(4 years, 6 months ago)
Lords ChamberMy Lords, the Government, as I said at the outset, have asked for nothing more than an agreement similar to the Canada free trade agreement and other agreements that the EU has struck with other nations. It is for the noble Lord to decide, if the EU wishes to refuse that request, whether that is reasonable or unreasonable.
My Lords, I urge my noble friend and the Prime Minister to push the boat out, so to speak, to get an agreement. If the European Court of Justice is not to be the dispute resolution mechanism for the Northern Ireland protocol, what resolution mechanism does he have in mind?
My Lords, on the details of the mechanism proposed under the protocol, as well as the protocol statement that has been made, my noble friend will find that a number of draft decisions are also being laid before Parliament setting out in greater detail the arrangements agreed, which include provision for the settlement of disputes.
(4 years, 7 months ago)
Grand CommitteeI want to take this opportunity to thank my noble friend for introducing the regulations before us and for the fact that they follow the affirmative procedure, enabling us to have a small debate on them.
In its 31st report, the Secondary Legislation Scrutiny Committee devoted just one paragraph to these regulations:
“This is an important technical instrument, necessary to ensure that the statute book operates correctly after Implementation Day.”
It concludes:
“The instrument provides a general gloss to ensure that the correct interpretation of any EU instrument applies. Cabinet Office states that statutory instruments being prepared by other departments in order to implement the Withdrawal Agreement, including the Northern Ireland Protocol, are relying on these glosses.”
I am somewhat confused as to what “gloss” means. To me, if you put a gloss on something, it potentially puts a spin on it. I could not find in the document that this was a term my noble friend’s department used—probably for a very good reason. I would be interested to know what gloss he puts on that interpretation in the report.
Obviously, we discussed these issues at some length during the passage of the two Acts to which my noble friend referred, and the instrument today helpfully sets out the sources of retained European law. One is missing, namely case law from the European Court of Justice, presumably up to the end of January this year but potentially up to the end of December this year. It is not clear to what extent we will have any regard to EU case law as agreed by the European Court of Justice. Obviously, we will not refer cases, because the Government have been very clear about that in the past. However, there may well be an expectation among some companies that feel that they are affected by this statutory instrument that they would have the right to rely on that case law in a UK court. I would be interested to know whether that is true in my noble friend’s view when he comes to sum up.
Another category of EU law on which I questioned my noble friend and his colleagues during the passage of those two Acts, and which particularly interests me, relates to the environment and agriculture generally, where these instruments of EU law were agreed but were not implemented by the end of 31 January 2020. To be honest, I do not have a clue whether they are ambulatory or non-ambulatory, but I would be very interested to know what decisions have been taken in regard to the applications of those instruments, whether they will be applicable to citizens and companies in this country and whether they can rely on them going forward.
Paragraph 2.8 of the Explanatory Memorandum, on page 2, helpfully says:
“The interpretation legislation amended by this instrument is not EU law; it is domestic legislation, which is being updated in consequence of”
the two Acts to which my noble friend referred, as he said. Paragraph 6.4 on page 4 sets out retained EU law without, as I say, including what I would consider to be EU law, namely the case law that has been decided during the course of this year. Paragraph 6.7 on page 4 states that the two Acts
“provide temporary powers to make provisions that Ministers consider appropriate in consequence of those Acts.”
In that regard, does my noble friend expect to come back at a future date to repeal other provisions of EU law, if he and his department intend to keep this under review? Paragraph 7.4 states:
“Where there is a dual meaning, the interpretive provision applicable to references to EU legislation that have effect as relevant separation agreement law will apply to the extent that the EU legislation takes effect as relevant separation agreement law.”
Paragraph 7.5 continues:
“These interpretive provisions are needed to ensure that the legislative framework for the Withdrawal Agreement and the Protocol on Ireland and Northern Ireland operates effectively.”
Paragraph 7.7 states that Regulation 3 makes amendments to the European Union (Withdrawal) Act 2018
“to provide how existing ambulatory references to EU instruments that will have effect as relevant separation agreement law are to be interpreted after IP Completion Day. Ambulatory references are references to EU instruments that automatically update when the EU instrument is updated.”
