Energy Security

Debate between Lord Adonis and Lord Callanan

Monday 5th December 2022 Lords Chamber

[Lord Callanan (Con)]

The answer to the noble Lord is that we need both. We need new large-scale nuclear power, not least to replace some of the ageing stations that are being phased out, but we want lots of new renewable power locally as well. Indeed, our strategy is to produce exactly that. I know that the Opposition tend to be a bit down on our renewable energy record but, dating from the coalition days, we have a fantastic renewable energy policy. We are continuing to roll out new renewables at a very large rate—one of the fastest in Europe—and we will continue to do so, subject to inevitable supply chain constraints as the rest of Europe seeks to catch up with the excellent policies that we have been following.

[Lord Adonis (Lab)]

My Lords, how many new nuclear reactors do the Government think they might be able to get operational in the next 20 years with their new planning framework and Great British Nuclear? Will the Minister also indicate, to whet our appetite, if the Government were to allow a more liberal planning regime onshore wind, how big a contribution might this also make to our energy supply?

[Lord Callanan (Con)]

The noble Lord will know, from his history of looking at infrastructure projects, that I cannot give definitive answers to those questions. We have announced the funding of Sizewell. Discussions are under way with operators for additional nuclear plants. I will be sure to let the House know when we have secured those investments and when we can make decisions on them.

It is difficult to answer the noble Lord’s question on onshore wind: it will make a contribution. Clearly, individual turbines make a relatively small contribution, but when they are scaled up, it can be quite large. Again, it is intermittent generation, but they will make a contribution, particularly in local areas. We want more wind; we want more solar; we want more hydro; we want more geothermal: the whole idea is to provide a diverse mix of energy sources.

Newport Wafer Fab

Debate between Lord Adonis and Lord Callanan

Tuesday 22nd November 2022 Lords Chamber

[Lord Callanan (Con)]

I agree with the noble Lord. That is why in 2016 we set up the Compound Semiconductor Applications Catapult, with £50 million of funding. Since then, it has initiated over £100 million of projects and collaborative projects which have generated or saved over 4,700 jobs in the UK. Therefore, we are very active in this space. This decision has no implications for that investment, which will continue. It was a quasi-judicial decision on national security grounds, which is what the Secretary of State is required to do.

[Lord Adonis (Lab)]

Are there any other national security investigations of this kind under way?

[Lord Callanan (Con)]

The noble Lord knows that I cannot comment on other live cases until final orders are made. I can give him some figures from the National Security and Investment Act report, published in March. The NSI unit received 222 notifications and 17 applications were called in. Since then, we have made 10 final orders, and acquisitions have been unwound or blocked on three occasions.

Power Outages: North of England

Debate between Lord Adonis and Lord Callanan

Thursday 2nd December 2021 Lords Chamber

[Lord Callanan (Con)]

My understanding is that there are currently about 20,000 people who are still without power. As I said, 950,000 have had their power restored. I understand the calls for the Army to be deployed, and its abilities are legendary, but it is important to recognise that in work such as this, safety priorities mean that only suitably qualified engineers can work on electricity network infrastructure. The military resource cannot support the restoration of electricity supplies, and network distribution operators have confirmed that military assistance is not necessary in this case.

[Lord Adonis (Lab)]

My Lords, can the Minister give us some idea of how much it would cost to put all these power lines underground?

Corporate Insolvency and Governance Bill

Debate between Lord Adonis and Lord Callanan

Committee stage & Committee: 2nd sitting (Hansard) & Committee: 2nd sitting (Hansard): House of Lords
Wednesday 17th June 2020 Lords Chamber

[Lord Callanan]

I do not want to go any further than what I said in my reply. I have been in correspondence with the Pre Pack Pool and we have arranged for officials from my department and from the Insolvency Service to meet with it further to discuss its concerns.

[Lord Adonis [V]]

Could Members of the Committee see before Report the letter of 29 May sent in reply to the pool, which the Minister mentioned?

[Lord Callanan]

In principle I have no objection to releasing that; obviously, I would need to speak to officials and to the recipients to check whether they are all happy with that. I do not know whether it was sent confidentially basis or whether it is available for publication, but I will certainly look at that.

Covid-19: Financial Markets

Debate between Lord Adonis and Lord Callanan

Wednesday 25th March 2020 Lords Chamber

[Lord Callanan]

A ban has already been imposed on the short selling of stocks because regulators in their own individual countries have imposed bans. A small number of European countries like the ones he mentioned have imposed bans on short selling, and of course the London authorities have then reflected that in our own regulation. Most of the major trading houses have not yet instituted bans, but this is something that we are looking at closely. The FCA has the powers to restrict and prohibit short selling if that is required. We are keeping this under constant review and there is no evidence that it has contributed to the fall in the market. Moreover, as I have said, the level of short selling over recent days has in fact been declining.

[Lord Adonis (Lab)]

My Lords, referring to the question put by my noble friend Lord Harris, do the Government still have the statutory power to regulate prices?

[Lord Callanan]

There are competition issues involved in doing that, as the noble Lord will be well aware of, given his experience. We have some powers in certain sectors and at the moment we are looking at this within the existing framework of legislation.

Brexit

Debate between Lord Adonis and Lord Callanan

Monday 25th March 2019 Lords Chamber

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

My Lords, today’s debate has allowed us the opportunity to explore the recent developments in relation to our exit from the EU. I am yet again grateful to all noble Lords who have spoken for their insight and contributions, even if one may say we did not hear much that was new or original. Indeed, noble Lords will not hear much that is new or original from me, but I will seek to address as many of the key points arising from the debate as I can while conscious of the late hour.

It is worth saying again that the experience and expertise demonstrated by noble Lords today is consistent with the valuable contributions this House has made to the process of the UK leaving the EU. I thought the debate started off very well and I agree with the noble and learned Lord, Lord Goldsmith, that the right reverend Prelate the Bishop of Newcastle spoke some wise words in calling for a calm, civilised debate. I am pleased to say that everybody in this House certainly abided by her instructions. The noble Lord, Lord Alderdice, spoke extremely well on the subject of reconciliation and compromise from his personal experience and provided sound advice to both Houses as we go forward in this discussion. I pay tribute to many other contributions, from all sides of the House, including about the work of our Select Committees. The noble Lord, Lord Soley, gave some powerful examples of the excellent work of those committees.

Over the past couple of weeks, the noble and learned Lord, Lord Hope, has shared his excellent analogy of feeling as though in a holding pattern somewhere above Aylesbury. I know that my right honourable friend the Chancellor of the Duchy of Lancaster, who actually represents Aylesbury, will tell you that there are no finer patches in the country. Indeed, I noticed at the weekend that he took to the airwaves to make it clear that he has no plans to move from that lovely patch of England to a more well-known address in London. I hope the noble and learned Lord will not mind if I take his analogy a little further and say that the pilot has now identified a runway and that now is the moment of decision for the other place as to where we land.

The legally binding assurances secured by the Prime Minister mean that, in the unlikely event that the backstop is ever used, it will only be temporary, and that the UK and the EU will begin work immediately to replace the backstop with alternative arrangements by the end of December 2020. As my noble friend the Leader of the House set out earlier today, the European Council also agreed that if there is a successful vote on the withdrawal agreement this week, the date of our departure could be extended to 22 May to allow time for our Parliament to agree and ratify the deal.

However, should Parliament not agree a deal this week, the European Council has agreed to extend Article 50 until 12 April, which would then become the point at which we either leave with no deal or present an alternative plan. The Government’s position is clear that the best way in which to leave the European Union is in a smooth and orderly manner, by supporting the negotiated withdrawal agreement. The point was powerfully made by my noble friends Lord Bridges, Lord Howell and Lord Cormack, as well as, somewhat surprisingly, by the noble Lord, Lord Soley, and perhaps slightly reluctantly by my noble friend Lord Lilley and the noble Lord, Lord Butler.

The noble Lord, Lord Kerr, and others talked about extending Article 50. Our agreement with the EU provides for two possible durations, which I have just outlined. Either of these scenarios would require a change in our domestic legislation to reflect the new date.

I can confirm that the Government have today laid a draft statutory instrument under the EU withdrawal Act that provides for both of these possible agreed extensions. This will be subject to the draft affirmative procedure, so it will be debated in each House and must come into force by 11 pm on Friday 29 March. As my noble friend the Lord Privy Seal confirmed earlier, in this House, that debate will take place on Wednesday, so we have it all to look forward to again.

In response to the questions from the noble Baroness, Lady Ludford, this is to make sure that our domestic statute book reflects the extension of Article 50, which is already legally binding in international law. Not having this instrument in place would cause serious problems and uncertainty regarding the domestic statute book from 11 pm on 29 March. A large volume of EU exit legislation preparing the statute book for the moment that EU law ceases to apply has been extensively debated in this House and is due to enter into force on exit day, which is currently defined in the withdrawal Act as 29 March at 11 pm.

These regulations are necessary to bring domestic law in line with the agreement at the international level. Without this instrument, there would be a clash in domestic law, because contradictory provisions would apply to both EU rules and new domestic rules simultaneously. It is therefore vital that the instrument is approved by Parliament so that we can ensure that the statute book accurately reflects that the UK will remain a member state until at least 11 pm on 12 April.

