Protocol on Northern Ireland: Disruption to Trade
Baroness Ludford Excerpts(3 years, 3 months ago)
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The Minister of State, Cabinet Office (Lord True) (Con)
My Lords, it is important that we are clear about the overall picture. One must not overstate individual anecdotes into a systemic picture. I acknowledge that there have been issues—that was never denied—but, overall, goods are continuing to flow effectively. Supermarkets are able to move their lorries into Northern Ireland. There are some specific issues, as we have seen with individual suppliers, but it is holding up well overall. The UK Government will continue to work with supermarkets, retailers and suppliers to move in the longer run to end-to-end digital systems that enable goods to be moved in accordance with the protocol in the most streamlined way possible.
Baroness Ludford (LD) [V]
My Lords, the Government, led by the Prime Minister, put ideology over practicality and deception over honesty in the pursuit of Brexit. The claim made by the noble Lord, Lord True, in last Friday’s debate that,
“the flow of goods under the Northern Ireland protocol is smooth overall”—[Official Report, 8/1/21; col. 442.]—
an answer he has just repeated—is contested by seven supermarket bosses. The Answer to this UQ is somewhat of an improvement on those rather complacent claims, but only when the Government are totally honest about the fact that there is a border within the UK can they start to resolve the practical difficulties of the protocol. When will that total honesty appear?
Lord True (Con)
My Lords, the Government have been honest and have not been ideological. My right honourable friend the Prime Minister simply implemented the instructions of the British people—some noble Lords have not yet caught up with that. Goods are flowing effectively between Great Britain and Northern Ireland overall, with more than 1,000 trucks a day. I have acknowledged that there are certain difficulties and issues, but we must not overstate them and we are working pragmatically to address them.
European Union (Future Relationship) Bill
Baroness Ludford ExcerptsWednesday 30th December 2020
(3 years, 4 months ago)
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Baroness Ludford (LD)
My Lords, we bid adieu to the noble Lord, Lord Cavendish of Furness, as we welcome the noble Lord, Lord Austin of Dudley. I wish them both well.
The wisest comment on the Johnson deal came from his Conservative Party colleague—if not friend—the noble Lord, Lord Heseltine, somewhat puncturing the bluster and self-congratulation. He said:
“We must welcome the news that Brexit does not end in the chaos of no deal, but only with the sense of relief of a condemned man informed that his execution has been commuted to a life sentence.”
What was promised in 2016 was “the exact same benefits” as EU membership and “frictionless” trade. That was a cruel deception then and it is a very bad joke now. No wonder Mrs Thatcher was so keen to promote the single market; this threadbare Tory deal betrays her legacy, and it is not—I have to say to the noble Lord, Lord Lamont—membership of the Common Market.
The lack of an impact assessment of this sorry deal, pointed out by my noble friend Lord Purvis, speaks volumes, as does a new YouGov poll showing that only 17% of the public think that this deal is good for the country. As my noble friend Lord Fox and others have fully explained, the Government’s exclusion of British businesses from the EU single market and customs union means that they face an avalanche of laborious form-filling, a huge £7 billion cost, slower deliveries and duplication of certification, inevitably leading to higher prices. Our farmers face tougher export barriers than New Zealand farmers do in exporting to the EU, and as for the ban on exporting sausages, at least in “Yes Minister” the Euro-sausage could be traded.
I will not repeat our present Prime Minister’s expletive-deleted dismissal of business concerns, but he has delivered on his infamous curse. The claim of the Chancellor of the Duchy of Lancaster that dealing with all this red tape will be good for British exporters, by making them “match fit” for global trade, has rightly met with derision. Meanwhile, it was reported that the Prime Minister’s extraordinary and, I have to say, ignorant claim of there being no non-tariff barriers in the deal
“had business leaders falling off their chairs.”
There will be a plethora of committees overseeing this deal under the umbrella of the partnership council, plus those under the withdrawal agreement—32 in all, as the noble Earl, Lord Kinnoull, highlighted—with no transparency and no democratic oversight, unlike the EU institutions so reviled by the Brexiters.
There is almost nothing in this deal, as my noble friend Lady Kramer and others pointed out, for the 80% of our economy represented by the services industries. There is no equivalence regime for financial services, itself a very second-rate replacement for passporting that can be withdrawn at any time. There is, as yet, no data adequacy regime for transfers vital to much of business, especially the tech industry.
Given that that 80% of our economy was sacrificed for fish quotas, there is no little irony in the fact that fishermen are up in arms, too, while the noble Lord, Lord Green, remains unhappy about the smoke and mirrors on immigration. The lack of mobility for performers and broadcasters is a body blow given the huge economic as well as cultural contribution of our creative industries, as my noble friend Lord Clement-Jones and the noble Baronesses, Lady Bull and Lady Bakewell, articulated.
Speaking of cultural exchanges, the mean-mindedness of the Government in refusing to continue participation in the Erasmus scheme, rightly highlighted by many noble Lords, demonstrates that they know the price of everything and the value of nothing. Tory MPs have been tweeting demeaning claims that only middle-class kids benefited from it, which is not true. As my noble friend Lord Newby noted, it is interesting that the Irish Government will pick up the tab for students in Northern Ireland.
There are so many ways in which British citizens and consumers are losers, chief among them the loss of freedom of movement to live, work, study or retire, as highlighted by my noble friend Lord Shipley. I acknowledge that I am an Irish citizen, but that is by birth and not by scheming. There are plenty of Brexiters who hypocritically have made sure to acquire an EU passport so that they are not subject to the same constraints as those inflicted on most Brits. Other losses include the loss of protection from mobile roaming charges and the loss of pet passports. There will be new VAT and customs hassles in sending and receiving parcels to and from the continent—it is reported that the Post Office is already refusing to accept parcels—so it is bye-bye to ease of online shopping and eBaying.
As for policing and law enforcement, our citizens will be less safe, as my noble friends Lord Paddick and Lord Marks and others pointed out. We will no longer be a member of Europol, where we were a leading member. In both Europol and Eurojust, our status is reduced to having to wait to be invited to operational meetings. Our police and Border Force are locked out of the crucial Schengen Information System database, which, as many have said, was consulted 600 million times last year. The extradition scheme is not as smooth or as speedy as the European arrest warrant, but it is better than the 1957 Council of Europe convention. My noble friend Lord Marks also rightly deplored the backward step on civil law co-operation.
