No-deal Update

Debate between Baroness Ludford and Lord Callanan

Tuesday 3rd September 2019 Lords Chamber

[Baroness Ludford (LD)]

My Lords, I too thank the Minister for repeating the Statement. I start by noting the fact that, after the welcome move of Dr Phillip Lee MP from the Conservatives to the Liberal Democrats, the Government have no parliamentary majority, let alone any majority for no deal.

Historians of Brexit will examine as a major theme how a party supposedly characterised by conservatism and caution about change got hijacked by radical and revolutionary forces that would make Marx and Trotsky blush. The marketing by Brexiters has morphed from a promise of sunlit uplands to at least a “smooth, orderly exit”, to the gritted teeth of “no deal is better than a bad deal”, to the reckless and irresponsible promotion of destruction, damage and chaos as an actual goal of government. Phrases such as “Do or die” or “Come what may”, which we heard this afternoon, show the incredibly cavalier attitude of the Government and the Prime Minister, who have no mandate whatever for no deal.

The contortions of Brexiters in trying to claim that the narrow leave majority in 2016 knowingly voted for a crash-out Brexit would be laughable were they not so despicable. The real interests of the economy, businesses, workers, citizens, consumers and patients are mere grist to the mill of a dogmatic, ideological obsession. As the TUC’s general-secretary Frances O’Grady has said, a no-deal Brexit will be a disaster for working families. The OBR tells us that the public finances will take a £30 billion hit, and I was interested in all the examples given by the noble Baroness, Lady Hayter. I want to pick up one assertion in the Statement—that outside the EU,

“we can innovate more energetically in pharmaceuticals and life sciences”.

That is the total opposite of what the pharmaceutical industry and the research sector have constantly said for the last three years.

To achieve this disaster, the Government are wasting £6.3 billion. Just think what could be done to improve the lives of British people with that money and, for instance, to help the victims of the Bahamas hurricane. After the confusion and then U-turn on the end of free movement on 31 October, can the Minister specifically tell us how the absence of any transition and of a stable legal framework will help not only to ensure the rights of EU citizens in this country, where we already know that there are difficulties with the settlement scheme, but to improve the prospects for UK citizens in the EU 27? It is difficult to see.

The dishonesty of this whole process is shown by the fact that Mr Gove has refused to publish even what the FT called a “watered-down” version of the Government’s Operation Yellowhammer no-deal contingency plans,

“after ministers decreed that the findings would … alarm the public”.

Indeed, but it is a cover-up. It is rare that I applaud the Daily Mail but it has apparently obtained, I think, the whole document—at least an annexe—showing exactly how major disruption will be caused for months. How can a Government inflict that on the country?

The right honourable Jacob Rees-Mogg outrageously accused a senior doctor who helped to write the Yellowhammer plan of fearmongering—a typical disparagement of experts—but it is legitimate to ask how many extra deaths the Government expect as a result of a lack of drugs and isotopes. I speak as someone whose husband’s life depends on insulin. Can the Minister please tell us the answer?

The Statement claims that,

“this Government are determined to secure our departure with a good deal”.

The former Chancellor tells us that that is nonsense, and even a story in today’s Telegraph says that it is untrue. As for the assertion that the Prime Minister has received a response from European leaders that they are “ready to move”, that is completely unconfirmed by the new noises coming out of Brussels. President Juncker has told the Prime Minister that the EU will look at proposals,

“as long as they are compatible with the Withdrawal Agreement”.

He added that the EU’s support for Ireland—that is, for the backstop—“is steadfast” and that a no-deal scenario will only ever be the UK’s decision, not the EU’s. The blame game is not working.

Meanwhile—I am coming to an end—I have seen an official document from last week about the work on alternative arrangements. It says:

“DExEU has been considering whether a paper consolidating the findings from all of the advisory groups should be published in late September/early October. However, we and other departments have cautioned against this given the potential negative impacts on the renegotiation with the EU and we understand No. 10 are in agreement that we are not in a position yet to publish anything”.


It is later explained that the complexity of combining all the aspects of claimed facilitation,

“into something more systemic and as part of one package is a key missing factor at present”.

I repeat: that document was published last week.

Finally, on the day after crashing out with no transition, the UK would have to come back to the negotiating table and pick up the bits from an even worse position. How would that improve the prospects of the country in the longer term? I hope that the Government can reassure us that, if the anti-no-deal Bill passes, they will obey it and that they will pull the £100 million being spent on the propaganda—I mean “information”—exercise as it will be unnecessary.

[Lord Callanan]

My Lords, I first thank both noble Baronesses for their comments. I see that they have both been well rested over the summer and have returned in a suitably combative mood. I particularly welcome the noble Baroness, Lady Hayter, back to her place on the Front Bench where she deserves to be. She is a worthy opponent and I for one would have been sorry to see her go. I am delighted to see her back.

A number of points were raised. I will first address the comments of both noble Baronesses about Operation Yellowhammer. I said in the Statement, but will say again, that Operation Yellowhammer is a series of planning assumptions based on a reasonable worst-case scenario. It is not—I repeat, not—a prediction of what might happen. It exists to underline government planning; it is a series of assumptions put together through a lot of work by independent experts. It is constantly revised as new information comes to light and new mitigations are put in place. The Cabinet Office’s Civil Contingencies Secretariat does the same thing in a number of different areas—on flooding, for instance. As it is predicted that we will have various flooding events, worst-case scenarios are considered: what they may involve and what we can do to mitigate them. The same thing is done in a lot of other areas that I could mention.

So, that is what it is: we use Operation Yellowhammer for planning assumptions. What is more useful for people is to know how they can mitigate any possible effects of no deal themselves, what changes businesses can bring about et cetera. The noble Baroness quoted a number of pathways from that; it is appropriate to bear in mind that the figures she cited are not predictions but reasonable worst-case scenarios to help us in our preparations to mitigate them.

With regard to food, there are often interruptions to the supply chain of foodstuffs, whether by the various strike actions of ferry operators, fishermen or farmers in France, or because of inclement weather conditions. But the UK food supply logistics chain is solid and robust, and we are, of course, working with the various companies to make sure supplies continue uninterrupted. The same thing applies to medicines: the Department of Health and Social Care has been making extensive preparations. It has contacted every supplier of medicines and medical devices in this country. We have helped them to increase their stockpiles—they already hold considerable stockpiles but we have helped to increase them further against any possible disruption. We have secured additional transport capacity should that that be required, and we are working extensively with companies to ensure there is no interruption.

I was interested in the comments of the noble Baroness as it appears that the Labour Party is now in the position of being against everything. It is against a deal, against no deal, against revocation of Article 50, and mostly against a referendum. I know that the job of the Opposition is to oppose but I would like to think that eventually, at some stage, the Labour Party will decide to be in favour of something.

I turn to the questions from the noble Baroness, Lady Ludford. I have been called many things in the course of these debates but “Marxist” and “revolutionary” are new ones, if she was indeed referring to me in those terms. It is, however, to the credit of the Liberal Democrats that at least they are honest about their intention to overturn the result of the referendum. Many of us suspect that this is also the intention of the Labour Party but that it has not yet—with one or two exceptions—got around to admitting it.

The noble Baroness, Lady Ludford, also asked about free movement. Yes, as it currently stands under EU law, free movement will of course end on 31 October when we leave; the Home Secretary will say more about that shortly. With regard to negotiations, the noble Baroness has, as do I, extensive experience in dealing with various EU figures. She will know as well as I do that they have maintained religiously for months that not one dot or comma of the withdrawal agreement will be changed, yet when there is a different attitude from this Government and we make clear that we are prepared to leave anyway, suddenly President Macron and Chancellor Merkel demonstrate some movement. Private discussions and negotiations are continuing but the noble Baroness knows as well as I do that we are seeing some movement. Whether it will be enough we will have to wait and see, but we are working extensively and at pace to try to get a deal that we can put to the House of Commons so that we can leave with a deal. As I have said repeatedly from this Dispatch Box, that is our preferred outcome, but we have to be prepared to leave without a deal if it is not possible to obtain one.

Brexit: Discussions with the European Union

Debate between Baroness Ludford and Lord Callanan

Thursday 20th June 2019 Lords Chamber

[Lord Callanan]

Informal discussions are always going on. The Prime Minister is in Brussels today for the European Council, where she will be having bilateral meetings with several other European leaders.

[Baroness Ludford (LD)]

My Lords, the various backers of Boris Johnson, such as Dominic Raab and David Davis, have backed him on the basis that we must leave the EU on 31 October. However, in the debate on Monday the putative future Prime Minister, Boris Johnson, refused to give such an absolute guarantee. He thought that leaving on 31 October was only “eminently feasible”. Could the Minister tell us what precisely is the Brexit policy of the person who looks likely to be the next Prime Minister?

[Lord Callanan]

No. [Laughter.]

British Citizens’ Rights

Debate between Baroness Ludford and Lord Callanan

Tuesday 18th June 2019 Lords Chamber

[Lord Callanan]

My Lords, on timing, as Members of the House know, European elections were held between 23 and 26 May, and government activity needed to respect the purdah period imposed in respect of them. We are working hard to engage with other EU member states about how citizens’ rights will be protected in all scenarios. There were additional aspects that we wanted to include in the withdrawal agreement, which the EU would not allow, such as reciprocal voting rights, so we are pursuing that bilaterally with other EU member states. We have concluded three such agreements to date.

[Baroness Ludford (LD)]

My Lords, I too thank the Minister for repeating the Answer. He said that in a no-deal scenario, adopting citizens’ rights is far superior to 28 unilateral solutions. In reality, a no-deal scenario is in itself unacceptable as it will bring chaos and uncertainty, and it is outrageous that most of the Tory leadership candidates are championing it in what Rory Stewart rightly calls a “competition of machismo”. The choice should be between a withdrawal agreement and what is actually superior, which is to remain. A lot of the stress and hardship for EU citizens here and British citizens in the 27 is due to the Tory Party’s obsession with keeping no deal on the table.

It is not too late for the Government to do what they should have done three years ago, as many noble Lords opposite recognised, and issue an unconditional guarantee of the rights of EU citizens here. Will they now, even at this late stage, do that and stop making bargaining chips of people’s lives? Regarding British citizens in the 27, will they at least commit to paying for their healthcare until reciprocal healthcare arrangements are reached? To refuse to do so would be a shocking stab in the back for our fellow countrymen.

[Lord Callanan]

We are committed to respecting the rights of EU citizens. The noble Baroness will know that it was one of our priorities in the negotiations. It was the first issue to be concluded. If the EU matched our level of ambition in many areas, there would have been no more problems. We are continuing to pursue this issue. We have already issued, effectively, a unilateral guarantee. We will guarantee citizens’ rights in a no-deal scenario. The rights we have offered EU citizens are, in most cases, far superior to the rights that have been offered by other EU member states to UK citizens.

Brexit: Free Trade Agreement

Debate between Baroness Ludford and Lord Callanan

Tuesday 14th May 2019 Lords Chamber

[Lord Callanan]

We took the view that both sides would have had to compromise. The noble Baroness cited Conservative leader hopefuls so I will tell her what her leader, Jeremy Corbyn, said at the launch of his European election campaign: that a commitment to leave the EU was confirmed in the Labour Party manifesto and at the party conference. We seek to explore whether that really is the position of the Labour Party.