[Lord Adonis]

The Minister has made a very important statement. Are we to understand that, if the third meaningful vote does not take place tomorrow, the statutory instrument changing the exit date to 12 April will be laid on Wednesday? In what circumstances will we debate a 22 May extension rather than a 12 April extension?

[Lord Callanan]

The statutory instrument has already been laid. It reflects the decision of the European Council, so both potential dates are included as options, depending on whether the meaningful vote is approved—not necessarily tomorrow but this week. That was the decision laid down by the Council and agreed to by the Prime Minister.

In response to the questions asked by my noble friend Lord Hailsham and the noble Baroness, Lady Ludford, no deal remains the legal default at 11 pm on 12 April, if that is where we end up. The Prime Minister was simply stating that Parliament is likely to intervene to prevent no deal, if a deal has not been agreed by then. This is in line with her comments on 26 February, when she told the House of Commons:

“So the United Kingdom will only leave without a deal on 29 March if there is explicit consent in this House for that outcome”.—[Official Report, Commons, 26/2/19; col. 166.]

Brexit: Further Referendum

Debate between Lord Adonis and Lord Callanan

Thursday 17th January 2019 Lords Chamber

[Lord Callanan]

I understand the firm view of the Liberal Democrats on this; they have been dogged in pursuing it. I do not know whether the noble Lord was in the House yesterday, when I addressed the subject in a Question from the noble Lord, Lord Dykes, on opinion polling and whether public opinion has moved. There are clearly lots of different opinion polls around, but yesterday I quoted an analysis of the opinion polling that has been produced—I do not have it in front of me at the moment—which suggests that in fact, if you look at all the polls in the round, there has been no significant change in public opinion on the issue. The public remain deeply divided on the subject—which of course is why we held the referendum in the first place.

[Lord Adonis]

My understanding is that, despite what the Minister just said, work is in fact going on in the Cabinet Office in preparation for a second referendum. Would he care to confirm that that is the case?

[Lord Callanan]

I asked my Permanent Secretary whether any work was going on in DExEU, which is my department, and he confirmed that it is not. He will have to ask Cabinet Office Ministers whether they are doing—

[Lord Adonis]

Since the Minister is not informed about what is going on in the Government for whom he is responsible, could he write to me afterwards to let me know?

[Lord Callanan]

I can tell the noble Lord that it is firm government policy that we will not be holding a further referendum.

The question of how we would hold a second referendum on this matter is therefore entirely hypothetical. However, I have been asked the Question by the noble Lord, Lord Tyler, so I will answer it and elaborate on the process by which we hold referendums. But I reiterate that it is not government policy, and for a good reason.

The practice of holding a referendum is not uncommon in the United Kingdom. Since 1973, there have been 11. In response to the Question of the noble Lord, Lord Tyler, I will set out the process. In the UK, referendums require primary legislation to provide their legal basis: they require an Act of Parliament. The legislation would need to specify details such as the referendum question, the franchise, any amendments to the regulatory framework, conduct rules for the poll, and the date on which the referendum will be held. It would also require a number of other steps, such as question testing, where the Electoral Commission, according to its statutory duty, assesses the intelligibility of the referendum question. There would need to be appropriate poll preparation—the period in which the Electoral Commission and local officials prepare for administering the poll and regulating campaigners—and a regulated referendum period during which regulated campaigning occurs.

This is not a simple process. When considering the practicality of holding a second referendum before March 2019, as both the Prime Minister and the Secretary of State have explained in recent weeks, we cannot have a referendum now in the time available to us before exit.

A number of noble Lords have referred to the UCL report, which I have looked at and discussed with officials, but it remains our view that that timetable is extremely optimistic, given the current state of the numbers in Parliament. For comparison, the previous referendum Act took seven months to pass through Parliament. I remind noble Lords that that was from a Government with a majority in the House of Commons acting on a manifesto commitment, neither of which are the position now. This does not include the time needed adequately to take the other steps; for example, the Electoral Commission recommends that referendum legislation should be clear at least six months before it is required to be implemented or complied with.

We obviously therefore cannot hold a second referendum by March 2019 without a further step, to which noble Lords, including the noble Baroness, Lady Wheeler, referred: extending Article 50. I remind noble Lords that that, too, is not government policy. Aside from prolonging uncertainty for citizens and businesses, such an extension would need the unanimous agreement of the European Council. It is my view, after talking to many officials and other Ministers in Europe, that many commentators in this country are far too blasé about how easily that proposed extension might happen. As I say, it is not government policy and we will not apply for it, but the people who easily assume that it would be granted may be being extremely optimistic.

These calls for a second referendum nearly three years since the clear referendum result are, as the Prime Minister has said—to be fair to the Liberal Democrats, at least they are clear about it—in order to stop Brexit, to move against the clearly expressed will of the people to leave the European Union. Although the Commons voted against the deal on Tuesday, this result tells us nothing about what it does support—nothing about how, or even if, it intends to honour the decision the British people took in a referendum in which the House of Commons invited them to do so.

A second referendum would be a process, not an outcome—a complex and potentially very harmful process at that. I agree wholeheartedly with my noble friend Lord Sherbourne. Seeking a second referendum, and thus second-guessing the clear result of the previous referendum, would be a dangerous precedent to set for our democracy, as he made clear. If we cannot uphold and respect the result of one referendum, what guarantees are there that we can respect and uphold the result of a second? If we were to have a second referendum, and the result of that was also close, why not make it the best of three? By definition, the people who are calling for a rerun of the original referendum do not respect the results of referendums. It is a recipe for years of political and constitutional chaos and fuel for distrust in government, politics and all of us as politicians.

I hope that noble Lords will forgive me if I take a moment to set out the process before and after the 2016 referendum. As I said, Parliament overwhelmingly voted to put the question of the UK’s membership of the EU to the British electorate, allowing them to express a clear view. The simple and clear question was put, and we all know the result. Almost three-quarters of the electorate took part, and Parliament overwhelmingly confirmed the result by voting with a clear majority in both Houses for the European Union (Notification of Withdrawal) Act to empower the Government to begin the process of withdrawing from the European Union.

Let us not forget that at the most recent general election, more than 80% of people voted for parties committed in their manifestos to respecting the leave result. Again, I forgive the Liberal Democrats on this, because at least they were clear in the election what their policy was, and they gained 7% of the vote for their trouble. Parliament subsequently passed the European Union (Withdrawal) Act 2018.

The outcome of the referendum was, therefore, a clear answer to the question, expressing to the Government that a majority of the British public believed that the UK should withdraw from the EU, and we remain committed to respecting the will of the British people and the democratic process which delivered that result. We believe that we cannot compromise the British people’s ability to trust in politics and the Government. We will therefore continue to work to find consensus and deliver a deal and an exit which deliver on the instructions of the British people—whether they voted to leave or to remain.

Brexit: Withdrawal Agreement and Political Declaration

Debate between Lord Adonis and Lord Callanan

Wednesday 9th January 2019 Lords Chamber

[Lord Callanan]

That is the second time I have done that today, my Lords. I apologise; I meant 29 March this year. I got so used to saying it last year that I have repeated it a number of times. Maybe I did not get a long enough Christmas break to get over it properly.

[Lord Adonis (Lab)]

I tried to shorten it for you.

[Lord Callanan]

I am grateful to the noble Lord.

There will be further legislation to implement this deal—the withdrawal agreement Bill—and then a future relationship deal to be scrutinised, shaped and signed. Throughout this, we will continue to work closely with both Houses and their Select Committees.

As my right honourable friend the Secretary of State confirmed in the other place earlier today, we will accept the amendment made by the honourable Member for East Devon to give Parliament a vote on whether to seek to extend the implementation period or to allow the possibility of the backstop coming into effect.

During the three upcoming days of debate, noble Lords will examine a withdrawal agreement that will ensure our smooth and orderly departure on 29 March and, tied to this agreement, a political declaration on an ambitious future partnership that is in our national interest.

Brexit: Legislating for the Withdrawal Agreement

Debate between Lord Adonis and Lord Callanan

Tuesday 24th July 2018 Lords Chamber

[Lord Callanan]

With regard to UK citizens in the EU, it is of course equally important for us to reach agreement on their behalf. That is one of the areas that we are pursuing with other EU member states. Of course, the matter is agreed. We are making preparations to implement our part of the bargain and we need to make sure that EU states are doing similar things for British citizens.

With regard to the exact form of the Motion to be agreed, the meaningful vote is now incorporated into the withdrawal Act.

[Lord Adonis (Lab)]

The Secretary of State has apparently told the House of Commons this afternoon that the Government are making preparations to stockpile food in the event of no deal. Does the Minister think that that is sensible? Secondly, paragraph 118 of the White Paper states, with no qualification whatever:

“The UK will pay its share of the EU’s liabilities as at 31 December 2020”.


Are there any circumstances whatever in which Her Majesty’s Government will not honour that commitment?

[Lord Callanan]

Obviously I have not had the benefit of listening to what my right honourable friend the Secretary of State said in another place, so I will read what he said before commenting on it, but I am not aware of any plans for the stockpiling of food. It seems to be a fairly ridiculous scare story. It will not have escaped the noble Lord’s notice that there are many countries outside the European Union that manage to feed their citizens perfectly satisfactorily without the benefit of EU processes.

--- Later in debate ---

[Lord Adonis]

The Minister has not answered my second question.

