was “incredibly probable” that a deal would be reached—an odd formulation, but we get the general drift. As I say, I have absolutely no doubt about the Government’s intention to seek a deal which is in the interests of the United Kingdom. But a breakdown of the negotiations cannot be excluded, whether because the Government toughen their position to the stage where the European Union breaks off the negotiations or the European Union toughens its stance to the point where the Government break them off, or because both sides simply run out of time.

The implications of no deal are potentially extremely serious, as the EU Committee of your Lordships’ House recognised in its recent report, Brexit: Deal or No Deal. Much attention has rightly been given to the implications of no deal for our trading relations, for the impact on cross-border supply chains and on specific sectors, including financial services, agri-foods and aviation. Just as serious would be the impact of a breakdown in negotiations and a no-deal scenario on UK-EU co-operation on issues which are vital to our national interest and national security: counterterrorism, police, justice and security matters; nuclear safeguards; and aviation. The noble Baroness, Lady Ludford, has set out clearly this evening the potential implications of no deal for Gibraltar. Even more immediate and perhaps more serious would be the effect on British citizens living in the EU and EU citizens living in the UK. With no deal, the agreements reached so far, which are so enormously important to British citizens living in the EU and EU citizens living in Britain, would, as I understand it, fall away.

The implications of no deal, however slight such a prospect is, would therefore be extremely serious. It is surely inconceivable that an outcome of such gravity would not be put to Parliament before it becomes a reality. This is not least because when reality begins to dawn on people, one of the first questions they will surely ask is: “What was Parliament’s view and to what extent has Parliament taken responsibility?” Taking back responsibility seems to me to be as important, and more difficult, than taking back control. I simply cannot see that the argument that the electorate had, or should have had, all this in mind when the referendum took place would carry any weight at all when the consequences of no deal became apparent. These amendments therefore seem essential and I very much hope that the Government will be able to accept them. I beg to move Amendment 337.

[Baroness Ludford (LD)]

My Lords, I strongly support this amendment, to which I have added my name. I fully agree with everything said by the noble Lord, Lord Jay of Ewelme. Perhaps being a mere politician, I am a little more cynical than he is. The February 2017 White Paper on leaving the EU contained statements that gave considerable comfort, including an assurance of the Government’s strong intentions to get a deal. They said, for instance:

“Our fundamental responsibility to the people of the UK is to ensure that we secure the very best deal possible from the negotiations … The Government will then put the final deal that is agreed between the UK and the EU to a vote in both Houses of Parliament”.


When the Government gave their assurance in the other place in February last year, at about the same time as the White Paper, the Minister of State for Exiting the EU said,

“the vote will cover not only the withdrawal arrangements but also the future relationship with the European Union’.—[Official Report, Commons, 7/2/17; col. 264.]

As we know, there is an issue about what that actually means. It will not be any more than a political declaration.

All this sounded quite reassuring. The trouble is that in the year since then, we have heard too many threats of no deal—not that, as the Brexit Secretary David Davis said over the weekend, it is like an insurance policy, in that you have to be aware that it could happen, but the overwhelming likelihood is a deal. That sounded quite benign, but I am afraid that we have had a rather more celebratory approach to the prospect of no deal from other personalities in the Government. They think that threatening it is a good negotiating tactic. Many of us think that that is not the expression of a committed partner. I do not recall that when the United States was negotiating a possible TTIP agreement with the EU, it kept stressing that it might instead have no deal. It might have made all kinds of comments about the adequacy or otherwise of the EU offer, but we did not hear that sort of rhetoric, and we are not used to it in a trade or political negotiation. These statements have come too often. They are perhaps fewer now, but they still come sometimes and with too great a frequency for there to be total trust in the Government. As the noble Lord, Lord Tugendhat, said earlier in another context, there is a fundamental issue of trust as to what the Government’s intentions might be. Therefore, it is necessary to try to dot the “I”s and cross the “T”s on this matter.

The first amendment in this group might have been inspired by my noticing that in one context, the phrase used was “final terms of withdrawal” but in another it was “withdrawal agreement”, which raises the question of whether the Government mean exactly the same thing with those two phrases. That accounts for Amendment 337, in which we say yes, they mean the same thing.

