European Union (Withdrawal) Bill

Debate between Lord Bilimoria and Lord Liddle

Report: 4th sitting (Hansard): House of Lords
Monday 30th April 2018 Lords Chamber

[Lord Bilimoria]

My Lords, I put my name to this amendment and back up what the noble Lord, Lord Berkeley, has said. In today’s economy, business is integrated and transactions are global, with goods moving across borders every minute of the day. Our biggest customers are right on our doorstep in the EU—27 countries and half our trade. It is not just finished goods, but ingredients and components. In food and drink, my industry, I can give an example. Bailey’s Original Irish Cream is made in Dublin and goes across the border into Northern Ireland. It is bottled there, comes back into Dublin and is exported to the EU and around the world absolutely seamlessly.

Some 2.5 million lorries pass through Dover. How will we cope if there is any disruption over there? Some 70% of the UK’s food imports by value are from the EU, and 60% to 65% of agricultural exports are to other member states. Any delays on these goods, many of which are perishable, would raise food prices. Some 1.5 million trucks go through the Channel Tunnel. The list of border operations is so complex. What preparations have been made if there is to be a hard Brexit to put up all the infrastructure required, prevent any delays and have a frictionless border?

Some 69% of freight transport goes to the EU as lorry traffic. The FTA has spoken out very clearly for the whole industry. It represents 50% of the UK’s lorries and 90% of rail. It has warned very clearly of 15-mile queues at Calais if border checks are introduced. We need to remember what happened in 2015 with the French ferry workers’ strike. If trucks coming from the EU are treated like non-EU trucks, the ports will be in permanent gridlock. Does the Minister agree? The other aspect is Ireland. From Ireland, goods go to Europe across the UK. It takes trucks 10 hours from leaving Dublin to get to Europe. If they had to go around, it would take them 40 hours, with considerable disruption.

I conclude with a point made by the noble Lord, Lord Berkeley. Yesterday, in the Sunday Times there was an article in which a company boss said:

“We suddenly caught Brexit blight”.


The article says that:

“A wrinkle in international trade rules is scaring away companies in Europe from British suppliers”.


It talks about a Bristol-based company where the customers which used to give orders well in advance—in Germany and Scandinavia—are suddenly stopping the orders because of rules of origin. The supply chain is worried about this. The local content will not be of 50% value. With many industries such as the car industry, components that are made in the UK are well below 50%. There are companies here that just do not have the capability to move from under 50% to 50% or 60%. It will take many years to be able to have that capability domestically, and we will not be able to do it competitively.

The article concludes by saying that companies like this one in Bristol,

“will gradually be ‘evolved’ out of the supply chains of EU manufacturers that do not want the hassle of providing paperwork for components bought outside the bloc”.

It will, says the company,

“be death by a thousand cuts”.

That is what we are facing. We had a vote on the customs union in this Bill and it is critical because it marks the frontier between hard Brexit and a soft Brexit.

In the Financial Times recently, one leading British political analyst was asked to predict what would happen. He said that Brexit will not happen because there is no version of Brexit that can get a parliamentary majority. There will be no parliamentary majority if we cannot handle this particular situation in this amendment.

[Lord Liddle (Lab)]

My Lords, I rise briefly to support my noble friend and the noble Lord, Lord Bilimoria, on their remarks. We know that the Government do not have a policy on this issue. We can read in the Financial Times that there will be a great debate tomorrow. The Minister smiles, but he knows perfectly well that it is true that the Government have not resolved the question of what customs model they will go for. This is an extraordinary situation. It is now 22 months since the Brexit vote and yet the Government have not got a policy on the fundamental point of how we will make Brexit work. It is a failure of massive proportions on the Government’s part. I want to hear an apology to business from the Minister for the fact that the Government’s political divisions have basically led to a situation in which business is facing a serious cliff edge. They call themselves the “party of business”. What serious claim have the Benches opposite to be the party of business, given the way they have behaved since the EU referendum?

I also say to my own side that I fully support the amendment we passed on the customs union. I was greatly cheered up by it. It is a breach in this wall of stupidity that the Government have erected, but it is not a complete solution to the business problems that people have talked about. It does not solve entirely the problem of customs checks because of rules of origin and issues with agricultural produce and all the rest. It certainly does not solve the Northern Irish border problem on its own. It does not address the fundamental economic point that it completely neglects services—the dynamic part of our economy where our exports are growing, where we have a strong surplus and which is our economic future. This is a terrible, woeful neglect on the part of the Government of the key, dynamic, entrepreneurial sectors of the British economy. How can they claim to be the party of business?