As my noble friend Lord Wallace of Saltaire pointed out, there is a complete void where co-operation with the EU on foreign, external security and defence policy should be, a sector in which Britain led. This is not a case of the EU locking us out; incredibly, such co-operation is to cease at the request of the UK Government.
This Government are quick to grab the union jack and to politicise it, but what have they done for the loyal British territory of Gibraltar? The answer is nothing. Indeed, they have broken assurances to the Government of Gibraltar that a deal with the EU would not be agreed unless and until a deal was found also for Gibraltar. What guarantee can the Minister give that that gap will be remedied soon?
“Get Brexit Done” was the slogan. This deal disabuses us of any such notion. A Times cartoon tellingly shows Mr Johnson jumping from the EU frying pan into the post-Brexit fire. Cans have been kicked down the road. The gaps in coverage that need to be filled, the level playing field “rebalancing” provisions, the dispute resolution arrangements and the myriad committees all mean that we will be locked into negotiations for years to come, as my noble friend Lady Randerson pointed out.
There is no certainty. The constant spectre of reimposition of tariffs or withdrawal of financial services equivalence or data adequacy mean anything but a stable, sustainable relationship; investors will be deterred. The Prime Minister’s and Chancellor’s celebration of the prospect of divergence seems reckless to anyone who cares about national wealth and jobs.
It is a travesty that the Government are sealing the breach from the EU when opinion polls in the past year have consistently shown that more people think leaving the EU is wrong than think it is right. We are a very divided country. Appeals to rally round this inadequate deal do not cut it.
Brexit is the culmination of decades of the failure of the UK to become a modern country at ease with itself and its place in the world. Our highly centralised state, with Governments holding 100% of power on a share of the vote that consistently falls short of a majority—Boris Johnson got 43%, and that was of people who voted—means that many citizens feel alienated and voiceless.
The Bill amply demonstrates that these extraordinary powers—Henry VIII on steroids in the words of the noble Lord, Lord Anderson of Ipswich—mean that taking back control means even more executive power, not parliamentary lawmaking, as my noble friend Lord Sharkey warned. Westminster gets 12 hours on this deal; the demonised European Parliament not only gets two months but is key to ratification, as this House is not.
As my noble friend Lord Alderdice said, the Government have released a dynamic that will make it difficult to hold all the United Kingdom together. In relation to Scotland, my noble friend Lord Bruce of Bennachie urged that only if we can learn and find a more constructive way of engaging with each other may we begin to see the glimmerings of a brighter future within this union.
There will certainly be a process of getting closer and closer to the EU and, as a Liberal Democrat, I hope—I am indeed convinced—that this will culminate in renewed EU membership in my lifetime; and I intend to live quite a while. In the meantime, my group cannot support this sad, sorry, inadequate deal. Indeed, as my noble friend Lord Newby indicated, we will vote against it.
Future Relationship with the EU
Baroness Ludford Excerpts(3 years, 4 months ago)
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The Minister of State, Cabinet Office (Lord True) (Con)
My Lords, discussions are continuing as we are enjoying our session here.
Baroness Ludford (LD) [V]
That was rather a short answer. My Lords, Tobias Ellwood MP, the Conservative chairman of the Defence Committee, has warned that no deal will imperil Tory prospects at the next general election. Maybe that, if not the will of the country, will motivate the Prime Minister. My own priorities include security. When asked about access to EU databases, the Paymaster-General told the other place:
“We will be gaining access to new information via safety and security declarations.”—[Official Report, Commons, 10/12/20; col. 997.]
I think that is a reference to movement of goods. Can the Minister tell me what on earth those declarations have to do with cross-border policing?
Lord True (Con)
I must tell the noble Baroness that negotiations are continuing. As I have said to the House, we are confident that good security co-operation between the United Kingdom and our friends in the European Union will continue, whatever the outcome.
EU: Visa-free Short-term Travel Mobility
Baroness Ludford Excerpts(3 years, 6 months ago)
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Lord True (Con)
My Lords, the noble Viscount raises an interesting suggestion. The Government recognise the importance of touring for UK musicians, and not only them. I have referred to some areas in which we are continuing efforts to negotiate a better solution, but I assure the noble Viscount and the noble Earl, Lord Clancarty, that musicians are very much in our mind.
Baroness Ludford (LD)
My Lords, I am not clear why the Minister’s initial reply was about tourists, because this Question is about people who want to work. The ONS has found that arts, entertainment and recreation, including music, has lost over half its revenue and nearly three in five of its jobs due to Covid. So the hit from Brexit is kicking a sector when it is very down. How are the Government fighting to achieve a multi-entry Schengen visa for people such as musicians, and less bureaucracy for musicians’ instruments than they are set to face—whereas of course they have free movement under existing arrangements?
Lord True (Con)
My Lords, the original Question was about visa-free and short-term travel; tourism is certainly germane to the Question and I am sorry if that was unsatisfactory to the noble Baroness. I have referred to our efforts on short-term visits in relation to business activities. Our offer on mode 4 is extremely generous and we continue to impress on EU negotiators that the agreement we are proposing is very much in their workers’ interests as well as our own.
EU Exit: Negotiations and the Joint Committee
Baroness Ludford Excerpts(3 years, 6 months ago)
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Baroness Hayter of Kentish Town (Lab)
I thank the Minister for returning to the Dispatch Box—apparently unbruised by the government defeat of 226—to defend the Statement and Mr Gove’s words in the other place: that, in any negotiation, both sides have to honour their commitments. Had the Prime Minister done so in respect of the withdrawal agreement, he may not have had to face that defeat.
Yesterday’s headlines were, “Talks break down”. As my right honourable friend Keir Starmer said:
“The collapse of these talks is a sign of Government failure.”
