Brexit: Equalities Impact Assessment

Lord Callanan Excerpts
Thursday 21st December 2017

(6 years, 11 months ago)

Lords Chamber
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Baroness Hussein-Ece Portrait Baroness Hussein-Ece
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To ask Her Majesty’s Government what equalities impact assessment they have undertaken into the implications of Brexit.

Lord Callanan Portrait The Minister of State, Department for Exiting the European Union (Lord Callanan) (Con)
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My Lords, the Government will continue to comply with their obligations under the Equality Act 2010, including carrying out equalities analyses. We have published an equalities analysis alongside the EU (Withdrawal) Bill and have provided a detailed response to points raised by the Women and Equalities Select Committee report on EU exit. We will continue to fulfil our obligations under the Equality Act 2010 as policy relating to EU exit is developed.

Baroness Hussein-Ece Portrait Baroness Hussein-Ece (LD)
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I thank the Minister for that response. I tabled this Question when we were informed that impact assessments were being carried out. We know that certain groups—for example, ethnic minorities, women in low-paid service sector jobs and people with disabilities—are more at risk than others from economic impacts or a loss of rights and protections. What impact assessments, rather than analysis, will be carried out to assess the impact on equality sector by sector so that we will know whether certain groups will be more at risk than others? If and when the Government introduce new legislation, will they undertake to ensure that they produce equality impact assessments alongside it?

Lord Callanan Portrait Lord Callanan
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I thank the noble Baroness for her interest in this very important issue. We take our responsibilities in this area very seriously. Of course, we do not need to be part of the EU or be bound by EU legislation to have strong equalities protection. For example, our protections against discrimination, harassment and victimisation in the provision of goods and services to disabled people all go beyond EU law. We will continue to take our obligations in this area very seriously, and the noble Baroness need not fear.

Lord Cashman Portrait Lord Cashman (Lab)
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There is widespread concern about the possible dilution of rights post Brexit. Therefore, will the Minister assure the House that there will be no regression of equalities and human rights, and that, should any changes be necessary, they will be addressed solely through primary legislation?

Lord Callanan Portrait Lord Callanan
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I know that the noble Lord takes a close interest in these areas. We are very proud of our record on equalities protection. One reason for leaving the EU is to take back control of our laws. Of course, there will always be a full discussion in this Parliament if we have any plans to go further on equalities protection, but at the moment I am not aware of any.

Baroness Manzoor Portrait Baroness Manzoor (Con)
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My Lords, we had the Equality Act 2010, which was amended; we have had the very important same-sex marriage legislation; and we have had the Modern Slavery Act—the first in the world. This is all very important equality legislation which has absolutely nothing to do with the EU. Surely the issue is one of adherence and enforcement where breaches are happening, particularly on social media platforms.

Lord Callanan Portrait Lord Callanan
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My noble friend makes a very important point, and we keep these matters under constant review. Some of the statements and issues that have arisen recently through social media are of great concern, and other members of the Government are taking forward policies in this area.

Baroness Hayter of Kentish Town Portrait Baroness Hayter of Kentish Town (Lab)
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My Lords, does the Minister accept that the groups that have already been mentioned fear that they will be less protected without the European Charter of Fundamental Rights, which this Government are removing? They are not reassured by the bundle of extracts produced by the Government—this issue appears in umpteen different bits of legislation—and they cannot see why a charter setting out their rights should not be included in the withdrawal Bill. What sort of comfort can the Minister offer them?

Lord Callanan Portrait Lord Callanan
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I thank the noble Baroness for her question but they need have no fears. The European Charter of Fundamental Rights merely codifies existing rights; it does not provide any new rights. We have set out a detailed analysis of the rights and how they will be protected in UK law. As I said, we go much further than EU law requires us to do in a whole range of areas, including equalities protection.

Baroness Masham of Ilton Portrait Baroness Masham of Ilton (CB)
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My Lords, will the Minister give an assurance that the blue badge scheme for disabled parking—a Europe-wide scheme—will continue?

Lord Callanan Portrait Lord Callanan
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The European Union (Withdrawal) Bill takes all existing EU protections and legislation and makes them applicable under UK law. I have no knowledge of any plans to do anything with the blue badge scheme.

Baroness Burt of Solihull Portrait Baroness Burt of Solihull (LD)
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My Lords, my noble friend Lady Hussein-Ece referred in her question to a number of disadvantaged groups. What work has been done to see what happens when a number of these protected characteristics overlap—for example, in the case of a pregnant woman from a minority in a low-paid job? This is called intersectionality, and we know that the people affected suffer disproportionately, but it seems to have been consigned to the “too difficult” box when it comes to measuring the effects of government legislation. Can the Minister undertake to look at how these extremely vulnerable groups are likely to fare post Brexit?

Lord Callanan Portrait Lord Callanan
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As the noble Baroness is aware, we publish a detailed equality analysis for every piece of legislation proposed. We have carefully considered the question of assessing the cumulative impacts of fiscal events on protected groups, and we will continue to do so. People need have no fear that their rights will be diminished.

Lord Cormack Portrait Lord Cormack (Con)
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Does my noble friend accept that there is great concern among our young people, on whom success after Brexit depends, about a lessening of opportunities after 2020? We have had mention of Erasmus until then but not beyond. Can my noble friend assure me that this will be at the forefront of his mind as we continue our negotiations?

Lord Callanan Portrait Lord Callanan
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My noble friend makes a very good point, but again I believe that those fears are groundless. The Erasmus scheme is very good, but it is one of many student exchange schemes that exist around the world. Lots of exchanges go on and young people benefit from these greatly. We have said that we are committed to the Erasmus scheme and we hope to continue with it.

Lord Foulkes of Cumnock Portrait Lord Foulkes of Cumnock (Lab)
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If Brexit goes ahead, which many of us still hope it will not, does that not make our adherence to the European Convention on Human Rights and our membership of the Council of Europe even more important?

Lord Callanan Portrait Lord Callanan
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I assure the noble Lord that Brexit will go ahead. We are committed to it and will be leaving the EU in March 2019. None of that will impact on our membership of the Council of Europe.

Lord Pearson of Rannoch Portrait Lord Pearson of Rannoch (UKIP)
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Can the Minister explain why the Liberal Democrats feel that we need lessons in equality from the European Union, which is, after all, one of the most anti-democratic outfits on the planet?

Lord Callanan Portrait Lord Callanan
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I am afraid that of all the difficult questions I get asked in this House, asking me to explain the policies of the Liberal Democrats is an impossible one.

Brexit: Revocability

Lord Callanan Excerpts
Wednesday 20th December 2017

(6 years, 11 months ago)

Lords Chamber
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Lord Thomas of Gresford Portrait Lord Thomas of Gresford
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To ask Her Majesty’s Government whether they will publish the advice they received from the Attorney-General on the revocability of the notice to the European Council that was given by the Prime Minister on 29 March 2017, in accordance with Article 50(2) of the Treaty on European Union, of the United Kingdom’s intention to withdraw from the European Union.

Lord Callanan Portrait The Minister of State, Department for Exiting the European Union (Lord Callanan) (Con)
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As the noble Lord will know, there is a constitutional convention set out in the Ministerial Code that the Government do not comment on the fact of, or content of, advice that may or may not have been given by the law officers. The Government have been clear that as a matter of firm policy our notification to leave the European Union will not be withdrawn.

Lord Thomas of Gresford Portrait Lord Thomas of Gresford (LD)
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Although I am not surprised by that Answer, I thought that the Government might at least have allowed parliamentarians to view this opinion in some dark corridor at the far end of Whitehall. This is a very important issue. We have been advised many times by the noble Lord, Lord Kerr, that the notification is revocable. Yesterday, Mr Barnier said that it is revocable but only with the consent of the 27 other countries. Last week, Sir Oliver Letwin claimed that if Dominic Grieve’s amendment went through and Parliament did not agree on the deal, the effect would be for us to remain in the European Union and not to fall out. This is a very important question. What is the Government’s stance or is it their policy to keep this issue fuzzy so that the people of this country are misled and deceived by it?

Lord Callanan Portrait Lord Callanan
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I am of course sorry that the noble Lord is disappointed but this is a historic convention, also recognised in Erskine May, which states:

“By long-standing convention, observed by successive Governments, the fact of, and substance of advice from, the Law officers of the Crown is not disclosed outside government”.

Lord Pannick Portrait Lord Pannick (CB)
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My Lords, will the Minister accept that Erskine May continues, that,

“if a Minister deems it expedient that such opinions should be made known for the information of the House”,

that is perfectly permissible? Will he accept also that there have been many occasions over the years when the advice of the law officers has been published, and will he accept the conclusion of Professor John Edwards in his authoritative book, The Attorney General, Politics and the Public Interest, that the decision whether to publish particular advice of the law officer depends on,

“considerations of political advantage or embarrassment to the government”?

Does he agree?

Lord Callanan Portrait Lord Callanan
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The noble Lord is of course very experienced in legal matters and I thank him for his very interesting opinion.

Lord Morris of Aberavon Portrait Lord Morris of Aberavon (Lab)
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My Lords, the Minister will correct me if I am wrong, but were not parts of Sir Nicholas Lyell’s advice on the Maastricht treaty made known to the House of Commons?

Lord Callanan Portrait Lord Callanan
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I have absolutely no idea but I will find out and write to the noble and learned Lord.