[Lord Callanan]

Remind me what it was again.

[Lord Adonis]

Paragraph 118 of the White Paper states:

“The UK will pay its share of the EU’s liabilities as at 31 December 2020”.


Are there any circumstances in which the Government will not honour that commitment?

[Lord Callanan]

I go back to what I said earlier: this is an agreed part of the withdrawal Act. Article 50 states that there needs to be agreement on the withdrawal Act and on the future economic partnership. Both parts go together. If both are agreed, both are satisfactory and both are approved by this House, of course there will be no problem, but if there is no deal, nothing is agreed until everything is agreed. That applies as much to the financial settlement as it does to the future economic partnership.

European Union (Withdrawal) Bill

Debate between Lord Adonis and Lord Callanan

3rd reading (Hansard): House of Lords
Wednesday 16th May 2018 Lords Chamber

[Lord Callanan]

My Lords, all of us have travelled a long way—in my case, it seems like an awful long way—over a long time on this Bill since its introduction what seems like years ago but apparently is only a few months.

First, I thank the Opposition Front Benches for their work and for their kind words. I pay particular tribute to my colleagues, particularly the Leader, the Chief Whip, my noble friend Lady Goldie and my noble and learned friend Lord Keen—of wet trousers fame—for all their help and support throughout. If noble Lords do not understand that remark, I think it is on YouTube.

I also offer my considerable thanks to the team in my private office and to all the dedicated civil servants—Marianne and her team—in the Bill team, who have worked tremendously hard. Do not forget that they also took the Bill through the House of Commons: they have worked all hours of the day and night and are a credit to the Civil Service. I am very grateful for all the support and help they have given me and the rest of the Front Bench.

Let me briefly reply to the noble Lord, Lord Adonis. The House will be pleased to know that I am not going to engage in any disagreements or arguments with him at this stage—well, I am slightly—but, to reply to his question, I am sure that the other place will consider this House’s amendments in due course but it is not for me to determine its timetable. For my part, I am pleased that in his amendment to the Motion he seems finally to have recognised the need to get the Bill on the statute book in good time to ensure that we successfully deliver on the instruction given by the electorate on 23 June 2016 to leave the European Union.

[Lord Adonis]

My Lords, I beg leave to withdraw my amendment.

European Union (Withdrawal) Bill

Debate between Lord Adonis and Lord Callanan

Report: 6th sitting (Hansard): House of Lords
Tuesday 8th May 2018 Lords Chamber

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

My Lords, I understand the sentiment behind Amendment 93 tabled by the right reverend Prelate the Bishop of Leeds— I assure him that I am not one of those who regard him as a hypocritical remoaner. However, I must make it clear that the Government consider its inclusion in the Bill to be both completely unnecessary and totally inappropriate.

Once we leave the EU, this Parliament—and the devolved Administrations, where appropriate—will be free to change the law where they decide it is right to do so. As such, nothing done by this Bill, or any other Act of Parliament, can bind the actions of future Parliaments. A provision which essentially provides that future Parliaments can mirror EU law, which this Bill neither requires nor prevents, is therefore completely unnecessary. Nor does the Bill prevent Parliament approving any future relationship between the UK and the EU, including its agencies and institutions.

If the intended effect of the amendment is to preserve the sovereignty of Parliament, it is also completely unnecessary. The amendment may have been tabled with one eye on the withdrawal agreement, but my ministerial colleagues and I have been clear throughout the Bill’s passage, both within this House and in the other place, that its aim is just to create a functioning statute book as we depart from the EU—a point well made by the noble and learned Lord, Lord Brown of Eaton-under-Heywood. For the avoidance of any doubt, the Bill does not seek pre-emptively to legislate for or against any final withdrawal agreement or future relationship with the EU. On this point, I am surprised to find myself in agreement with the noble Lord, Lord Adonis, probably for the first time in the Bill’s passage. On this narrow point, he is right. Incidentally, we have accepted many amendments put forward in this House and by its committees. We have tabled more than 100 amendments responding to concerns raised by various Members of your Lordships’ House, so it is not quite true that we always reject everything that is said.

[Lord Adonis]

My Lords, there will be further opportunities for the noble Lord to accept amendments in due course, particularly on membership of the single market.

[Lord Callanan]

We will come to that debate later.

Let me make it clear: if there is a role for any EU agency as part of the withdrawal agreement, it will be legislated for under the withdrawal agreement and implementation Bill which we are planning to introduce later in the year. The same principle applies to the future relationship which will, as necessary, be legislated for in due course.

The inclusion of this amendment would make this position less clear than it is at the moment. It may also create an odd presumption that, since the Bill does not prevent the amendment’s intended effect being achieved, the specific inclusion of the new clause would mean that the UK will seek to mirror the laws of the EU after our departure or to continue its current participation in EU agencies. That may not be the right reverend Prelate’s intention, but the amendment could be read as going even further and attempting to save, or partially save, the European Communities Act for the purposes of mirroring changes in EU law after exit. If that is the case, it could be seen as allowing a wide discretionary power to keep pace with EU law. This would also be a wholly inappropriate approach when we do not yet know the outcome of the negotiations.

As I have highlighted during our previous debates on the Bill, the UK has a long-standing tradition of ensuring that our rights and traditional liberties are protected domestically. The UK leads the world in many areas in setting and upholding high standards across our statute book; for example, in areas such as consumer protection, environmental standards and workers’ rights—a point well made by my noble friend Lord Baker. I believe that all Members of Parliament, in this House and in the other place, are invested in the continuation of this legacy. It is in Parliament that we are better able to address and legislate for the specific needs and ideas of the UK.

In our negotiations, we are seeking a deep and special partnership with the EU, and our relationship with its agencies and bodies is being evaluated on this basis. I assure the House that where there is a demonstrable national interest in pursuing a continued relationship with an agency or other EU body, the Government will carefully examine whether we should pursue this. In response to the questions raised by my noble friend Lady McIntosh, participation in the European Environment Agency is of course a matter for the negotiations, but if we do negotiate participation we will, of course, make the appropriate financial contribution.

--- Later in debate ---

[Lord Callanan]

It is very kind of my noble friend to say so; I am very grateful for his comments. I look at the vast expanses of empty Benches on the other side; perhaps they do not share that sentiment, but it is nevertheless nice that we have finally reached the end of Report. I am sure that we will return to some of the issues in the future.

[Lord Adonis]

My Lords, I beg leave to withdraw the amendment.

European Union (Withdrawal) Bill

Debate between Lord Adonis and Lord Callanan

Committee: 11th sitting (Hansard - continued): House of Lords
Wednesday 28th March 2018 Lords Chamber

[Lord Goldsmith]

It is perfectly appropriate, although I do not like the word “appropriate”, as we all know. Perhaps the answer is that it is not necessary, but it may be appropriate.

I fully respect what the noble Lord is doing. It is not easy to say this but, politically, the 2011 Act was a staging post on the route—as it turns out—to full Brexit, even though some people still hope that we will not go that far, and it has therefore served its purpose. I am not making a legal analysis of whether the conditions in the Act apply because I can see arguments why they may and why they may not; I am explaining why, if there is a suggestion that this House will vote for a referendum, it would be better to do it on an amendment or a Motion that directly raises that question. It can then be fully debated and we can all have our say. For those reasons, I very much regret to tell my noble friend that I cannot support his amendment.

[Lord Callanan]

My Lords, after 115 hours of Committee debate, as observed by the noble Lord, Lord Lisvane, it is somehow appropriate—that word again—that the last and 372nd amendment should be tabled by the noble Lord, Lord Adonis. He referred to our deep and special partnership; I think that is probably going a bit far, but to mark the occasion, I thought I would get him a gift to celebrate his perseverance. The Adonis nut bar is available in all good health shops. He is welcome to collect it later.

In responding to Amendment 372, I want to be very clear about what the European Union Act 2011 does. The Act contains a recent mechanism for two principal goals—first, to provide that where Ministers participate in certain types of decisions, those decisions are specifically approved in the UK. This normally happens via an Act of Parliament. The Act passed last year to approve the decisions—which allowed the participation of Albania and Serbia in the work of the EU Agency for Fundamental Rights and the conclusion of an agreement on competition law between the EU and Canada—is an example of this. Secondly, the Act also provides that where there is a revision to the fundamental treaties of the EU, akin to the treaties of Lisbon or Maastricht, there should be an Act of Parliament—and, in certain circumstances, a referendum in the UK—before the UK Government could approve those changes.

I invite noble Lords to cast their minds back, as some Members have done, to 2011 and the context in which this Act was passed. Sadly, I was not a Member of your Lordships’ House then; I was with the noble Baroness, Lady Ludford—not directly; we were Members—in the European Parliament. The Act was drafted in the context of its time in response to new EU methods of approving treaty changes and calls for more public and parliamentary involvement in such decisions. Its purpose was to regulate decision-making on the UK’s relationship to the EU treaties in the context of the UK as a member state. At that point, the idea of holding a referendum on the UK’s membership of the EU was far from the Government’s mind, let alone undertaking the most complex negotiation in history to recast that relationship with the UK outside the EU treaties.