He was in fact responding to the Manchester talks, but it is the story of this Government, who could not negotiate their way out of a paper bag. They boast, threaten and bluster, but fail to reach a consensus with their counterparts. They set deadlines: a deal by July, then September, then mid-October—all missed. They criticise the EU for sticking to its negotiating mandate, but meanwhile boast that they will not move from their own negotiating objectives. It seems it is only the other side, and not ours, that has to move. They criticise the other side for not discussing legal texts, despite the fact that the EU published its 441-page legal text in March but it took until mid-May for us to do the same. Even then, the UK blocked early talks on security co-operation—security: the most important issue on which citizens rely on their Government.
The former Home Secretary and Prime Minister hit the nail on the head on Monday, pointing out that security was not even in the Statement and that, without a deal, law enforcement agencies would have no access to vital databases. I cannot re-enact her mocking response to the extraordinary answer that Mr Gove gave, but I will repeat his words and leave it to your Lordships’ imagination. He claimed that
“we can co-operate more effectively to safeguard our borders outside the European Union than we ever could inside.”—[Official Report, Commons, 19/10/20; col. 761.]
That hardly tallies with the words of the noble Lord, Lord Anderson, who knows a thing or two about security:
“Without the ability to exchange data and intelligence across frontiers, law enforcement will be increasingly unable to cope … Everything from extradition to notification of alerts, crime scene matches and criminal record searches will be much slower, at best.”
Closer to home, Naomi Long, the Northern Ireland Security Minister, stressed the importance of a security partnership with the EU to stop the politicisation of extradition in Northern Ireland, as was the case before the EU arrest warrant.
Mr Gove’s view that we could not possibly, as the price for using EU security systems, also accept its court on the issue of how we use that data seems remarkable for its short-sightedness. Perhaps the Minister can update the House on progress towards a security and data-sharing agreement.
The Government have taken to saying that we had been offered a Canada-style agreement but it is no longer available. In fact, that was never going to happen. The Commission’s February slide on “Geography and trade intensity” never suggested that a carbon copy of CETA was on offer, simply that the same legal form as the FTAs with Canada and South Korea could be used. What is more, the Canada deal contains level playing field measures of the sort the Government now say they will never accept. If they are now willing to go the Canada way, will they also honour the political declaration that the Prime Minister signed and accept a level playing field?
This trade and security deal is too serious for playing games. Last week, 70 business groups, with more than 7 million employees, urged the Government to return to the table to strike a deal. These industries—automotive, aviation, chemicals, farming, pharmaceuticals, tech and financial services—are desperate for their futures and urge a compromise, as this matters greatly for jobs and livelihoods. As they say:
“With compromise and tenacity, a deal can be done.”
Sadly, yesterday’s perfunctory call with Boris Johnson left them disappointed. Some described it as unbelievably disrespectful to the concerns of business. The Prime Minister apparently asked companies to “end the apathy” and get ready, while Mr Gove described our departure as like moving house—a bit of disruption. Of course, it will not be Mr Gove or other Government Ministers who have to cope with a bit of disruption. There will be people losing jobs, consumers paying more for their food, Kent and Anglesey residents finding their roads blocked by lorries and their verges taken up by portaloos, and citizens’ rights at risk. Small business groups have pressed for transition vouchers to pay for extra preparation. I gather that Mr Gove said he would take that back to the Treasury, so perhaps we could know the outcome of that request.
At least they got a meeting. The SMMT did not even get its letter answered. On Monday, there had been no response to its 1 October letter, so perhaps we could be told whether it has now been answered. Meanwhile, the country’s leading transporter of diesel and petrol faces a 4% tariff on the fuel it imports if we do not get a deal. This will affect the industry itself, but it could also mean increased prices at the pumps, possibly up to 3p a litre. The knock-on effects on industry are evident.
Mr Gove was asked by my honourable friend in the other place how much of the £50 million for customs intermediaries had now been drawn down and how many customs agents had been trained. Unfortunately, she got no reply. So, we ask again: how many of the 50,000 will be in place on 1 January?
Finally, what is the status of the Goods Vehicle Movement Service, given that work on its IT system had not even started a few short months ago? The Government stress that businesses need to prepare, but seem unable to demonstrate that they have done their own work. Perhaps we can have an update on that as well.
Baroness Ludford (LD)
My Lords, the Chancellor of the Duchy of Lancaster claimed that the UK was “increasingly well prepared” for what he called
“leaving the EU on Australian terms”.—[Official Report, Commons, 19/10/20; col. 756.]
Putting aside the fact that “Australian terms” is just a euphemism for no deal, whereby the UK trades on WTO terms and our exports face tariffs and quotas, the cries of pain from business are audible for all to hear. They are far from having the “high hearts and complete confidence” at the prospect of no deal that the Prime Minister expressed—or indeed at the prospect of the skinny deal that represents the height of government ambition.
The Government have launched a “Time is running out” campaign urging businesses to get ready. But get ready for what? The Government must acknowledge that they are the ones keeping businesses in the dark.
The Road Haulage Association described a meeting with Michael Gove about post-Brexit arrangements last month as “a washout” in which they got “no clarity” on how border checks will operate when the transition period ends. In an interview on Monday, its managing director of policy and public affairs, Rod McKenzie, responding to Mr Gove’s claims, in a Statement, of
“putting in place new IT systems to help goods flow across borders”
and
“giving business access to customs professionals,”—[Official Report, Commons, 19/10/20; col. 757.]
said:
“It’s a bit of a cheek to say that ... It would be fine to accuse people of having their head in the sand and not having done anything if we knew what we had to do. The problem is the Government has spent not just months, but years, failing to tell the businesses that need to make this work what exactly they have to do…they haven’t prepared the IT systems that will make this work … and they haven’t hired enough customs agents to plough through the mountain of red tape that will be created by this new system.’
Then there is business as a whole. The BBC’s business editor, Simon Jack, tweeted yesterday about how business leaders had described a call with the Prime Minister and Mr Gove as “terrible,”
“unbelievably disrespectful to the concerns of business”
and “more of a lecture”, with the Prime Minister accusing them of “too much apathy”.
There is still no clarity as to what the trading relationship will be. The Government need to acknowledge that business does not have the certainty that it needs. Will the Minster retract the absurd claims that businesses have their head in the sand or are displaying apathy in preparing for Brexit? Will he accept that the Government’s current plan is very far from being “oven ready”, as claimed?