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Lord Faulks Portrait Lord Faulks
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My Lords, I know that the House wants to hear from the author of Article 50, and of course it should. However, whatever the subjective interpretation he may have of Article 50, it is ultimately a question of objective interpretation. Will the Minister agree with me that whatever the advice may be in respect of Article 50—if there is indeed advice—it is a matter ultimately for the European Court of Justice, and we do not know what it will decide?

Lord Callanan Portrait Lord Callanan
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I thank my noble friend for his opinion. He is of course correct.

Lord Kerr of Kinlochard Portrait Lord Kerr of Kinlochard
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This being the season of good will, I absolutely do not want to get the Minister into hot water again. Does he recall the view of the President of the European Parliament:

“If the UK wanted to stay, everybody would be in favour”?


On the legal issue of unilateral withdrawal of an Article 50 notification, does he recall the article enjoining honesty published on 9 November by his distinguished predecessor, the noble Lord, Lord Bridges of Headley, in which the noble Lord made it clear that there is “no legal basis” for the view that a notification cannot be unilaterally withdrawn? Does this perhaps explain why the Minister is so reluctant to reveal the law officers’ opinion?

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Lord Callanan Portrait Lord Callanan
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I thank the noble Lord for his interesting advice. I am not aware that the opinion of the President of the European Parliament is particularly legally binding, but of course I shall read it with interest.

Baroness Ludford Portrait Baroness Ludford (LD)
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My Lords, the Prime Minister wrote to Cabinet colleagues recently in a letter headed “Government Transparency and Open Data”:

“The sunlight of transparency also acts in itself as an important check and balance, and helps ensure the highest standards of public life amongst elected representatives”.


Will the Government follow the advice of the Prime Minister on this matter of publishing Article 50 legal advice?

Lord Callanan Portrait Lord Callanan
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The noble Baroness will be well aware that the Government always follow the advice of the Prime Minister.

Lord Tebbit Portrait Lord Tebbit (Con)
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My Lords, does my noble friend not agree that this Question has been a waste of time? There is simply no doubt that the British people voted in the referendum to leave the European Union and it is their will that must be upheld, not that of a bunch of tame lawyers or other people on the Liberal Benches or anywhere else.

Lord Callanan Portrait Lord Callanan
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When I was a young student politician, my noble friend was one of my political heroes.

None Portrait Noble Lords
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Oh!

Lord Callanan Portrait Lord Callanan
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I was particularly fond of his “Spitting Image” puppet at the time, and I am delighted to see that he has lost none of his robustness.

Baroness Hayter of Kentish Town Portrait Baroness Hayter of Kentish Town (Lab)
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The noble Lord, Lord Tebbit, talks about this being a waste of time. This morning, the new negotiating mandate came out from the European Union and it talked about a much shorter transition period than I think the Government have been thinking about. Perhaps we could ask the Minister to make sure that the negotiations take place with a little more speed than they have been doing so that we are fit to end the transition period at the end of December 2020.

Lord Callanan Portrait Lord Callanan
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Of course, we are very keen to get on with the negotiations as quickly as possible. As I understand it, the European Commission this morning proposed an implementation period of around 21 months. The Government have stated that we would prefer a period of around 24 months, so it seems to me that the positions are not too far apart, and we shall have some interesting negotiations on the subject.

Brexit: Trade in Non-financial Services (EUC Report)

Lord Callanan Excerpts
Monday 18th December 2017

(6 years, 11 months ago)

Lords Chamber
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Lord Callanan Portrait The Minister of State, Department for Exiting the European Union (Lord Callanan) (Con)
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My Lords, it is a privilege to respond to the debate today on the Select Committee’s report, Brexit: Trade in Non-financial Services. I am conscious of the late hour so while I will endeavour to respond to as many as possible of the points that have been made, if I miss one or two then I will look at the record and will be happy to write to noble Lords to respond to them.

I put on record my appreciation of the work of the EU Internal Market Sub-Committee, chaired so excellently by the noble Lord, Lord Whitty, who provided an excellent introduction to our debate today. Indeed, I thank all noble Lords for their excellent contributions; I think everyone spoke extremely well. Obviously I do not agree with every point that has been made, but nevertheless I think it has generally been an extremely constructive debate. The committee’s expertise and strength of analysis is clearly demonstrated in the report.

First, I shall deal with a point that has rightly been raised by the noble Lord, Lord Whitty, and other noble Lords. I recognise the frustration that the Government have not yet provided a response to the report. The Brexit negotiations are the most important negotiations that our country faces, and reaching a new partnership with the EU is in the interests of both sides. As such, the timing of any information that we publish is carefully considered to support the UK’s negotiators in securing the best possible outcome, a point that my predecessor mentioned in her letter to the noble Lord, Lord Whitty, on 26 October this year. However, I assure noble Lords that a response to the committee is now in full preparation, and we will fully reflect policy developments and the progress of the negotiations in that. I expect to be able to publish it early in the new year.

Lord German Portrait Lord German
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Which year?

Lord Callanan Portrait Lord Callanan
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The new year. Many of the points raised by this report about our future partnership with the EU and the future of the non-financial services sector relate directly to the second phase of negotiations, which I am delighted to say we will be beginning soon. As such, I hope noble Lords will understand that I will not be able to go into great detail on some areas at this stage.

Through the negotiations we will pursue a bold and ambitious free trade agreement with the EU to ensure the freest possible trade in services, and to support the continued success of the UK’s professional and business services. Since the publication of the committee’s report we have made good progress in the first phase of negotiations, as demonstrated by Friday’s announcement that sufficient progress has been made. A key element of any future partnership will be how the UK and EU continue to trade services, a sector where the UK is a global success story. However, we cannot be complacent about this, a point well made by my noble friend Lady Noakes, who rightly drew our attention the challenges that the future flexible adaptation of services will provide to this country—opportunities that are available outside the EU.

Services are one of the fastest-growing components of the global economy and accounted for 79% of the UK economy in 2016. In his excellent speech, my noble friend Lord Wei was right to draw our attention to the need to focus on the future prospects and how we can develop and expand the sector. Both the UK and EU member states benefit from our close trading relationship. The UK exported about £63 billion-worth of non-financial services, and about £27 billion-worth of financial services to the EU in 2016—I am mindful of the scepticism that noble Lords have expressed about statistics, but those are the latest that I have.

However, it should also be noted that the UK exported significantly more in both non-financial and financial services to countries outside the EU. UK services exports to countries outside the EU grew at a faster rate than service exports to EU member states over the period 1999 to 2016.

Let me now address some of the issues covered in today’s debate. On the subject raised by many noble Lords—but in particular by the noble Lord, Lord Liddle—freedom of movement, yes, of course it is the policy of my party, as exemplified in our manifesto at the general election, that we will end freedom of movement when we leave the EU. That is the policy of the Conservative Party. What he forgot to mention was that it is also the policy of his party to end freedom of movement—or at least it was last week; perhaps this week it has a new policy, but that was the policy. At least the Liberal Democrats have the benefit of consistency, although they got only 7% of the vote as a benefit of that consistency at the general election. Both the major parties committed to ending freedom of movement. Pointing out that it was the policy of my party is of course correct, but the noble Lord might have had the good grace to acknowledge that it is also the policy of his party.

The noble Baroness, Lady Hayter, asked me about consumer organisations. Two Ministers, Robin Walker and Margot James, recently held a round table with consumer groups. I am due to meet various consumer groups in the new year. In April, in evidence at the EU Justice Sub-Committee, another consumer group, Which?, said that it had very good contact with government throughout the process. We will of course have further meetings with those groups.

In response to my noble friend Lord Green, we will seek to ensure continuity, including as we move into any agreed implementation period. The way in which we maintain our international agreements during any implementation period will of course depend on the terms agreed with our EU partners.

The noble Lord, Lord Aberdare, asked about alignment. Of course, we start from a unique position, with the same rules and regulations, as the Prime Minister set out in her speech in Florence. We are committed to making the UK the best place in the world to do business, and this will mean fostering a high-quality, sensible, predictable regulatory environment. We are listening to businesses and want to minimise the regulatory and market-access barriers for both goods and services.

The noble Baroness, Lady Donaghy, asked how we are collecting more accurate statistics. We are working to best use current services data to inform our approach in future trade negotiations, and to explore new types of data. She also asked about the Trade Bill. The Trade Bill, introduced on 7 November, will ensure that the UK has the necessary legal powers and structures in place to enable us to operate a fully functioning trade policy on day one of our exit from the EU. The Bill will also establish an independent body, the Trade Remedies Authority, to conduct trade remedies investigations, providing a safety net for domestic industries against unfair and injurious trade practices or surges in imports consistent with our legal obligations in the World Trade Organization. The noble Baroness will also be aware that in the summer, we published a paper on enforcement and dispute resolution procedures. Given the absence of time, I shall not go through all the details of that.

I turn to the subject of professional business services, which a number of noble Lords mentioned. We agree with the committee’s recommendation that we must be mindful of the significance of professional and business services. The sector is the single largest exporter across all sectors of the economy, with 26% of services exports to the EU in 2016, a point well made by the noble Lord, Lord Whitty, in his introduction. The Government understand the concerns of the sector, including access to talent, being able to move people across borders to provide services, the importance of cross-border data flows and the mutual recognition of qualifications, on which I shall say more shortly. We also recognise the importance of access to talent and the fly-in, fly-out business model for the professional and business services sector. The Government will create a fair and sustainable immigration system that works for the whole of the UK.