European Union (Withdrawal) Bill

Debate between Lord Bilimoria and Lord Liddle

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

[Lord Bilimoria]

My Lords, I have put my name to these amendments. It should be emphasised that the European common aviation area, or what we refer to as the single European sky, should not be taken for granted. Any British airline can fly anywhere it likes in the EU—not just to but within another member state—and sell tickets to anyone in the 28 member states, without restriction. The aviation industry contributes £52 billion to our economy and, as we have heard from the noble Baroness, Lady Randerson, it leads to cheaper fares, better consumer protection and compensation, and a greater variety of destinations. There is of course the environmental aspect as well.

Does the Minister accept that, if we retain access to the single skies, it would require accepting the jurisdiction of the European Court of Justice, which is one of the Government’s red lines? Does he also realise that there is no fallback on the WTO in the aviation sector? In fact, Tim Alderslade, the chief executive of Airlines UK, has said:

“The Government is fully aware that aviation sits outside”,


the WTO system. He continued:

“The principle of ‘no deal is better than a bad deal’ does not apply to us”.


So whatever happens, the airline industry needs a deal. It cannot have any limits to capacity. Already, easyJet has said that it has applied for a licence in Austria to set up easyJet Europe. As we have also heard, airlines plan their schedules up to a year in advance. Can you imagine if the situation with Ryanair was happening today? How will we cope with that across the sector if we do not come to an agreement?

This whole aspect really keeps us connected to these countries; the administration and infrastructure run like clockwork. However, I have looked at a table of the Brexit impacts under different scenarios. It lists eight scenarios, five of which would not be allowed any more. An EEA airline flying from a third EEA country to the UK, for example Air France flying from Berlin to London, would no longer be allowed. A non-UK airline flying from the UK to a third EEA country, such as Ryanair flying to France, would no longer be allowed, and nor would a UK airline flying between two EEA countries. A UK airline flying within an EEA country or an EEA airline flying within the UK, such as Ryanair flying from London to Glasgow, would no longer be allowed; nor would a US or EEA airline using the UK as a hub to fly from Europe to the USA, such as American Airlines flying from New York to Heathrow and continuing on to Rome. We take this all completely for granted but it will no longer be available to us.

According to Ministers, 35 separate pieces of EU legislation work together to make the EU’s aviation single market. This is separate from the single market in goods and services and continued membership for the UK, or alternative arrangements, will be needed. What can we do? As a result of its membership, UK airlines benefit from 42 air services agreements entered into by the EU with countries outside the European Union, including the United States and China. This is what open skies is all about: it has allowed European majority-owned airlines to fly between places within any EU country, not only between the home country and another EU country.

We have also heard about the common regulator, the European Aviation Safety Agency. The UK has been a really proactive member of that organisation. It has been a leading member of it because it has brought benefits to the UK and to Europe. Security is also going to be really important and difficult—as will future border and visa arrangements.

In the longer term, unhindered access to EU aviation is absolutely essential. Benefits have been derived from open skies and a more restricted market would be disastrous. The transport regulations are most comprehensive. They provide for compensation, reimbursement and protection from overbooking. A large part of this is European Court of Justice law. Passengers are protected when they take off from an EU airport or land at one, provided that the carrier is an EU carrier. These are all issues that we take for granted, but if we do not look at these amendments it will be another way in which the whole economy and all our citizens and businesses will be damaged.

I shall conclude by quoting Andrew Haines, chief executive of the UK Civil Aviation Authority:

“Let’s just imagine the UK was to withdraw from EASA altogether and adopt our own framework–although I’m yet to meet anyone of substance that supports that approach. It is, of course, theoretically possible and let’s just suppose we established the best aviation safety regimes in the world. It would mean a major increase in UK regulatory regime, potentially represent a major barrier to track increased costs and yet we would also risk becoming a backwater in terms of wider impact”.


A backwater—that is where we are heading.

[Lord Liddle]

I congratulate the noble Lord, Lord Bilimoria, once again on an excellent speech raising many serious issues which we have to deal with. I shall draw particular attention to Amendment 233, which asks that any amendments to the roles and responsibilities of the European Aviation Safety Agency should be subject to the affirmative procedure. I would like a response from the Minister. I see no reason why the Government cannot just agree to that now to assure the Committee that there will be full accountability on these questions. Why not just say, “Yes, we agree to that”?

European Union (Withdrawal) Bill

Debate between Lord Bilimoria and Lord Liddle

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

[Lord Bilimoria (CB)]

My Lords, the mere fact that we require these amendments is shocking in itself. UK universities receive an additional 15% in funding from the European Union. Academics will now struggle to co-operate on research projects. The change in the visa regime that takes place may deter high-calibre academics from joining British universities. That is happening already. When European universities have a chance to collaborate they already think twice before collaborating with a British university, and that is shameful.

The Erasmus programme is 30 years old. Are we going to throw away 30 years of that wonderful initiative? Hear what the Europeans say:

“‘The absence of physical mobility after Brexit would take us apart’, said João Bacelar, executive manager at the European University Foundation. ‘Student exchange is kind of the antidote to the malaise of Brexit. It is profoundly unfair if young people would pay a price for something they didn’t want’”.