Attentive listeners will detect a bit of a pattern here. It is not just the EU that is getting accused by this Government or their acolytes of being in the wrong. It is business, experts, devolved Governments, mayors, judges, lawyers, the Church, the Civil Service and Parliament—especially, of course, the House of Lords. Gibraltar, Jersey and the Falklands are not exactly brimming with happiness and contentment, either. Perhaps, the Government should examine the mote in their own eye, rather than try to bully, bamboozle and blame everyone else. Their negotiating style has the effect of alienating almost every group they encounter, except, perhaps, rich Tory donors, including Russian ones.
On security, Mr Gove made the truly astonishing claim to the other place on Monday in response to former Prime Minister Theresa May that security would be better outside the EU. Mrs May was seen to mouth “What?” in response to that astonishing and hopelessly untrue claim. The noble Lord, Lord Ricketts, tweeted yesterday:
“If UK loses all access to EU systems from 1 Jan, as looks likely, there is no good Plan B.”
The noble Lord, Lord Anderson of Ipswich, said:
“Without the ability to exchange data and intelligence across frontiers, law enforcement will be increasingly unable to cope. Everything from extradition to notification of alerts, crime scene matches and criminal record searches will be much slower, at best.”
I remind the Minister that these people are experts. Mrs May was the Home Secretary for several years who masterminded the process in 2014 whereby the UK opted to stay in all the important EU law enforcement measures. The noble Lord, Lord Ricketts, is a former National Security Adviser; and the noble Lord, Lord Anderson, is a former independent reviewer of terrorism legislation.
If the Minister wants to tell me now what precisely is the
“variety of methods and arrangements”
whereby the UK
“can co-operate more effectively to safeguard our borders outside the European Union than we ever could inside,”
and which
“can intensify the security that we give to the British people,”—[Official Report, Commons, 19/10/20; col. 761.]
then I am all agog to hear what those measures are. Otherwise, I shall continue to think it is the fantasy it appears to be. The Government need to get real, stop blaming everyone but themselves, stop talking pie in the sky and get on with the negotiations like an adult, not a tiresome toddler.
How does Mr Gove’s claim, in the Statement, of
“the UK’s commitment to upholding all our obligations under both the withdrawal agreement and the Belfast agreement”—[Official Report, Commons, 19/10/20; col. 757.]
sit with the Government’s efforts to get the power to abjure them in the Internal Market Bill, with which this House expressed its severe displeasure yesterday?
EU Trade Agreement
Baroness Ludford Excerpts(3 years, 7 months ago)
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Lord True (Con)
My Lords, I have not looked in detail at Sir Jonathan Jones’s resignation statement, nor have I read the newspapers today. I share and express the respect that all members of the Government have for him. In our judgment, the Ministerial Code has not been breached. We are clear that we are acting fully in accordance with UK law and the UK’s constitutional norms.
Baroness Ludford (LD) [V]
My Lords, I also want to pick up the question of a US trade deal. The Government have trumpeted the prospect of such a deal, but Congress at least will not approve it if the Good Friday agreement is imperilled by this Government’s non-respect of the Irish protocol to the withdrawal agreement. How do the Government expect to get a US trade deal if they imperil the Good Friday agreement?
Lord True (Con)
My Lords, I completely reject the idea that the Government are imperilling the Good Friday agreement. I repeat what I said a minute or two ago: the peace process has an east-west as well as a north-south aspect, which the Government fully respect. The purpose of our approach is to protect peace in Northern Ireland and the Good Friday agreement.
EU: Non-financial Services
Baroness Ludford Excerpts(3 years, 8 months ago)
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Lord True (Con)
My Lords, I cannot answer all the questions that the noble Lord has asked, for the reasons discussed, but I will seek out the answer to his question on his report. So far as reciprocal arrangements are concerned, I repeat what I said earlier: namely, that the Government are seeking to make progress but there are technical delays in the negotiations as a result of the EU’s position.
Baroness Ludford (LD) [V]
My Lords, historically the UK led in the push for freedom to provide services across the EU, but now the Government’s determination to leave the single market and to privilege regulatory autonomy over market access and, even worse, their cavalier attitude to no deal risk sacrificing our trade in services, which represents over 80% of our economy and 30 million jobs, and nearly half our exports with a trade surplus with the EU. Any action can only mitigate the damage. Lawyers, musicians and other creative artists, IT consultants and truck drivers all depend on the ability to move freely to work. Many services are also bundled into the production of goods. These sectors are already reeling from the Covid shutdown. What real hope can the Government, who are rejoicing in ending free movement, genuinely offer these professionals regarding their ability to continue to earn a living from the mobility of working in the EU?
Lord True (Con)
My Lords, the people of the United Kingdom voted to leave the single market. The Government have tabled proposals in a number of the areas that the noble Baroness referred to, and I have commented on the reasons for some of the current difficulties in making progress.
EU Exit: End of Transition Period
Baroness Ludford Excerpts(3 years, 9 months ago)
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Baroness Hayter of Kentish Town (Lab)
My Lords, this Statement in fact sets out an enormous number of costs—costs to Parliament, to business, to taxpayers and to consumers.
First, on the cost to Parliament, we learned of these plans on Sunday, via Written Statements and in the Telegraph, rather than in Parliament. So it is not just York that awaits your Lordships’ House; Coventry is clearly being prepared for both Houses. The devolved nations hardly fare better, despite their responsibility for ports, airports, and human, animal and plant health. The First Minister complained of a lack of engagement with the Scottish Government in developing the new border operating model, and the Welsh Government at one point had mere minutes’ notice of an announcement within their bailiwick. That is no way to treat Parliament.
Secondly, on the costs to business, despite the promise of a deal with no fees, charges or tariffs and no new infrastructure, we in fact face significant disruption to trade from new border checks. This will cost business some £13 billion, let alone any loss of orders and increased import costs, in order to handle 200 million declarations a year. There is real alarm at the state of preparedness across businesses, which are already coping with Covid but have their wall diaries all pointing to the rapidly approaching 31 December. All they are promised is a welter of new red tape.
