Brexit: Withdrawal Agreement and Political Declaration

Lord Callanan Excerpts

Wednesday 9th January 2019 Lords Chamber

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[Lord Callanan]

That this House, for the purposes of section 13(1)(c) of the European Union (Withdrawal) Act 2018, takes note of the negotiated withdrawal agreement laid before the House on Monday 26 November 2018 with the title Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community and the framework for the future relationship laid before the House on Monday 26 November 2018 with the title Political Declaration setting out the framework for the future relationship between the European Union and the United Kingdom.

Relevant document: 24th Report from the European Union Committee

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

My Lords, the noble Lord, Lord Foulkes, is paying attention. Today marks the start of three days of debate examining two documents: the withdrawal agreement and the political declaration, which together form the agreed deal with the European Union. These were, of course, the subject of two days of debate before Christmas in this House, as well as three days in the other place.

In both Houses we heard many diverse views on the deal, with much positive commentary—and of course some negative commentary—on what has been agreed after two years of difficult negotiations. While the task of closing the next three days of debate falls to my noble and learned friend Lord Keen, I thought it would be appropriate, with the leave of the House, to take time in my opening remarks to address many of the points made by noble Lords before Christmas, since they did not get to benefit from a closing speech at the time.

Noble Lords examined every aspect of the deal, demonstrating the breadth and depth of their experience and expertise. While the vote on the final agreement is rightly one for the elected House, it is clear that contributions from this House will be of great value to those making their choice in the other place. One subject in particular was raised by my noble and learned friend Lord Mackay, the noble Lords, Lord McCrea and Lord Empey, and the noble and learned Lord, Lord Goldsmith, among others, and that was of course the Irish border and the backstop. At the time, I was especially struck by the powerful intervention from the noble Lord, Lord Bew. Given the concern about the backstop across both Houses, it was right that the Government took the opportunity to raise these concerns with our negotiating counterparts in the EU.

Following the December European Council, the EU published conclusions which gave the reassurance that the EU,

“stands ready to embark on preparations immediately after signature of the Withdrawal Agreement to ensure that negotiations can start as soon as possible after the UK’s withdrawal”.

As has been made clear in private meetings with the Prime Minister, this confirms that the EU, like this Government, does not want to use the backstop. I recognise that, despite all this, significant concerns remain in this House, which is why the Prime Minister set out that we would be seeking further assurances on top of those provided in the December European Council conclusions.

Over the Christmas period, the PM has been in contact with a number of her European counterparts about the further assurances that Parliament needs on the backstop. The PM has been in touch with the Taoiseach, and British and Irish government officials have also been in contact over the past week. Securing those additional reassurances that Parliament needs remains our priority, and leaders remain in contact. Leaving the EU with the deal that has been agreed is in the interests of both sides.

We recognise the concerns raised around the backstop and the unique challenges presented by Northern Ireland in our exit from the EU. That is why we have today published a paper setting out a series of commitments to Northern Ireland, in particular in any backstop scenario. These recognise the unique circumstances of Northern Ireland and the unique nature of the impact of the backstop in Northern Ireland. This seeks to address some of those concerns and reaffirm Northern Ireland’s integral place as part of the United Kingdom.

In that paper, we set out that we will ensure a strong role for the Northern Ireland Assembly ahead of any decision to bring the backstop into effect. We will provide a Stormont lock over any new areas of law being added to the backstop, giving a guarantee in law that no new areas of law can apply to Northern Ireland under the backstop without seeking the consent of the Northern Ireland Assembly. We will guarantee the unfettered access of Northern Ireland businesses to the whole of the United Kingdom market. Again, we will set that out in legislation. We will give an unequivocal commitment that that there will be no divergence in rules between the scope of the backstop between Great Britain and Northern Ireland, were it ever to come into effect.

We will set out a legal guarantee that nothing will change areas of north/south co-operation without the explicit agreement of the Executive, in line with the arrangements under strand 2 of the Belfast Agreement. We will provide a clear role for the Northern Ireland Executive in discussions between the UK and the EU under the withdrawal agreement structures that specifically affect Northern Ireland, and we will ensure a strong role for the Northern Ireland Executive and the other devolved Administrations as we move into the next phase of negotiations.

I am aware of the Motion tabled by the noble Baroness, Lady Smith of Basildon, to which I am sure she will speak in more detail shortly. My noble and learned friend Lord Keen will respond to that in closing the debate.