To respond to the point made by the noble Baroness, Lady Randerson, and the noble Lords, Lord German, Lord Davies and Lord Whitty, the UK will remain an open and tolerant country that recognises the valuable contribution that migrants make to our society; it welcomes those with skills and expertise to make our nation better still.

The Government understand the report’s concerns regarding the challenges facing some parts of the sector, including the current provisions that support legal services trade. We also recognise the importance of rights of establishment to services sectors. The World Trade Organization estimates that around 55% to 60% of services trade relates to establishment overseas. The committee’s report noted how the trade in services agreement, or TiSA, provides an opportunity to update the global terms of trade for many services. The negotiations on TiSA are currently on hold; however, the UK continues to be committed to an ambitious agreement.

A number of noble Lords raised digital services, particularly the noble Lords, Lord German and Lord Aberdare. We are committed to ensuring that the UK is the global leader in starting and growing a digital business, trialling new technology or undertaking advanced research. On 1 March, the Government published the UK digital strategy, which has put in place the conditions to ensure that the UK’s digital sectors can remain world leading, alongside ensuring that the benefits of digital are felt across the whole of our country. The ability to collect, share and process data is crucial for many sectors, from financial services to tech and energy companies. The noble Baroness, Lady Randerson, was right to highlight the successes of that sector.

Data transfers are also crucial for our ability to co-operate across borders on law enforcement and security issues. On 24 August, we published a paper entitled, The Exchange and Protection of Personal Data. This set out how we want to ensure the continued protection and exchange of personal data between the EU and the UK, in light of the UK’s withdrawal from, and new partnership with, the EU. In addition, as part of the Government’s commitment to ensure that the UK’s digital sectors remain world leading, the Data Protection Bill was introduced on 13 September. The Bill is intended to create a new data protection framework fit for the digital age, which incorporates the provisions of the EU’s general data protection regulation into our domestic law. The Bill will ensure that the UK is prepared for the future after we have left the EU.

In response to the point of the noble Lord, Lord Aberdare, the Government agree with the report regarding the need to engage with the digital single market. To date, the UK has been a leader in the emerging digital single market, arguing for an open and flexible market with a regulatory framework that reflects the dynamic nature of the digital economy. The committee’s report highlighted the importance of data flows. We recognise the importance of the free flow of non-personal data initiative, and resisting the introduction of unjustified data localisation requirements by other member states.

The noble Lord, Lord Aberdare, drew our attention to mobile roaming. Of course, he is correct that roaming surcharges for travel within the European Economic Area were abolished in June. Of course, in the course of Brexit negotiations, we will seek the best possible deal that delivers for UK consumers and businesses in this sector.

A number of noble Lords raised the issue of creative services, particularly the noble Lords, Lord German and Lord Aberdare, who drew our attention to the successes of the music industry. They are, of course, right. The creative sector is one of the UK economy’s greatest success stories, and is growing by 8.9% a year, making it the second fastest growing industrial sector. The high-quality content and talent produced and developed is both recognised and respected across the world. The committee’s report recognises the broadcasting sector. The UK is the EU’s biggest broadcasting hub, hosting a large number of international broadcasting companies, a point well made by my noble friend Lord Inglewood. As the committee has observed, the EU regulatory framework underpins the business model of many international broadcasters currently located in the UK, as the noble Lord, Lord Aberdare, reminded the House.

We agree with the report that continued strong protection for intellectual property is important. It helps to protect individuality and support innovation in the creative sectors. The noble Lord, Lord German, asked about intellectual property. Globally, the UK has a competitive edge in protecting and enforcing intellectual property rights. We are discussing options with users to ensure that the UK’s intellectual property regime, including protection of unregistered designs, will continue to properly support innovation and the UK’s creative industries. The report also mentioned the limitations of TRIPS. As part of its WTO membership, the UK has committed to meet certain minimum standards of intellectual property protections set out in the TRIPS agreement. I am pleased to say that, in many cases, existing UK law—either domestic or EU-derived—goes beyond these standards. We do not expect that situation to change as a result of leaving the EU.

The noble Lord, Lord Whitty, asked me about air services. As a former Aviation Minister, this is an issue close to my heart. Aviation is a critical network industry that underpins the functioning of the economy and international trade. The UK has the largest aviation network in Europe and our airports service is the third largest aviation network in the world. It is in the interests of both sides to maintain closely integrated aviation markets. The Government are seeking the best possible relationship with the EU in the field of air services and are looking at all the options to deliver that. The precise form of the UK’s future air services relationship, including with EASA and SESAR, will be a matter for the negotiations. The committee’s report mentions bilateral air service agreements. Air services between the UK and a number of countries outside the EU—notably the US—are currently determined by EU-negotiated agreements. The Government will be seeking new, bilateral, arrangements with those countries as a matter of priority. The target is to ensure that market access levels are preserved and to have identified arrangements for this before we leave the EU.

We also acknowledge in the report that ownership and control rules may have implications for both UK and non-UK airlines. The UK is, and will remain, an excellent base to do business, to establish headquarters or to found a business, including in our world-renowned aviation sector. It would not be appropriate for me to comment on the contingency plans of individual airlines. The report correctly highlights that there is no WTO provision regarding aviation services. This is a fundamental consideration when it comes to negotiating our future relationship with the EU. EU member states benefit from liberal market access. We have a common interest in getting the best possible outcome.

A number of noble Lords mentioned tourism, education and health-related travel services. The noble Baroness, Lady Donaghy, in particular, talked about education. The Government recognise the social and economic benefits of a healthy tourism sector. The UK and the EU have a common interest in securing a mutually beneficial agreement on tourism in future. The noble Baroness asked about EU students. We highly value the contribution of EU and international students, researchers and academic staff. We have listened to the concerns of the higher education sector and taken action to provide greater certainty for it.

We have already committed to underwrite successful bids for Erasmus+ which are submitted while the UK is still a member state, even if they are not approved until after we leave and/or payments continue beyond the point of exit. Home fee status is also secure for the duration of students’ courses. Bids for higher education study periods submitted before the exit date will include mobility in the 2018-19 and 2019-20 academic years. We have also confirmed that research councils will continue to fund postgraduate students from the EU whose courses start in 2017-18.

The report mentions trade in education and health-related travel services. The reciprocal rights that will apply following the UK’s exit are subject to the wider negotiation on our future relationship with the EU. We support existing processes of voluntary co-operation in higher education, such as the Bologna process, which contribute to improving skills and employability in increasingly competitive global environments.

I will say a word about the mutual recognition of qualifications, which was raised by the noble Lords, Lord Whitty, Lord German and Lord Berkeley, and the noble Baronesses, Lady Donaghy and Lady Hayter. They all raised the importance of the mutual recognition of qualifications, which has also been the subject of negotiations on the withdrawal agreement. The Prime Minister has been clear that she wants EU nationals in the UK and UK nationals in the EU to be able to continue their lives broadly as now. That is why we have agreed the continued recognition of qualifications where recognition decisions were received or where recognition procedures were ongoing before the withdrawal date. This will cover qualifications recognised under the mutual recognition of professional qualifications directive, lawyers practising under host title and approved statutory auditors.

We are committed to getting the best possible deal for the United Kingdom in negotiations; that includes for the non-financial services sectors. We will continue to update Parliament on the negotiations for our departure from the European Union. Again, I would like to reassure noble Lords that we are working to formally publish our response to the committee’s report as soon as possible, and that will be early in the new year.

I am grateful to all noble Lords for their contributions over the course of this wide-ranging and informative debate. I am sure that the House will continue to play a valuable role in the work of the Government and contribute towards securing a deal that works for everyone.

Brexit: EU Citizenship

Lord Callanan Excerpts
Monday 11th December 2017

(6 years, 11 months ago)

Lords Chamber
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Lord Teverson Portrait Lord Teverson
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To ask Her Majesty’s Government what discussions they are having with the European Union concerning whether those United Kingdom citizens who wish to retain their European citizenship post-Brexit may do so.

Lord Callanan Portrait The Minister of State, Department for Exiting the European Union (Lord Callanan) (Con)
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My Lords, EU treaty provisions state that only citizens of EU member states are able to hold EU citizenship. Therefore, when the UK ceases to be a member of the European Union, British nationals will no longer hold EU citizenship unless they hold dual nationality with another EU member state. We are content to listen to proposals, but this is not a matter within the scope of the current negotiations with the EU.

Lord Teverson Portrait Lord Teverson (LD)
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I thank the Minister for that extensive reply, although I find it disappointing. It is really important to many people in this country to retain the rights of their European citizenship—so, given the new and cordial relationship between the Government and the European Commission and institutions, would it be possible to open up this discussion to find a mutually beneficial way to move this agenda forward? We have a friend also in the European Parliament in this regard.

Lord Callanan Portrait Lord Callanan
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We are content to listen to proposals on this; we are not ruling it out. The problem is, as the noble Lord will know very well, that you can only be an EU citizen if you are the citizen of an EU member state. To get what he wants would involve changing treaties—and he will know how difficult that is in the European Union. The other side has shown no interest whatever in doing it. I am aware of the proposals from the European Parliament, and we will look at any proposals, but our EU negotiating partners so far have not expressed any interest in it. It would be a long, difficult and complicated process and, I suspect, would set a precedent that they do not wish to set.