Thirdly, there will be a cost to taxpayers of £700 million for buildings and staff at borders, including new infrastructure, some at new inland sites. If the ports are not ready in time, any failures could break WTO rules, as we have heard from a Cabinet Minister. There are to be 500 extra Border Force personnel; an IT system not yet tested, let alone introduced; a 27-acre parking lot in Kent bought through emergency purchase of land, the Government having forgotten to tell the local council and, we hear, having to hastily hand-deliver letters to residents on a Friday ahead of work beginning on Monday; and an advertising campaign. We must hope that this will be more successful than the £46 million spent on “Get ready for Brexit”, which the National Audit Office found did not result in significantly better preparedness.
The NAO says that any future campaign should focus on what impact is needed and how behaviour change will be delivered, with resources targeted at activities adding the best value, and a consistent focus on key performance metrics from the start. Can the Minister confirm that lessons have been learned from that earlier exercise—or will just friends of those in the know be used for the campaign, without proper procurement, their USP being more in shared belief than proven campaign ability?
Fourthly and lastly, there is the cost to consumers. I have to say that the Statement’s talk of “significant opportunities” is particularly inappropriate for consumers. As the guidance makes clear, there will be extra documents for travelling, including an international driving permit for some countries; a return to the old green card, or proof of insurance; arrangements for pets needed four months before travel; and continuing confusion around which travel rights will continue. The Government, probably quite rightly, are advising people to get comprehensive travel insurance—more cost to consumers. Of course, there will be much more expensive medical insurance with the loss of the EHIC, especially—I declare an interest—for us oldies, or for those with pre-existing conditions. For consumers it will be all costs and no benefits.
There is no doubt that there was support across the country to get Brexit done, but the Government’s approach has been costly, reckless and disdainful of the views of constituent parts of the UK, of business and of consumers. We see symptoms of chaos and some dysfunction even within the Cabinet. Mr Gove wrote on Sunday:
“Leaving the European Union … is a bit like moving house … Taking back control of the money we send to Brussels means we can spend it on our priorities”.
I have to say that it feels more like a messy divorce, with cash going to lawyers and removal men rather than on the kids.
I have four questions for the Minister. The first is about the advertising campaign I have already mentioned. The second is to ask for reassurance that business will be engaged every step of the way in the design and implementation of IT and documentation systems, and that the devolved authorities will be part of the planning, not mere recipients of information. The third is whether consumer representatives will be similarly consulted. The fourth and last, still in hope, is whether the Government will return to the democratic process of making announcements in Parliament, rather than in Sunday newspapers. Let us have Parliament take back control.
Baroness Ludford (LD) [V]
My Lords, the Government are seeking to put an upbeat gloss on the plans for 1 January, under the strapline, “The UK’s new start: let’s get going”, but getting going anywhere is set to be a very big challenge for both people and businesses. Individuals will lose their free movement, free roaming, free healthcare and freedom to take a pet on holiday abroad at short notice. The Government claim that leaving the EU single market and customs union means that we will,
“regain our political and economic independence.”
It is in fact going to feel like “out of control” rather than “taking back control”.
In the other place on Monday Mr Gove promised
“a free flow of freight”—[Official Report, Commons, 13/7/20; col. 1275.]
but nothing could be further from the truth. The UK will be moving from a highly integrated relationship with the EU to one in which trading with it becomes much more difficult. There will be customs forms, physical checks, new VAT rules, plant and animal health requirements, export declarations, a lorry park, and a vast new IT system—always a terrifying prospect. This is going to hit businesses struggling with the disruption and economic hit of Covid; perhaps they might just be getting their heads above water by December, at which point they will get hit by the Exocet of masses of expensive new red tape.
The Government have left it until 24 weeks before the end of transition to produce this plan. What have they actually done for the last four years? One sensible move would, of course, have been to extend the transition period, so as to avoid distraction from the pressing issue of dealing with the pandemic, but Brexit ideology, as always, trumped good sense. The complexity facing businesses can be judged by the fact that this government document comprises a dense 200 pages. As the Trade Secretary rightly highlighted in her striking letter of last week, the controls, IT systems and lorry parks will not be ready by the end of the year. This is the real reason they are being phased in over six months. Are we seriously to believe they will be ready by July next year?
Ms Truss urged
“it is essential that my department has a clear view of operation delivery plans, timescales and risks going forward.”
This suggests that the Trade Secretary has not been fully involved in plans for imports and exports. Can the Minister explain this extraordinary state of affairs? Ms Truss also pointed out that if, as predicted, the dual-tariff system is not in place for 1 January
“this may call into question NI’s place in the UK’s customs territory”.
What substantive reassurances can the Minister give us—and, more to the point, the people of Northern Ireland —on this point?
This Brexit burden will force companies to fill in an extra 215 million customs declarations every year, which Mr Gove’s document acknowledged were “complicated”. The cost for them is estimated at between £7 billion and £13 billion a year; this is on top of huge costs for the public sector. So this is where “our money back” will be going—not on the NHS, but on bureaucracy. Many firms will face the expense of hiring customs agents to complete new border formalities on their behalf. It is estimated that 50,000 of these will be needed, a figure that dwarfs the number of officials in the demonised European Commission.
The Trade Secretary, in her letter to Messrs Gove and Sunak, was worried about tariffs being dodged and asked for
“assurances that we are able to deliver full controls at these ports”—
that is, EU-facing ports—
“by July 2021 and that plans are in place from January to mitigate the risk of goods being circumvented from ports implementing full controls.”
What she is talking about, of course, is the risk of smuggling and fraud; this is an astonishing admission, so what is the answer to how these risks will be addressed?
It is clear for all to see that the promises of “frictionless trade” and “an oven-ready deal” were mere empty slogans. We are seeing what my honourable friend in the other place, Stephen Farry MP, called
“the brutal reality of Brexit”.—[Official Report, Commons, 13/7/20; col. 1279.]
It is no comfort at all for some of us to say, “We told you so.”