Employers value the Erasmus brand. More than 200,000 British students have benefited from Erasmus. We have heard that other countries that are not part of the European Union can be part of Erasmus. Let us beware of what happened with Switzerland. When Switzerland voted to restrict European migration, it was taken out of the Erasmus programme. It has had to spend extra money to put a new programme in place. Do we want to go through all that? I do not think we should.

The best thing about Erasmus is that it is for everyone. It allows students who cannot afford it to study abroad in a variety of subjects. My noble friend Lady Coussins spoke about language skills. Erasmus involves 725,000 European students annually—a huge number. We do not want to be left out of it. We are the third most popular destination; 30,000 students want to study in Britain and 40,000 of our students are over there. These are huge numbers. If that mobility goes, we are going to suffer.

Will the Government keep their promise to maintain and protect all funding streams for EU projects in the UK? Will they ensure that there is no cliff edge for funding for scientific research at the conclusion of the Brexit negotiations? Will the Government confirm that British researchers must be able to continue to participate in an unrestricted manner in current and future EU science initiatives? Will they never prevent highly skilled scientists coming into this country? I would like that assurance from the Minister.

We have heard time and again about our funding and research power. We have 1% of the world’s population but produce 16% of the most highly cited research articles. That is how good we are. Every committee—including the House of Lords Science and Technology Committee and the House of Commons committee—is saying that this would be damaging for the UK. A recent YouGov survey showed that 76% of non-UK EU academics are already considering leaving the country. What are we doing?

There are two messages here, one about collaboration and the other about funding. As the noble Lord, Lord Patten, said, we get more than we put in. We are asking the Government for a guarantee that we are going to get that funding. But more important than the funding is the power of collaboration. As chancellor of the University of Birmingham, I am proud that it received a Queen’s Anniversary Prize last week. When I was in India, we cited an example of the power of collaboration between the University of Punjab and the University of Birmingham. The University of Birmingham’s field-weighted citation impact is 1.87. The University of Punjab’s is 1.37. When we do collaborative research, it is 5.64. When the University of Birmingham does collaborative research with Harvard University it is 5.69. Its impact in collaboration is three times greater than it is as an individual university, and that applies to all the collaborations that we carry out with programmes such as Horizon.

Finally, this is about universities and our youth. This is depriving them of their future. I speak at schools and universities regularly, and I ask students every single time how many of them, if they were given a choice, would choose to remain in the European Union. Without exaggeration, almost 100% of the hands go up. There are two years’ worth of 16 and 17 year-olds who did not get a say in the wretched referendum two years ago, and this is their future, in which they will want a say. That is what this amendment is about: the future of our youth through Erasmus and Horizon 2020. We cannot take that future away from them. We have to go through with these amendments, and it is most likely we will end up remaining in the European Union.

[Lord Liddle (Lab)]

My Lords, I was not intending to intervene in this interesting discussion, not because I do not care deeply about these issues—as chair of Lancaster University, I realise how much we benefit from both Erasmus and the Horizon programme—but because I had not realised until I heard this excellent debate what a cliff edge these important programmes now face. This really is a very serious matter that has come out this afternoon.

There are two reasons for the cliff edge. First, the European Union, in the Commission, will now be thinking about the next framework programme, which will come in at the start of 2021. It will be devising its priorities and working on the assumption that Britain is not part of the next Horizon programme. That is a very serious point. Secondly, when the Select Committee went to see Mr Barnier last week in the Commission and he set out to us how the Commission envisages the Brexit negotiations, he put dealing with what he calls “future co-operation” in one of the four treaties that are to be negotiated after we have left. That is when he is assuming that these negotiations will start: in March next year, after we have left. One is on foreign policy, one is on security questions, one is on trade and the other is this basket of future co-operation. This is really serious. Unless we set a higher priority, more quickly, to sorting these questions out, we will end up with a lot of loss of initiative and of partnership, and networks in which we are involved no longer being sustained. We have to do something.

What are the Government proposing to do? It occurs to me that the Government, first of all, must make clear now that they want to continue to participate fully in both these programmes. They must make clear now that they are prepared to put a substantial sum of money on the table so that we can continue to participate in these programmes. They should also say, without equivocation, that for anyone from an EU country who has a place at a British university as a student, researcher or lecturer, or at a research institute, there will be no question of there being any additional immigration barriers to them taking up those places after Brexit. Why can that declaration not be made? The money, the free movement, the determination to participate—why can that not be said now? Why can the Government not, in this area, try to speed up Mr Barnier’s timetable by actually tabling their own text of the agreement that they want to reach? I hope the Minister can provide a satisfactory answer to these perfectly reasonable points.