(5 years, 8 months ago)
Lords ChamberMy Lords, I am grateful for the right reverend Prelate’s first comment. It is not the case that this Government do not value civil servants. Indeed, the joint letter sent out by the Prime Minister and the Cabinet Secretary yesterday reaffirmed their admiration for the work of civil servants.
Baroness Noakes (Con)
My Lords, does my noble friend the Minister agree that it is a strength of the Ministerial Code is that it does not require the removal from office of a Minister who breaches it but emphasises that the Prime Minister is the final arbiter on whether a breach has occurred and, if so, what the consequences are, which then allows him to make considered judgments in cases that are not black and white?
Yes, my Lords, these things are a matter of judgment. No one has referred to the fact that my right honourable friend the Home Secretary has made a very strong apology for her actions.
(5 years, 9 months ago)
Lords ChamberMy Lords, a Written Ministerial Statement was issued. I am sorry if the noble Earl feels that more could and should be said. I always enjoy my engagements with him. The Statement referred to a number of matters discussed in the joint committee on 19 October. In addition to that, if he wants, I can be more helpful: the committee discussed work on the establishment of a list of individuals to sit on an arbitration panel, as required under the WA. Both parties are progressing work to establish a list of suitable arbitrators. As the noble Earl knows, it was agreed to have a further meeting of the committee in November, and other work will continue in the interim. The discussions are obviously ongoing, and I know that he understands, and I respect that, that there are some constraints on what one can share at a time of active talks.
Baroness Noakes (Con)
My Lords, following last week’s EU Council meeting, Angela Merkel said:
“We also acknowledge that the UK would like to have a certain amount of independence”.
I emphasise “a certain amount”. Does the Minister agree that until the EU fully understands and respects the fact that we will have 100% independence, the EU alone will be responsible for the lack of a free trade deal, along with the damage that will do to the economies of many of its member states?
My Lords, of course it is essential that that point is recognised. I have made a practice, since I had the honour of taking on this brief, of not criticising the actions of any EU member state or anybody within the EU, and I shall forbear to comment on what any individual European leader may or may not have said. However, my noble friend is absolutely right that our independence, our right to set our laws, to control our own waters, and all the well-known expectations—not requests or demands—of an independent state need to be recognised by the other party.
(5 years, 10 months ago)
Lords ChamberMy Lords, as far as local deliveries are concerned, the Kent Resilience Forum is putting material in place. I sought to explain that an effort will not be made to stop every vehicle. The expectation is that before they move to ports, vehicles should have the proper documentation. That is good for hauliers, traders and the country. The system being put in place will enable the interception of certain vehicles, which will be required to comply and be subject to a fine if they arrive at port having not complied. It is an exemplary system which we hope will encourage all to comply, as most traders will want to.
Baroness Noakes (Con)
My Lords, I congratulate the Government on the progress that they have made in being ready for 1 January and on the support that is being given to businesses. The former EU Internal Market Sub-Committee of the EU Committee, of which I was a member, issued a report in 2019 on Brexit and the implications for transport. It reported that the majority of the UK’s exports and imports of goods was handled by overseas hauliers, primarily in vehicles registered in Poland, Romania and Ireland. I know that the Government have been working very closely with the UK haulage industry. What has been done with foreign hauliers to ensure that they are ready, especially in view of their limited language skills?
My Lords, the Government are certainly reaching out to all hauliers. I will provide my noble friend with details on those specific countries as soon as I can.
(5 years, 10 months ago)
Grand Committee
Baroness Noakes (Con)
My Lords, it is a pleasure to take part in this debate. I thank my noble friend Lord True for his usual masterful summary in opening the debate. It is also a pleasure to follow the noble Lord, Lord Kerr of Kinlochard, and to confirm that our views remain some way apart. Given the amount of excitement in the House that is normally engendered whenever our relationship with the EU is raised, I am quite surprised that our numbers today are rather modest. However, I am grateful for the fact that at least we have a decent amount of time to speak, which is rare in this ghastly hybrid House, and we must treasure the opportunity.
When we celebrated our freedom from the EU on 31 January this year, it seemed such a huge relief. We had put behind us the disastrous negotiations by the previous Administration and the prolonged period when Parliament tried to thwart the will of the people. We might briefly have cherished the thought that negotiating the future relationship was going to be the easy part after all that. But that did not last, and we have had to face the reality of trying to negotiate with an EU that does not yet accept us as a sovereign equal. It is completely natural for the EU to prioritise its own interests, but the EU seems also to want to punish the naughty child across the channel for its temerity in leaving. The EU knows that if we make a success of Brexit, other EU countries may well question the value of staying locked into the European project.