The Minister of State, Cabinet Office (Lord True) (Con)
My Lords, I am grateful to both noble Baronesses for their welcome for the Statement made by my right honourable friend—with modified degrees of rapture, I must confess to the House, but I always benefit from their comments and, as ever, I will try to listen and learn from them. However, I shall say one thing as a premise—I think the noble Baroness will know that I am going to say it, but I make no apology for it because it was reasserted by the British people last December. The British people twice made a very firm declaration that they wish to go forward as a sovereign nation outside the European Union, and did so in full knowledge of the circumstances that would obtain. No one in this House or in this polity can assert that, over four years of debate on the question of leaving the European Union, any question was not unearthed in that time. The British people resoundingly reasserted their verdict last December, and this Government intend to implement, and are implementing, that. I believe that that is the inescapable, underlying point which we never hear from the other side.
On costs, of course the Statement acknowledges that there will be elements of cost. The Government do not accept the cost estimates that both noble Baronesses referred to, and indeed it has become clear that some of those who made the calculations did so on the basis that every document would be filled in manually. That is not the case; we are moving to a new, modern, smart border.
I make no apologies for the additional expenditure which the Government are undertaking to secure our borders and provide a modern, effective border. Indeed, the noble Baroness, Lady Ludford, made the point very powerfully—and I agreed with it—that we need to have an eye to smuggling, the abuse of modern slavery, and so on. Part of this package is employing more Border Force operatives and indeed investing in new facilities and IT and opportunities for Border Force to control more effectively our borders and operate against crime. I believe that that is important. The whole £705 million package which has been announced will serve this country well and will be welcomed by most of those involved.
Another point that did not come out in the statements from the noble Baronesses opposite is the welcome that British business has given to the publication of the border operating model. This model was not sprung on business, as was implied, but is the result of lengthy, ongoing discussions and previous documents and conversations, and it reflects the wisdom of many business sectors and operatives. That is why it has had the welcome it has had. Again, my right honourable friend the Chancellor of the Duchy of Lancaster made it clear that there was further material— “i”s to dot and “t”s to cross was I think the phrase he used—and I can assure the House that those conversations and that engagement will continue with business in every part of this United Kingdom.
Although border control is a reserved matter, I refute the view that the devolved Administrations are not appropriately engaged. Obviously, I am always concerned when I hear that there is dissatisfaction about that and I take that back, but I can assure the House that efforts are constantly made, and indeed that engagement takes place on a regular basis and will continue to do so.
On the advertising campaign, which both noble Baronesses asked about, again, there has been a very wide welcome for this. Again, the Government make no apology for undertaking this campaign and committing extensive resources to it. It is important that business and consumers and the people of this country should be fully ready and aware. The noble Baroness rightly referred to the importance of consumers, and I can assure her that an eye will always be held to the views of consumer groups. However, I can also specifically answer her question on the NAO recommendations. She makes an important point and those recommendations have been taken on board by the Government. There will be staged monitoring of the effectiveness of the campaign and it will adhere to the proper requirements of government advertising. I give her that assurance in the House; I hope that is sufficient, but if she would like me to provide further details, I should be happy to do so, because it is a valid point and I fully take it on board.
The noble Baroness asked about business engagement, and I hope I have answered that. It is not something that suddenly started or will suddenly stop. Business engagement will continue as the process develops over the next few months. I am sorry that the noble Baroness feels what she said about Parliament. I think she knows that I have a profound respect for Parliament, particularly having spent most of my life on the Back Benches and never expecting to be standing at the Dispatch Box. As I understand it, the normal courtesies were followed with the Statement at the other end but, if they were not, I will look into the matter. However, my own view is that the fullest co-operation with opposition parties, and indeed with those of no party, is the best way to get Parliament and this revising House to work at their best.
I think that that covers most of the points that the noble Baroness raised. I do not accept this stuff about a lorry park. Work is ongoing in terms of what kind of infrastructure and facility will be required, not only behind the Dover Straits or in co-operation with the Dover Straits crossing but with other ports in the land. Those consultations are ongoing and the Government intend to provide such support as is needed to ensure that there is the fullest and freest flow of trade everywhere. I can assure the House that other ports, not just in the south-east, are taken care of. I note what the noble Baroness said about my right honourable friend’s contact with local MPs in Kent, and I believe that that represents accurately that those conversations will be taking place.
On the points made by the noble Baroness, Lady Ludford, she will know that, with the greatest respect, I diverge from her just a little on both the past history and the present analysis. As she knows, it is not the normal custom for this Government, or any Government, to comment on leaked documents, so I cannot pursue her into a detailed parsing of the letter that she has in her hands. She will know, because until recently the Liberal Democrats were also a party of government, that there is constant give and take within government. There is conversation within and outside government. That is how best policy is formulated, and the policy which is on the table and which I present to the House is the collective, agreed and actively supported policy of Her Majesty’s Government.
On Northern Ireland, which the noble Baroness raised, she will know that the union is close to my heart personally and, indeed to that of my principal, the Chancellor of the Duchy of Lancaster. The border operating model obviously does not apply specifically to Northern Ireland, but a document will be published later this month that will refer to and cover the situation in Northern Ireland. Yes, I can confirm that there is a supported programme to secure intermediaries and customs agents: we have discussed that in the House before. Again, I make no apology for that support and expenditure; it is important to secure the modern and effective borders that we need.
There are great opportunities here not always mentioned by those on the other side. In future, I am certain that, with the help being offered through the operating model and the advertising, our exporters will be ready to take advantage of new free trade agreements that we are negotiating with some of the world’s fastest-growing economies. Our small businesses will be ready to grow as we regulate our own industries in a way that works for them. Our economy will be ready to attract the best and brightest from around the world as we introduce a new points-based immigration system, and our fishermen, God bless them—fisherfolk —will be ready to flourish as we again take control of our coastal waters. We are ready for the opportunities in front of us and I believe that this Statement carries those forward.
EU: Customs Arrangements
Baroness Ludford Excerpts(3 years, 10 months ago)
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Baroness Ludford (LD) [V]
My Lords, at present, from the moment a truck drives off the cargo deck of a ferry at Dover, it takes less than four minutes for it to reach the port exit and begin its journey onwards into Britain—and of course that process is free of paperwork. How long will it take that lorry in the future, counting the time at a customs processing centre, the details of which we do not yet know?