Of course, everything has changed since then. We are leaving the EU. The 2011 Act is redundant. It is appropriate to repeal redundant legislation. It may even be necessary to repeal the 2011 Act. Amendment 372 would prevent the Bill from repealing the 2011 Act. From previous statements made by the noble Lord, Lord Adonis, I understand that he intends to use the Act in an attempt to secure a second referendum—no surprise there. I will not revisit the positions that we have already covered extensively in debate about the merits or otherwise of holding a further referendum as part of the process of our exit from the EU; no doubt the Liberal Democrats will enable us to return to this matter on Report. We have covered that at length in this Committee; suffice it to say that the Government think, first, that a second referendum is not appropriate and, secondly, that it is most certainly not for this Bill to provide for one.

[Lord Adonis]

If I could have a last celebratory intervention on the Minister in Committee, can he indicate to the House when the Government intend to use the powers they would get under this Act to repeal the 2011 Act?

[Lord Callanan]

I do not want to give the noble Lord a precise date at this time. We will wait until the legislation is on the statute book before deciding such things.

Crucially, a second referendum is not provided for by the 2011 Act. As I hope I have set out, that Act could never have been intended to achieve that goal.

[Lord Adonis]

Is the Minister indicating that the Government may repeal the 2011 Act in advance of the repeal of the European Communities Act 1972?

[Lord Callanan]

I will not comment any further on the repeal date, I am afraid, no matter how many times the noble Lord asks me.

I refer noble Lords to the first sentence of the first part of the Explanatory Notes to that Act. Acts of Parliament or referenda are required by the 2011 Act,

“if these would transfer power or competence from the UK to the EU”.

We are leaving the EU. That process is neither governed by the types of decision referred to in the 2011 Act, nor involves a change to the treaties on European Union or the functioning of the European Union. Those treaties will go on without us, governing the EU and its institutions, for which we wish only the greatest of success. Moreover, I hope it is unquestionable for the Government to pursue a withdrawal agreement that will transfer power to the EU; it is the nature of leaving the EU that it must involve a transfer of power back to the UK. Therefore, I say with all due respect to the noble Lord, Lord Adonis, that it is disingenuous of him to mislead others outside this House that the 2011 Act is an instrument to deliver a second referendum on our membership of the EU.

We are progressing towards establishing a future relationship with the EU as an independent third country. As part of this, we will require new processes for approving our new relationship with the EU. The Government are committed to giving Parliament a vote on the final deal of our withdrawal agreement negotiations.

European Union (Withdrawal) Bill

Debate between Lord Adonis and Lord Callanan

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

[Lord Callanan]

My Lords, I thank noble Lords for this commendably brief debate at this not so late hour, and I thank the noble Lord, Lord Adonis, for his commendably brief opening statements. I was delighted to see that he made his way up to Newcastle yesterday but, unsurprisingly, he forgot to ask me to meet him for a drink while he was there to speak to his 200 or so Brexit-disliking supporters.

[Lord Adonis]

Anti-Brexit supporters.

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[Lord Callanan]

The noble Lord makes a good point. I will answer his question later. In line with the Bill’s aim to provide continuity, Parliament should have the option of approving the ability of authorities such as the Financial Conduct Authority and the Bank of England to independently make fees and charges for firms that will, after exit and under this Bill, fall under their regulatory remit.

Amendment 349 comes to the heart of the purpose of these powers and I thank the same noble and learned Lords for tabling it. This power is designed to ensure that those using specialist services transferred from the EU to the UK pay for them. This involves providing for fees and charges which, though not taxes in the common sense of the term, are at least tax-like. For the benefit of the noble Lord, Lord Tyler, let me clarify what we mean by tax and tax-like charges in this context. Under the guidance laid down by the Treasury, although fees and charges for services that are set on a strict cost-recovery basis are not taxes, any fee or charge that goes further than direct cost recovery is likely to count as taxation or to be tax-like. This would be the case if it cross-subsidises to construct a progressive regime between large multinationals and small enterprises, if it is a compulsory levy in a regulated and surveilled sector, such as banking, or if it funds the broader functions of an organisation not directly part of the cost of providing a service, such as enforcement.

I hope we can all agree that, as part of providing continuity, this Bill should enable the Government to continue to fund public services in an appropriate manner. Because the Government have directly prohibited the increase or imposition of taxation, including tax-like charges of the type I have just described under other relevant powers in the Bill—particularly Clause 7(1)—we require the ability to do so under this power. To give an example, without this the Bank of England would not be able to bring trade repositories—a vital piece of financial market infrastructure currently supervised at the European level—within the scope of its levy-based funding regimes. This House approved the creation of those delegated regimes through the relevant legislation and I hope that, with the proper information before it, it will approve the relevant power in this Bill, subject to the use of the affirmative scrutiny procedure.

Having said all that, let me repeat what I said at the start. We are looking closely at this matter ahead of Report. We will try to see how we might provide appropriate reassurance to a number of the fairly reasonable concerns that have been raised by noble Lords. Even with that caveat, I recognise that noble Lords may still have concerns but I hope that I have given some insight into the Government’s position and satisfied the House of the honourability of the Government’s intentions. I hope that noble Lords will agree, therefore, to not press their amendments or object to Clause 12 standing part.

[Lord Adonis]

I congratulate the Minister on what was, I thought, an excellent response to the debate. After 10 days in Committee, he has learned from the noble Baroness, Lady Goldie, how to charm the House and we have seen a new side to him that we were not aware of before: his conciliatory and emollient side. He may even, in due course, convert to the anti-Brexit cause at this rate of progress—maybe with another 10 days in Committee we would get there.

However, the Minister did the noble Lord, Lord Lisvane, a great disservice. It is a well-known fact that the noble Lord drafted Magna Carta.

European Union (Withdrawal) Bill

Debate between Lord Adonis and Lord Callanan

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

[Lord Callanan]

That the House do now resolve itself into Committee.

[Lord Adonis (Lab)]

My Lords, we are now well into the 11th hour of consideration of the Bill. There has been no break of any kind since lunchtime. I do not believe that noble Lords have been guilty in any way of prolonging the debate unnecessarily; I think the discussions have been perfectly reasonable, and the contributions have been precisely what we would expect of this House. To expect us to carry on with no break whatever is treating the House with contempt. I will oppose this Motion, and subsequent motions, unless the Chief Whip is, very graciously, prepared to allow us to behave in a reasonable manner in respect of the Bill.

--- Later in debate ---

[Lord Callanan]

I do not have an answer to that question. I will come back to the noble Baroness on that. I have only the figures that I outlined to her.

I hope that I have reassured the noble Lord enough not to press whichever amendment he wished to move.

[Lord Adonis]

The Minister’s response was helpful and I completely accept his reassurances on the EBRD. That issue is clear. My amendment was just a probing one to elicit the response that he has given, which is that there is no relationship with the EU and therefore our position is not affected at all.

The Minister made tantalising remarks suggesting flexibility on a wide range of agencies and the Government’s position on them. He said that this would be a matter for the ongoing negotiations. This will be a big issue for us when we come to Report because, as he knows, a lot of the amendments that we have been going through have sought to elicit from the Government their intentions toward individual agencies. Is he in a position to let us know before Report which agencies the Government will seek either full or associate membership of? Otherwise, I am not quite sure how the House will proceed on Report. We will be presenting amendments that seek continued British engagement with agencies when we do not know whether it is the Government’s policy to share that objective.

[Lord Callanan]

I understand the noble Lord’s point. As we have gone through the various categories of debate, I think that we have been reasonably clear on where we see the values in certain agencies in the individual sectors that have been talked about. The difficulty with putting any of these requirements to achieve something in statute is that this is a negotiation. We can seek to achieve anything, but if our negotiating partners are not interested in discussing it, it would be very difficult to do. We have gone as far as we can and I do not want to go any further this evening than the statement that I have already given. In her Mansion House speech, the Prime Minister gave some examples of agencies that we would be willing to participate in, subject to the negotiations. That applies to a lot of other agencies that have been mentioned at various stages, so I do not want to go any further at the moment. As soon as we have any information that we can share with the House, we will do so.

[Lord Adonis]

I do not think that the Minister quite grasped the point that I was making, which was not about whether it is appropriate to have requirements of this kind in legislation. The question was simply about knowing whether the Government seek to negotiate continued engagement in particular agencies so that we know whether it is appropriate for noble Lords to move amendments on Report calling for an objective that, unbeknown to us, the Government may be seeking to achieve anyway.

[Lord Callanan]

I will take the noble Lord’s statement as an invitation to give some thought to the matter, to consult ministerial colleagues and to see what further information we can share before Report.

Amendment 183 withdrawn.

European Union (Withdrawal) Bill

Debate between Lord Adonis and Lord Callanan

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

[Lord Callanan]

That is a separate issue—but we respected the outcome and the Article 50 Bill was, of course, approved by Parliament.

The need for parliamentary assent to executive action is woven into our constitution at every juncture, and rightly so. Of course, on occasion Parliament puts a question to the electorate directly for their views. The debate we are having today—and had on previous days—is of course the result of one of those occasions. In the course of the debates on this Bill, it has been asserted that it has profound constitutional implications, and so it does. However, I am wary of endorsing some of the language that has been used with regard to the delegated powers in this Bill.

If noble Lords have some time to take a look at the draft statutory instruments that we published last week, they will perhaps see what I mean when I say that there is a profound disconnect between the picture painted at times in this House of the types of powers we are taking and the actual uses to which we propose to put those powers. I urge noble Lords to look at these draft instruments on the GOV.UK website.