I pay tribute to my noble friend Lord Frost for the calm, measured and thorough way in which he has conducted the negotiations so far. It is certainly not his fault that we have failed thus far to deliver a deal on the basis of our own very reasonable requirements. We have asked for a free trade agreement like those that the EU negotiates with other trading partners. The EU has responded by saying that, because of our geographical proximity, we must have more restrictions placed on us, in particular in the area of the so-called level playing field. We have been clear, as my noble friend Lord True emphasised, that sovereignty is of paramount importance, but I do not think that the message has yet been received in Brussels. In the case of the level playing field, we do not need anything beyond WTO terms.
The issue of sovereignty is also at the root of the lack of agreement on fisheries. Our fishing industry was decimated by the EU’s quotas, which allowed France and Spain in particular to take our fish. We have said, perfectly reasonably, that we want sovereignty over our fishing waters back and that we will set the agenda for access for other countries. The EU thinks that it can carry on as before.
Northern Ireland was never going to be easy. It was the most difficult part of the withdrawal agreement, and it looks as if it is going to be the most difficult part of the long-term arrangements. The EU’s bully-boy tactics of threatening to stop food imports into Northern Ireland from the rest of the UK are completely unacceptable, and I have it on very good authority that those threats were actually made. We should perhaps have expected trouble. Although he has denied it, Martin Selmayr is believed to have said that Northern Ireland is the price that the UK will pay for Brexit. While Mr Selmayr has been moved to somewhere he can do less damage, I expect that his spirit lives on in Brussels.
I shall support the Government when the internal market Bill comes to your Lordships’ House. I believe that it is necessary to create the powers that are in that Bill to allow us to reconcile the conflicts between the withdrawal agreement, including the Northern Ireland protocol, and the Belfast agreement. I regret the clumsy initial characterisation of it as a breach of international law, because it is no more than a reserve power to deal with problems. I hope that we do not have to use it, but the EU needs to recognise that we are not giving it carte blanche in Northern Ireland, which remains a sovereign part of the United Kingdom.
I do not know how many other problems remain in the negotiations with the EU. While it would be interesting to have a bird’s-eye view of the negotiations, they are best conducted behind closed doors. I was grateful for the update from the Minister on the negotiations when he introduced this debate. At the weekend, however, I read with incredulity that the Channel Tunnel, governed by the bilateral Canterbury agreement between the UK and France, is now part of the EU’s power grab. I certainly hope that that story is untrue; perhaps the Minister can comment on it when he winds up.
I have always said that, while I favour a deal with the EU, it would not be the end of the world if we left without a deal. It would certainly be inconvenient and would cause some confusion in the early part of next year, which would not be helpful given the damage already done to our economy from the public health response to the coronavirus pandemic. But we would survive. We are a resilient nation and are capable of overcoming that. In the meantime, the Government are pressing ahead with free trade agreements with other countries, and will seek to join the Trans-Pacific Partnership next year. While the EU is certainly a large market, around 90% of global growth is expected to arise outside the EU, and that is where we must set our sights.
(5 years, 10 months ago)
Lords ChamberMy Lords, I think it is mildly wide of the Question before the House. Also, some quite serious allegations were made by the noble Lord. I simply repeat that there are very clear procedures available for civil servants who believe that they are being required to act in a way that conflicts with the code. They can start by taking it to their line manager, and the process goes on. As I have said, I am happy to circulate the appropriate procedures to the House.
Baroness Noakes (Con)
My Lords, noble Lords have focused on one particular aspect of the Civil Service Code, but there are many other requirements, one of which is that civil servants must not
“frustrate the implementation of policies once decisions are taken by declining to take, or abstaining from, action which flows from those decisions.”
Will my noble friend agree that the balancing of the different requirements in the Civil Service Code is best handled by the Civil Service under the procedures he has referred to, and not by a party-political Parliament?
Yes, I strongly agree with my noble friend. I do think this is a matter that should be left to the judgment of the leaders of the Civil Service—the Cabinet Secretary of the time being the main one. My noble friend is of course quite right to say that—and this was reinforced in the Constitutional Reform and Governance Act—certain duties and responsibilities do apply to civil servants.
(5 years, 10 months ago)
Lords ChamberMy Lords, the voice of Wales is extraordinarily important, and it is well served in this House by some of the outstanding Members who come from that great Principality. The noble Lord makes a point of policy. The last coalition Government presented to your Lordships and the other place proposals for an elected House, but they did not at that time find favour.
Baroness Noakes (Con)
My Lords, last year, your Lordships’ House demonstrated that it was spectacularly out of step with the country as a whole over Brexit. Does the Minister agree that it is more important to remedy that than to focus on the numerical size of the House?
My Lords, every Member of your Lordships’ House has the right to express a personal opinion, and long may we do so. However, it is important, as my noble friend says, that the House reflects on the risk of becoming out of step with public opinion on this great question.