[Baroness Ludford (LD)]

My Lords, this Question is a perfect illustration of the disdain that Brexiters have for expertise—as expressed at one point by a member of the Cabinet, Michael Gove, who dismissed experts—and their ignorance about how the EU and the WTO work. Even at this late stage, will the Government run a training session for Brexit supporters in both Houses, including Ministers, to remedy this deficiency in knowledge?

Brexit: Petition to Revoke Article 50 Notification

Debate between Baroness Ludford and Lord Callanan

Tuesday 26th March 2019 Lords Chamber

[Lord Callanan]

Of course we respect everybody who signed the petition. It is indeed an impressive number of people, but the noble Baroness was a member of the Blair Government when 750,000 people marched against the Iraq war. We know the result of that. In this country, we have government by the ballot box and by Act of Parliament.

[Baroness Ludford (LD)]

My Lords, how can the Government keep parroting that the will of the people is the same as it was three years ago when the electorate has changed, nearly 7 million people expressed themselves on the march, the petition wants to stop Brexit and polls consistently show a remain majority? If the Government really respected the people, would they not ask them for an update on their views?

[Lord Callanan]

We have explored this issue many times in response to the noble Baroness. We respect the result of the referendum, which was the largest participatory democratic exercise ever carried out in this country, and we are committed to implementing that result.

Brexit: No-deal Preparations

Debate between Baroness Ludford and Lord Callanan

Wednesday 20th March 2019 Lords Chamber

[Lord Callanan]

Well, of course we have been endeavouring to find a deal acceptable to Parliament. We have spent two years negotiating it. But I repeat that it is the legal default, and until there is another deal in place, or another decision is taken, we will continue to prepare, because that is the responsible thing to do. I remind the Labour Party that it voted against the deal we have negotiated, and so far we have seen no constructive suggestions from the party as to what would replace it. I think Labour has said that it agrees with the withdrawal agreement, while continuing to vote against the deal.

[Baroness Ludford (LD)]

First, can the Minister tell us why the Government are not pursuing the route they said last week that they would follow, notably in the words of the Deputy Prime Minister, Mr Lidington. He said that if Parliament had not agreed the deal by today, a long extension would be sought. Is not the Prime Minister siding with the Brexiters and sticking with her over-the-cliff strategy, rather than trying to avoid it?

Secondly, the Government say that any agreed extension would not change the legal default of leaving the EU without a deal, presumably on 29 March. Surely if there was an extension, we would remain in the EU under EU law. If there was no SI to change the exit date, we might lack a domestic legal framework to give effect to our EU membership obligations. Can the Minister confirm whether my legal understanding is correct that since EU law is supreme over domestic law, we would still be in the EU if there is an extension?

Brexit: Article 50 Period Extension Procedure

Debate between Baroness Ludford and Lord Callanan

Monday 18th March 2019 Lords Chamber

[Baroness Goldie (Con)]

This is an Urgent Question; the Minister must respond.

[Lord Callanan]

The noble Baroness stated that we will not leave on 29 March. Of course, she cannot say that definitely. UK law still requires that we do, and any extension—which we have said we will apply for—has to be agreed unanimously by the European Council. She asked about the European elections; I will give her a detailed answer. EU law requires European parliamentary elections to be held between 23 and 26 May, and the new European Parliament will meet on 2 July. For the UK to participate in the elections, notice of the poll must be published by 12 April. This is set out in Schedule 1 of the European Parliamentary Elections Regulations 2004. In advance of this date—in other words, by 11 April—the Government would have to set the date of the poll by making an order under the European Parliamentary Elections Act 2002.

[Baroness Ludford]

My Lords, as I was saying, I think that the Speaker in the other place will tonight be a national hero for stopping this Government prolonging their manipulative games playing and making a mockery of parliamentary sovereignty. Over the weekend we heard attempts by the Attorney-General to claim that Article 62 of the Vienna convention could be invoked to get out of the backstop early and that this was a substantive change. That has been shot down by all good legal opinion.

MPs have already had two votes on Mrs May’s deal, having been permitted to reassess the information on Brexit and update their views. If the Prime Minister had had her way, it would have been three or four votes. Meanwhile, the voters are denied even one opportunity for a rethink. So is it not finally time to allow the people to have the same opportunity for review and reassessment that MPs and the Government are permitting themselves? This weekend a poll showed that almost six in 10—57% of voters—wanted that opportunity.

Any extension sought under Article 50 must be for a democratic purpose, which does not mean only the European Parliament elections. It is as clear as day that the most legitimate purpose must be for a people’s vote, and that the extension sought must be long enough to facilitate the holding of such a vote, with an option to stay in the EU on the ballot paper. It is rumoured that the Government will seek a nine-month extension. Can the Minister confirm whether that is true?

[Lord Callanan]

No, I cannot confirm that. I can also reassure the noble Baroness that we will not be seeking permission to hold another people’s vote. We have already had a people’s vote, and the people voted to leave. We are still committed to implementing the results of that decision.

Brexit: Options

Debate between Baroness Ludford and Lord Callanan

Monday 18th February 2019 Lords Chamber

[Lord Callanan]

I am sorry to tell the noble Baroness that it is the default legal position. It is what Parliament voted for, it is what the legislation says and we are preparing accordingly. However, of course we do not want to leave with no deal; we want to leave with a deal, which is why we are intensively engaged in discussions to try to produce a solution that is acceptable to Parliament as a whole.

[Baroness Ludford (LD)]

My Lords, the Brexit analyses that the Brexit Select Committee in the other place finally forced the Government to publish showed that Brexit in any form whatever, let alone a chaotic no deal, will be very damaging to the British economy, to the extent of an up to 8% hit to GDP. Will the Government now accept the proposal that is being discussed in the other place—that it would approve the Prime Minister’s deal, whatever that turns out to be, subject to it being put to the people to decide between that and remaining in the EU, which is far superior?

[Lord Callanan]

It will come as no surprise whatever to the noble Baroness to hear me say that, no, we will not. We do not think that another people’s vote is the correct way forward. We have already had a referendum, and we all know its result. I admire the nerve of the Liberals in continuing to pursue this option. I notice that, in the various debates in the House of Commons, they have not put it forward as a subject for a vote; they know very well that there is no majority for it.

Brexit: Article 50

Debate between Baroness Ludford and Lord Callanan

Tuesday 5th February 2019 Lords Chamber

[Lord Callanan]

I always get a very warm welcome from all parts of this House. As a representative of the Government, I can only tell the noble Lord what the policy of the Government is as set out by the Prime Minister, which is that we will not seek an extension and will leave the European Union on 29 March.

[Baroness Ludford (LD)]

My Lords, I agree with the drift of the question from the noble Lord, Lord Hannay. It is clear that the Government will have to seek an extension of Article 50; several Cabinet Ministers support such an extension. Is not the attempt to corral MPs into supporting the Prime Minister’s deal—although she does not support it herself—by threatening a chaotic and disastrous no deal immoral as well as an abdication of government responsibility?

[Lord Callanan]

I do not agree that we are corralling anybody; we are attempting to convince Members of Parliament that the best way to avoid no deal is to vote for a deal. I am pleased that a number of the more sensible Labour MPs are also reaching the same conclusions—and one Liberal Democrat MP.

Brexit: Negotiations

Debate between Baroness Ludford and Lord Callanan

Thursday 24th January 2019 Lords Chamber

[Lord Callanan]

I thank the noble Lord for his questions, although it is a slight surprise to hear from him a suggestion that we should revoke Article 50— indeed, not all of Article 50 but just part of it. I am afraid that that does not work. The reality is that the EU has said that the negotiating party is the European Commission. That is who we are conducting the negotiations with, but the noble Lord will be pleased to hear that we are leaving the European Union.

[Baroness Ludford (LD)]

My Lords, I congratulate the noble Lord, Lord Pearson, on acknowledging the authority of the European Court of Justice and recognising its judgment regarding the UK’s unilateral revocation of Article 50 so that our staying in the EU, as the Minister has just mentioned, would be possible. Do the Government not agree that the rest of the suggestions in this somewhat muddled Question are for a crash-out Brexit? That would be disastrous, as the Business Minister, Richard Harrington, has said.

[Lord Callanan]

Of course we do not want no deal, if that was the implication of the question put by the noble Baroness, but that is the legal default option both under the Article 50 process in European law and now under British law, so we are preparing for that eventuality.

Brexit: Support for Remaining in the EU

Debate between Baroness Ludford and Lord Callanan

Wednesday 16th January 2019 Lords Chamber

[Lord Callanan]

The Labour Party does not exactly give the impression that it is open to discussions. I recommend that the noble Baroness look at the interview on Channel 4 with her Front-Bench spokesman, Richard Burgon, who was talking with a very reasonable—for a change—Liberal Democrat, Jo Swinson. He said the Conservatives were the “real enemy”. I hope the Labour Party is up for some constructive discussions, but it really needs to decide what it is in favour of, rather than just what it is against.

[Baroness Ludford (LD)]

My Lords, we know that the Conservatives believe that there can be a rethink after a first referendum as they did so regarding the Welsh devolution referendum, when Conservatives, including Theresa May, voted against implementation and then, in a later manifesto, said they were going to overturn it. Is it not entirely hypocritical of the Government to refuse a democratic vote of the people to assess whether Brexit has turned out as they thought it might? In fact, a recent YouGov poll showed a 63% majority for remain compared with May’s deal. Is it not the reality that the Government are afraid of the people?

[Lord Callanan]

Not at all; we are implementing the will of the people. I say to the Liberal Democrats that not only have they failed to convince the majority in this Parliament of the case for a second people’s vote, but they have not even convinced Mr Guy Verhofstadt, their leader in the European Parliament and someone the noble Baroness knows well, as I do. This morning he tweeted that,

“it is unthinkable that article 50 is prolonged beyond the European Elections”,

which, for those who do not know, are on 23 May. The previous referendum Bill took seven months to go through Parliament—from a Government with a majority and a manifesto commitment to implement it. The Liberal Democrats need to get real about this.

Brexit: Statutory Instruments

Debate between Baroness Ludford and Lord Callanan

Thursday 10th January 2019 Lords Chamber

[Lord Callanan]

We are endeavouring to keep the number containing Henry VIII powers to a minimum. I will write to the noble Lord with the detailed numbers.

[Baroness Ludford (LD)]

My Lords, the Business Secretary said this morning on the “Today” programme that no deal would be a disaster. This view is said to be shared by other Cabinet Ministers. Why do the Government not rule it out and withdraw the SIs that address a no-deal scenario, thus allowing more time for consideration of regular SIs?

[Lord Callanan]

We have said that we do not want or expect a no-deal situation to arise, but it is responsible to prepare for it.