The group of amendments we have been debating so far today and the group to which we will turn next do of course raise some profound constitutional questions. They require us to ask ourselves who can act on the international plane on behalf of the UK, and how the mechanisms of control and accountability operate for the conduct of such action. They pose the question of if and how there should be a role for the courts in examining the conduct of those negotiations. They also pose questions about the circumstances—if any—in which it would be appropriate for Parliament to consider action that goes against a decision made in a referendum.

Our debate here today has, understandably, touched on a number of different areas. However, I now wish to address the core theme of the amendments in this group: that it is for the legislature to set the mandate for the negotiations that the Government are currently undertaking with the EU. It was right that the electorate had the opportunity to make its voice heard at the last election, and the result of that democratic exercise was the return of the Government in their current form, to pursue their stated objective of a deep and special partnership with the EU.

Most of the amendments in this group are attached to Amendment 142, moved by the noble Lord, Lord Monks, and they raise important and valid issues in the context of our future relationship with the EU. I reassure noble Lords that I will revisit these issues later in my response. However, as a point of principle, it is not beneficial to enter into a negotiation with a number of domestic constraints on exactly what we can negotiate. Flexibility is necessary for a successful negotiated outcome.

The challenge now is to make a success of our exit and get the best deal possible for the UK, so that this House, the other place, and our national conversation more broadly can turn to discussing and taking decisions on what kind of country we wish to be after we have concluded our negotiations with the EU. After exit, and once we have negotiated the new deep and special partnership, great opportunities for new decisions will open up in this Parliament and in the devolved legislatures.

In case it appears that I am trying to exclude the role of Parliament in shaping our negotiating objectives, I once again reassure the Committee that I am doing nothing of the sort. Parliament does not need to go beyond our settled constitutional boundaries and set mandates in order to exert profound influence over the conduct of the negotiations. We take incredibly seriously our need to keep Parliament apprised of the Government’s negotiating intentions. That is for the purpose not just of transmitting information but of inviting scrutiny and allowing Parliament and its committees to take informed views. Government positions are created, tested and refined in the light of continual challenge from this Parliament. We are mindful always of the Government’s ultimate accountability to Parliament, and in this particular circumstance we are mindful, too, that we will be seeking Parliament’s approval of the agreements that are currently under negotiation.

[Lord Adonis]

My Lords, does the Minister not see a profound contradiction in his remarks? He has praised the role and significance of Parliament—until it actually chooses to express a view. Is it not the whole purpose of Parliament to express views? My noble friend is seeking to codify those views into a remit. The Minister’s response is that that is inappropriate because Parliament would then be taking on the responsibility that he wants to arrogate entirely to himself as a Minister.

--- Later in debate ---

[Lord Adonis]

Will the Minister answer the crucial point made by the noble Lord, Lord Moynihan: will there be free movement of horses around the European Union after Brexit?

[Lord Callanan]

I am sure that it will be at the forefront of our negotiation priorities, given the close interest that many noble Lords have taken in this vital national issue.

In response to Amendment 145, tabled by the noble Baroness, Lady Crawley, I reiterate that this Government have committed to maintaining high standards of consumer protection, delivering the stability that consumers need to continue to make purchases and a level playing field in trade with the EU—at the very seminar to which she referred, I believe that my ministerial colleague, Robin Walker, was present to set out the Government’s position. I myself have met Which? in Bristol on a number of occasions, and we will continue to engage with consumer organisations. We start from a strong position of long-standing co-operation on the effective enforcement of consumer protection laws, and it is essential that the UK through this Bill is able to ensure that UK consumer protections continue uninterrupted at the point we exit the European Union.

Amendment 147, tabled by the noble Lord, Lord Rooker, is rightly concerned with food standards. The UK has world-leading standards of food safety and quality backed up by a rigorous legislative framework. The Bill will ensure that we are able to maintain those high standards once the UK leaves the European Union. The Government are proud of our high standards of food safety, and these will not be watered down when we leave the EU. Maintaining safety and public confidence in the food we all eat is a high priority for the Government, and any future trade deal must work for UK farmers, businesses and consumers.

A number of EU agencies, such as the European Food Safety Authority referred to in Amendment 184 tabled by the noble Lord, Lord Adonis, have been established to support EU member states and their citizens. May I say how pleased I am to see the noble Lord in his place today? We missed him very much in our debates on Monday evening, with his great insights on our issues.

[Lord Callanan]

I may regret that.

[Lord Adonis]

I am not sure I missed the noble Lord quite so much.

[Lord Callanan]

Touché, as they say.

We are committed to exploring with the EU the terms on which the UK could remain part of EU agencies. However, our future relationship with the EU and arrangements with regards to agencies such as the food safety authority are still to be determined and are the subject of ongoing negotiations. I would give the noble Lord the same response to his comments on the RASFF system.

European Union (Withdrawal) Bill

Debate between Lord Adonis and Lord Callanan

Wednesday 14th March 2018 Lords Chamber

[Lord Adonis]

My Lords, if the Minister is not prepared to give any ground on the timescale in terms of the amount of time we shall have to debate it, will he tell the Committee what he thinks is the latest possible date the Government could submit the treaty?

[Lord Callanan]

I do not want to get into precise timings like that: we have said that we hope to have an agreement concluded by October 2018, which accords with the position set out by Monsieur Barnier. That is the timetable that we are working to. If we achieve that timetable, there should be plenty of time for a vote in this House and in another place, followed by the vote in the European Parliament.

--- Later in debate ---

[Lord Callanan]

My noble friend and I will just have to disagree on this one.

We have also made our position clear that the notice given by the Prime Minister in accordance with Article 50, and which was approved by both Houses of Parliament, will not be revoked. It will not be extended as Amendment 199 tabled by my noble friend Lord Cormack and Amendment 216 tabled by my noble friend Lord Hailsham seek to do.

[Lord Adonis]

If the Minister will forgive me, he is not in any position to make that clear because that is a decision which the House of Commons will take. It is not for the Government to say that there will be no rescinding of the notice under Article 50. If the House of Commons votes to rescind the notice under Article 50, that notice will be revoked. We are a parliamentary democracy.

[Lord Callanan]

The Government’s position is clear that Article 50 will not be revoked. We will discuss the question—

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[Lord Callanan]

Of course Parliament is allowed to change its mind. It does so on many occasions and no doubt will do so in future on other issues.

It is our view that the question of whether to leave and the process of approving how we leave have been decided. Parliament approved the referendum and has signalled its approval to every step the Government have taken since July 2016. Furthermore the people authorised the Government’s negotiating position as a result of the election last year. Lastly, we have made a solemn promise to seek approval, which I am confident will be granted, from Parliament of the outcome of those negotiations.

I stress that I understand many noble Lords’ deeply and honestly held conviction that the UK should not leave the EU. That has become very clear to me throughout the progress of the Bill, but this is a Bill to provide maximum legal certainty upon exit. I do not think 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 do not believe that that is what the noble Lord intends, but that is what is being risked. The terms of the vote on the final deal are clear: to accept the terms of the agreement or to move forward without a deal. This is fully in line with the terms on which the European Parliament will be voting: a yes or no vote.

Amendments 196 and 213 are unnecessary because we have already made a strong commitment to hold this vote as soon as possible after the negotiations have concluded.

[Lord Adonis]

How does the Minister intend to prevent the House of Commons considering the option of remaining in the European Union? How does he intend procedurally to prevent it, given that he has said that that is not going to be an option?

[Lord Callanan]

I do not control the proceedings of the House of Commons. I can only set out the Government’s position on this matter.

The strength of that commitment and the political and public expectation that accompanies it mean that the Government could not conceivably renege on that commitment.

European Union (Withdrawal) Bill

Debate between Lord Adonis and Lord Callanan

Committee: 6th sitting (Hansard): House of Lords
Monday 12th March 2018 Lords Chamber

[Lord Callanan]

If we were part of the European Economic Area, I assume that we would not need to do that. However, as we are not going to be part of the European Economic Area, it may perhaps be necessary. I hope that the noble Lord will listen to my next point.

In the light of our successful phase 1 agreement, we are increasingly confident that we will secure a deal with the EU and that the prospect of leaving negotiations with no deal has reduced significantly. It is in both the UK’s and the EU’s interests to secure a good deal for both sides. However, as a responsible Government, we have a duty to plan for the unlikely scenario in which no mutually satisfactory agreement can be reached. I hope noble Lords agree that that is common sense. If we do not have this power, and in exiting the EU we are unable to correct a breach of the MFN principle, another WTO member could bring a dispute against the UK in the WTO. That is a situation that we want to avoid, and which could result in a loss of trade for UK business through retaliatory measures by other WTO members or claims for compensation against the UK.

[Lord Adonis (Lab)]

The noble Lord makes some very good points about how we might need to levy charges or fees, or whatever he wishes to call them, but he has not made any case as to why this should be done by secondary legislation as opposed to primary legislation.

[Lord Callanan]

Because in such circumstances we will need to react quickly in the light of the events as they happen, depending on—

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[Lord Callanan]

No, I am not suggesting that we might be in breach of our international obligations. However, as the noble Lord knows, we are currently negotiating for the implementation period, and as soon as we have an agreement—I hope within the next few weeks—we will be sure to report back to the noble Lord and others.