(5 years, 10 months ago)
Lords ChamberMy Lords, I completely reject the idea that the Government are imperilling the Good Friday agreement. I repeat what I said a minute or two ago: the peace process has an east-west as well as a north-south aspect, which the Government fully respect. The purpose of our approach is to protect peace in Northern Ireland and the Good Friday agreement.
Baroness Noakes (Con)
My Lords, does the Minister agree that it would be better if the noble Lords who are getting so excited about this just waited until the internal market Bill is published later this week?
As usual, my noble friend makes a very important point. As I have already said, we will have a great opportunity to discuss the proposals.
(6 years ago)
Lords Chamber
Baroness Noakes (Con)
My Lords, I welcome the tax reductions in the Stamp Duty Land Tax (Temporary Relief) Bill; they should help to get the property market moving again. Stamp duty may well be an efficient tax for collection, but it is a terrible drag on the property market. It particularly hits homes in the south-east, which account for more than two-thirds of the total yield. I hope the Government will not simply allow the system to return to its previous state when the temporary relief expires next year. They would do well to look again at the impact the tax has on the property market, in particular on the property-owning aspirations of younger people.
In previous years we have been assisted in debates on the Finance Bill by reports from the Finance Bill Sub-Committee of the Economic Affairs Committee of your Lordships’ House. Its excellent report on the off-payroll working element of the Bill is hard-hitting; the Government’s response is tone deaf. I understand that my noble friend Lord Forsyth will seek a separate debate on this report later this year, and I certainly look forward to that. As other noble Lords have said, IR35 is an area that has never really worked well. It has led to tax rules with more unfairness than fairness in them—never a good look for a tax system.
I wish the Treasury were more joined-up. On the one hand, the Chancellor has provided massive support to businesses to help them through the pandemic and to enable economic recovery, and this has been terrific; on the other, the Treasury is legislating to make business rescue and business lending much more difficult. As the noble Baroness, Lady Burt of Solihull, noted, this Finance Bill reinstates Crown preference in insolvency for tax debts. As she said, R3, the representative body for insolvency and turnaround professionals, has called it a potential £1 billion blow. That may well be an understatement. The Crown preference proposals were heavily criticised before the Covid-19 pandemic hit us, and in the current context Clause 98 could well prove disastrous if business rescues are hampered or indebted businesses cannot access further debt.
My final point is about finance Bills and our tax system in general. We have long passed the point of having the longest tax code in the world. This Finance Bill is not particularly long—a mere 207 pages—but bears the hallmark of our tax system: complexity. We have a complex web of taxes to start with. They are then complicated by reliefs and exemptions, which are in turn further complicated by anti-avoidance provisions. This does not help business. In April the economy shrank by 20%, and the bounce-back in May has so far been modest. If we are to get to where we were before the pandemic hit us, we need everything to run at top speed. Complicating the tax environment for wealth creators will not do that. A good start for the Government next year would be a finance Bill of no more than 10 pages.
(6 years ago)
Lords ChamberMy Lords, I do not agree that there will be a difficulty. The announcement suggests that Mr Frost will take up his appointment around the end of August, and, as the noble Lord said, there will be a period of handover. Mr Frost will remain chief negotiator for the EU talks until agreement is reached, or until they end. That will remain his first priority. As I have already said, he will also be ready to answer to Select Committees of the House in that period.
Baroness Noakes (Con)
My Lords, does my noble friend agree that, when Mr Frost becomes a Peer, this House will be very lucky, because we will gain a new Member with huge experience—as my noble friend has outlined—and with complete dedication and commitment to the success of the UK outside the EU?
(6 years, 2 months ago)
Lords Chamber
Baroness Noakes (Con)
My Lords, I was a member of the EU Committee when this report was published and pay tribute, as other noble Lords have, to the leadership of the noble Lord, Lord Boswell, when he chaired the committee. The report was published last year against the backdrop of the previous Prime Minister struggling and failing to get Parliament to approve her withdrawal agreement. Parliament was working against us leaving the EU.
Last December the British people gave the Government a very clear mandate to get Brexit done. We now have a strong Prime Minister and a Parliament, at least in the other place, committed to delivering the will of the people. Inevitably, some of the committee’s recommendations have not stood the test of time.
We have now left the EU. The Government are working at speed on the long-term relationship with the EU, including a free trade agreement. They are committed to bringing this to a conclusion by the end of the year, and I was glad to hear my noble friend Lord True confirm last week that the Government have no intention of extending the transition period. There is clearly no time to spare in these negotiations.
This is the new context for parliamentary scrutiny. Parliament must of course still undertake its constitutional role of holding the Government to account, but in this new timescale it cannot realistically expect to be involved in the detailed negotiations of our long-term relationship with the EU. To that extent I regard the EU Committee’s proposals—for example, on its desired involvement in the workings of the joint committee—as time-expired. Let us focus on holding the Government to account on what they achieve in practice, rather than on the detailed steps for getting there.