Air Pollution

Debate between Baroness Ludford and Lord Callanan

Wednesday 9th January 2019 Lords Chamber

[Lord Callanan]

As always, my noble friend makes an important point. It is also important to add to the reply that I gave to the noble Baroness, Lady Jones, that it is not only the UK; 13 member states, including all the big member states, are also subject to infraction proceedings by the Commission, primarily as a result of the failure of diesel engine vehicles manufacturers to produce sufficient environmental impact reductions.

[Baroness Ludford (LD)]

My Lords, it clearly would have been better had successive UK Governments implemented EU air pollution rules many years ago, as they were obliged to do. In fact, they had to be dragged through the courts to accept their responsibilities. But has the Minister not omitted something? Not only do we have to apply EU law during transition with the normal enforcement powers, but the Northern Ireland protocol obliges the UK not to reduce environmental protection below EU standards. Any disputes raised in the interpretation of EU law must go to the ECJ. Surely, that could include environmental law.

[Lord Callanan]

As I said, 13 member states are subject to these infraction proceedings. Were the backstop, or some level playing field provisions, to come into effect, they would not be enforceable by the European Court of Justice.

Brexit: Legislative Timetable

Debate between Baroness Ludford and Lord Callanan

Monday 7th January 2019 Lords Chamber

[Lord Callanan]

Discussions on the time allowed for legislation are a matter for the usual channels. Co-operation in this House has always been good, and I can assure noble Lords that that co-operation will continue with any required legislation.

[Baroness Ludford (LD)]

My Lords, with only 30% of the time left, there remains 60% of the anticipated SIs to deal with. Meanwhile, Mr Grayling has been conducting a no-deal exercise with 89 lorries, although 10,000 of them use Dover every day. It is hard to disagree with the former Polish Deputy Prime Minister when he writes about our Prime Minister’s deeply deceitful Brexit path, which has disintegrated before her eyes. When will the Government allow the people to pass judgment on this tragedy turned to farce?

[Lord Callanan]

I assume that the noble Baroness did not listen to the answer I gave earlier, and not for the first time the Liberal Democrats have got their figures wrong. We have already tabled more than 50% of the required statutory instruments, as we informed the two sifting committees before Christmas.

Brexit: Economic Forecast

Debate between Baroness Ludford and Lord Callanan

Wednesday 28th November 2018 Lords Chamber

[Lord Lilley (Con)]

My Lords, is it not a myth that there is a conflict between democratic control of our laws and prosperity? In fact, democracy and prosperity go hand in hand, because in a democracy, if the Government do not deliver prosperity, the people can chuck them out. But the EU is not like that. Its principal economic policy, the euro, has been a disaster which has deprived millions of young people throughout southern Europe of jobs, but nobody in the European Commission has lost their job. Should we not be free to have our own laws, not constrained within a straitjacket of uniform laws across the European continent?

[Lord Callanan]

As always, my noble friend makes a powerful point. One of the results of the referendum that I am particularly proud of is taking back control to this country. It delivers control of our immigration policy, our fishing policy and our agricultural policy. Once again, the destiny of this country is in the hands of its elected representatives, which is a good thing.

[Baroness Ludford]

My Lords—

[The Earl of Clancarty (CB)]

My Lords, the original Question was on sectors of the economy. What do the Government think will be the particular effect of the loss of freedom of movement on our service industries with regard to business in Europe?

[Lord Callanan]

The noble Earl is correct that freedom of movement is ending. We are in favour of agreeing a mobility partnership with the EU which will allow the movement of business professionals, tourists, and so on, from which both our economies develop. But there will no longer be freedom of movement as in the original treaties.

[Baroness Ludford]

My Lords—

[Baroness Ludford]

No; I will not give way to a third Tory. Can the Minister tell us whether this is the first Government in history who have deliberately pursued a policy that they know—as the Chancellor confirmed this morning—will make this country and its people poorer? If not, please can he name any other Governments who have acted in such a way?

[Lord Callanan]

I do not think the noble Earl would be happy to be called a Tory by the noble Baroness. This policy will not make the country poorer. On every scenario, this country will continue to grow. A range of possible growth predictions is modelled in this analysis, but of course many other factors can influence economic growth, and this is likely to be a relatively small contributor to the overall economic growth. Of course, what would be truly disastrous would be a Labour Government, who would affect the economic growth of this country. We are proud of our economic record; we have delivered record low levels of unemployment for 40 years, the Government can be proud of their economic record, which will continue.

Brexit: Proposed Agreement

Debate between Baroness Ludford and Lord Callanan

Wednesday 14th November 2018 Lords Chamber

[Lord Callanan]

I thank my noble friend for his question. It of course remains the case, because this House passed the withdrawal Act, that if Parliament refuses to agree the withdrawal agreement then we have no deal.

[Baroness Ludford (LD)]

My Lords, Parliament needs to see the actual text; perhaps the Minister can tell us when that will happen—preferably not too far behind the journalists. We already know enough to understand that this is a miserable Brexit; indeed, it is impossible for any Brexit deal to be as good as EU membership. When will the Government be honest about this, stop the disinformation and put it to the people for them to decide?

[Lord Callanan]

The noble Baroness says that she wants to see the text, but she has already decided what it says before she has seen it, which is of course typical of the attitude of the Liberal Democrats—they have decided what they believe before they see the final deal. The Cabinet is meeting this afternoon to consider the draft agreement that the negotiating teams have reached in Brussels and will decide on the next steps in the national interest.

Brexit: Article 50

Debate between Baroness Ludford and Lord Callanan

Monday 29th October 2018 Lords Chamber

[Lord Callanan]

The noble Lord’s Question would result in us remaining in the EU, if we withdrew our notification under Article 50. Of course the Government do not support a no-deal exit. We are preparing for that unlikely eventuality, as is the responsible thing to do, but we hope to negotiate a good and ambitious deal with the European Union.

[Baroness Ludford (LD)]

My Lords, since the Question is from the noble Lord, Lord Pearson, I would like to know from the Minister whether there has been any progress since the noble Lord, Lord Ahmad, told my noble friend Lady Northover last Wednesday:

“It is important that we review our procedures to ensure that individuals such as Tommy Robinson do not enter the heart of democracy”.—[Official Report, 24/10/18; col. 859.]


It was the noble Lord, Lord Pearson, who hosted this racist, Islamophobic character, who has multiple convictions, to a celebratory lunch after Robinson was released on bail—not acquitted—on a contempt of court charge that has been referred to the Attorney-General, which concerns actions which threatened to derail the Huddersfield trials. Can the Minister tell me when we will see action to ban Tommy Robinson from this House, not least to protect House of Lords staff from having to wait on this man?

[Lord Callanan]

My Lords, as far as I am aware, the Government have no policy on the dining companions of the noble Lord, Lord Pearson. I understand that the opinions of the House were made very clear last week but ultimately this is a matter not for the Government but for the House authorities.

Brexit: Preparedness for EU Exit

Debate between Baroness Ludford and Lord Callanan

Thursday 25th October 2018 Lords Chamber

[Lord Callanan]

I am not sure what the noble Baroness is asking us to do here. We do not want no deal, but as a responsible Government, we need to prepare for it. Is the Labour Party saying that it would accept any deal given to it? We want a deal, we are working for a deal, we are negotiating for a deal, but putting in place preparations in case there is no deal is the responsible thing to do. That is what a responsible Government should do.

[Baroness Ludford (LD)]

My Lords, does not this damning report from the National Audit Office perfectly make the case for the people to have a people’s vote, to have a final say on what happens next to this country? There is a myth that the Prime Minister stopped talking about no deal being better than a bad deal, but she repeated it just four weeks ago. In the light of that, it is highly irresponsible—I thank the noble Baroness, Lady Hayter, for her Question—to be in this state of unpreparedness when the Government say that they are determined, come what may, that we either exit with a deal or have no deal.

Is it true that the Government have been advised that ferries will have to be requisitioned because the capacity at Dover will be 15% to 25% more than normal for six months after no deal? Where will the Government find those ferries? Where will they find the alternative port capacity? What are people who depend on life-saving drugs going to do in the meantime?

[Lord Callanan]

As the noble Baroness is aware, we have already had the a people’s vote and the people voted to leave, but we will be exploring this subject extensively in the next few hours in response to the Motion tabled by the noble Lord, Lord Campbell. As I said, we remain confident of reaching an agreement with the EU, but it is only sensible for government and industry to prepare for a range of scenarios. We continue to work closely with a range of partners on the appropriate contingency plans to ensure that trade can continue to move as freely as possible between the UK and Europe in the event of no deal—which, I repeat, is not an outcome that we wish.

European Union (Withdrawal) Act 2018 (Consequential Amendments) Regulations 2018

Debate between Baroness Ludford and Lord Callanan

Wednesday 24th October 2018 Grand Committee

[Lord Callanan]

This legislation is being repealed in consequence of the repeal of the 2008 and 2011 Acts, which has rendered them redundant and no longer necessary. Removing this legislation from our statute book is consistent with our goals of ensuring an effective, functioning statute book on exit day by providing clarity and avoiding confusion by making reference to legislation that no longer exists within our statute book. For reassurance, I make it clear that the repeal of the legislation that approved matters in accordance with the 2008 and 2011 Acts does not have any effect on the validity of anything done in relation to those decisions or treaty changes approved by them.

Secondly, these regulations also make consequential amendments to the Statutory Instruments Act 1946, the Laying of Documents before Parliament (Interpretation) Act 1948, and the Statutory Rules (Northern Ireland) Order 1979, to reflect the introduction of a new category of law, called “retained direct EU law”, into the UK’s legal system. Retained direct EU law is the directly applicable EU law that existed immediately before exit day that will be converted into UK law on exit day by the European Union (Withdrawal) Act.

The Statutory Instruments Act established a number of rules that apply when making SIs, and similarly, the Statutory Rules (Northern Ireland) Order applies when making statutory rules—the Northern Irish equivalent—under powers in primary legislation. To provide certainty, it is important that we ensure that these same rules apply to instruments made under powers in retained direct EU legislation so that it is clear what procedures must be followed to ensure that instruments made under powers in retained direct EU legislation are properly made.

These regulations therefore make consequential amendments to the Statutory Instruments Act 1946 and the Statutory Rules (Northern Ireland) Order 1979 to make it clear that the normal rules apply to making statutory instruments and statutory rules under powers in retained direct EU law. This will create certainty about the proper procedures to be followed where such powers are used in the future and will assist Parliament in considering the use of such powers.

Similar provision has already been made to deal with Scottish statutory instruments made under retained direct EU legislation through the amendments to the Interpretation and Legislative Reform (Scotland) Act in Schedule 8 to the European Union (Withdrawal) Act. Therefore, these regulations take an approach consistent for the purposes of England, Wales and Northern Ireland with that taken for Scotland by the Act itself.

The Laying of Documents before Parliament (Interpretation) Act established the rules for laying documents before Parliament where an Act or piece of secondary legislation required that documents be laid before Parliament. Similarly, therefore, the consequential amendments made to the Laying of Documents before Parliament (Interpretation) Act will ensure that the same rules on laying documents before Parliament apply where retained direct EU legislation requires those documents to be laid before Parliament.