For those reasons, which I set out earlier, the Government therefore cannot accept these amendments to Clause 8. The power can be used only for the specific purpose of ensuring continuing compliance with international obligations to which this House has already consented and which would be affected by the UK’s withdrawal from the EU. It is available only for a limited period of time, and any further restriction risks increasing the primary legislative burden on this House and weakening the UK’s promise to the rest of the world that we are ready and able to honour our commitments.

However, having said all that, I repeat the point I made at the start of this debate: that we are listening carefully to what noble Lords have said, that we will look closely at how we can resolve many of the concerns that have been raised by noble Lords throughout this debate, and that we will come back to the issue on Report. In the light of those assurances, I hope that the noble Baroness will feel able to withdraw her amendment.

[Lord Adonis]

My Lords, will the Minister take the message from this House that we are very happy to have this burden imposed on us? Although we appreciate his concern at the weight of business which we might have to undertake if we had to pay attention to primary legislation in respect of fees and charges, we will be very happy to assume that heavy burden.

[Lord Callanan]

I take on board the sincere nature of the noble Lord’s assurances on this matter.

European Union (Withdrawal) Bill

Debate between Lord Adonis and Lord Callanan

Wednesday 7th March 2018 Lords Chamber

[Lord Callanan]

If a new amendment is put forward, of course we will look at it and consider its legal implications. I can give that assurance.

On Amendment 112, our starting point is that the new statement of principles and the environmental body should cover England and environmental matters that are not devolved. To respond to the point made by the noble Lord, Lord Wigley, if the devolved Administrations would also like to take action on these issues, we are open to co-designing the proposals to ensure they work more widely across the UK. We would need to take account of the different government and legal systems in the home nations, as well as the different circumstances in the different parts of the UK. This amendment risks compromising consideration of these important issues as well as the wider devolution settlement by requiring the UK Government and devolved Administrations to consult jointly on UK-wide proposals for governance and principles.

On Amendment 113, the secondary legislation made using the powers under Clause 7 will be subject to parliamentary oversight, using well-established procedures. This amendment would require us to make all the regulations within one month of Royal Assent. This would not allow time for stakeholder consultation and would also not allow sufficient time to make all the SIs—noting that affirmative SIs take longer than one month to be laid and made.

Many areas of environmental policy are devolved. This amendment would require the Secretary of State to make regulations for all the UK, which would be contrary to the devolution settlement. It would also require the creation and maintenance of a register of functions indicating who is responsible to perform them before leaving the EU and who will be responsible after we leave the EU. This is a bit of bureaucratic procedure that has no added value. The SIs under the Bill will set which UK body will perform functions, such as the various regulatory functions.

On Amendment 108, the UK Government laid legislation transposing the national emission ceilings directive in Parliament on 1 February 2018, demonstrating our clear commitment to improving air quality. This legislation implements ambitious, binding emission reduction commitments for 2020 and 2030 into domestic law. Air quality has improved significantly over recent decades, with the UK reducing emissions of all the major five air pollutants. For example, since 1970 we have reduced emissions of nitrogen oxides by 69%, emissions of PM10 by 73%, and emissions of PM2.5 by 76%. Emissions will continue to reduce thanks to the action we have already taken, and we will publish a new clean air strategy in 2018 setting out how we will work towards our 2020 and 2030 commitments.

The Bill will ensure that the body of existing EU environmental law continues to have effect in UK law. It will be for Parliament—and, in some cases, for the devolved legislatures—to make any future changes in legislation after we have left the EU. The power under Clause 7 will be used to amend legislation to ensure continued operation of legislation, enabling the Government to continue to meet their environmental objectives.

Amendment 186, tabled by the noble Lord, Lord Adonis, and to which the noble Baroness, Lady Brown, spoke, would compel the Government to set out a strategy on the EU emissions trading system. This amendment is unnecessary given that our Clean Growth Strategy, published last year, clearly sets out our guiding principles on reducing emissions. We are considering the UK’s future participation in the EU ETS after our exit. We remain firmly committed to carbon pricing as an emissions reduction tool, while ensuring that energy-intensive and trade-intensive businesses are appropriately protected from any detrimental impacts on competitiveness.

[Lord Adonis]

The Minister said that the Government are “considering”; does that mean that they might propose to continue our membership?

European Union (Withdrawal) Bill

Debate between Lord Adonis and Lord Callanan

Committee: 2nd sitting (Hansard - continued): House of Lords
Monday 26th February 2018 Lords Chamber

[Lord Adonis]

Can the Minister answer the question put by the noble Lord, Lord Thomas, as to which Minister is taking the lead in the security negotiations?

[Lord Callanan]

I will come to that later in my speech, but I will answer that question.

In that same paper, we made it clear that we value the operational benefits that we derive—I was struck by the comments on this from the noble Lord, Lord Hogan-Howe, and on how valuable many of them are. The noble Lord, Lord Hannay, referred to many of them, too, including the passenger name record directive, the second generation Schengen Information System and the European arrest warrant. There is also ECRIS, referred to by the noble Earl, Lord Listowel, and all the various acronyms that go with many of these JHA matters. They are all to do with the systematic exchange of information with our EU partners—for example, on criminal records—which helps to deliver fair and robust justice. I hope that reassures the noble Lord, Lord Cormack. He referred to Interpol. I assume that he meant Europol, but, for the avoidance of any doubt, I should say that we continue to co-operate in the same way with Interpol.

We made it clear that we want to agree future arrangements in this area that support co-operation across a range of EU measures and agencies, and to avoid operational gaps for law enforcement agencies and judicial authorities in the UK and the EU. The level of co-operation that we want to sustain goes beyond the specific tools and measures highlighted by the noble Baronesses, Lady Kennedy and Lady Massey, and the noble Lord, Lord Adonis. We have described the legal instruments here as a “toolkit” that can provide cumulative benefits. We have also indicated that we want our future partnership with the EU in this area to be dynamic, allowing us to co-operate if necessary in new ways in the face of evolving threats.

The amendment tabled by the noble Baroness, Lady Kennedy, highlights the respective roles of domestic courts and the CJEU. We made it clear in our future partnership paper on security, law enforcement and criminal justice that a future agreement in this area would need to provide for dispute resolution. Let me give a little more detail on that.

On leaving the EU we will bring to an end the direct jurisdiction of the CJEU in the UK. There are a number of existing precedents where EU agreements with third countries provide for close co-operative relationships without the CJEU having direct jurisdiction in those countries. The UK will engage proactively to negotiate an approach to enforcement and dispute resolution that meets the key objectives of the UK and the EU. We also published a separate future partnership paper on enforcement and dispute resolution last August, addressing many of those points and setting out the Government’s approach to these issues.

The House has of course debated this issue on a number of occasions, particularly earlier this month, on 8 February, in the debate on the EU Committee’s report on judicial oversight of the European arrest warrant. The withdrawal agreement and implementation Bill will implement the withdrawal agreement in our domestic law. In addition, the Government have already committed to provide Parliament with a meaningful vote on any final deal. This will give both Houses of Parliament the opportunity to scrutinise again the future relationship between the UK and the EU. We need to be able to work with the EU to respond quickly and effectively to the changing threats we face from terrorism and serious organised crime. In negotiations, we will be seeking to agree the best possible way to continue our work alongside our European partners in support of our common goals and shared interests. We are absolutely committed to securing the close relationship that the noble Baronesses, Lady Ludford, Lady Kennedy and Lady Massey, and the noble Lord, Lord Adonis, want to see—and on that basis I hope that they will not press their amendments.

Amendment 99, also tabled by the noble Baroness, Lady Kennedy, would prevent regulations made under Section 7(1) of the Bill from diminishing the protections in relation to “protected persons” set out in Part 3 of the Criminal Justice (European Protection Order) (England and Wales) Regulations 2014. As I understand it, the amendment seeks to ensure that the relevant authorities in England and Wales will continue to recognise and act upon European protection orders made in remaining member states after exit day, whether or not those states act on ours.

The EPO regime, established by an EU directive of the same name and implemented in England and Wales under the cited regulations, which came into force in 2015, is essentially a reciprocal regime. It requires the relevant designated authorities in the different member states involved to act and to communicate with each other in the making of an order and in its recognition and enforcement—and also, indeed, in any modification, revocation or withdrawal of one. It is not possible for us to regulate from here to require the relevant authorities of remaining member states to act in any particular way. As such, if we are not in a reciprocal regime we will no longer issue EPOs to remaining member states, since it would be pointless to do so, and nor will the authorities in those member states issue them to the UK, for the same reasons.

In short, absent our continued participation in the EPO regime, or in some proximate reciprocal arrangements in its place, these regulations will be redundant; they do not work unilaterally. This amendment therefore pre-empts the outcome of the negotiations, potentially requiring the retention of redundant legislation. It would not be right to create a false impression by retaining redundant legislation. I am happy to be clear, however, that if the forthcoming negotiations produce an agreement to continue access to the regime established under this directive, or something like it, appropriate steps and legislation will be brought forward to implement it at that time. This will encompass the protections for protected persons. We will, of course, consider that at that stage. Meanwhile, for now, there is no practical point or purpose in having such an amendment or these provisions.