I do not intend to use the full time that has been generously allocated to me, but I will end on a general question. With all interpretations of EU law that is now deemed to be retained EU law for UK purposes, in the event of a disagreement, who will interpret the provisions? Will it be the Minister’s department that is the ultimate arbiter, or will recourse to the courts be required? I understand that, probably still, one potential niggle that might be delaying the conclusion of a deal with the EU 27 this week—perhaps he could comment on this—is what the dispute resolution mechanism will be. Is there any update in that regard?
With those few words, I welcome this opportunity to consider the instrument that the Minister was kind enough to set out this afternoon.
The noble Lord, Lord Bhatia, is having technical difficulties. In the circumstances, we will move on to the noble Lord, Lord Thomas of Gresford.
(4 years, 7 months ago)
Lords ChamberMy Lords, I am delighted to support these regulations. Like my noble friend Lady Altmann, I have a couple of questions. In particular, mindful of the fact that the waiver is coming into effect at quite a late stage in the day, and in response to questions from the Secondary Legislation Scrutiny Committee in preparing its report on the regulations before us today, HMRC replied:
“The NI Protocol requires HMG to implement the Union Customs Code in NI. As a result of this, some movements between GB and NI will attract a Safety & Security requirement, but the full extent of this is the subject of ongoing negotiations between the UK and the EU. Traders will be able to access help from the new Trader Support Service in NI to support them meeting their requirements.”
I want to ask in particular when the Trader Support Service will be up and running. Reference has been made twice in proceedings today to how businesses in Northern Ireland can rely on the Trader Support Service. We on the EU Environment Sub-Committee took evidence on the importance of unfettered movement between Northern Ireland and Great Britain under the Northern Ireland protocol, and it is essential that businesses have the best guidance and support that they can get. I therefore hope that my noble friend Lord Agnew will be able to explain to us today what state the Trader Support Service will be in to give them the best possible advice.
Mindful of the fact that the negotiations are still ongoing, I am rather amused by the adverts that the Government have put out. I know they are meant to be helpful and I think they will be in the long run, but they are inviting businesses to log on to a website to prepare for the new arrangements, and it is incredibly frustrating for them because they do not yet know what those arrangements will be. What is the lead time between the negotiations ending and knowing what the new arrangements will be? It was a source of some disappointment to us on the EU Environment Sub-Committee that, until quite recently, there had been no formal discussions between the Northern Ireland Assembly, businesses, the Westminster Parliament, and, I presume, HMRC. Can the Minister confirm today that that is no longer the case?
Like my noble friend Baroness Altmann, I note that there will be additional burdens and one-off costs. However, paragraph 7 of the Secondary Legislation Scrutiny Committee report states that
“it will be a new legal obligation and an additional cost to submitting a customs declaration for import and export purposes”—
and that was the response from HMRC to inquiries from that committee. I understood that there are not meant to be any significant checks so I am slightly surprised to learn that there will be a new legal obligation leading to the additional costs and burdens of completing a customs declaration. Does the Minister have any idea how long it would take to fill in such a customs declaration?
I hark back to the days when I was first elected as a Member of the European Parliament in 1989. For the first three years, we were not in the single market, so for import and export all businesses had to complete about 20 pages or more of customs declarations. As the local MEP, on occasion I was phoned up and asked to intervene—through the good offices of government departments—to make sure that these customs declarations could be completed and dispatched to enable the goods to move. Agri-foods are perishable goods, and it could ruin a whole load if there was a delay of longer than the—I think—four hours pre-arrival for one form of declaration and two hours pre-arrival for both. If these time limits were to be exceeded, it could pose serious problems for the transporters and the logistics for these perishable goods.
I am interested to learn how my noble friend will respond to these few remarks in connection with the regulation he has presented today.
(4 years, 7 months ago)
Lords ChamberI disagree with the noble Baroness. The Government are committed to human rights principles and to the maintenance of the Good Friday agreement.
My Lords, the Northern Ireland protocol commits to “unfettered” access for all goods, including agri-foods. Does my noble friend accept that there will be a new legal obligation for submitting a customs declaration for import and export purposes that will both take time and incur expense to fill in? How does that square with the commitment to unfettered access?