Lord Pearson of Rannoch Portrait Lord Pearson of Rannoch (UKIP)
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My Lords, can the Government confirm that before last Christmas, we offered continuing residence to the 3.5 million EU citizens living here if our 1.2 million people living there also got it? The Eurocrats refused the offer, even having the nerve to accuse us of using their people as bargaining chips. Is this not further proof that Herr Juncker and Co. are interested only in keeping their failing project afloat, however much it damages the real people of Europe?

Lord Callanan Portrait Lord Callanan
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The noble Lord makes an important point, but it is not that helpful to look back over what might have happened in the past: best now to celebrate the excellent achievements that we have gained in reaching agreements last week, whereby EU citizens in the UK will have their rights guaranteed and vice versa.

Lord Skelmersdale Portrait Lord Skelmersdale (Con)
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My Lords, may I take my noble friend back to his original Answer, which presumably means that passports will be required? Have Her Majesty’s Government decided whether that is so; secondly, whether a new one will be required; and, thirdly, whether it will be charged for?

Lord Callanan Portrait Lord Callanan
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I think the noble Lord will have to wait for the Home Office’s proposals on a new immigration system for an answer to that question.

Lord Tomlinson Portrait Lord Tomlinson (Lab)
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As the Minister said that the noble Lord, Lord Pearson, made an important point, perhaps he could spell out what the important point was to him—because, as far as I am concerned, I missed it.

Lord Callanan Portrait Lord Callanan
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My Lords, all noble Members make important points in this House.

Earl of Clancarty Portrait The Earl of Clancarty (CB)
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My Lords, is the Minister aware that an arrangement such as this would be hugely beneficial to many working in the creative industries, for whom free movement around Europe is essential?

Lord Callanan Portrait Lord Callanan
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If the noble Earl means the proposal suggested by the noble Lord, Lord Teverson, I have said that we are happy to entertain proposals in this area. But I think it would be extremely difficult for the EU to concede that citizens from non-EU member states would have citizenship.

Baroness Ludford Portrait Baroness Ludford (LD)
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My Lords, the Government rightly value the integrity of the United Kingdom—as indeed do these Benches. Do they therefore think it is right that there will be an imbalance in that most citizens of Northern Ireland will be able to retain EU citizenship through their right to an Irish passport? Should the Government not therefore support the call my noble friend proposed making to the European Parliament, for the EU 27 to examine how all UK citizens can retain the benefits of EU citizenship?

Lord Callanan Portrait Lord Callanan
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As the noble Baroness is aware, special arrangements have always applied between Northern Ireland and the Republic of Ireland, given the troubled history of that island. I repeat that we are not ruling out the idea—but she will know, as well as I do, how difficult it would be to achieve consensus in the 27 to change the treaties to enable that to happen. It would set a precedent that citizens from non-EU member states can have EU citizenship, with its rights and obligations. I am sure she will agree that it is difficult to see how that would come about.

Baroness Hayter of Kentish Town Portrait Baroness Hayter of Kentish Town (Lab)
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My Lords, on Thursday the noble Lord, Lord Ashton of Hyde, said in regard to the likely problems of our youth orchestras in travelling to the EU after March 2019:

“Much more important is the visa requirements that will be needed after Brexit”.—[Official Report, 7/12/17; col. 1156.]


Can the Minister update the House on such anticipated problems, of youth and amateur orchestras needing visas to go to the EU after Brexit, and outline the steps being taken to mitigate this problem?

Lord Callanan Portrait Lord Callanan
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These are of course matters that will be discussed in the next phase of the negotiation. As I said in response to an earlier question, the noble Baroness will have to wait for the proposals for a new immigration system that the Home Office will announce in due course.

Lord Dubs Portrait Lord Dubs (Lab)
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My Lords, I am not sure that it would be a precedent to achieve what the noble Lord has suggested. For example, I remind the Minister that in Moldova, which is not an EU country, a large number of Moldovans have the right to Romanian passports and therefore entry into the EU—so the precedent is already there.

Lord Callanan Portrait Lord Callanan
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I think that that is because they have Romanian passports. Romania is an EU member state and takes those obligations accordingly. As I said, it is very difficult to see how the treaties would be changed to enable this to happen. I am aware of the proposal from the European Parliament. We are not against the idea—we would be happy to consider it—but I think that there is very little chance of it happening.

Lord Roberts of Llandudno Portrait Lord Roberts of Llandudno (LD)
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My Lords, I am very proud that I was born Welsh, and I am very proud that I was born British as well. By what right can the Government or anybody else deny those who are born after we joined the European Union of their citizenship in Europe? How can we deny it to them?

Lord Callanan Portrait Lord Callanan
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Because, my Lords, we had a referendum on the subject of leaving the European Union and the people of the United Kingdom—and, indeed, the people of Wales—voted to leave.

Brexit: Irish Border

Lord Callanan Excerpts
Tuesday 5th December 2017

(6 years, 11 months ago)

Lords Chamber
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Lord Dykes Portrait Lord Dykes
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To ask Her Majesty’s Government what response they have received from the European Union negotiating team to their proposals on the Irish border problem.

Lord Callanan Portrait The Minister of State, Department for Exiting the European Union (Lord Callanan) (Con)
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My Lords, there is much agreement between the UK and the EU on the proposals for how to address the unique circumstances of Northern Ireland and Ireland in the light of the UK’s withdrawal from the European Union. We remain firmly committed to avoiding any physical infrastructure on the land border between Northern Ireland and Ireland. We welcome the Commission’s commitment to this in its guiding principles paper.

Lord Dykes Portrait Lord Dykes (CB)
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My Lords, see how grateful the DUP is for the £1 billion of taxpayers’ money to keep Mrs May in power without any real mandate. Will the Minister please tell Mrs May what is now obvious: Brexit is becoming a total disaster and the PM must now save our country’s future and the precious Anglo-Irish agreement?

Lord Callanan Portrait Lord Callanan
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I congratulate the noble Lord on having the foresight to get a Question on this on the Order Paper for today. He will be unsurprised to know that I do not agree with him. There was a referendum on the subject. We feel we have to respect the results of that referendum.

Lord Hain Portrait Lord Hain (Lab)
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My Lords, why was anybody surprised by yesterday’s negotiating car crash in Brussels? Unionists were quite legitimately always going to insist that they could not be put in a status distinct from the rest of the UK. At the same time, to maintain the Irish border as open as it has been alignment would be needed on trade, customs and regulation. Surely the answer is to apply that alignment across the UK, then the problem is solved.

Lord Callanan Portrait Lord Callanan
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As the noble Lord is aware, we are leaving the customs union and the single market. Northern Ireland will be leaving them with us.

Lord Trimble Portrait Lord Trimble (Con)
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Will the Minister agree that a lot of the problems yesterday stemmed from the fact that people were leaking inaccurate accounts of what was in the Government’s paper, and were not making it clear that the proposal for some form of regulatory alignment was heavily conditioned and of very limited application? If that information had been put into the public domain earlier in the day, would not things have gone much more smoothly?

Lord Callanan Portrait Lord Callanan
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My noble friend speaks with great authority on this subject, having been one of the architects of the Good Friday agreement. We all know the political sacrifices he made to bring that about. I pay tribute to him for that. I do not think it would be helpful for me to go into a blow-by-blow account of whataboutery on the negotiations. We are only half way through the negotiations. We will come back and make a Statement when we have agreement, but at the moment this is an ongoing, delicate situation.

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Lord Callanan Portrait Lord Callanan
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My Lords, we have always been very clear that the unique circumstances in Northern Ireland require unique solutions. That is recognised by the European Commission and it is recognised by Ireland. Michel Barnier has said that. The model that we use for the Northern Ireland-Irish border will not necessarily be a precedent for what happens elsewhere.

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Lord Kilclooney Portrait Lord Kilclooney
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My Lords, as one living on the border with the Republic of Ireland, I ask whether the Minister is aware that most people in Northern Ireland welcome the Government’s proposals for maintaining the common travel area, for having no physical structures at the border and for 80% of our trade not to be controlled by customs. Can he confirm that, even today, in the context of membership of the European Union, Irish customs and United Kingdom customs operate not at the border but on either side of it?

Lord Callanan Portrait Lord Callanan
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The noble Lord speaks with great authority on this subject and I know he has contributed a lot to the peace process over the years, which is something we want to maintain. There is a lot of truth in what he has said.

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Lord Howell of Guildford Portrait Lord Howell of Guildford (Con)
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My Lords, is there not some confusion here between regulatory alignment and regulatory recognition? Is not the latter principle one on which there is perfect freedom for the whole United Kingdom, including Northern Ireland, to make arrangements for outside trade in due course for continuing the smooth and reasonably frictionless low or non-border controls in Northern Ireland? What is the problem?

Lord Callanan Portrait Lord Callanan
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Of course, the wording is very important, but I am very clear that alignment is not the same as having no diversity.

Lord Tomlinson Portrait Lord Tomlinson
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My Lords, does the Minister accept that nobody has asked him to give a “blow-by-blow account”, which is how he referred to the questions he had been asked? Noble Lords have asked him to give a straight explanation, first, of what went wrong and, secondly, of how the Government propose to rectify it.