I shall answer some of the other points that were made. The noble Baroness, Lady Ludford, asked me about the O’Connor case and about extradition to the UK from Ireland. I am sure that the House will understand that I am somewhat limited in what I can say on this matter; it is a live case at the moment. Suffice it to say that we are monitoring it closely, but it would be wrong to speculate on its impact before the case is concluded. Once it is, we will be happy to do so.

The noble Baroness, Lady Ludford, and the noble Lord, Lord Paddick, I think it was, asked how we could reconcile the principles set out in the Prime Minister’s Munich speech, first on UK sovereignty and secondly on the ECJ. As the Prime Minister said:

“The Treaty must preserve our operational capabilities. But it must also fulfil three further requirements. It must be respectful of the sovereignty of both the UK and the EU’s legal orders. So, for example, when participating in EU agencies the UK will respect the remit of the European Court of Justice. And a principled but pragmatic solution to close legal co-operation will be needed to respect our unique status as a third country with our own sovereign legal order”.


The noble Lord, Lord Hannay, asked about justice and home affairs in the implementation period. We welcome the EU’s position that the UK should continue to participate in existing justice and home affairs measures where it has opted in. We also want to ensure that the UK and the EU can take new action together against unforeseen incidents and threats during that period. For those reasons, we want to be involved in new measures introduced during implementation where that is appropriate. He also asked about the Prime Minister’s speech in Munich. I confirm that she was talking about all the justice and home affairs measures he mentioned—the EAW, ECRIS, Europol and all the other appropriate acronyms.

The noble Baroness, Lady Ludford, asked about the European arrest warrant and about the chance of a successful outcome compared with Norway. We value our co-operation through the EAW as it provides a faster and cost-effective way of handling extradition and helping us tackle cross-border criminality. With regard to Norway, our starting point for negotiations on future co-operation will be different from that of either Norway or Iceland, where a bilateral agreement is also in place. Of course, our starting point is different from theirs in so far as our extradition arrangements will be fully aligned with those of the EU at the point of our exit since we operate the same tool. That was not the case with Norway and Iceland when they joined.

The noble Lord, Lord Thomas, asked where we are in the negotiations and who is doing them—which the noble Lord, Lord Adonis, was also interested in. The Secretary of State for Exiting the EU is responsible for conducting negotiations in support of the Prime Minister. He is supported by the core negotiating team, which is made up of senior officials from a range of government departments. In response to his question about contacts, officials are engaging now and constantly with EU counterparts on a range of issues—but I come back to my earlier point that it would not be appropriate to give a running commentary on these discussions. We approach the next round of negotiations with optimism.

European Union (Withdrawal) Bill

Debate between Lord Adonis and Lord Callanan

Committee: 2nd sitting (Hansard): House of Lords
Monday 26th February 2018 Lords Chamber

[Lord Callanan]

The noble Baroness makes a powerful point. It is one of our priorities. We have a number of priorities in the negotiations but it is important that we get this one right. The MHRA already licenses nationally 90% of all medicines available in the UK but there is a small percentage regulated abroad, so we need to reach a mutual agreement on that.

Amendment 101, tabled by the noble Baroness, Lady Jolly, would prevent the Government making changes to the licensing or regulation regimes for over-the-counter medicines, to which she just referred. The Government will need to correct deficiencies arising from withdrawal in relation to the regulation regimes for over-the-counter medicines, self-care medical devices and food supplements where the UK’s exit from the EU would result in the retained EU law which governs the regimes being deficient or not operating effectively and where manufacturers of these products would have to adapt to divergent UK requirements, potentially leading to a temporary or permanent withdrawal of their product from our market.

The noble Baroness asked a number of specific questions. The Government have already made it clear that we wish to retain a close working relationship after exit. The Government have been engaging with industry and research charities through the ministerial and industry co-chaired life sciences group, and we will continue to work with that group and industry to ensure adequate notice and sufficient time to implement any changes necessary.

Whatever the outcome of negotiations, the principles which will underpin post-Brexit regulation for this sector will be that patients should not be disadvantaged, that innovators should be able to access the UK market as quickly and simply as possible, and that we will continue to play a leading role in Europe and the world in promoting public health. Over-the-counter products will continue to have an important role in relieving pressure on health professionals and promoting consumer choice to improve public health.

In the event that it is not possible to reach a deal that secures ongoing, close collaboration between the UK and Europe, we will set up a regulatory system in the UK that protects the best interests of patients and supports industry to grow and flourish. I hope that my comments will provide the noble Baronesses, Lady Thornton and Lady Jolly, with the reassurance they need not to press their amendments.

Amendments 9 and 205 were tabled by a number of noble Lords, including the noble Baroness, Lady Jolly, and the noble Earl, Lord Clancarty. The Government recognise how important reciprocal healthcare is to the 190,000 UK pensioners who currently benefit from it, to UK tourists who use the European Health Insurance Card scheme and to EU nationals visiting and living in the UK. This point was powerfully made by the noble Lord, Lord Davies. We want to protect reciprocal healthcare arrangements and have made important progress towards this in this first phase of negotiations. It is the intention of the UK and the EU that the final withdrawal agreement will protect reciprocal healthcare rights for UK citizens resident in the EU on exit day and vice versa on a reciprocal basis.

[Lord Adonis (Lab)]

The Minister said that important progress has been made. Will he tell the Committee what that progress is?

[Lord Callanan]

The important progress was announced in the agreement reached in December in the first phase of the negotiations. Reciprocal healthcare benefits were guaranteed for existing UK residents in the EU and for existing EU residents here. The next phase is what happens in the future.

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[Lord Adonis]

My Lords, I agree with every word that the noble Lord, Lord Kerr, has just uttered. The noble Lord, Lord Patten, said that we were not expecting miracles from the Minister. I think even the Minister’s most ardent admirers do not credit him with miraculous powers, and he is not going to able to produce any rabbits out of a hat for us this evening. But it is not miracles we need here: all we need is a continuation of the status quo. This is one of those areas we come back to time and again—we had it in the long debate on Euratom last week: all we need to do is to avoid massive, self-inflicted damage.

There is no need to create whole new programmes and ways of working. We have Horizon 2020 and Erasmus; the latter has been going on for the best part of 30 years and is a highly successful programme. When you are doing something well, the usual trick is just to keep on doing it. There are so many things that do not work that the idea that Parliament and Government should be spending their time dismantling things that do is clearly crazy. What we want to hear from the Minister is simply that he is open-minded to continuing with the present arrangements. The sooner the Government are prepared to say that, the better.

The most telling contribution to this debate came from the noble Baroness, Lady Brown of Cambridge. In the higher education world, there is—I shall choose my words slightly diplomatically—a pronounced air of self-congratulation on how excellent everything is in this country and how brilliantly we do it, and if only the rest of world copied us then they would be a great deal better off. In many areas that is true, but in one we have a very poor international record: the propensity of our students to study abroad. According to the Erasmus figures, twice as many European students come to Britain as Brits go abroad. The noble Baroness was right to say there is a big problem with students from poorer backgrounds studying abroad. When I was preparing figures for this debate, I found that it looks as if Singapore, a country less than one-tenth the size of the UK, has about as many students studying abroad as we have in our entirety.

The fact is that we do not have nearly enough of our students studying abroad. When I visited Singapore as Minister for Schools, they were aiming—by about now, so maybe they have achieved it—at requiring all students at the National University of Singapore, regardless of their course, to spend at least six months, one semester, studying abroad. Can your Lordships imagine if we had anything like that commitment here? It might be a good thing if in due course we did. The great irony is that one of the great slogans to emerge from this Brexit policy as it has developed is “Global Britain”—but how can there ever be a global Britain unless far more of our students go and see the rest of the globe and spend time studying there? The first requirement for that is that we should not make the situation worse than it currently is.

The noble Lord, Lord Kerr, was right that what we seek from the Minister is not a miracle; we are clearly not going to get that from the present Minister. We simply expect a commitment to continue with the current programmes, and it is absolutely within the scope of the Government to say unilaterally that the negotiating position of Her Majesty’s Government now, in 2018, is that these programmes will continue with full British participation after 2020. If the Minister does not say that, he is staring at near-certain defeat on this issue on Report.

[Lord Callanan]

My Lords, I thank noble Lords for another excellent debate. I thank the noble Lord, Lord Hunt, and the noble Baroness, Lady Garden, for their Amendments 10 and 163, which respectively seek clarification on the Government’s future membership of the Erasmus and Horizon 2020 programmes. I am particularly grateful to my noble friends Lord Deben and Lord Patten for their helpful attempts to rewrite my notes for me before I started.

At the December European Council last year, the Prime Minister confirmed that UK students will continue to be able to participate in the Erasmus student exchange programme for at least another three years, until the end of the current budget period. She welcomed the opportunity to provide clarity to young people and the education sector, and she reaffirmed our commitment to the deep and special relationship that we want to build with the EU.

In response to my noble friend Lord Cormack, I say that the Government have made it clear many times that we value the Erasmus+ programme and international exchanges more generally. Cultural exchange helps to build important business, political and diplomatic bridges around the world, not to mention lifelong friendships.