My Lords, unfettered access from Northern Ireland to GB will be sustained and there will be no customs checks. So far as GB-NI is concerned, any control will be at a very minimal level, with risk assessment and administration undertaken by UK authorities.
(4 years, 7 months ago)
Grand CommitteeMy Lords, I thank my noble friend the Minister for introducing an important SI to the Committee. Could he set out, as page 9 of the Explanatory Memorandum mentions, the sequence of events for Britain applying to join the GPA? Is there any possibility that our application might be refused? What is the procedure for signing up to the new arrangements? I note that paragraph 7.30 of the Explanatory Memorandum says that the Trade Bill is
“highly unlikely to have completed its parliamentary passage”
and its implementing regulations adopted. Paragraph 7.32 then says that
“it is likely that the extension of existing duties … will be revoked and replaced.”
That begs the question of what the sequence of events will be. It would be helpful to know that there will be a smooth transition to the GPA.
I note that the Minister set out today and in one of the stages of the Trade Bill that the threshold for the GPA and EU public procurement arrangements are virtually the same—about €135,000. This is obviously a multi-million pound business. I wonder to what extent the Government encourage our businesses to bid in particular for food and agricultural products to supply schools, hospitals, prisons and other public bodies in other countries. Without this public procurement there would be huge benefits to our local farmers and producers supplying our very own schools, hospitals, prisons and other public bodies with locally sourced meat. It would be helpful to know that they will be encouraged to bid for this wider market in so far as it is feasible.
One remaining question, to which my noble friend referred—and I declare that I am a non-practising Scottish advocate—is that the definition of “lawyer” has been changed. Is that to take account of the United Kingdom Internal Market Bill? I just wondered for what particular reason the definition has been changed at this stage.
I would like to know what the sequence of events is for us joining the GPA, to be sure that it will be a smooth transition, and that the Government are doing everything in their power to bring these contracts for public procurement to the attention of the relevant businesses to enable them to apply for what could be a costly tender.
I call the noble Lord, Lord Bhatia. Lord Bhatia, are you there? I call the noble Baroness, Lady Wheatcroft.
(4 years, 7 months ago)
Lords ChamberTo reassure the noble Baroness, full disclosure will be made on any further progress with equivalence. The new Finance Bill, just starting its progress through both Chambers, will give opportunities to noble Lords to contribute.
On the issue of pension fund asset allocation, I agree that we have been too focused on pushing too many assets into government gilts or equivalent instruments and that enormous opportunity exists for investment in UK infrastructure.
My Lords, I take this opportunity to welcome the Statement from my noble friend today, in particular the part relating to the issuing of the green sovereign bond. Among my interests on the register, I am vice-president of the Association of Drainage Authorities. I urge him to consider that a fundamental shift of thinking is required on environment issues at the heart of the Treasury, relating to spending on environmental projects and more especially flood defences, which will increasingly become a challenge given the threat of climate change. Will the Government ensure that revenue and maintenance activities receive a greater balance of spending than those on capital work? So often when flood defences fail, it is due to the lack of maintenance. Given the pressure of climate change, I hope that my noble friend will agree to review this urgently.
I take on board my noble friend’s comments. In relation to flood defences, I must declare an interest: my farm runs down to the sea and I have some three miles of coast, which is under continual attack by the elements. But we have increased the commitment of funding for flood defences; I think it was in the Budget in March, and it certainly recognised that this is a major element of our national infrastructure. In terms of seeing an allocation into these kind of assets, this falls partly into the previous question about ensuring that we get a wider allocation into infrastructure and of course into sea defence and indeed flood defence.
(4 years, 8 months ago)
Lords ChamberMy Lords, the Government’s policy is to adopt and encourage greater transparency in commercial activity. Central government buyers must publish all tender documents and contracts with a contract value of over £10,000 on the Contracts Finder site. I am not commenting on press allegations. The Government are certain that the proper procedures have been and are being followed.
My Lords, in the absence of a register, can my noble friend explain who checks that appropriate measures have been taken, in particular if it is a close friend or family member who may have benefited from such a contract? Also, what is the sanction if a breach is found to have occurred?
My Lords, any breach of the Civil Service Code will be dealt with by the appropriate procedures within the Civil Service. Every department is expected to develop and set up its approach under the central framework. Each department is responsible for defining the standards of conduct it requires and for ensuring that those are carried out. Internal guidance and procedures must be followed in all cases.