Given that these regulations amend primary legislation that is of constitutional importance, we thought it would be appropriate to allow Parliament the opportunity to debate these regulations through the use of an affirmative instrument. However, I hope that after my explanation noble Lords will agree that this is a sensible use of the consequential power, and that what we are seeking is appropriate to ensure continuity as a new category of law is introduced into our legal system on exit.

[Baroness Ludford (LD)]

I thank the Minister for his explanation, which, in so far as is possible on the subject, was admirably straightforward. He is quite right, as he said at the beginning, that there was—and will continue to be—a lot of controversy over the ministerial powers in the European Union (Withdrawal) Act. This one is perhaps not yet of mountainous dimensions in terms of controversy, but I have some questions.

First, no doubt simply because of my unfamiliarity with the field of secondary legislation, can the Minister remind me whether there are any limits on the ability of SIs to amend primary legislation under the Act? I have entirely forgotten—perhaps mercifully—a lot of the debates on the Bill. The regulations amend primary legislation. I would welcome a reminder of whether there are any limits on that.

My second question is about the European Union (Croatian Accession and Irish Protocol) Act 2013. I appreciate that the implementation of those measures—the accession of Croatia and the Irish protocol to the Lisbon treaty—is not affected by these regulations, but what will happen to their implementation when and if the ECA is repealed? How will they continue to be implemented? They have been implemented through the European Communities Act by making them EU treaties for the purposes of that Act. Paragraph 2.7 of the Explanatory Memorandum rightly states that their,

“implementation is unaffected by these regulations”,

but that prompted me to wonder what happens when and if the ECA is repealed. I would be grateful to learn how they carry on being in force, or will that matter be dealt with during the standstill transition by repealing a lot of the European Union (Withdrawal) Act in the EU withdrawal agreement Bill? I hope that I do not stray too far, but this subject is quite complicated.

Similar issues arise in relation to the decisions mentioned in paragraph 2.11. I remember spending time during the passage of the European Union (Approvals) Act 2017 speaking about Albania and Serbia being observers in the work of the fundamental rights agency—I cannot remember whether I referred also to the Canada competition laws; it was in the same Act, so I must have done. These approvals are no longer necessary if Sections 1 to 13 of the European Union Act 2011 are being abolished, so the 2017 Act becomes redundant. The Explanatory Memorandum states:

“The repeal of the Act approving those decisions has no effect on the validity of those decisions or anything done in relation to those decisions”.


So if we repeal the European Union (Approvals) Act 2017, paragraph 2.11 of the memorandum states that such repeal,

“has no effect on the validity of those decisions”,

which is interesting. How are they still valid? The Government are repealing the Act which approved the decisions about Albania and Serbia being observers in the fundamental rights agency, et cetera, but they state that it has no effect on the validity of the decisions. On what basis, then, do those decisions approving Albania and Serbia continue to be valid?

That takes me back to my previous point. That statement implies that we want those decisions to continue to be valid. If we want to continue the validity of the Serbian and Albanian observership in the fundamental rights agency, I presume that we want to continue the validity of the recognition of Croatian accession and the Irish protocol. I am wondering whether my question about how they get knocked out by the repeal of the ECA is correct, because presumably they are on a similar level. If the Albania and Serbia observerships are to remain valid—which they would be in a standstill transition anyway—presumably that also applies to the Croatian accession, et cetera. So how do they continue being valid, and if they do, will they still be valid after 29 March? I apologise if I am just being dense.

Then there is the question about the Statutory Instruments Act 1946 applying. Obviously, that is welcome. It is interesting that it is being done now. Perhaps the Minister could remind me why the Government did not agree to incorporate this in the EU withdrawal Act. Our attention is drawn to the 12th report of the Delegated Powers and Regulatory Reform Committee, published last February. One of the things it objected to was tertiary legislation—the ability for Ministers or other bodies to make further subordinate legislation without there having to be any parliamentary procedure or any requirement for it to be made by statutory instrument. The committee wanted all tertiary legislation to be subject to the same parliamentary control and time limits as are applicable to secondary legislation. If I understand this correctly, it talks about the Statutory Instruments Act 1946 applying to SIs. Does it apply? The DPRRC report also referred to tertiary legislation which is not made in statutory instruments. Is this extension of the 1946 Act limited to what is made under statutory instruments or does it meet the entire objection in the DPRRC report of last February? I hope the question is clear, because I am confused about why the Government are doing this now and did not do it in the Bill.

I am also trying to understand the scope of this welcome reform—whether further transparency and normal rules of scrutiny should apply. The answer would appear to be only where that secondary legislation is in statutory instruments, and not if it was made by some new agency, for instance. In paragraph 2.12, the Explanatory Memorandum talks about the ability to subdelegate regulations made under certain withdrawal Act powers—tertiary legislation made by an agency, for instance. It says that,

“it is important that the Statutory Instruments Act 1946 is amended to cover these scenarios”,

so you would think that meant all tertiary legislation, but then it goes on to say,

“so that there is certainty about the proper procedure for making SIs under such powers”.

I am dependent on the report from last February to understand that not all tertiary legislation is made in SIs. I suppose it makes sense, but I am a novice in secondary legislation. What is the extent of the concession—the welcome reform—that the Government are proposing for the extension of the Statutory Instruments Act 1946? Does it apply to all tertiary legislation, including that not made under SIs or by Ministers but by other bodies?

I think that covers all my questions. I hope that I have not been too confusing and that the Minister is able to answer my questions.

Brexit: Dispute Resolution and Enforcement (European Union Committee Report)

Debate between Baroness Ludford and Lord Callanan

Wednesday 17th October 2018 Lords Chamber

[The Minister of State, Department for Exiting the European Union (Lord Callanan) (Con)]

My Lords, on behalf of the Government I very much welcome the EU Justice Sub-Committee’s report Dispute Resolution and Enforcement After Brexit. The detailed analysis and consideration of the areas covered by the report is a welcome contribution to the wider discussions on how disputes between the UK and the EU should be resolved after we leave in March 2019. The report was ably introduced by the noble Baroness, Lady Kennedy, and we are fortunate to have the benefit of her vast experience of these matters. I also thank noble Lords from all sides of the House for their constructive and insightful speeches during the debate.

I will say as much as I can on these matters and respond to as many questions as possible, but I ask noble Lords to accept that this is a live negotiation. Many of these matters are being discussed and negotiated on at the moment. Some parts are agreed; others are not. Some parts are agreed at the technical level; others are outstanding and waiting for related parts to be agreed. In some respects, therefore, it would not be helpful to go into too much detail on some aspects of the negotiations. Nevertheless, I will try to respond to as many of the points raised as possible.

Noble Lords have expressed concerns about how disputes will be resolved after the UK leaves the EU, in particular—this was referred to by many noble Lords—the proposal that the jurisdiction of the CJEU would be replaced by a judicial or quasi-judicial body to oversee disputes between the UK and EU. I assure noble Lords that, since the EU Justice Sub-Committee published its report in May, we have made significant progress in the negotiations on establishing appropriate and workable dispute resolution mechanisms. I would like to update noble Lords on these negotiations and note that the UK and the EU are close to concluding a withdrawal agreement that sets out the terms of the UK’s orderly exit from the European Union. The withdrawal agreement will provide important certainty to individuals and businesses, setting out the deal on citizens’ rights, on the financial settlement and on the implementation period. We are close to reaching agreement on a number of other separation issues, which will provide for winding-down provisions across a number of areas as we leave—for instance, cases pending at the CJEU and ongoing customs processes.

The noble Baroness, Lady Kennedy, asked specifically for an update on these ongoing judicial proceedings. I can assure her that the relevant provisions will set out the process winding down UK involvement in legal proceedings before the CJEU in an orderly manner. These will support the legitimate expectations of, and efficient access to justice for, those who have spent time and money progressing cases through the UK and the European court systems, allowing all cases in train at the end of the implementation period to continue to their natural conclusions. Once the final areas of the withdrawal agreement have been settled, we will consider the necessary legislative requirements for those areas. I realise that this will be a disappointment to the noble Lord, Lord Thomas, in particular, but it remains the Government’s position that, in leaving the European Union, we will bring about an end to the jurisdiction of the CJEU in the United Kingdom.

A number of noble Lords asked me about judicial co-operation and the European arrest warrant. We are pleased that we have reached agreement with the EU on the content of Part Three, Title V, of the withdrawal agreement on ongoing police and judicial co-operation in criminal matters. Title V provides clarity and legal certainty for individuals, for law enforcement stakeholders and the judiciary in the unlikely event that we do not reach agreement on future police and criminal justice co-operation as part of our future security partnership with the EU. We want to continue to play a leading role in Europol and Eurojust, and we will continue to do so during the implementation period.

[Baroness Ludford]

I am sorry to interrupt the Minister—he might be going on to answer this question—but he has just repeated the mantra about ending the jurisdiction of the court, and he has cited the fact that we want to stay part of agencies such as Europol and Eurojust. How is the remit of the court, in respect of enforcing the rules regarding the UK, going to work if we do not recognise the jurisdiction of the court?

[Lord Callanan]

If the noble Baroness will have a little patience, I will come on to talk about the agencies and the remit of the ECJ.

Withdrawal from the EU will mean a return to the situation where the UK and the EU have their own autonomous legal orders. The Government agree with the committee’s observation that the withdrawal agreement and the future partnership must respect the autonomy and integrity of both legal orders.

On the points made by the noble Lords, Lord Thomas and Lord Anderson, this is not about demonising the CJEU in any way. Our position has always been that we respect the role of the CJEU as the ultimate arbiter of the meaning of EU law, and we respect the autonomy of the EU legal order, as indeed we expect it to respect ours. However, it would be wholly unprecedented for a non-member state to be subject to the jurisdiction of the CJEU, and we do not believe that it would be appropriate for the court of one party to resolve disputes between the two.

There are, of course, limitations under EU law on the extent to which the EU can be bound by an international judicial body other than the CJEU. Therefore, we will also need to find a principled and pragmatic solution to respecting our unique status as a third country with our own sovereign legal order. For these reasons, the EU and the UK need to agree on how both the provisions of the withdrawal agreement and our new deep and special partnership can be monitored and implemented to the satisfaction of both sides, and how any disputes that arise can be resolved.

As the committee acknowledged in its report, there is not a one-size-fits-all solution for dispute resolution after our exit. Despite the fact that dispute resolution mechanisms are common within international agreements, the form these mechanisms take varies considerably across the spectrum of agreements, given the different areas of international co-operation, and consequently the varied nature of potential disputes that could arise. That is why we are negotiating bespoke mechanisms across the different areas where we need a dispute resolution mechanism.

The sub-committee and noble Lords have raised concerns on the rights of EU citizens. Let me assure the House that, in setting out governance principles, we will ensure that the rights of EU citizens living in the UK, and of course UK nationals living in the EU, are safeguarded. This reflects the fact that the Prime Minister made it clear that that was her first priority for negotiations. The agreement reached in December and set out in our joint report with the Commission, alongside Part Two of the withdrawal agreement, will provide these citizens with certainty about their rights going forward.