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Lord Callanan Portrait Lord Callanan
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I thank the noble Lord for his helpful question. We are trying to reach agreement at the moment. This is an ongoing negotiation. We were always very clear that Monday was the first staging post towards this. I have no doubt that there will be further discussions towards the end of the week. When we have reached agreement, we will come back and report it to the House.

Lord Cormack Portrait Lord Cormack (Con)
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My Lords, should we not heed the wise words of the noble Lord, Lord Trimble, but at the same time remember that in the referendum on 23 June last year a significant majority of the people of Northern Ireland voted to remain?

Lord Callanan Portrait Lord Callanan
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The referendum was held on a UK-wide basis, and the people of the UK voted by a majority to leave the European Union.

Brexit Negotiations

Lord Callanan Excerpts
Tuesday 5th December 2017

(6 years, 11 months ago)

Lords Chamber
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Lord Callanan Portrait The Minister of State, Department for Exiting the European Union (Lord Callanan) (Con)
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My Lords, I shall now repeat in the form of a Statement the Answer given to an Urgent Question in another place:

“Mr Speaker, negotiations regarding our exit from the European Union are ongoing as we speak. Indeed, we are in the middle of an ongoing round, and as such I will have to be more circumspect than usual. We held further talks in Brussels over the past few days and progress has been made, but we have not yet reached a final conclusion. However, I believe that we are now close to concluding the first phase of the negotiations and moving on to talk about our future trade relations. There is much common understanding, and both sides agree that we must move forward together.

Our aims in this negotiation remain as they always have been. In particular, on the issue of Northern Ireland and Ireland, we have been clear that we want to protect all elements of the Good Friday/Belfast agreement, to maintain the common travel area and to protect associated rights. We want to ensure that there is no hard border between Ireland and Northern Ireland. We recognise that, as we exit, we must respect the integrity of the EU single market and the customs union, but we are equally clear that we must respect the integrity of the United Kingdom.

There remain some final issues to resolve that require further negotiation and consultation over the coming days. Our officials are in continuous contact, and we expect to reconvene in Brussels later this week for further negotiations. I or the Prime Minister will formally update Parliament once this round of negotiations concludes, as I have done for every round so far. As was made clear by the comments from President Juncker and President Tusk yesterday, all parties remain confident of reaching a positive conclusion in the course of the week”.

Baroness Hayter of Kentish Town Portrait Baroness Hayter of Kentish Town (Lab)
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My Lords, all that without a blush. I thank the Minister for repeating a somewhat embarrassing response, given yesterday’s climbdown. Indeed, it seems that the only negotiations taking place are between the Government and the DUP, or within the Government, which is part of the Prime Minister’s failure in the election campaign.

Yesterday unravelled over regulatory alignment. However, just as Scotland, Wales and London are saying, “If such a deal is good enough for Ireland, it is good enough for us”, so also if there is to be regulatory alignment with the EU, which we support, surely it must be UK-wide. Can the Minister ask the Prime Minister to rethink her hasty decision to rule out remaining in the customs union regardless of cost, border controls and checks—and indeed, Northern Ireland?

Lord Callanan Portrait Lord Callanan
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I thank the noble Baroness for her question, but I am slightly perplexed by the attitude of the Opposition Front Bench in another place. John McDonnell has said:

“I think people will interpret membership of the single market as not respecting that referendum”.


Barry Gardiner, the Shadow International Trade Secretary, has said that a permanent customs union is “deeply unattractive”:

“As a transitional phase, a customs unions agreement might be thought to have some merit. However, as an end point it is deeply unattractive”.


He has also argued that remaining in the customs union would be a “disaster”. Perhaps the noble Baroness should talk to her colleagues before she criticises us.

Baroness Ludford Portrait Baroness Ludford (LD)
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My Lords, the Government claim that they are clear that we must respect the integrity of the United Kingdom, yet the wording being discussed yesterday was only about continued regulatory alignment on the island of Ireland. I understand that, in the other place this morning, the Brexit Secretary tried to square the circle by asserting that regulatory alignment will apply to the whole of the United Kingdom. Can the Minister affirm that it is now government policy for the whole of the UK to stay in the single market and the customs union? In that context, I welcome what seems to be the evolving position of the Opposition. Better still, will the Minister tell us that government policy will soon be to allow the British people, in this context of chaos, to choose to remain in the EU?

Lord Callanan Portrait Lord Callanan
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The Liberal Democrats have obviously forgotten that the British people have already made a choice on the matter. The Liberal Democrats put the option to remain in the EU to the British people at the last election, and they got 7% of the vote, I think. However, it would be wrong for me to comment on the details of negotiations at this stage. These are sensitive matters and we should not prejudice ongoing negotiations, as we have not yet reached agreement. Talks continue; yesterday, the Prime Minister confirmed in her statement to the press that we expect them to continue throughout the week in both London and Brussels. The noble Baroness can be assured that, when we have a conclusion, we will report back to the House.

Lord Strathclyde Portrait Lord Strathclyde (Con)
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My Lords, can the Minister confirm that the Government’s policy will not put the integrity of the United Kingdom at stake and will always support the four constituent parts of the United Kingdom to be treated the same?

Lord Callanan Portrait Lord Callanan
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I agree totally with the noble Lord. The whole of the United Kingdom voted to leave the European Union; the whole of the UK will leave the European Union.

Lord Alton of Liverpool Portrait Lord Alton of Liverpool (CB)
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My Lords, has the Minister had the chance to look at the report that I sent him last week? It was launched formally here in Parliament last night and concerned the position of the Irish in Britain and how they will be affected after our withdrawal from the European Union. Will he agree to place in your Lordships’ Library a copy of his response, particularly relating to the implications for the 1949 Ireland Act and the common travel area?

Lord Callanan Portrait Lord Callanan
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The noble Lord asks a good question. I have seen his letter and report. The situation of the Irish in the United Kingdom is of great personal interest to me. I will send him a reply in due course and would be happy to place a copy of it in the Library.

Lord Lea of Crondall Portrait Lord Lea of Crondall (Lab)
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My Lords, at the present time, the Government are the Conservative Party, with the help of the DUP. If the Labour Party were in government, it would be legitimate to put questions to the Government in the shape of the Labour Party. In the Statement—on page 2 in the printed version—there is a Rubik’s cube. It wants to ensure no hard border; it wants to recognise the integrity of the single market and the customs union; and it wants to respect the integrity of the United Kingdom. As stated, that Rubik’s cube is impossible to solve unless we stay in the European Economic Area in some shape or form. If the Minister disagrees, on what basis does he do so?

Lord Callanan Portrait Lord Callanan
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My Lords, we agree with the Shadow Chancellor and the Shadow International Trade Secretary that remaining in the customs union and the single market would be a disaster for the United Kingdom. They are not correct on many issues, but they are on these ones. It is taking so long to reach an agreement because these are difficult and complicated areas. Given the history of Ireland and Northern Ireland, it is particularly important that we get the discussions right, reach an agreement and respect the Good Friday agreement, but that we respect the referendum that took place.

Lord King of Bridgwater Portrait Lord King of Bridgwater (Con)
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My noble friend Lord Strathclyde referred to the Government’s commitment to Northern Ireland being part of the United Kingdom. That is also the commitment of the Government of Ireland, originally under the Anglo-Irish agreement and now under the Good Friday agreement, if that is the wish of the majority of the people in Northern Ireland. The Irish Government are completely committed to that. Against that background, both Governments are committed to there being no hard border. Is not the sensible thing now to get on with the negotiation about what sort of trading relationship we will have? Yes, in the present situation we need to agree our financial obligations and the issue of EU citizens here, but the second issue of exactly how we deal with the Northern Ireland situation is something that will emerge out of the agreement on the trading arrangements.

Lord Callanan Portrait Lord Callanan
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My noble friend speaks with the benefit of great experience on this matter, considering some of the previous jobs he has had. I completely agree with him. It is important that we get these talks finished off so we can get on to discussing the substantive area, trade, out of which will fall an agreement on the Northern Irish border.

Lord Hay of Ballyore Portrait Lord Hay of Ballyore (DUP)
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My Lords, I also very much welcome the Statement from the Minister, especially the line,

“we are equally clear that we must respect the integrity of the United Kingdom”.

That is very important. I listened to some Peers earlier, on the Question from the noble Lord, Lord Dykes, blaming the Democratic Unionist Party. I make it clear that the finger should be pointed at Dublin. Dublin’s officials were continually briefing over the weekend, which did not help the situation on Monday when the Prime Minister arrived in Europe. The Democratic Unionist Party’s position has been clear for a number of months, publicly and to the Government. We will reject any deal that would divide Northern Ireland from the rest the United Kingdom and which would see Northern Ireland being treated differently from the rest of the United Kingdom. That is the position with the Government, as with ourselves. Will the Minister agree that any deal that weakens the constitutional position of Northern Ireland within the United Kingdom cannot be acceptable either to the people of Northern Ireland or to the Government?

Lord Callanan Portrait Lord Callanan
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The noble Lord makes some valuable points. These are issues of great sensitivity and complexity. It is very important that we consult all parties before we go further. We are determined to try to get a solution, but it cannot be at the expense of breaking up the United Kingdom.