(4 years, 8 months ago)
Lords ChamberMy Lords, I stand by the words of the Prime Minister in reaction to that. It was disappointing. I referred to it in my speech yesterday. It seemed to restate the opening position. As we understand it, the communiqué was hardened from the text that was before the Council, which was disappointing. We have expressed our disappointment and set out our position and feelings on the matter. I repeat to the House, because I do not want to make an entirely negative point, that we will carefully study everything that is said by EU representatives. As I have said, there will be further conversations.
My Lords, I turn to customs and tariffs. The definition of goods at risk of onward movement into the EU is a sensitive decision for the joint committee to take. When does my noble friend think it will take that decision? As regards the UK’s listing as an authorised third country for agri-food exports into the EU, what assurances is the EU asking for to proceed with third-country listing of the UK and what assurances have we offered?
My Lords, we are more hopeful. The position on third-country listing was extraordinarily disappointing. The statements and threats made in that respect were unacceptable. Goods at risk is an area of discussion in the appropriate committee. I will not foresee the outcome of those discussions.
(4 years, 9 months ago)
Lords ChamberMy Lords, I did mention the Welsh ports in an earlier answer. I assure the noble Lord that the interests of those ports are well in mind. I am surprised by what he said he was told. Of course, I absolutely accept what he says, but an additional multifunctional inland site is being progressed to serve Holyhead. As I also told the House, there will be a statement very shortly on the Port Infrastructure Fund as a whole—I mentioned Holyhead because the noble Lord did. I will check the claim that there have been no contacts with Holyhead and report back to him.
My Lords, the situation on the Irish border is desperately unclear. The EU Environment Sub-Committee concluded in July that the matter of qualifying status for Northern Ireland goods and businesses that will benefit from unfettered access to the rest of the UK market, taking into account all-island supply chains, is still unclear. What message does my noble friend have today for the agri-food producers, farmers and freight operators in Northern Ireland about what the status will be on 31 December this year?
My Lords, as my noble friend knows, there are continuing discussions in relation to Northern Ireland, but we are taking all available steps to support trade readiness in Northern Ireland, including establishing a new and unprecedented trader support service. That is backed by funding of up to £200 million and will provide end-to-end support for businesses engaged in new processes. The importance of the state of Northern Ireland within our union and customs territory is undoubted.
(4 years, 10 months ago)
Grand CommitteeMy Lords, I am grateful to my noble friend the Minister for setting out so clearly the ramifications of these technical regulations, as he describes them. I have just a couple of questions, which are not dissimilar to those raised by other noble Lords. On page 1 of the Explanatory Memorandum, paragraph 2.3 states:
“At present equivalence functions are performed by the European Commission and the European Securities and Markets Authority ... At the end of the Transition Period these functions will be transferred to HM Treasury and the UK regulators as provisions in retained EU law.”
Clearly, they will be the regulators and will apply the equivalence regime but, in the event of an alleged breach being raised by a financial services company in the UK, which body will provide a remedy? My understanding is that currently, the EU Commission is the watchdog and recourse can be had to the European Court of Justice. Which body do the Government imagine will provide an appeal and a remedy in the event of the regulations being breached?
My second question relates to my noble friend’s clear statement that the regulation before us today deals with retained EU law. As other noble Lords, not least the noble Lord, Lord Bruce, have said, the current regime is a matter of ongoing interest in the EU Commission. Concerns were raised in the Financial Times in the middle of August that it may take longer for firms based in London to gain access after Brexit. My final question to the Minister is: what will be the position on 1 January 2021 for any future changes to the equivalence regime in Brussels? Will firms based in the UK—any part of the UK, either Edinburgh or London—have blanket access to the whole of the European Union or will the Commission insist that negotiations take place on a country-by-country basis? The noble Lord, Lord Bruce, accurately stated that only a small number of questionnaires have been returned. They will obviously take some time to complete fully and accurately.
Finally, I say on a note of disappointment that, while it is excellent that we have the equivalence regime under retained EU law, it will not provide anything like the prosperity and excellence that has made the City of London the most successful global financial centre.