European Union (Withdrawal) Bill

Debate between Lord Adonis and Lord Callanan

Committee: 1st sitting (Hansard - continued): House of Lords
Wednesday 21st February 2018 Lords Chamber

[Lord Adonis]

My Lords, it is not part of the human condition to think that institutions are marvellous. They can always be improved. But I did not take the noble Viscount’s clarification to be raising the banner for abolishing Euratom because there were going to be such great advantages to the public from us—in the words of the noble Lord, Lord Bridges, to the House a few weeks ago—walking the “gangplank into thin air”.

However, I have a specific question for the Minister. Can he confirm to the Committee that Her Majesty’s Government can withdraw the notice of withdrawal from Euratom under Article 106a of the Euratom treaty and that they can do that unilaterally? As he knows, I am slightly persistent in these matters. I always thought that part of the argument from those who were in favour of Brexit was that we were going to restore the sovereignty of Parliament. It is not too much to expect that Parliament should be able to see and study the legal advice on which Ministers make decisions. I ask him yet again whether he will make available to the House before Report the legal advice which his department has on the legal basis on which the Government can act in withdrawing the notice of withdrawal under Article 106a of the Euratom treaty.

[Lord Callanan]

My Lords, once again I thank noble Lords for an excellent debate on this important issue. I will respond to the point raised by most people who spoke—certainly the noble Lords, Lord Hunt, Lord Warner, Lord Teverson, Lord Carlile, Lord Liddle and Lord Adonis—about the reasons for leaving Euratom.

The Euratom treaty is legally distinct from the European Union treaty but it has the same membership, which includes all 28 member states, and makes use of the same institutions. There are no precedents for a non-European Union member state being a member of Euratom.

Noble Lords will recall that the decision to leave Euratom formed part of both Houses’ consideration of the European Union (Notification of Withdrawal) Bill, which is now of course an Act. Noble Lords spoke at that time about the unique nature of the relationship between the separate treaties of the European Union and Euratom. As the European Union and Euratom are uniquely legally joined, when we formally notified our intention to leave the European Union we also commenced the process for leaving Euratom.

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[Lord Callanan]

I am sorry that the noble Lord no longer believes in Father Christmas. I think there will be a warm relationship for the same reason that we will have a good trading relationship with the EU: because it is manifestly in the interests of both sides to do that.

The amendments from the noble Lord, Lord Whitty, would require the Government to publish a report on how we will engage with a number of EU and Euratom agencies before negotiations had concluded. We believe this would be neither helpful to Parliament nor in the national interest. I can tell him that as soon as negotiations have concluded, we are committed to holding a vote on the final deal in Parliament, and this vote will cover both the withdrawal agreement and the terms of our future relationship, including of course our relationship with various EU agencies.

I hope that I have addressed noble Lords’ concerns expressed through the amendments and that the noble Lord will therefore feel able to withdraw the amendment.

[Lord Adonis]

My Lords, with respect, the Minister has not answered either of the two questions I put to him. He has not answered the question whether or not the Government are of the opinion that they can withdraw the notice of withdrawal under Article 106a of the Euratom treaty, and he has not told me whether or not the Government will publish or make available to the House in some abbreviated form the legal advice they have on this matter.

[Lord Callanan]

I can tell him that we are not going to withdraw our notification.

[Lord Adonis]

My Lords, with respect, that is not the question I asked him. I asked him what is the Government’s legal advice on their power to withdraw, which is a very different question.

[Lord Callanan]

I have given the noble Lord the answer he is going to get on that subject.

[Lord Adonis]

My Lords, with respect, that is not a good enough answer. When we return to this at Report, I fear that that it will simply be grist to the mill for all those noble Lords who feel that this is a colossal error that the Government will not even tell the House what power they possess to rectify the error which they have already committed.

European Union (Withdrawal) Bill

Debate between Lord Adonis and Lord Callanan

Committee: 1st sitting (Hansard): House of Lords
Wednesday 21st February 2018 Lords Chamber

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

My Lords, it is a great honour to contribute to the first day in Committee on this historic Bill. Let me say at the outset that I look forward to working constructively with colleagues from across the Chamber throughout the course of Committee to scrutinise and improve this vital Bill in the national interest.

Clause 1 is the shortest of all in the Bill—you would not believe it from the debate—but it could scarcely be more important. This debate has shown the House at its passionate best, but it was not really about Clause 1 at all. I think all noble Lords recognise that, when we leave the EU, we need to repeal the European Communities Act. So we have had a fascinating debate on the UK’s potential ongoing membership of or future relationship with the single market, the customs union, the EEA and EFTA. These are of course issues of profound importance and I understand that noble Lords have strong views on them, but everybody really knows that they are not matters which the Bill is designed to address.

However, I will happily rehearse the Government’s position once again. What this Government seek is a bold and ambitious economic partnership that is of greater scope and ambition than any such existing agreement. We have listened to EU leaders and we understand and respect the position that the four freedoms of the single market are indivisible, and that there can be no cherry picking. For that reason, we do not seek membership of the single market after we leave the EU, and nor do we seek membership of the customs union. By leaving the customs union and establishing a new and ambitious customs arrangement with the EU, we will be able to forge new trade relationships with our partners around the world and maintain as frictionless trade as possible in goods between the UK and the EU, providing a positive and powerful voice for free trade in the world.

Of course, I am talking about our future relationship with the EU. To answer the question which I think came from the noble Lord, Lord Fox, we also seek an implementation period which, we have been very clear, will be based on the existing structure of EU rules and regulations—but during which the UK will be outside the EU.

Let me take this early opportunity to draw the attention of noble Lords to our publication today of our proposed draft legal text for the section of the withdrawal agreement in relation to the implementation period. We have published this in part to facilitate parliamentary scrutiny. It is right, too, that the British public should be able to see our position. The details of that implementation period would be implemented in domestic law through separate primary legislation, after we have reached agreement with the EU and after these Houses of Parliament have voted on that agreement.

In the meantime, a number of amendments in this group seek to mandate our continued membership of one or both of the single market or customs union, presumably in perpetuity. But put simply, this is not something the UK Government could deliver unilaterally, even if we were so minded. The amendments tabled by the noble Lord, Lord Wigley, get around that by proposing maintaining the same rights, freedoms and access within the UK that we have currently, which in practice means staying in the single market in all but name but without any reciprocal guarantees from the EU. That would be the worst of all possible worlds.

Other amendments seek to mandate the Government to take a particular negotiating position or to pursue particular objectives. Leaving aside what I have said about those not being our objectives, the amendments raise constitutional questions about the role of these Houses of Parliament and they raise practical questions too. Who is to say whether the Government have truly made these things their negotiating objectives? How would they be judged? Would we see the courts ruling on the conduct of the negotiations, and what would be the consequences if they did so? I recognise the noble intention behind these amendments, but I do not think we can contemplate making them, especially when the repeal of the ECA or the exercise of crucial delegated powers becomes contingent on them. That is a recipe for undermining the essential certainty that this Bill is designed to create.

Other amendments call merely for reports to be published on certain things. In response to the question asked by the noble Lord, Lord Hain, we have confirmed that when we bring forward the vote on the final deal we will ensure that this House is presented with the appropriate analysis the Government have done to make an informed decision, and we will take such steps as we can to facilitate scrutiny in the interim. But the particular reports and timetables suggested are arbitrary and may not in fact serve Parliament well.

The Government intend to secure a new partnership with the EU. We will legislate in accordance with that and nothing in this Bill threatens that. This Bill is designed only to prepare our statute book; it is agnostic as to the outcome of the negotiations and rules nothing in or out. We will legislate for the agreement reached with the EU in due course.

Finally, let me say something about the EEA and the amendments tabled in the name of the noble Lord, Lord Adonis, and the noble Baroness, Lady Ludford, concerning the EEA. Amendment 152, for example, seeks to make continued membership of the EEA one of the UK’s negotiating objectives, while Amendments 193 and 203 require a parliamentary vote on withdrawal from the EEA before making regulations under the power in Clause 9. Amendment 225 seeks to prevent notification of the UK’s withdrawal from the EEA agreement. On that specifically, our legal position remains unchanged. Article 127 does not need to be triggered for the agreement to cease to have effect.

My noble friend Lady McIntosh also asked about the EEA. In the absence of any further action, the European Economic Area agreement will no longer operate in respect of the UK when we leave the EU. However, as the Secretary of State has said, our existing international agreements should continue to apply during the proposed time-limited implementation period.

[Lord Adonis]

Will the Government publish the legal advice they have had in respect of that proposed procedure on withdrawal from the EEA?

[Lord Callanan]

The noble Lord knows the answer to that question.

[Lord Callanan]

We are not going to publish confidential legal advice. That has been the position of previous Governments, and it is the position of this Government. Our aim is to ensure continuity with international partners

[Lord Adonis]

I—

[Lord Callanan]

No, I have given way to the noble Lord once. I have answered his question. I have referred to his points. If he will forgive me, I will make some progress.

[Lord Adonis]

My Lords—

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[Lord Adonis]

My Lords, before the Minister finishes after the very short intervention that he has just made, I point out that he did not respond at all to the points made by noble Lords from around the Chamber about the Good Friday agreement. Would he give the view of the Government, since it appears to be in question at the moment, about the future of the agreement and whether he agrees with the former Secretary of State for Northern Ireland who said it had now served its purpose?

[Lord Callanan]

I am happy to clarify for the noble Lord that we remain completely committed to the Good Friday agreement.