In the UK, EU citizens’ rights will be upheld by incorporating Part Two of the withdrawal agreement into our law. As the noble Lord, Lord Hannay of Chiswick, noted, there will be a time-limited period when our courts may choose to refer questions on specific points of law concerning citizens’ rights to the CJEU for a decision, having had regard to whether relevant case law exists, but it will be up to our courts to decide whether to do so. Let me reassure the noble Lord that it will be for our courts to make final judgments, not the CJEU. Any continuing CJEU role in our legal system will be temporary and narrowly defined. The ability of UK courts to make voluntary references to the CJEU will, as the noble Lord is aware, be time-limited to eight years. These short-term, limited arrangements have been agreed to help ensure consistency and certainty for citizens over these new rights as they are implemented.

For the implementation period to operate effectively, the UK will need to remain in step with the EU. The withdrawal agreement will be underpinned by a duty of good faith, with a joint committee in place enabling either side to raise issues or concerns. These arrangements will help ensure the implementation period works properly for both sides. We have agreed that, for the implementation period, the existing EU mechanisms for supervision and enforcement will apply, including continued CJEU jurisdiction. This is necessary so that there will be one set of changes for businesses and people. I hope that that reassures the noble and learned Lord, Lord Hope of Craighead, and the noble Lord, Lord Hannay of Chiswick, who raised their concerns about the need for certainty during the transition period. This does not change the fact that in the long term, after the end of the implementation period, the UK will no longer be under the jurisdiction of the CJEU.

Let me answer the point raised by the noble Lord, Lord Anderson of Swansea, by making it clear that the implementation period will not be extended. I thank him for the offer of co-operation from the Bar Council; we continue to have regular consultations with lawyers in practice, as well as the judiciary, on all aspects of the complicated legal mechanisms in both the withdrawal Act and the future partnership.

Brexit: No Deal

Debate between Baroness Ludford and Lord Callanan

Tuesday 11th September 2018 Lords Chamber

[Lord Callanan]

The proposed backstop on Northern Ireland is the subject of intense negotiations at the moment. We remain committed to there being no hard border in Northern Ireland and we remain committed to the Belfast agreement, and we are negotiating with those two matters in mind.

[Baroness Ludford (LD)]

My Lords, the leaked no-deal alternative to Chequers from the ERG amounts, in the words of the esteemed former Chancellor, George Osborne, to,

“a whole load of other batty ideas from the nether reaches of the Tory Right”,

coming out of the woodwork. He says that they include a “star wars” system and an,

“expeditionary force to retake the Falklands”—

although Argentina is supposedly one of our new trade friends. Can the Government still, with a straight face, give any credence to no deal?

[Lord Callanan]

I cannot comment on the document referred to by the noble Baroness because I have not read it. However, as I have said repeatedly in this House, we do not want no deal. We are negotiating to get a good deal, but a responsible Government will prepare for every eventuality, and we are preparing for no deal through the issuing of technical notices.

Brexit: Negotiations

Debate between Baroness Ludford and Lord Callanan

Thursday 6th September 2018 Lords Chamber

[Baroness Ludford (LD)]

My Lords, I agree with the noble Lord, Lord Framlingham, only to the extent that Chequers is dead. As reported by George Osborne’s Evening Standard, the French Europe Minister Nathalie Loiseau,

“scoffed at British media reports that her boss President Emmanuel Macron was softening to the Prime Minister’s proposals”.

Instead of trying to dodge, weave and divide and rule, could the Government not just concentrate on honest and competent negotiating?

[Lord Callanan]

We are concentrating on honest and competent negotiating. In fact my right honourable friend the Secretary of State for DExEU is actually in Brussels today meeting with Michel Barnier. I have met the French Foreign Minister and she certainly did not say that to me. The Latvian Foreign Minister said that Chequers constitutes a good ground for trying hard to reach a deal, the Danish Finance Minister said it was a realistic proposal for good negotiations and Michel Barnier said he was also confident that we would reach a deal.

Brexit: Negotiations and No-deal Contingency Planning

Debate between Baroness Ludford and Lord Callanan

Tuesday 4th September 2018 Lords Chamber

[Baroness Ludford (LD)]

My Lords, the DExEU website today displayed a rather apt message:

“We’re experiencing technical difficulties. Please try again later”.


That perhaps sums up the incoherent, divided and irresponsible position—or, rather, positions—of this Government. That the Trade Secretary could on Sunday dismiss the Chancellor’s forecast of the need for extra borrowing of £80 billion by 2033 while staying in post shows the Prime Minister’s utter, weak inability to impose rationality or discipline on her Government. The Chequers plan is a dead parrot, so the important question is: where do the Government go from here? I would like an answer and I think that Parliament deserves an answer, as do the people.

The Statement claims that the no-deal notices, of which we expect another batch, “prioritise stability”. The way they seek to get any continuity at all in the event of no deal is, in fact, by relying on a series of mini-deals to prevent the absolute disaster of grounded planes and the absence of crucial trade. The Government are saying, “Please, Brussels, can you rescue us from our absurd no-deal threat?”

There will be a particular set of 5 million people who will be badly hit by no deal: the 3 million EU citizens in this country and the 2 million Brits in the rest of the EU. The failure to give a unilateral guarantee two years ago—which would have been reciprocated, as the noble Lord, Lord Lawson, said at the time—is creating an agonising limbo of anxiety and depression. Meanwhile, Brexiteers are moving assets or citizenship to other EU countries.

To get a little personal, I do not know whether the Prime Minister gets her glucose patches—on which I can comment, as she is commendably open about them—from abroad, but my type 1 diabetic husband gets his glucose sensors and insulin from elsewhere in the EU. There are many other people with medical conditions who are vitally dependent on such imports. That a Government could calmly contemplate upsetting such a flow and creating distress and potentially worse is breath-taking in its dereliction of a basic duty of care.

The prominence of no-deal planning seems to fulfil a number of purposes, all of them within the Tory party. It is a sop by the Prime Minister to the hard Brexiteers, who positively want this outcome, and a warning to the “chuck Chequers” brigade to accept Chequers as somewhat less bad. There are two things that it does not do: it does not put pressure on the Brussels negotiators and it does not inspire confidence in the public—on the contrary.

There is this sentence in the Statement:

“While it is not what we want, a no-deal scenario would bring some countervailing opportunities”.


This is obviously a bone thrown to the ERG faction. What exactly are the “countervailing opportunities” for small businesses losing their export markets, or patients losing their essential medical supplies? The no-deal scenario means lots more costs to businesses, higher prices for consumers, an avalanche of new bureaucracy—such as pharmaceutical companies having to register medicines twice, showing that EU red tape ain’t got nothing on Tory red, white and blue tape—and more taxpayers’ money spent on quangos and civil servants, stockpiling and so on.

Panasonic and Muji are but the latest companies to announce that they are moving their HQ across the Channel. We face this dire outcome because the Tory Government have proved totally unable to deliver a workable or tolerable Brexit deal. Indeed, not only do they provide absolutely no reassurance about how to resolve issues between the UK and Ireland in the event of no deal, they actually advise businesses and individuals to contact the Irish Government. We know that the Tory Government love outsourcing, but this surely goes shamefully too far in abdicating responsibility for the border communities.

Can the Minister tell us that the Government will reverse their refusal to guarantee that MPs will see the full impact analysis of a no-deal Brexit before the final vote on any departure from the EU? Both the previous and current Brexit Secretaries have, in the past, supported a second referendum, so presumably they think that it is a demonstration of democracy, exposing the PM’s comments as a sham. We on these Benches insist on a final say on the deal. We are joined, it is announced today, by 70% of Mumsnet subscribers: a very sensible bunch.

[Lord Callanan]

I thank both noble Baronesses for their comments, which I thought were long on criticism but a bit short on workable alternatives. I am delighted that the noble Baroness, Lady Hayter, enjoyed her holiday so much—discussing sperm and Portaloos seems to have had a positive effect on her vitality. I say to her that we are providing serious leadership and have a serious plan, in stark contrast to the Labour Party, from which I have heard no plan at all, apart from one that says that we should remain in a customs union—but then it cannot even bring itself to vote for the trade deals that are negotiated under that customs union. So we are providing a way forward through serious negotiations in the national interests.

I thank the noble Baroness, Lady Ludford, for her comments and I can tell her that the citizens’ rights part of the withdrawal agreement is agreed. She mentioned medical supplies. The Department of Health and Social Care is working with its partners across government, in the health sector and in industry, to prepare for the possible disruption to the supply chain of medical supplies including medicines, vaccines, medical devices, clinical consumables and blood products. And, yes, we will provide a full economic analysis of the deal that has been negotiated before the House of Commons and this House have their meaningful vote.

Brexit: Legislating for the Withdrawal Agreement

Debate between Baroness Ludford and Lord Callanan

Tuesday 24th July 2018 Lords Chamber

[Baroness Ludford (LD)]

My Lords, before I comment on the Statement, I note the Prime Minister’s Written Statement on a machinery-of-government change, which was published but surprisingly not covered in the Statement. It says that the Prime Minister will lead on the negotiations with the EU, with Mr Raab demoted to being her deputy and with the Cabinet Office Europe Unit having,

“overall responsibility for the preparation and conduct of the negotiations”.

That does not seem to be much of a vote of confidence in DExEU, which, with its Secretary of State, and I am afraid to say the Minister here, has been somewhat sidelined. Perhaps the Minister can comment on that.

I welcome this White Paper, although its publication on the last day of term is perhaps somewhat disrespectful to Parliament, as I said in Questions earlier. There is a sense of unreality threaded through it. The Statement says that the Government are,

“committed to delivering a smooth and orderly Brexit”—

this while Ministers continue to sabre rattle about no deal, which makes the assertion later in the Statement about being “a reliable negotiating partner” somewhat difficult to believe. I am afraid that even the Minister could not keep a straight face when he repeated that part of the Statement.

There is a clear assertion that the financial settlement is already agreed, so why does the Secretary of State for Exiting the European Union continue to question the Government’s commitment to honouring this bill? We chop and change. We hear one thing from a Statement in Parliament and then we hear quite other things from Ministers in the media, which is completely unacceptable.

On citizens’ rights, some of us noted that the Statement says that EU citizens in the UK and UK nationals in the EU will be allowed,

“to live their lives broadly as they do now”.

That is quite a loaded word, “broadly”. What does it mean? What rights that they have now does it rule out?

Will the withdrawal and implementation Bill incorporate the full text of the withdrawal agreement and the framework on the future relationship? It would be useful to know. Before Parliament comes to the Bill, there will be a Motion, after the negotiations are concluded, on whether Parliament approves the deal—I look at the Chief Whip at this point, as the noble Baroness did. Are the Government planning a decent gap between the tabling of the Motion for approval of the deal and the debates in Parliament? Also, how many days are they scheduling for debate on that Motion? We went round the houses on whether the Motion should be amendable. Are the Government committed to allowing it to be amendable?

The White Paper repeats the commitment,

“to providing Parliament with appropriate analysis prior to the vote”,

on the approval Motion so that Parliament can make an informed decision. Will there be independent input into the analysis?