Over the course of this debate, we will examine two documents that represent months of complex negotiations and deliver on the result of the referendum. As noble Lords, including my noble friend Lord Tugendhat and the noble Baroness, Lady Falkner, noted before Christmas, the deal may not be perfect. It is well known that negotiations require compromise, especially when dealing with 27 other countries. As the Prime Minister has said, we must not risk making the perfect the enemy of the good.

[Lord Forsyth of Drumlean (Con)]

My noble friend has made an interesting statement about Northern Ireland and the paper that has been published. Why was it not possible for the Government to publish it in advance of this debate so that we had a chance to read it and understand what was involved?

[Lord Callanan]

My noble friend makes a good point, but important negotiations have been going on on these matters and we continue to discuss these matters with our EU partners. We hope to bring further clarifications before the vote.

The withdrawal agreement and political declaration demonstrate our joint commitment to a future partnership that reflects the depth of our shared history and values. It is right, as the most reverend Primate the Archbishop of Canterbury, among others, reminded us in the first debate, that this future partnership should work in the best interests of the country and for all generations in it. This deal delivers on the result of the referendum by restoring sovereign control over our borders, laws and money. It protects jobs and the vital security co-operation with our European neighbours, and it delivers certainty for businesses and citizens. This is a deal which, if passed in the other place, will ensure that our exit is smooth and orderly, and delivers in the national interest.

This deal delivers in securing the rights of EU citizens living and working in the United Kingdom, who make such a valuable contribution to our society, economy and public services. That contribution was highlighted by noble Lords, including the noble Baronesses, Lady Miller of Chilthorne Domer and Lady Kennedy of The Shaws, and the noble Lord, Lord Cashman. This deal delivers on that commitment and secures the rights of 3.5 million EU citizens living and working in the UK and those nearly 800,000 UK nationals living and working in the EU, so that they can continue living their lives broadly as they do now.

The noble Baroness, Lady O’Neill, rightly raised the important question of Irish citizens’ rights in the UK, particularly those who may be without a passport. The Government will ensure that these rights will continue to be protected when we leave the EU, no matter what the terms of our departure.

The noble Earl, Lord Clancarty, and the noble Baroness, Lady Thornton, spoke passionately about immigration and freedom of movement. We shall introduce a skills-based immigration system, built around the talents and skills that a person has to offer, not solely on where they come from.

This deal ensures there will be an end to the billions of pounds we send to Brussels every year, allowing us to invest in our domestic priorities. It means that we will leave the common agricultural policy and the common fisheries policy. We will once again be in control of our immigration policy.

Let me turn now to the political declaration, which sets out the terms of our future relationship. The noble Lords, Lord Mendelsohn and Lord Livermore, and my noble friend Lord Howard of Rising spoke about the impact of leaving the EU on the economy.

[Lord Foulkes of Cumnock (Lab Co-op)]

Why is the Minister reading out a speech drafted to reply to the debate that we are not continuing?

[Lord Callanan]

It was not drafted just for that; it has also taken account of the latest developments. Many noble Lords contributed in the first debate and we did not get the chance to reply to them. So, while making my points, I will seek to reply to the many questions asked of me in the debate at the time. I thought that would be helpful to the House.

The deal will pave the way for an unprecedented economic relationship with the EU—one that no other major economy has. We will have a new free trade area with no tariffs, fees, quantitative restrictions or rules of origin checks. We will also have an independent trade policy and strike free trade deals with partners outside the EU. I highlight to my noble friend Lady Hooper that this is being taken forward by my right honourable friend in the other place Dr Liam Fox.

Some noble Lords, including the noble Lords, Lord Owen, Lord Mancroft, Lord Lea of Crondall and Lord Monks, suggested a Norway-style EEA option as an alternative to the bespoke deal that is on the table. However, an EEA deal would leave us unable to end free movement without the EU being able to take retaliatory action. It would also not cover a range of important issues such as customs, external security or Euratom. Others have put forward a Canada-plus option as an alternative. However, we believe that we need a solution that allows for frictionless trade and at the same time avoids a hard border between Northern Ireland and Ireland. A Canada-style deal would not provide for this and would therefore be unacceptable.

Some noble Lords, including my noble friends Lord Shinkwin and Lord Hailsham, spoke about economic forecasts and assumptions of late. Let me highlight to noble Lords what has happened in our economy since the referendum. Total UK exports rose by 10.9% in 2017 compared with 2016. We have increased our exports from the equivalent of 28% of GDP to 30% of GDP. Of course we must not be complacent, but this does not represent the doom and gloom declared by many speakers. I agree with the passionate speech made in December by my noble friend Lady Meyer, who said:

“We should believe in ourselves”.—[Official Report, 5/12/18; col. 1077.]