UK-EU Negotiations
Baroness Ludford Excerpts(3 years, 10 months ago)
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Baroness Hayter of Kentish Town (Lab) [V]
My Lords, we should welcome this rare ministerial Statement —indeed, the first since negotiations began—but while I am delighted, of course, to see the Minister, I am surprised that following the PM’s first direct talks with EU leaders since we left the EU, he did not report to the Commons on these, instead choosing to announce the merger of two Whitehall departments.
The Statement before us rehearses old arguments while being shamefully lacking in detail, with more on process than on content. The Statement quotes the WTO director-general as saying that a deal can be reached in a timely way
“if the political will is there”.
It is a shame that it does not give the full quote, in which the director-general suggests that a no-deal Brexit risks extra trouble for the UK during a recession that could be as deep as the great depression. What Roberto Azevêdo actually said was:
“In these circumstances, the less disruption the better, the less turbulence the better. The less turbulence is the closest to where you were before … if you can maintain the degree of integration and relationship that you had before Brexit, it is a less traumatic situation, of course, than if you have to go to WTO terms”,
which would require adjustments that “can be painful”. He said that
“in my view the less changes the better.”
Can the Minister confirm whether Mr Gove had actually read the whole quote before selecting a small part to repeat? Can he also confirm, for all the bluster about not accepting any ECJ role, that trading on WTO terms means answering to its appellate body?
Our concern is with what deal will emerge from the talks. We want the Government to achieve their manifesto promise: no tariffs, fees, charges or quantitative restrictions, across all sectors. Can the Minister indicate whether that is still the aim and whether he judges it to be achievable? Even a free trade agreement means that we will move from a highly integrated relationship with the EU to one in which trading becomes significantly more difficult. More worrying is the Government’s assertion that they would be content with an Australia-type deal, completely ignoring the fact that Australia does not have a deal with Brussels, so that must be code for no deal.
Tony Barber suggests in the FT that Ministers are trying to disguise the seriousness of no deal by playing on some positive image of Australia as a prosperous, easy-going country, while an FT editorial opines that even
“a bad … trade deal is better than no deal”
—although any deal struck before December will be so modest as to fall short of the comprehensive accord for which the Government had originally aimed.
Some things are urgent whatever is agreed, such as in manufacturing or food, where the trade associations call for special rules to maximise commerce between the UK and the EU. Similarly, mutual recognition of professional qualifications and rules of origin needs sorting urgently.
It is no good relying on advertising. We have just learned of a £4.5 million “shock and awe” advertising campaign to spur businesses to prepare for the end of the transition. Businesses cannot prepare for the unknown. An advertising blitz without substance is yet more money down the drain—perhaps even worse than on the side of a plane. Until they know what tariffs, rules of origin declarations, certificates and checks are needed, how the new borders will work or even where they will be, businesses simply cannot prepare. The reality is that a hard border for physical goods, involving customs duties and checks, probably cannot be introduced by the end of December—hence the six-month leeway the Government have announced, but without any sense of clarity.
Nowhere is this uncertainty more harmful than over Northern Ireland. Can the Minister tell the House what talks are taking place with Northern Ireland businesses and others trading across the Irish Sea?
Finally, the Department for International Trade established a Strategic Trade Advisory Group with trade unions, consumer bodies and trade organisations for other trade negotiations. Even at this late stage, could the Government involve these groups now as we enter the new, intense round of EU negotiations?
Baroness Ludford (LD)
My Lords, I thank the Minister for this opportunity to question him on the Statement. The Prime Minister wants a “tiger in the tank” Brexit, which is no doubt better than a no-deal dog’s dinner Brexit, but was described by European Council President Charles Michel as a “pig in a poke”. Given farmers’ fears that they are going to be sold down the Swanee, the use of so many animal metaphors is interesting.
The alarm in the farming community and among consumers ought to cause retreat from the gung-ho, “let them eat chlorinated chicken” approach to the prospect of a US trade deal, which requires the sacrifice of our current EU standards of food safety, environmental protection and animal welfare. Worryingly, however, the Government are reported to want to enforce this by undermining the EU system of protection of specialist local foods—Cornish pasties, Melton Mowbray pork pies and so on—known as geographical indications, presumably to keep the US happy. There is obviously a tussle going on in government about food standards and protections. Can the Minister tell us the exact current state of play?
It is worth noting that Mr Gove used the term “comprehensive” about the deal sought. That, at least, is part-way to the notion in the political declaration, which was “ambitious” and “comprehensive”, and seems to improve on the stance adopted since February of minimalist objectives for a skinny deal. Is there a dawning recognition, even in No. 10, that unless it makes more of an effort there could be no deal, which in a reverse of previous insouciance it now wants to avoid? Also, perhaps it realises that a comprehensive deal is actually easier to negotiate, because it gives room for mutually acceptable trade-offs.
The EU is preoccupied with Covid and its proposed recovery plan. The UK economy shrunk by 20% in April and will be in no condition whatever to cope with a no-deal shock to business and jobs at the end of the year. It finally seems to have begun to scare No. 10 that the potential disruption—to manufacturing supply chains in areas such as cars and aerospace, to produce supply chains in medicines and food, or to Northern Ireland in particular—might make it somewhat unpopular, on top of its bad ratings, not least from Tory MPs and voters, for its handling of the Covid pandemic.
I think it has begun belatedly to realise that the public is unnerved by buccaneering in government, which is why we have seen in the last few days—coinciding intriguingly with the Brexit summit—a series of dead cat distractions such as the abolition of DfID, a new royal yacht and a union jack plane. I love cats, so I somewhat regret that popular phrase. It seems to be trying to disguise a preparedness to make concessions and compromises in the talks with the EU to maintain suitable British access to its market and programmes. Can the Minister comfort me and confirm that this is the case?
All things are relative in Brexit, since nothing can be as good as EU membership—but with that caveat I welcome what I perceive as a shift. Maybe the Government will even realise that if the “sunlit uplands” of Brexit are so great, the fact that a shock and awe media campaign is needed to prepare for it will strike British citizens as pretty odd.