Amendment 341 says that “withdrawal agreement” also means the absence of a withdrawal agreement. It is necessary to spell that out because I am afraid the Government have not always given full grounds for total confidence and trust in their intentions. We need to close off any nefarious options that might still be floating around and make absolutely sure that we pin down the Government on what Parliament will supervise, and that there are no nooks and crannies through which they can duck and weave. That is what the amendments are about: total clarity in order to ensure that the Government act with total trust and in good faith.

[Baroness Wheatcroft (Con)]

My Lords, I put my name to these amendments because I believe it is essential that Parliament should have a chance to consider a “no deal” scenario. As others have said, that is not the likely outcome; there is every reason to believe that the Government are doing their best to pursue a deal. However, we have to be prepared for all eventualities. We have heard that no deal is better than a bad deal and that no deal has to be considered, so it is important that we avoid any ambiguities. As the noble Baroness, Lady Ludford, has just spelled out, there are sufficient vagaries about the terminology for it to be important that we now try to clarify that Parliament should have a role in considering a “no deal” scenario. As the noble Lord, Lord Jay, said, it is time for Parliament to reclaim its responsibilities, and looking after the country is surely the responsibility of Parliament.

The noble Lord referred to the problems that will be faced by those companies with cross-EU supply chains. Privately those companies are voicing their fears, but it is not surprising that publicly they are loath to speak out about the horrors that lie before them should there be no deal. Their supply chains will be in tatters, but they are not going to go public right now shouting that it may be the case in a year’s time that their supply chains will break down and they will not be able to fulfil orders,. That would not really do wonders for their business at the moment; the orders would just not be put. So at the moment they are making their fears known privately, and I hope the Government are listening to them. For them, it is essential that a good trade deal is established, and quickly. That is why I support the amendments. I do not think there is anything more to be said, but I wish them well.

--- Later in debate ---

[Lord Callanan]

We are giving notice of our withdrawal. The title was in the Bill that we passed to trigger it. Keir Starmer also said:

“Having asked the electorate for a view by way of the referendum, we have to respect the result”.


I agree with him.

I say again only to remind noble Lords so that they can understand my point of view that there has been a legitimate process, marked at intervals by the consent of both Parliament and the electorate. As I said in an earlier debate, amendments that could be perceived as a means to delay or disregard the referendum result carry with them their own risks—people’s faith in their democracy and its institutions. With that in mind, I do not think that it would be right to add an express mechanism within this Bill which might prevent the referendum result being acted upon.

The Prime Minister has been very clear: we are leaving the EU at the end of March 2019. That is not a question of domestic legislation; it is now a question of the EU treaties. While the detail of our future relationship with the EU has yet to be negotiated, I believe that remaining in the EU is the only outcome which cannot be reconciled with the decision taken in the referendum. I do not think that it would be in the interests of either the EU or the UK to open the door to an ever-continuing negotiation process with no certainty that the UK will ever reach a new, settled relationship with the EU. I was going to finish there but I see that the noble Baroness, Lady Ludford, is itching to ask a question.

[Baroness Ludford]

I thank the noble Lord for anticipating my question. He referred to there being a problem with Clause 7(1), which says:

“A Minister … may by regulations make such provision as … appropriate … arising from the withdrawal of the United Kingdom from the EU”.


If it is “may”, it could also mean “may not”. If there are no regulations to be made because there is no deal, and therefore there are no deficiencies in retained EU law to remedy, and that is the Government’s position, that subsection does not need to be invoked.

That is surely different from Clause 9. I do not see the parallel. Clause 9(1) refers to the parliamentary enactment of whatever the final terms are. We are talking about a scenario where there is no deal. As was said by the noble Lord, Lord Hannay, if you are maintaining that it is unworkable in this situation, the Government need to come up with something that they consider a workable formula. The Minister must surely understand that the point is to make sure there is not wriggle room over where parliamentary responsibility and rights reside, and not to be able to dodge Clause 9(1) by saying, “Well, it’s not really final terms of withdrawal because we are crashing out without a deal”.