The application of EU law will continue at least until December 2020. The Statement rather glosses over the implications for the EU withdrawal Act, some of which were picked up by the noble Baroness, Lady Hayter. We have to look at the White Paper to attempt to understand the full interaction with the EU withdrawal Act. Paragraphs 63 to 67 will bear much detailed scrutiny. Paragraph 73 proposes the extension of the correcting power until December 2022. Could the Minister bring out the full implications of that? Paragraph 75 says that the new Bill will have provision to “defer, revoke or amend” the SIs that will have been passed under the withdrawal Act. That sounds like Henry VIII powers squared. How shall we deal with it all? It sounds incredibly complicated.

In last night’s debate, I talked about how the Government were disingenuous, bordering on dishonest, about some items—and that is certainly true about the reference to the European Court of Justice in this Statement. We have the usual assertion, which the Minister did not quite repeat last night, that the direct jurisdiction of the ECJ ends when we leave. But that is not true, is it? The White Paper also says:

“EU mechanisms for supervision and enforcement will continue to apply to the UK”.


Does that include Commission infringement proceedings? It certainly includes the supervision and jurisdiction of the European Court of Justice—which, of course, will have been deprived of its UK judge. Do the Government think we are stupid, and do not understand the full implications of what will happen during the transition period, and even afterwards? The jurisdiction of the ECJ is not ending even if we leave next March, and it would behove the Government to be a little more candid about the reality of the situation.

[Lord Callanan]

I thank both noble Baronesses for their comments, and I shall take each of their questions in turn. I thank the noble Baroness, Lady Hayter, for her kind wishes for the holiday. Let me extend the same wishes to her: I hope she enjoys reading the White Paper alongside her bucket and spade on the beach. I take her point about timing, but we thought it was important to get the White Paper out before the Recess to give Members of Parliament in another place and here the chance to look at it carefully before we come back in September.

Northern Ireland is not in the White Paper because those provisions are not agreed yet. We did not want to leave the White Paper until everything was agreed; we wanted to give Parliament the opportunity to scrutinise the provisions now. Obviously, those provisions are not agreed, and we will come back to the House when we have an agreement.

As for the implementation period, the EU withdrawal Act will repeal the European Communities Act 1972 on 29 March. We will, however, have to ensure that the UK can continue to apply EU law during the implementation period. This will be achieved by way of transitional provision in which the EU withdrawal Act will amend the Act so that those elements of the ECA strictly necessary for the operation of the time-limited implementation period are preserved for its duration; I hope that is clear.

On no deal, yes, obviously if there is no withdrawal Act, all the issues agreed under the withdrawal Act will cease to apply. We will need to look at those matters again, but preserving the rights of EU citizens would be a top priority in such circumstances. As for timing, yes, we are still targeting an agreement in October, and the EU also agrees with us in targeting that. I repeat the obvious point that if we do not have an agreement in October, parliamentary time to implement the necessary legislation will, of course, start to get extremely tight.

With regard to a debate on the White Paper, happily the Chief Whip has been sitting here and he tells me that he thinks that a very positive suggestion. Provided that other business is dispensed with in an appropriate way, he will endeavour to find the time for that debate. I hope that summarises his view correctly.

Moving on to the noble Baroness, Lady Ludford, the Prime Minister is of course leading the negotiations. On something of such crucial importance to the United Kingdom, I think it would be expected that she would lead on behalf of the country but she will be ably supported by the Secretary of State, who will back her up in all the critical areas. On citizens’ rights, let me repeat the answer that I gave to the noble Baroness, Lady Hayter: of course we want to see citizens’ rights preserved and we expect to see them broadly or essentially preserved. I would be happy to write to her with all the details but it is a hugely complicated area. We published the details in December. I am sure that days on debate for the Motion will be agreed by the usual channels.

With regard to the ECJ, as set out in the draft withdrawal agreement the Court of Justice will have an ongoing role on citizens’ rights but this role will be temporary and narrowly defined. Our courts can ask the CJEU for a legal view on the interpretation of the citizens’ rights parts of the withdrawal agreement if they need answers to questions before they can decide on a case. It will be for the courts to decide whether they need that legal view on interpretation.

[Baroness Ludford]

Before the Minister sits down, what then does paragraph 78 mean? It says that,

“during the implementation period, the existing EU mechanisms for supervision and enforcement will continue to apply to the UK” .

That means the ECJ.

[Lord Callanan]

I will write to the noble Baroness but I am conscious that Back-Bench Members want to have some time for questions as well.

Brexit: Parliamentary Processes

Debate between Baroness Ludford and Lord Callanan

Tuesday 24th July 2018 Lords Chamber

[Lord Callanan]

I have never been compared to the Vatican before. Is Parliament responsible and wise? Parliament is always responsible and is extremely wise in whatever it says and does.

[Baroness Ludford (LD)]

My Lords, it is apparent to all that the mantra of taking back control and parliamentary sovereignty has been a fig leaf for an executive power grab, as exemplified by the disrespectful publication, on the last day of Parliament, of the White Paper on implementation. I guess that, like last time, we will be lucky to see it before the Statement. Will the Government, even at this late stage, change the habits of a lifetime and emulate the arrangements in the European Parliament, which has full involvement and information on the Brexit negotiations?

[Lord Callanan]

We will discuss the White Paper later, and the noble Baroness will have a chance to ask further questions on it then. The Executive are accountable to Parliament. DExEU Ministers have given evidence to a broad range of committees on a total of 37 occasions, we have made 108 Written Statements in both Houses, and I think we spent about eight hours last night discussing the very issues that the noble Baroness refers to.

EU Exit: Future Relationship White Paper

Debate between Baroness Ludford and Lord Callanan

Thursday 12th July 2018 Lords Chamber

[Baroness Ludford (LD)]

My Lords, naturally it is a landmark moment that we finally have a government position on Brexit after more than two years, but that exhausted sense of relief is tempered by a huge number of caveats. The first of these is that it has in fact not calmed tempers within the Conservative Party but ignited an all-out war within the governing party: strong and stable this plan is not.

I will have to mix my foodie metaphors. On Monday, I said that the Chequers plan looked like a series of fig-leaves—over the sovereignty of Westminster to reject EU regulations, over the autonomy of the UK legal order, over the pretence of business-friendliness—and I maintain those critiques now that we have the White Paper. However, in addition I suggest that the White Paper describes not a soft nor a hard Brexit but a scrambled Brexit. This is exemplified by the farce of the Secretary of State for Exiting the EU starting his Statement in the other place before MPs had a copy of the White Paper. He actually tried, after the uproar, to suggest that the clerks might be to blame, but actually the Statement is predicated on being delivered before the White Paper is published. It says:

“Shortly, we will publish the Government’s White Paper”,


on Brexit. So it was always intended that the Statement would be made before the White Paper. I think this is executive arrogance rather than taking back control for Parliament.

The scrambled incoherence of the White Paper is exemplified by the suggestions on the agri-food sector. Page 16 of the White Paper talks about,

“a common rulebook for agriculture, food and fisheries products, encompassing rules that must be checked at the border, alongside equivalence for certain other rules, such as wider food policy”.

There are quite a few contradictions there. How is it frictionless trade if there have to be checks at the border? How does that common rulebook for agri-food work if the UK is outside the common agricultural policy and the common fisheries policy? How can you have a common rulebook for some aspects of food but equivalence for other aspects of food policy? Perhaps the Minister will explain and unravel some of that. The fact is that the facilitated customs arrangement is baroque, complicated and bureaucratic; it is likely to collapse under the weight of its own contradictions.

As the noble Baroness, Lady Hayter, said, how on earth can you separate goods from the services that are essential to their production, whether that is legal services, software, intellectual property or others? There is also the serious worry about the potential for fraud and smuggling with these differential tariffs that are meant to be applied at the border; that is leaving aside the question of whether the EU will agree to operate its intended side of the arrangement.

Michel Barnier is surely right. He said that only staying fully in the single market and the customs union can guarantee frictionless trade, yet the Government maintain this claim of “frictionless trade”. That is an absolute term; it does not mean a little bit of friction—it means no friction. How do the Government intend trade to be frictionless? How can there be an independent trade policy, which is alleged in the White Paper, if the UK has committed itself to a common rulebook, including on agri-food products? How will that work when the US invites us to accept the famous bleached chickens and GM food?

The cakeism which runs throughout this White Paper is exemplified by the comments on services—a massive hole in the plan—which are 80% of our economy, and which we do not intend to be part of the single market. When one thinks of the efforts previous Conservative and other Governments have made to try and deepen the single market in services, this is a betrayal of everything that Mrs Thatcher tried to do.

Can the Minister tell me how,

“new arrangements on financial services”,

will,

“preserve the mutual benefits of integrated markets”,

while maintaining the autonomy of rule-making? Those two are surely in contradiction. We will not have integrated markets with autonomous rule-making.

I fear that what the Government are setting up is a further loss of trust in the public. There were so many deceitful statements that came out of the three pages after the Chequers meeting last Friday, which appear to be repeated in the bits of this White Paper which I have been able to read. For instance, the White Paper says:

“We share an ambition for our country to be … more prosperous than ever before”.


But the Government’s own impact statements, which we finally wrestled out of them, all show that we will be poorer. Our economy will shrink; we will have less money for public services. So how will we be more prosperous if the Government have committed to the statements made by the OBR? There are so many statements in here that are just not true, such as that this will,

“return accountability over the laws we live by”,

to the UK Parliament. We will comply with the common rulebook, and yet we will have autonomy over our laws. It does not add up; we are setting up for the people to be let down and it is the people, therefore, who should have the final say on what the Government come back with. Otherwise, the forces that led to the decision in the referendum two years ago will just be magnified.

[Lord Callanan]

I thank both noble Baronesses for their comments. Let me address some of the issues that they raised.

First, I am grateful to the noble Baroness, Lady Hayter, for her comments about the prompt delivery of the White Paper in this House. I am glad to see that our processes are more efficient. When I was preparing for appearing here, I was listening to the exchanges in the House of Commons, so I dashed to the Printed Paper Office here to check that they had sufficient copies to deliver to everybody. Noble Lords were busy collecting them at the time and said they had them available in good time; I am pleased she got hers and I hope the noble Baroness, Lady Ludford, received hers in time as well. There was some information that was released to the press under embargo, as is normal practice, but it was released only once the Secretary of State stood up—

Brexit: Negotiations

Debate between Baroness Ludford and Lord Callanan

Wednesday 6th June 2018 Lords Chamber

[Lord Callanan]

It would indeed be impressive if Keir Hardie had gone on the radio this morning. I am sorry, I was of course referring to Keir Starmer.

[Baroness Ludford (LD)]

Will the Government be advising citizens to stock up on dried, tinned and frozen food, jerry cans of fuel and their prescription medicines, given that it was reported at the weekend that Whitehall is planning for the port of Dover to collapse on day one of a crash-out no-deal Brexit, leading to a critical shortage of supplies? Will the Government share this planning with the public?

[Lord Callanan]

The claims that the noble Baroness refers to are completely false. A significant amount of work and decision-making has gone into our no-deal plans. We hope there will not be a no-deal situation but, as a responsible Government, we need to plan accordingly.