David Frost told our EU Committee:
“As a policy decision, the Government’s view is that the benefits of having regulatory control … outweigh the cost”.
Has this Government’s obsession with sovereignty led them to forget Mrs Thatcher’s understanding, which she enunciated 45 years ago, of the necessity
“to pool significant areas of sovereignty so as to create more effective political units”?
This insight is also true of effectiveness in fighting crime. It would be bizarre if a Government from a party that lauds itself for upholding law and order refused to guarantee continuity in upholding European values of data protection and human rights in order to ensure access to EU crime-fighting databases and effective extradition.
In conclusion, I hope the Minister can give me some hope that developments this week mean that the Government recognise the need to ditch the symbolism of an empty kind of independence in favour of meaningful access to EU markets for British businesses, including farmers, and solidarity with the EU in upholding European values.
The Minister of State, Cabinet Office (Lord True) (Con)
My Lords, I thank both noble Baronesses for their remarks. I was very grateful for the positive tone from the noble Baroness, Lady Ludford. I will start with that first. I do not think that it is correct to characterise what is happening as a change. The British Government have been consistent in their policy and in the statement of that policy that we wish to achieve a free trade agreement and the other things in the suite of agreements we are looking at. That is the desirable goal.
As the Prime Minister said in his statement at the high-level meeting, a preferential trade agreement is desirable and achievable, but it is not essential for either side. We would like to have a deal, but we are prepared for any eventuality. Our position is, as the noble Baroness will know, that the United Kingdom Government are asking for very little—indeed, virtually nothing—that is not precedented in agreements that the European Union has struck with others. Everyone in the Government wishes to go forward with good relations with our partners in the European Union in every way. It is symbolic to have the President of France here in London today, attesting to the deep affection and friendship between our two countries, which will continue irrespective of institutional outcomes.
Both noble Baronesses were a little bit critical of the Prime Minister making a Statement on the reform of Whitehall to improve Britain’s capability to assist people abroad—our friends abroad and those in need. It is perfectly apposite for the Prime Minister to make a Statement on such an important reorganisation—indeed, it must be for the Prime Minister to make such a Statement.
The noble Baroness, Lady Hayter, spoke about there being a lot in the Statement about process, not explicit content. I understand that it is sometimes testing to noble Lords’ patience—indeed, sometimes it is testing to the patience of those of us inside government—that the very fact that this is a negotiation means that one cannot track every tick and comma of a delicate arrangement. Indeed, it is important that the confidentiality and integrity of the process be protected to secure the positive outcome that we want.
Yes, the Statement is more about process than specific content, but process is important. The Statement refers to an acceleration of the process, which I would think would be welcomed by noble Lords opposite me and those on this side of the House. An earnest commitment to try to reach agreement in five successive rounds has been announced; that change of pace is important and should be welcomed. If we cannot reach agreement, it is better that we know that early on, rather than have a prolonged, and potentially bad-tempered, negotiation into the autumn. I welcome the fact that both sides have agreed to this new process; that is important.
The noble Baroness, Lady Hayter, talked about no deal, and was scathing about the Government’s reference to an Australia-style deal. Australia has a range of arrangements with the European Union. I repeat that no deal is not really on the agenda now. We are out of the European Union, and we are negotiating the best possible outcome for trading and other arrangements, for us both. But whatever happens at the end, we will subsist outside the European Union, on the basis of the treaty passed by this Parliament.
Both noble Baronesses rightly referred to the importance of agriculture and agricultural products. I can certainly reassure them that, as has been made clear, the interests and the position of the agricultural industry and the treatment of agri-foods are constantly being considered.
There was criticism of the advertising programme proposed by the Government. This is one of those cases at the Dispatch Box where one feels damned if you do and damned if you do not. Most of the time, I come here to try to assist your Lordships, and am criticised about people being left in the dark about what is proposed. Then, when the Government say that they wish to set up an intensive process of information for industry, relevant to the proposed border arrangements—the programme which will be going forward over the next few months—I am told that this is ridiculous and that we cannot spend taxpayers’ money on an advertising programme.
The parties opposite need to decide whether they wish business and people to be informed, or to complain that they are left perpetually in the dark. We want to treat all interests in this nation as partners in this exercise. That includes business, those dealing with the transit of goods and the border, and the devolved Administrations. In the judgment of the Government, it is important that we keep people informed.
The noble Baroness, Lady Hayter, also referred to the border phasing arrangements. In the light of the Covid-19 situation, it was generally agreed, and welcomed as a sensible proposal, that the system should be phased in during the first six months of next year.
Both noble Baronesses referred to Northern Ireland. Of course, it remains our position that there will be unfettered access for Northern Ireland goods to the United Kingdom. The noble Baroness, Lady Hayter, rightly said it was particularly important that Northern Ireland business be engaged and consulted. There is a specific business engagement forum dealing with that process, and there is internal and external dialogue—never in this life does one suffer from lack of dialogue.
The noble Baroness, Lady Ludford, asked about data protection. There are of course negotiations in that specific area, and I recently wrote to her noble friend Lord Wallace of Saltaire about the nature of those negotiations. We hope that there is some evidence of a convergence of opinion between the UK and the EU. I refer her to the letter which I sent, but I cannot go into the specifics of negotiations.
Security of course is important, but it does not have to be part of an overall specific architecture. I refer again to the very welcome visit of the President of France today, which recalled the intensely moving relationship between our countries during some of the gravest days of this great continent in the last century. No one who witnessed the evocation of the events of the past that the events of today referred to could have any doubt that we will always be good partners in good faith to our close allies and friends. So there are issues, as noble Lords know, but I hope very much that we will be able to have a good relationship, whatever form that takes in the future.
I hope that I have answered most of the questions. I do not think that I have to deny being a buccaneer—I am a bit too corpulent to be a very good buccaneer. The Government are not approaching the matter in a buccaneering fashion. This is an extremely important process, but it is also, above all things, a process of delivering the undertaking that we have given to the British people to deliver a United Kingdom that is an independent state at the end of this year. That remains our fundamental position, and it does not change—whatever the noble Baroness, Lady Ludford, may seek to divine.