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Lord Taverne Portrait Lord Taverne
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My Lords, will the Minister explain how any member of the Government could possibly reconcile the idea that part of the United Kingdom would be subject to regulations in effect of the European customs union and the rest would not? Is the position of the DUP on this occasion not impeccably logical?

Lord Callanan Portrait Lord Callanan
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I think for the first time I find myself in agreement with the Liberal Democrats.

Brexit: Release of Impact Assessments

Lord Callanan Excerpts
Tuesday 28th November 2017

(6 years, 11 months ago)

Lords Chamber
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Lord Callanan Portrait The Minister of State, Department for Exiting the European Union (Lord Callanan) (Con)
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My Lords, I shall now repeat in the form of a Statement the Answer given to an Urgent Question in another place. The Statement is as follows:

“On 1 November the House passed a Motion asking that impact assessments arising from sectoral analyses be provided to the Committee on Exiting the European Union. Mr Speaker, this Government take very seriously their parliamentary responsibilities and have been clear that they would be providing information to the committee. In the past three weeks, departments have worked to collate and bring forward this information in a way that is accessible and informative.

I am glad to be able to confirm this information has been provided, not only to the Committee for Exiting the European Union but to the House of Lords EU Committee and, indeed, the devolved Administrations. I can also, with Mr Speaker’s permission, inform the House that we have initiated discussions with the parliamentary authorities to make this information available to all colleagues through a reading room.

We were clear that we would respond to the Motion but also that the documents did not exist in the form requested. Indeed, I made it clear to the House during the debate that day that,

“there has been some misunderstanding about what this sectoral analysis actually is. It is not a series of 58 economic impact assessments”.—[Official Report, Commons, 1/11/17; col. 887.]

The sectoral analysis is a wide mix of qualitative and quantitative analysis, contained in a range of documents developed at different times since the referendum.

The House of Commons has itself recognised that while Ministers should be as open as possible with Parliament, the Government also have an obligation to consider where it would not be in the public interest for material to be published. Furthermore, it is important to recognise that in some cases there may be confidential or commercially sensitive information in this analysis, and that in many cases it has been developed to underpin advice to Ministers of the negotiation options in various scenarios. It is well understood, as was the case under successive Administrations, that such advice to Ministers must remain private. We have also explained that we have a clear obligation not to disclose information when doing so would not be in the public interest.

In light of all that, my right honourable friend the Secretary of State made a Statement on 7 November, in which he explained that, given that the documents did not exist in the form requested, it would take some time,

“to collate and bring together this information in a way that is accessible and informative for the Committee”.—[Official Report, Commons, 7/11/17; col. 231WS.]

He committed that those reports would be provided within three weeks. In providing that information to the committee yesterday, we have met that commitment.

Ministers also have a specific responsibility, which Parliament has endorsed, not to release information that would undermine our negotiating position. Contrary to what has been asserted in some places, the committee did not give any assurances that what was passed to it would not subsequently be published in full. Where there are precedents for Government passing information to Select Committees in confidence, these will be on the basis of assurances received before the material is shared, or a clear set of rules such as those governing intelligence material.

When he met the Secretary of State, the chairman of the committee said that he was willing to enter into a dialogue after the committee had received documents from the Government. This is not the same as an assurance that, if we had provided confidential or sensitive material, it would not be published, and it is not in keeping with the usual practice of committees on these sensitive issues. As such, the sectoral reports do not contain material which would undermine the UK’s hand in the negotiations, or material that is commercially or market sensitive.

Mr Speaker, this debate really seems to be about the “release” of the reports. As you pointed out succinctly yesterday,

‘publication is to the Committee and the matter is in the hands of the Committee’.—[Official Report, Commons, 27/11/17; col. 50.]

Therefore, I suspect many of the questions I receive today should be directed to the chair of the committee and his fellow members. The House should be in no doubt—this has been a very substantial undertaking. We have been as open as possible, subject to the overwhelming national interests of preserving our negotiating position. We have collated over 800 pages of analysis for the committees less than a month from the Motion being passed. This covers all of the 58 sectors.

We now consider the Motion of 1 November 2017 to have been satisfied”.

Baroness Hayter of Kentish Town Portrait Baroness Hayter of Kentish Town (Lab)
- Hansard - - - Excerpts

I thank the Minister for reading out that Statement. Has the Minister read the 58 reports? Assuming he has, does the evidence within these analyses show that leaving the customs union will benefit our economy?

Lord Callanan Portrait Lord Callanan
- Hansard - -

I have not read all the reports, although I have read very many of them. These documents are constantly being updated and collated. New information is coming to light and new facts are emerging, all of which inform our negotiating position. The Government have been very clear that we are leaving the customs union and the single market. I believe that this will be firmly in the country’s best interests.

Baroness Ludford Portrait Baroness Ludford (LD)
- Hansard - - - Excerpts

My Lords, are this Government not a serial offender when it comes to the arrogance of their executive power? The Brexit pledges were all about taking back control and Westminster sovereignty, but Parliament has been refused a decision on Article 50. There has been an attempted power grab in the withdrawal Bill and now there is this.

In her speech to the Conservative Party conference in October last year, the Prime Minister gave many pledges about change, transparency and honesty and how she had heard the call of millions of people. Is it not time to stop hiding from the British people and to stop keeping them in the dark about the Government’s extreme Brexit plans? Should these reports not be published in full, rather than going through a Whitehall whitewash? Why are the Government trying to spare their own blushes and hide from the people the disaster that Brexit will mean for their jobs, their rights and the environment?

Lord Callanan Portrait Lord Callanan
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We are not hiding behind any documents. We have provided an unprecedented level of information to the committee. We have been as open and transparent as possible, subject only to preserving our negotiating position. With the permission of the House, I should like to answer a question which I was not asked, but which I expected to be asked by the noble Baronesses—will the House have access to this material? The answer is yes.

Lord Jay of Ewelme Portrait Lord Jay of Ewelme (CB)
- Hansard - - - Excerpts

My Lords, I can confirm that, as acting chairman of your Lordships’ European Union Committee, I have received these documents. I have not read them all, but I had a chance to look at some of them last night. The committee will have a chance to discuss a way forward at its meeting tomorrow afternoon. It will want to take account of the views expressed in this House this afternoon before it comes to any conclusion.

Meanwhile, will the Minister expand a little on the reference in the covering letter from David Davis to Hilary Benn and to me to,

“aspects of the analyses which may still be sensitive to the negotiations, especially in the context of this particular point in time”.

When will this particular point in time have passed, at which point the sensitivity about releasing the information will presumably also have passed?

Lord Callanan Portrait Lord Callanan
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My Lords, as the House will be aware from media reports, this is a very fast-moving and dynamic negotiation environment. Some people might observe that the negotiations are sometimes not moving as fast as we might like. Nevertheless, things are changing all the time. New information is coming to light; papers are shared and discussions take place with our European partners. It is a complex and varied negotiation and we will be as open and transparent as possible. We will share all the information we possibly can, subject only to preserving our negotiating position. I cannot believe that most Members of the House would think anything else wise to do.

Baroness McIntosh of Pickering Portrait Baroness McIntosh of Pickering (Con)
- Hansard - - - Excerpts

My Lords, does the Minister accept that in the normal course of events, notwithstanding his replies to date, when legislation is published in Parliament there is an impact assessment released for the benefit of parliamentarians? Will he confirm that when, for example, the agriculture and environment Bills come before this place it is the Government’s intention to publish the usual impact assessments at that time?

Lord Callanan Portrait Lord Callanan
- Hansard - -

I am not privy to the details of those Bills, which are being done by different departments, but I would expect that they will publish impact assessments at the time.

Lord Watts Portrait Lord Watts (Lab)
- Hansard - - - Excerpts

My Lords, can the Minister have another go at answering the question put to him about the customs union? Does the report indicate whether it would be a good or bad thing for us to stay in or leave the customs union?

Lord Callanan Portrait Lord Callanan
- Hansard - -

My Lords, I might be repeating myself but this is a series of sectoral analyses, analysing individual sectors of the economy in great detail. They show what things are going on in their sectors, what stakeholders have said to us and other key factors facing us. As I have said, it is the policy of the Government that we will leave the single market and the customs union, because that is in the best interests of satisfying the result of the referendum.

Lord Higgins Portrait Lord Higgins (Con)
- Hansard - - - Excerpts

My Lords, the implication of what my noble friend has said is that the Government announced immediately that we would withdraw from the single market and the customs union before they had all the information, which has now become available. Should they not reassess the position?

Lord Callanan Portrait Lord Callanan
- Hansard - -

My Lords, consistent with the result of the referendum we will be leaving the single market and we will be leaving the customs union.

Lord Hannay of Chiswick Portrait Lord Hannay of Chiswick (CB)
- Hansard - - - Excerpts

My Lords, will the Minister confirm what I think I understood from his answer to one question, which is that the 850 pages form a completely different document to that which the Government put together on the basis of 58 sectoral analyses? If he does confirm that, can he explain why it was that in the debate in the other place on revealing the 58 studies, nobody from the government side explained that they were being asked, as he said, for something that did not exist?

Lord Callanan Portrait Lord Callanan
- Hansard - -

No, they are not completely different documents. Much of the material is the same as it was in the original documents. Some of them were drawn up two years ago and some more recently. We thought that they should be updated and the information in them is often more current. There is more information in them than in some of the original documents. We think it is in a more accessible and open format.

