Leaving the EU: Parliamentary Scrutiny

Debate between Hilary Benn and Stephen Timms

Thursday 28th June 2018 Commons Chamber

[Stephen Timms (East Ham) (Lab)]

May I ask my right hon. Friend about the section of the report dealing with the financial settlement, from paragraph 58 onwards? The House and the country have been given the impression that we are going to make a very large payment of up to €40 billion to the European Union on condition that we secure a favourable agreement about our future trading relationship. How likely is it that next March we will find ourselves obligated under the terms of the withdrawal agreement, which will be legally binding, to make the payment, yet at that point have no legal certainty at all about our future trading relationship?

[Hilary Benn]

I am grateful to my right hon. Friend for his question and for his sterling service on the Committee. That is indeed a possibility due to the way that the draft withdrawal agreement is constructed at the moment. The commitment to pay the outstanding moneys that we owe, which the Government have accepted, is part of that agreement and not conditional on what may transpire in the negotiations on the future partnership. There has been some debate on this subject; indeed, we questioned Ministers on it when they appeared before the Committee. We say in the report:

“We note that the Government has not yet secured a clause in the Withdrawal Agreement linking the financial settlement to the satisfactory conclusion of negotiations on the framework for the future relationship. We call on the Government to confirm whether the inclusion of such a clause is one of its negotiating objectives.”

We wait to see what the Government say in response. As things stand at the moment, the commitment has been made to pay the money as part of the withdrawal agreement, and it is not linked to the future partnership and the treaty negotiations on that, which we hope will be concluded by December 2020.

European Union (Withdrawal) Bill

Debate between Hilary Benn and Stephen Timms

Committee: 3rd sitting: House of Commons
Tuesday 21st November 2017 Commons Chamber

[Stephen Timms]

My hon. Friend, who is a lawyer specialising in these matters, is absolutely right. I understand that the European Parliament also has a role in all this, and so there is a political dimension to it as well.

The position at the moment is that as an EU member state we can exchange personal data freely with others in the EU—Governments, businesses and individuals. The Under-Secretary of State for Exiting the European Union, the hon. Member for Wycombe (Mr Baker), told the Select Committee that the Government would seek to include data flows in the wider negotiated agreement for a future deep and special partnership between the UK and the remaining member states of the EU. I welcome that confirmation. However, as we keep on being reminded, we might not get a deal, so what then? If we do not get a deal and an adequacy determination, it will be unlawful to send personal data from the European Union to the UK, and, at a stroke, there will be no lawful basis for the continued operation of a significant chunk of the UK economy. I hope we all agree that we must avoid that outcome at all costs. Already, we hear that hi-tech start-ups that need access to personal data are starting to look at Berlin in preference to London because of the possibility that that problem might, in due course, arise.

The Government have argued that because we are fully implementing the GDPR, the Commission will be unable to find fault with UK arrangements even if we lose article 8. I have to say to Ministers that the UK technology sector does not agree, and my judgment is that it is absolutely right to be worried. The danger is not a theoretical one, as we see in the case of Canada. A very long-running series of negotiations has led to a pretty ambitious agreement between Canada and the EU, but Canada has only got a partial adequacy determination.

If we ended up with only a partial adequacy determination on data, it would be extremely damaging for the UK economy. The US arrangements known as “safe harbour” were famously struck down as inadequate by the European Court of Justice in a case brought by an individual Austrian citizen in 2015. That caused an enormous upheaval and led to the very rapid introduction of new arrangements in US regulation called “privacy shield”, which I understand are being called into question in a new case at the European Court of Justice by the same Austrian citizen.

The European Court of Justice is particularly sensitive about UK bulk collection of personal data. That issue featured prominently in the Appeal Court case, which we have touched on several times in this debate, brought by the right hon. Member for Haltemprice and Howden. The Court considered whether the powers in the Data Retention and Investigatory Powers Act 2014 went too far, allowing the state to breach personal data privacy, and concluded that the powers introduced by the then Home Secretary went too far. Article 8 of the charter, specifically, was the basis for that conclusion. If article 8 is no longer in UK law, it may make life easier for future Home Secretaries who wish to do the kind of thing that the previous Home Secretary tried to do, because they are much less likely to be found in breach. That rather bruising experience at the hands of the right hon. Member for Haltemprice and Howden may well be one reason why the Prime Minister wants to keep the charter out of UK law.

[Hilary Benn]

My right hon. Friend is making a very powerful case. The Select Committee heard evidence from the Under-Secretary of State for Exiting the European Union, the hon. Member for Wycombe, who said that the Government would seek a data adequacy agreement. Like him, I would welcome that, but it is not entirely clear whether that can be achieved, should there be a deal.

I had always understood the data adequacy decision to be a regulatory decision of the Commission in respect of a third country, as my right hon. Friend has made clear in his previous remarks. Therefore, if there is no agreement or it is not legally possible to override the decision with an agreement, all the points that he has made—that the Commission has to decide, and that the decision is subject to legal challenge and could go to the Court or to other member states—merely demonstrate how much is at stake when it comes to getting this right.

[Stephen Timms]

I absolutely agree with my right hon. Friend. My understanding is that the shortest period in which a data adequacy agreement has ever been achieved is 12 months, in the case of Japan. Very often, these things take a good deal longer.

By exactly the same token, and precisely because it may be a source of satisfaction to Home Office Ministers, excluding article 8 will constitute an invitation to the European Commission and the European Parliament to find fault with UK data privacy regulation. The cases brought by the right hon. Member for Haltemprice and Howden and others would not have succeeded if they had not been able to rely on article 8. Those who look at these matters on behalf of the European Union will have no doubt in their minds, as far as I can see, that that is the case.