European Union (Withdrawal) Bill

Debate between Baroness Ludford and Lord Callanan

Report: 2nd sitting (Hansard): House of Lords
Monday 23rd April 2018 Lords Chamber

[Lord Callanan]

It is certainly our intention but, as I have said, these are bilateral relationships and the discussions are continuing. That is one part of the withdrawal agreement that was not quite finalised and so, literally, discussions are continuing on it.

The noble Baroness, Lady Ludford, also asked me about databases and the use of EU data on UK databases and vice versa. This is also a matter for negotiations. Our aim is to ensure that we and our EU partners continue to share and use personal data where there are clear benefits to public safety, subject of course to the appropriate safeguards.

For all of those reasons, and given the Government’s clear intentions to continue and strengthen our close collaboration on security, law enforcement and criminal justice after we leave, and given that the new clauses exceed the purpose of this Bill, I invite the noble Baroness to withdraw her amendment. For the sake of clarity, I should say that the Government will not reflect further on this amendment and so, if the noble Baroness wishes, she should take the opportunity to test the opinion of the House this evening.

[Baroness Ludford]

I am quite cross, really. With all respect to the Minister, that is a disrespectful response. Twenty-one months after the referendum, there was not even as much detail in the Minister’s reply as there was in the Prime Minister’s Munich speech. For instance, the Minister said that a new treaty will require respect for legal sovereignty. As I mentioned to him, the Prime Minister said:

“when participating in EU agencies the UK will respect the remit of the European Court of Justice”.

What does that mean? The Minister has enlightened me not a jot on that, nor on the follow-up phrase about,

“our unique status as a third country with our own sovereign legal order”,

which was the only one he talked about.

It is farcical that the Prime Minister can make a speech containing more detail than the Minister is prepared to give in response to an amendment in this House. We are being treated as of no account whatever. The way in which Ministers are responding on this is disrespectful. It is obvious that there are major challenges in getting a UK-EU security treaty. Many commentators are writing about it, with various opinions and insights, but the Government are not among them, at least when it comes to telling us in Parliament. Even though we are the unelected House—I am not aware that they are telling the elected House in any more detail either—it seems poor that this is what we have become and have been reduced to when we seek knowledge about how Parliament will take back control of our future relationship with the EU post Brexit.

We will have to reflect on another way in which to take this issue forward. I hope the Minister will understand that his reply was not worth the paper it was written on. That said, I beg leave to withdraw the amendment.

Brexit: British Citizens

Debate between Baroness Ludford and Lord Callanan

Thursday 29th March 2018 Lords Chamber

[Baroness Ludford]

To ask Her Majesty’s Government, in the light of their intention for the United Kingdom to leave the European Union on 29 March 2019, whether, and on what basis, British citizens can be confident that they will have reached agreement by that date on a future relationship with the European Union.

[The Minister of State, Department for Exiting the European Union (Lord Callanan) (Con)]

My Lords, Article 50 states that the withdrawal agreement must take account of the framework for our future relationship and the terms of withdrawal. We have been working intensively to agree an implementation period, codify the joint report into legal text and reach agreement on the entire withdrawal agreement by October. The deal reached last week provides greater certainty to businesses and citizens. We are confident that we can reach a deal that is in the best interests of both parties.

[Baroness Ludford (LD)]

My Lords, I am delighted to be the first of four Liberal Democrats asking Questions on this important day. Does the Government’s plan for “Brexit means Brexit” not turn out to mean “Brexit in name only” and that, in the words of Jacob Rees-Mogg, the UK will be a “vassal state”? Can the Government therefore explain, one year before they are set to make us Brexit, what the point is of going through with their version of Brexit and why they will not agree to let the people decide, on the facts, whether it is worth it?

[Lord Callanan]

It is interesting to hear the Liberal Democrats quoting Jacob Rees-Mogg. The point is to implement the results of the referendum. The Liberals will probably want to forget about this but the people have already had a say on the issue, both in the referendum and in the subsequent general election, neither of which went very well for the Liberal Democrats.

Brexit: Immigration

Debate between Baroness Ludford and Lord Callanan

Thursday 29th March 2018 Lords Chamber

[Lord Callanan]

As we have said, we are confident that we can get a deal. At every stage so far the doomsayers have said we would not reach agreement and we have. We have agreed all the details of an implementation period. Clearly that needs to be subject to final agreement and, like any responsible Government, we are carefully assessing our contingency options if there is not a deal. However, we are confident that there will be a deal.

[Baroness Ludford (LD)]

My Lords, is not the truth that the Government are trying to hoodwink the British people by not revealing their post-Brexit immigration plans this year? What surely will happen because of the sectoral demands for labour is that the volume of people coming from the EU will be similar to now, but we and EU citizens will have lost our free movement rights. It is a lose-lose scenario, and there will be a great deal more red tape for employers.

[Lord Callanan]

More water is being spilt at the Dispatch Box. Where is the noble and learned Lord, Lord Keen, when we need him? I have forgotten the question now. We are confident that we will be able to put in place a new system. The referendum was about taking back control of immigration and when we deliver the results that the British people voted for it will be a win-win situation.

Brexit: European Council and Commission

Debate between Baroness Ludford and Lord Callanan

Tuesday 27th March 2018 Lords Chamber

[Lord Callanan]

It will be a matter for the negotiations, but we hope to achieve an agreement at least as good as the existing trade agreement with South Korea, yes.

[Baroness Ludford (LD)]

My Lords, is not the truth that, despite barbs often directed at Brussels, EU institutions have proved far more transparent, accessible and accountable—and, I might add, more honest—than Ministers and departments in Whitehall? There is no way that we would have this annotated withdrawal agreement if it had been left to the UK Government. Does not the Brexit process show how much our democracy and governance need modernising?

European Union (Withdrawal) Bill

Debate between Baroness Ludford and Lord Callanan

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

[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”.

European Union (Withdrawal) Bill

Debate between Baroness Ludford and Lord Callanan

Committee: 7th sitting (Hansard): House of Lords
Wednesday 14th March 2018 Lords Chamber

[Lord Callanan]

The Prime Minister did indeed refer to these important level playing field issues and said that we do not want to see a significant diminution of standards in these areas.

[Baroness Ludford (LD)]

If I recall, the Prime Minister promised binding commitments in the area of state aid and competition, and I thank the noble Lord, Lord Patten, for reminding me of that element of the speech. The Minister tells us that he does not want to be constrained in the negotiations, but has not the Prime Minister already constrained the negotiations by accepting binding commitments in the area of competition law and by using the phrase “strong commitments”—apparently she was banned from saying “binding commitments”—with regard to regulatory alignment?

[Lord Callanan]

I will allow the Prime Minister’s words to speak for themselves.

It is in the interests of consumers and industry in both the UK and the EU to maintain the freest and most frictionless trade possible in vehicles and automotive products after exit.

I apologise that have I spoken at length about issues of constitutional significance, but—

European Free Trade Association

Debate between Baroness Ludford and Lord Callanan

Tuesday 27th February 2018 Lords Chamber

[Lord Callanan]

I am not aware that anybody in my department has said anything of the sort. The point the noble Baroness is referring to is that of course we want no border in Ireland between the north and the south. We are committed to the Good Friday agreement. It has been the basis of lasting peace and prosperity in Ireland, and it is important that we come up with suitable arrangements in future negotiations with the EU to ensure that there is no border.

[Baroness Ludford (LD)]

My Lords, can the Minister give a precise definition of “ambitious managed divergence” and the other new buzz-phrase, “European traded goods area”? Can he also explain the three baskets, which sectors are in which baskets and whether suppliers to a sector, such as the textile-makers of a car seat, are permanently or temporarily in a basket? Does he agree that so-called EU red tape ain’t got nothing on the bureaucracy involved in the Government’s plans?

[Lord Callanan]

I am tempted to make a comment about a basket case but that is probably not a good idea. The noble Baroness is referring to the point that when we leave the EU, we will start off with identical rules and regulations, as she well knows. The issue then is how we diverge in the future and how that divergence should be managed, should the EU want to adopt different regulations or should we want to do so. If we do and it does not affect the functioning of the ambitious free trade we want between us and the EU, why should we not be able to? Clearly, there needs to be a mechanism to manage that.

Brexit: EU Customs Union

Debate between Baroness Ludford and Lord Callanan

Wednesday 7th February 2018 Lords Chamber

[Baroness Ludford]

To ask Her Majesty’s Government what future relationship they plan between the United Kingdom and the European Union Customs Union.

[The Minister of State, Department for Exiting the European Union (Lord Callanan) (Con)]

My Lords, the Government made clear in the Prime Minister’s speech in Florence and subsequently that we will be leaving the EU customs union. In the Government’s customs future partnership paper published last August we put forward two possible approaches to the UK’s future customs relationship with the EU. The specific approach we take will of course be subject to the outcome of the negotiations.

[Baroness Ludford (LD)]

My Lords, I am grateful for the Minister’s certainty, but it does not seem to be shared by all members of the Cabinet who are speaking out. Indeed, when on Friday Mr Olly Robbins gives EU negotiators a,

“UK update on the future relationship”,

as the agenda foresees, I suspect that all he will really be able to tell them will be, “My political bosses are incapable of making up their minds. Can you please tell us what to do?”

[Lord Callanan]

Was there a question there? I am sure that, if Mr Robbins gives any kind of update, being the good, efficient civil servant that he is, he will want to reflect government policy.

Brexit: Transition Period

Debate between Baroness Ludford and Lord Callanan

Wednesday 31st January 2018 Lords Chamber

[Lord Callanan]

I thank my noble friend for his helpful question. As he well knows, Article 50 makes it clear that the withdrawal agreement needs to take account of the future relationship so that we will know the terms of our new partnership with the EU by the time of our exit. This is the basis on which we have to work.

[Baroness Ludford (LD)]

My Lords, given that the Government do not have a clue where they are going, would it not be a lot less dangerous to seek to extend Article 50 and stay longer in the EU instead of sticking to a dogmatic target exit date? That would allow both Parliament and the people to take control and shape all stages of Brexit negotiations, including withdrawal, transition, implementation and any future relationships—giving them, of course, the choice of remain, which is the best.

[Lord Callanan]

The Liberals have obviously forgotten all about the referendum, but we will put that to one side. As an ex-member of the European Parliament, the noble Baroness will know that it is obviously illegal for the EU to sign trade deals with a country that is still a member. We need to be a third-party country, and we need also during the period to have the ability to agree and sign trade deals with other countries. That is why we need an implementation period. Article 50 says that we will leave the EU on 29 March next year. That is what will happen.

Brexit: Economic Analyses

Debate between Baroness Ludford and Lord Callanan

Wednesday 24th January 2018 Lords Chamber

[Lord Callanan]

I am sorry, but I do not agree with the noble Baroness. It is the reddest of red herrings to try to cast doubt on the referendum result. I have no knowledge of what investigations the Electoral Commission is undertaking, but I am certainly not aware that the Government are undertaking any such studies.

[Baroness Ludford (LD)]

My Lords, in what way can this Conservative Government make the traditional, if often unjustified, Conservative claim to be pro-business and pro-jobs when they have slapped down a CBI demand to stay in the customs union, along with a TUC demand to stay in the customs union and the single market, and when they refuse to publish Brexit impact assessments or a position paper on financial services? When will they open eyes blinded by dogma to the real needs of the economy?