Lord Wallace of Saltaire Portrait Lord Wallace of Saltaire (LD)
- Hansard - - - Excerpts

My Lords, the Government state that this is unprecedented. I declare an interest: I was involved in an earlier exercise which the Conservatives in 2010 demanded, under the coalition agreement, that the Liberal Democrats should have access to. We had 32 detailed reports on the balance of competences between the United Kingdom and the European Union, which I negotiated as a Minister with David Lidington and Greg Clark. When they came out, Number 10 was very unhappy that almost all of them said that the single market was clearly in Britain’s interest and that the balance of regulations suited industry and other stakeholders. It did its best to suppress them; they were usually published as we broke up for the summer or for Christmas. Unfortunately, in the run-up to the referendum not only the leave campaign but the Conservatives in the remain campaign ignored that evidence base. Can we be sure that this time the Government will not ignore evidence as they continue these negotiations?

Lord Callanan Portrait Lord Callanan
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My Lords, of course we will not ignore evidence, but the Liberal Democrats seem to want to ignore the result of the referendum. The referendum result was clear and the Article 50 Bill was passed in both Houses. We are leaving the European Union, and of course we will use all available information to inform our negotiating position. This is the most important negotiation that any Government have carried out for many years. We are determined to get it right, and we are determined to get a good deal for the United Kingdom.

Lord Harris of Haringey Portrait Lord Harris of Haringey (Lab)
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The noble Lord has told us that we are ignoring the result of the referendum. Nobody is arguing about the result of the referendum. However he did say in response to my noble friend Lady Hayter’s question that he had read “some” of these sectoral analyses, but he did not answer her question about what those sectoral analyses told him. He simply asserted that it is in the long-term interest of the United Kingdom to leave the European Union. What did the sectoral analyses that he has read say about whether it is good or bad for those sectors in terms of leaving the EU?

Lord Callanan Portrait Lord Callanan
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I have my view on what they said, but the noble Lord will be able to judge for himself. We will make these documents available in a reading room, and he can read them and then come back and argue the point then.

Lord Hamilton of Epsom Portrait Lord Hamilton of Epsom (Con)
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Can my noble friend confirm that one reason why it is a bad idea to stay in the customs union is because we would not be able to negotiate free trade deals with other countries all round the world?

Lord Callanan Portrait Lord Callanan
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My noble friend makes a very informed point.

Lord Pannick Portrait Lord Pannick (CB)
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My Lords, in relation to a matter of this importance and the release of information, is it really right that the Government should be judge in their own court? Would the Government be prepared to let independent people, perhaps a group of privy counsellors, look at the information that has not been revealed and decide whether more of it should be revealed to the House of Commons and to this House?

Lord Callanan Portrait Lord Callanan
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My Lords, many Members of this House are independent and we fully value their judgment. They will be able to look at the documents. Many Members are on the Brexit Select Committee and I am sure they will let us know their point of view in due course.

Personal Statement

Lord Callanan Excerpts
Monday 20th November 2017

(7 years ago)

Lords Chamber
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Lord Callanan Portrait The Minister of State, Department for Exiting the European Union (Lord Callanan) (Con)
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My Lords, with the leave of the House, I would like to make a short personal statement. Last Monday I repeated a Statement to the House to provide an update on negotiations between the UK and the European Union in November. Following that Statement, I responded to a question from my noble friend Lord Ridley regarding the Supreme Court’s view on the revocability of Article 50. My response to my noble friend was incorrect, as a result of a misunderstanding of the question on my part. I am grateful to the noble Baroness, Lady Hayter, who highlighted my mistake. I undertook to check the record, which I subsequently did, and then wrote to the noble Baroness the following day to clarify my remarks and make it clear that the Supreme Court did not opine on the revocability of Article 50 during the case. A copy of this correspondence was placed in the Library of the House last Tuesday afternoon.

I would like to take this opportunity to clarify the Government’s understanding of the Supreme Court case. To reiterate, for the avoidance of any doubt, the Supreme Court proceeded in the Miller case on the basis that Article 50 would not be revoked but did not rule on the legal position regarding its revocability. It was, and remains, the Government’s policy that our notification of Article 50 will not be withdrawn. This House has a huge amount to contribute to debates about our exit from the European Union, and my door remains open to anyone who wishes to discuss this with me.

Once again, I am grateful to the House for this opportunity to make a statement. I recognise that my comments have caused confusion, and I apologise for that.

Brexit: Data Transfer

Lord Callanan Excerpts
Thursday 16th November 2017

(7 years ago)

Lords Chamber
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Lord Paddick Portrait Lord Paddick (LD)
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My Lords, on behalf of my noble friend Lady Ludford, and at her request, I beg leave to ask the Question standing in her name on the Order Paper.

Lord Callanan Portrait The Minister of State, Department for Exiting the European Union (Lord Callanan) (Con)
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My Lords, the Government set out their approach to our future data relationship with the EU in our paper published in August. The paper examines the UK’s unprecedented point of alignment to the point of exit with the EU’s data framework and explores a future EU-UK model for exchanging and protecting personal data, which could build on the existing adequacy model.

Lord Paddick Portrait Lord Paddick
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My Lords, in preparation for Brexit, this House is currently engaged in the process of enshrining European law on data protection into UK law—copying and pasting European legal language that is alien to the UK legal system in many cases. So much for taking back control. As the UK is rejecting all European redress systems, how does the UK expect to secure permission to continue exchanging data once we have left the European Union?

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Lord Callanan Portrait Lord Callanan
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My Lords, the deep and special partnership that we wish to negotiate will provide sufficient stability for businesses, public authorities and individuals, and will enable the UK’s Information Commissioner’s Office and partner EU regulators to maintain effective regulatory co-operation and dialogue for the benefit of those living and working in the EU.

Lord Foulkes of Cumnock Portrait Lord Foulkes of Cumnock (Lab)
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My Lords, has the Minister seen the disturbing reports in the media today that the Russian Government have been using data transfer through social media to influence the outcome of the EU referendum in favour of the leave side? Does this not now cast doubts on the legitimacy and credibility of that referendum? I understand that it is to be investigated by the Intelligence and Security Committee. Does the Minister not now agree that that referendum can no longer be considered to represent the will of the British people?

Lord Callanan Portrait Lord Callanan
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Unsurprisingly, the noble Lord will find that in fact I do not agree with him. He should not necessarily believe everything he reads in the press and the media—particularly those bits for which he is responsible.

Baroness Hayter of Kentish Town Portrait Baroness Hayter of Kentish Town (Lab)
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I am sorry to do this, but I had hoped that the Minister was going to make a statement. The last time he was at the Dispatch Box he will recall that I rose to correct something that he had said. I am loath to do this in front of the noble Lord, Lord Pannick, who knows this better than me. The Minister was requested by the noble Viscount, Lord Ridley, to,

“confirm that the judgment of the Supreme Court in the case brought by Gina Miller confirms in precise terms that Article 50 is irreversible”.—[Official Report, 13/11/17; col. 1845.]

The Minister said, “I can confirm that”—but it is clearly not the case. Paragraph 26 of the judgment makes it clear that, although the Government asserted as a matter of law and not just of policy that it was irreversible, the Supreme Court judges ruled that they took no view on that. They did not express a view at that point on the legal assertion that the Government made. Will the Minister take this opportunity to clarify from the Dispatch Box the position that, when the Government made the legal claim that it was irrevocable, it was not what the Supreme Court found—it made no view on it?

Lord Callanan Portrait Lord Callanan
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My Lords, I am happy to confirm that, as a matter of firm policy, our notification of Article 50 will not be withdrawn. This was the position the Government put forward—

None Portrait Noble Lords
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Oh!

Lord Callanan Portrait Lord Callanan
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Perhaps noble Lords could wait for the rest of the answer, please. This was the position that the Government put forward in the Supreme Court case. The Supreme Court proceeded on this basis and decided that it was not necessary for it to consider the legal position on this specific point any further. We have laid a letter in the Library of the House to the same effect.

Lord Forsyth of Drumlean Portrait Lord Forsyth of Drumlean (Con)
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My Lords, does my noble friend not agree that it is high time that the Members on the Liberal Democrat Benches and others accepted the decision of the British people and joined Team UK and started arguing for the interests of our country rather than against them?

Lord Callanan Portrait Lord Callanan
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As usual, the noble Lord is correct. It would be nice to think that Members opposite would be in favour of getting a good deal on behalf of the UK. I assume that they are all democrats and would therefore want to respect the result of the referendum.

Lord Pannick Portrait Lord Pannick (CB)
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The Minister said earlier that there will continue to be full co-operation between this country and the EU in relation to data. Can he please explain how that will occur if this country does not follow the judgments of the Court of Justice in Luxembourg on that issue, and if the laws of this country therefore diverge from those of the EU?

Lord Callanan Portrait Lord Callanan
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My Lords, we have said that, in exiting the European Union, we will bring to an end the direct jurisdiction of the Court of Justice of the European Union in the UK. This is without prejudice to the final details of the negotiations and the implementation period—but we are very clear on that point.