My noble friend Lord Wasserman and the noble Lord, Lord Ricketts, were correct in their contributions. The security of our nation is paramount. That is why we have negotiated the terms of the most comprehensive security relationship in the EU’s history. The noble Lord, Lord Krebs, and my noble friend Lord Risby also raised the important issue of the UK’s participation in Galileo. The EU’s current stance is to bar the UK from full involvement in developing Galileo. The Prime Minister has made it clear that we cannot allow our Armed Forces to depend on a system that we cannot be sure of. As such, the Government will take forward plans, working closely with key international partners, for a new system that will fulfil our security requirements and provide appropriate resilience. We can of course discuss the matter of our past contributions to the Galileo project in future talks with the EU, as specified in the December joint report.

Many noble Lords, including the noble Lords, Lord Krebs and Lord Whitty, my noble friend Lord Heseltine, the noble Baronesses, Lady Bakewell, Lady Randerson and Lady Thornton, and the noble Earl, Lord Clancarty, spoke passionately about the UK’s scientific and education programmes. Noble Lords rightly asked about future collaboration with the EU on science and technology, and of course on higher education programmes. The withdrawal agreement offers certainty to universities and other UK recipients of EU research funding programmes, including Horizon 2020, by providing for continued UK participation until the current programmes end in 2020; and for the lifetime of individual projects, replacing the need for the Government’s existing funding guarantee.

We have been clear that we want to explore association with EU research and innovation programmes, Horizon Europe and Euratom research and training, and will of course be prepared to make an appropriate financial contribution if we do participate. That is why the political declaration sets out that the future relationship will include terms for the UK’s participation in EU programmes in areas of shared interest, including science and innovation, and culture and education.

Many noble Lords, predominantly on the Liberal Democrat Benches, spoke at length about their favourite subject: a second referendum. I repeat yet again that in June 2016, 17.4 million people voted to leave. The British people confirmed that decision the following year by voting for parties committed to delivering Brexit. This deal delivers for the British people.

The Liberal Democrats, I know, have history on this. Indeed, it was the Liberal Democrats under Nick Clegg who first called for a “real referendum on Europe”. I looked again at a copy of that leaflet and I have to say that nowhere did it call for “two real referenda on Europe”. What we need now is certainty and clarity and not the chaos and confusion of a second referendum and all the division that it would bring.

[Noble Lords]

Oh!

[Lord Callanan]

My Lords, we have come a long way to respect and deliver on the result of the referendum. This House has scrutinised and contributed to a number of Bills which will guarantee that the UK continues to have a functioning statute book after exit day.

[Lord Reid of Cardowan (Lab)]

Why should the British people have any confidence in the Government’s capacity to produce what the Minister said they wanted—clarity and stability—when the most glaring recent example of the Government’s capabilities was to hire a firm to supply ferries which had no ferries? If the Secretary of State for Transport really wanted an organisation that had no ships, he could have asked the Royal Navy.

[Lord Callanan]

My Lords, I thank the noble Lord for his amusing contribution. I am sure that many noble Lords would disagree with his assessment of the capabilities of our excellent Navy. We make no apologies whatever for preparing for a no-deal situation. The exit date was legislated for in the notification of withdrawal Act and in the EU withdrawal Act last year. We will be leaving the EU on 29 March next year.

[Noble Lords]

This year.

[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.

[Lord Purvis of Tweed (LD)]

Before the Minister concludes his reflections on contributions from the previous debate, perhaps he can assist those who will take part in this one, given the parliamentary rules. A Written Statement made in the other place today by Mr Lidington says that there will be,

“a strong role for Stormont before the backstop could be triggered”.

It is two years to the day since Martin McGuinness resigned, triggering the cessation of the Northern Ireland Assembly. For those who will contribute to this debate, can the Minister be very specific about what the role is intended to be for an institution that does not exist but which would effectively have a veto over a key part of what he has just outlined to the House?

[Lord Callanan]

The Stormont Assembly does exist; it is just not sitting at the moment. [Laughter.] Noble Lords laugh, but this is an important matter. The Secretary of State for Northern Ireland is working day and night to try to get the Assembly restored, because that is the proper place for it. We hope that it will be, but, obviously, if it does not sit then it cannot have a role. I set out in the paper released earlier today the guarantees that we are giving to the Stormont Assembly.

This is a deal which honours the integrity of our United Kingdom. It delivers on the referendum result, and it delivers Brexit for the people of the United Kingdom. I look forward to listening to the debate and, in closing, I commend the withdrawal agreement and the political declaration to the House.