[Lord Callanan]

Well, this Government are pro-business and pro-jobs, and I can only assume that the noble Baroness has missed the unemployment figures this morning, which show that unemployment under this Government is at a 42-year low.

Brexit: European Travel Information and Authorisation System

Debate between Baroness Ludford and Lord Callanan

Wednesday 17th January 2018 Lords Chamber

[Baroness Ludford]

To ask Her Majesty’s Government what discussions they have had with the European Union about British citizens being subject to the European Travel Information and Authorisation System for travel to the European Union if the United Kingdom leaves the European Union, and about the costs arising from that System that British citizens might face.

[The Minister of State, Department for Exiting the European Union (Lord Callanan) (Con)]

My Lords, the EU is discussing a proposal for a European travel information and authorisation system that will apply to third-country nationals. The final details of that system have not yet been agreed. It is still too early to say what procedures will be in place for British citizens travelling to the EU after we leave. We will discuss these matters as part of our future relationship discussions.

[Baroness Ludford (LD)]

I thank the Minister for that Answer. At present, all that a British citizen needs to do to go to Spain on holiday or to Germany on business is to present a passport at the border. If we Brexit, they will have to apply for an ETIAS, which is similar to a US ESTA. The fee could become significant and it could take four days for approval. It would require the supply of biometric data and details of health, criminal record and previous immigration history. When will the Government level with the British people about how this is another example of Brexit increasing costs and red tape? Is it not another reason why the British people should be able to exit from Brexit?

[Lord Callanan]

No, my Lords, it is not. The noble Baroness is making a whole series of assumptions in her question, none of which may turn out to be true. We are still to have the discussions with the EU on the future relationship in terms of how people will travel backwards and forwards. When we have had those discussions and reached a conclusion, we will be sure to let her know.

Brexit: Deal or No Deal (European Union Committee Report)

Debate between Baroness Ludford and Lord Callanan

Tuesday 16th January 2018 Lords Chamber

[Lord Callanan]

No. As the noble Baroness understands very well, we can agree the principle of the period of implementation by March and we will then go on to the further agreements on the various issues that we have set out.

The noble Lords, Lord Whitty, Lord Butler and Lord Kerr, and the noble Baronesses, Lady Falkner and Lady Ludford, all asked about the legal basis of the implementation period and raised questions over that legal basis. Such an implementation period would be agreed under the Article 50 process, and would be enshrined in the withdrawal agreement, and implemented in this House under the withdrawal agreement and implementation Bill. The EU has been clear on this in its Article 50 guidelines and draft negotiating directive, and the UK Government agree with this approach. The desired implementation period will allow a period of smooth transition to the terms of a new relationship.

The report claims that the implementation period could be used as a mechanism to extend the negotiation period beyond March 2019. The noble Baroness, Lady Falkner, also suggested a method to extend the negotiation period using Article 50. On 29 March 2017, the Prime Minister notified the EU—

[Baroness Ludford]

On the legal basis for the transition, surely when the Commission says that it thinks that Article 50 is the legal basis, it is talking about a standstill transition. Is it really agreeing with the Government that it would be the legal basis for the implementation of a trade deal, which would be based on another article in the treaty? Is the Minister asserting that the Commission agrees that Article 50 could be the legal basis for a genuine implementation period for a future deal—a roll-in of a future deal?

[Lord Callanan]

Clearly, the noble Baroness will understand that I cannot comment on what legal advice the Commission has received. But as I said, the Commission has agreed with us that the implementation period can be implemented under Article 50. We agree with that position.

On 29 March 2017, the Prime Minister notified the EU of the UK’s decision to withdraw under Article 50, following consideration of the issue in both Houses of Parliament. As a matter of policy our notification will not be withdrawn. The British people voted to leave the EU and we will deliver on their instruction. There can be no attempts to remain inside the EU and no attempt to rejoin it. I emphasise for the benefit of the noble Lord, Lord Kerr, and others, that we will leave the EU on 29 March 2019, after which we will no longer be a member state. That is a matter of law under the Article 50 process.

My noble friend Lord Hamilton asked me what provisions we were making for no deal even though that is not the outcome we seek. As well as the EU withdrawal Bill, which will ensure that we have a fully functioning statute book on the day that we leave, the Government are already bringing forward other legislation as required. Our Trade Bill will give the UK a foundation for an independent trade strategy. We will create a world-class international sanctions regime through the Sanctions and Anti-Money Laundering Bill and we will deliver an effective customs regime through the customs Bill. Our Nuclear Safeguards Bill will ensure that we can deliver a domestic nuclear safeguards regime. This legislation will support the future of the UK in a wide variety of outcomes, including one where we leave the EU without a negotiated outcome.

Alongside bringing forward necessary legislation, we will be procuring new systems and recruiting new staff where necessary to ensure that we deliver a smooth exit, regardless of the outcome of negotiations.

Brexit: Reports to Parliament

Debate between Baroness Ludford and Lord Callanan

Monday 8th January 2018 Lords Chamber

[Lord Callanan]

My noble friend makes a good point. We want a Brexit that will command the maximum possible level of support across this House and—I am not sure that the two things are related—across the country as well. We will want to involve as many people as possible, and of course we want to try to make that process as harmonious as possible, involving all different shades of political opinion.

[Baroness Ludford (LD)]

My Lords, instead of planning for no deal, should not the Government be trying to get a coherent, unified position on the kind of deal they are aiming for? Once they have reached that coherent, unified position, will they report back to Parliament to allow us to debate that proposition before it is put to Brussels?

Brexit: Revocability

Debate between Baroness Ludford and Lord Callanan

Wednesday 20th December 2017 Lords Chamber

[Lord Callanan]

I thank the noble Lord for his interesting advice. I am not aware that the opinion of the President of the European Parliament is particularly legally binding, but of course I shall read it with interest.

[Baroness Ludford (LD)]

My Lords, the Prime Minister wrote to Cabinet colleagues recently in a letter headed “Government Transparency and Open Data”:

“The sunlight of transparency also acts in itself as an important check and balance, and helps ensure the highest standards of public life amongst elected representatives”.


Will the Government follow the advice of the Prime Minister on this matter of publishing Article 50 legal advice?

[Lord Callanan]

The noble Baroness will be well aware that the Government always follow the advice of the Prime Minister.

Brexit: EU Citizenship

Debate between Baroness Ludford and Lord Callanan

Monday 11th December 2017 Lords Chamber

[Lord Callanan]

If the noble Earl means the proposal suggested by the noble Lord, Lord Teverson, I have said that we are happy to entertain proposals in this area. But I think it would be extremely difficult for the EU to concede that citizens from non-EU member states would have citizenship.

[Baroness Ludford (LD)]

My Lords, the Government rightly value the integrity of the United Kingdom—as indeed do these Benches. Do they therefore think it is right that there will be an imbalance in that most citizens of Northern Ireland will be able to retain EU citizenship through their right to an Irish passport? Should the Government not therefore support the call my noble friend proposed making to the European Parliament, for the EU 27 to examine how all UK citizens can retain the benefits of EU citizenship?

[Lord Callanan]

As 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.

Brexit Negotiations

Debate between Baroness Ludford and Lord Callanan

Tuesday 5th December 2017 Lords Chamber

[Lord Callanan]

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.

[Baroness Ludford (LD)]

My Lords, the Government claim that they are clear that we must respect the integrity of the United Kingdom, yet the wording being discussed yesterday was only about continued regulatory alignment on the island of Ireland. I understand that, in the other place this morning, the Brexit Secretary tried to square the circle by asserting that regulatory alignment will apply to the whole of the United Kingdom. Can the Minister affirm that it is now government policy for the whole of the UK to stay in the single market and the customs union? In that context, I welcome what seems to be the evolving position of the Opposition. Better still, will the Minister tell us that government policy will soon be to allow the British people, in this context of chaos, to choose to remain in the EU?

[Lord Callanan]

The Liberal Democrats have obviously forgotten that the British people have already made a choice on the matter. The Liberal Democrats put the option to remain in the EU to the British people at the last election, and they got 7% of the vote, I think. However, it would be wrong for me to comment on the details of negotiations at this stage. These are sensitive matters and we should not prejudice ongoing negotiations, as we have not yet reached agreement. Talks continue; yesterday, the Prime Minister confirmed in her statement to the press that we expect them to continue throughout the week in both London and Brussels. The noble Baroness can be assured that, when we have a conclusion, we will report back to the House.

Brexit: Release of Impact Assessments

Debate between Baroness Ludford and Lord Callanan

Tuesday 28th November 2017 Lords Chamber

[Lord Callanan]

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.

[Baroness Ludford (LD)]

My Lords, are this Government not a serial offender when it comes to the arrogance of their executive power? The Brexit pledges were all about taking back control and Westminster sovereignty, but Parliament has been refused a decision on Article 50. There has been an attempted power grab in the withdrawal Bill and now there is this.

In her speech to the Conservative Party conference in October last year, the Prime Minister gave many pledges about change, transparency and honesty and how she had heard the call of millions of people. Is it not time to stop hiding from the British people and to stop keeping them in the dark about the Government’s extreme Brexit plans? Should these reports not be published in full, rather than going through a Whitehall whitewash? Why are the Government trying to spare their own blushes and hide from the people the disaster that Brexit will mean for their jobs, their rights and the environment?

[Lord Callanan]

We are not hiding behind any documents. We have provided an unprecedented level of information to the committee. We have been as open and transparent as possible, subject only to preserving our negotiating position. With the permission of the House, I should like to answer a question which I was not asked, but which I expected to be asked by the noble Baronesses—will the House have access to this material? The answer is yes.

European Union

Debate between Baroness Ludford and Lord Callanan

Monday 6th November 2017 Lords Chamber

[Lord Callanan]

I am sure that the noble Lord noticed that we had a referendum on the subject.

[Baroness Ludford (LD)]

My Lords, can the Minister assure us that, as the EU reforms and changes, the Government will ensure that the United Kingdom plays to its strengths in Europe, such as in the single market, of which Mrs Thatcher was the architect, and in justice, security and defence, rather than running away from these major assets that we contribute to the EU?

[Lord Callanan]

On the subject of defence and security, we have proposed a bold new strategic partnership with the EU, including a comprehensive agreement on security, law enforcement and criminal justice co-operation.

Aviation

Debate between Baroness Ludford and Lord Callanan

Monday 26th June 2017 Lords Chamber

[Lord Callanan]

I take my noble friend’s concerns on board. Many airlines want access to the south-east of England. As we proceed with Brexit, aviation will be a critical component of our engagement with the rest of the world. More people will need to visit this country; more people will need to travel abroad for a new UK sector. Of course, the expansion of Heathrow, if it proceeds, will provide extra slots and we will look at the context of slots at regional airports in the aviation strategy.

[Baroness Ludford (LD)]

My Lords, can the Minister tell us whether Zac Goldsmith will resign his seat if the expansion of Heathrow goes ahead?

[Lord Callanan]

I am sure the noble Baroness will want to ask Zac Goldsmith himself that question.