Lord Kerr of Kinlochard Portrait Lord Kerr of Kinlochard (CB)
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My Lords, I am very grateful to the Minister for correcting the record of what he inadvertently said on Monday when he affirmed that the Supreme Court expressed no view on the question of revocability—on which I have a clear view. Perhaps he might suggest to his noble friend Lord Ridley, who misled him into misleading the House, that it would be appropriate also for him to withdraw his remarks.

Lord Callanan Portrait Lord Callanan
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The noble Lord has a widely expressed opinion on Article 50, but I think he will find that 17.4 million of our fellow citizens also had an opinion.

Lord Cormack Portrait Lord Cormack (Con)
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My Lords, before we get into too tetchy an argument, and further to what my noble friend Lord Forsyth said a few moments ago, would my noble friend acknowledge that to state the facts and to question how we are tackling the European negotiations is not to be unpatriotic?

Lord Callanan Portrait Lord Callanan
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I am very happy to agree with my noble friend that of course questioning matters of policy, tabling amendments and debating the important legislation that is going through this House and another place is not unpatriotic. It is a duty of parliamentarians.

Viscount Waverley Portrait Viscount Waverley (CB)
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My Lords, does democracy supersede a bad deal?

Lord Callanan Portrait Lord Callanan
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As we are not contemplating getting a bad deal, I do not think that the question applies.

EU Exit Negotiations

Lord Callanan Excerpts
Monday 13th November 2017

(7 years ago)

Lords Chamber
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Lord Callanan Portrait The Minister of State, Department for Exiting the European Union (Lord Callanan) (Con)
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My Lords, with the leave of the House, I will now repeat a Statement made in the other place earlier today by my right honourable friend the Secretary of State for Exiting the European Union. The Statement is as follows:

“With permission, Mr Speaker, I will update the House on negotiations between the UK and the European Union in November, reflecting our actions since the October Council. Both the UK and the EU recognised the new dynamic instilled in the talks by the Prime Minister’s Florence speech.

At the October European Council, the 27 member states responded by agreeing to start their preparations for moving the negotiations on to trade and the future relationship we want to see. The Council conclusions also called for work to continue, with a view to being able to move to the second phase of the negotiations as soon as possible.

It is, of course, inevitable that our discussions are now narrowing to the few outstanding—albeit important—issues that remain. Last week, our focus was concentrated on finding solutions to those remaining issues. As we move forward towards the December Council, we have been clear with the EU that we are willing to engage in discussions in a flexible and constructive way in order to achieve the progress needed. To this end, our teams are in continuous contact, even between the formal rounds. I now turn to the three, key, ongoing areas of discussions, and will outline progress made last week on each of these.

We have made solid progress in our ongoing discussions on Northern Ireland and Ireland. Key areas of achievement include: continued progress in technical discussions on preserving north-south co-operation; agreed joint principles on the continuation of the common travel area and associated rights; and drafting further joint principles on how best we preserve north-south co-operation under the Belfast agreement to help guide the specific solutions to the unique circumstances in Northern Ireland. Both sides also remain firmly committed to avoiding a hard border—a point we have remained clear on throughout. We also remain resolutely committed to upholding the Belfast/Good Friday agreement, in all its parts, and to finding a solution that works for the people of Northern Ireland and Ireland.

We have continued to hold frank discussions with our Commission counterparts about all these issues. But in this area we have also had to be very clear with our Commission counterparts that, while we respect their desire to protect the legal order of the single market and customs union, that cannot come at the cost of the constitutional or economic integrity of the United Kingdom. As I have said, we cannot create a ‘new border’ within the United Kingdom. This is an area where we believe we will only be able to conclude talks finally in the context of our future relationship. Until such time as we can do so, we need to approach the issues which arise with a high degree of political sensitivity, pragmatism and creativity. Discussions on these areas will continue in the run-up to the December Council.

We have continued to make good progress on citizens’ rights. Both sides are working hard towards resolution of outstanding issues. Last week, to respond to the request for reassurances by the EU, we published a detailed description of our proposed administrative procedures for EU citizens seeking settled status in the UK. As our paper demonstrates, the new procedures will be as streamlined, straightforward and low-cost as possible and will be based on simple, transparent criteria, which will be laid out in the withdrawal agreement.

While there remain differences on the issues of family reunion and the export of benefits, we have been clear that we are willing to consider what further reassurance we can provide to existing families of EU residents here, even if they are not currently living together in the UK. I believe that this paves the way to resolving the remaining issues in this area, and this was acknowledged by the Commission on Friday. There also remain some areas where we are still seeking further movement from the EU. These are voting rights, mutual recognition of qualifications, and onward movement for British citizens currently living in the EU 27. In all of these three areas, the UK’s offer goes beyond that of the EU.

Finally, the Commission has fallen short of the UK’s offer in relation to the right to stand and vote in local elections. This is a core citizen’s right, enshrined in the EU treaties. I have been disappointed that the EU has been unwilling to include voting rights in the withdrawal agreement so far. As a result, we will pursue this issue bilaterally with member states.

This week we have also sought to give further clarity on our commitment to incorporate the agreement we reach on citizens’ rights into UK law. This will ensure that EU citizens in the UK can directly enforce their rights in UK courts, providing certainty and clarity for the long term. We have made it clear that over time, our courts can take account of rulings of the European Court of Justice in this area to help to ensure consistent interpretation. However, we remain clear that, as we leave the EU, it is a key priority for the UK to preserve the sovereignty of our courts and, as such, in leaving the EU, we will bring an end to direct jurisdiction of the ECJ.

It is not my intention to pre-empt the Committee stage of the European Union (Withdrawal) Bill but what I say next will have some relevance to it. It is clear that we need to take further steps to provide clarity and certainty, both in the negotiations and at home, regarding the implementation of any agreement in UK law. I can now confirm that, once we have reached an agreement, we will bring forward a specific piece of primary legislation to implement that agreement. This will be known as the withdrawal agreement and implementation Bill. This will confirm that the major policies set out in the withdrawal agreement are directly implemented in UK law by primary legislation, not by secondary legislation under the withdrawal Bill. This also means that Parliament will be given time to debate, scrutinise and vote on the final agreement that we strike with the EU. This agreement will hold only if Parliament approves it.

We expect this Bill to cover the contents of the withdrawal agreement, including issues such as an agreement on citizens’ rights, any financial settlement and the details of an implementation period agreed between both sides. Of course, we do not yet know the exact details of this Bill and are unlikely to do so until the negotiations are near completion.

I should also tell the House that this will be over and above the undertaking that we have already made to bring forward a Motion on the final deal as soon as possible after the deal is agreed, and that we still intend and expect such a vote on the final deal to happen before the European Parliament votes on it. There cannot be any doubt that Parliament will be intimately involved at every stage.

Finally, on the financial settlement, the Prime Minister’s commitment made in her Florence speech stands: our European partners will not need to pay more or receive less over the remainder of the current budget plan as a result of our decision to leave. The UK will honour the commitments we have made during the period of our membership. This week we made substantial technical progress on the issues which underpin these commitments.

This has been a low-key but important technical set of negotiations, falling, as it has, between two European Councils. This is now about pinpointing further technical discussions that need to take place and moving forward into political discussions and decisions. We must now also look forward to moving our discussions on to our future relationship. For this to happen, both parties need to build confidence in both the process and indeed the shared outcome.

The United Kingdom will continue to engage and negotiate constructively as we have done since the start, but we need to see flexibility, imagination and willingness to make progress on both sides if these negotiations are to succeed and we are able to realise our new partnership. I commend this Statement to the House”.

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Baroness Smith of Newnham Portrait Baroness Smith of Newnham (LD)
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My Lords, I am grateful to the Minister for repeating the Secretary of State’s Statement to the other place.

The Secretary of State seems to suggest that there has been a lot of activity and progress in recent weeks. That seems to be rather at odds with everything we have been hearing from Monsieur Barnier and the EU 27. One wonders who has been misled or has misunderstood what has happened in the past few weeks. The Secretary of State suggested that there has been a narrowing to only a few aspects of the remaining issues, which he then goes on to talk about: the budget and what the United Kingdom will have to pay as the divorce settlement; the rights of EU citizens; and the question of Ireland and Northern Ireland. Those are the same three issues that we have been looking at ever since the decision to leave the European Union was taken in June of last year. The idea that there has been a narrowing in these areas is interesting, but it is not yet clear what is really meant. In particular, in the context of the budget, we have heard frequently that the clock is ticking. However, while the clock is ticking, the value of sterling is falling—and every time sterling falls, the amount of money that the United Kingdom will owe in euros rises.

Instability in the Government is hugely damaging to the United Kingdom’s negotiations. What is the Prime Minister doing to ensure that her Government become more stable and secure and give a clearer sense to the 27 that they know what they are doing and that they have the same clarity of purpose as the 27? The Secretary of State suggested that it is important that both sides have confidence in the process and the shared outcome. However, the 27 have a clarity of purpose—we know what they are looking for—but do they know what the United Kingdom is looking for? It is not yet clear that they do.

The United Kingdom has been given two weeks to sort out our budget offer. What plans have Her Majesty’s Government put in place to ensure a solution so that, by December, progress can be made in phase 2? At present we have heard nothing at all from the Secretary of State. Is the Chancellor of the Exchequer in the loop? Is his input being asked for, or is the “flexible and constructive” approach that the Secretary of State is looking for required only of the Prime Minister, with the back-seat drivers of Gove and Johnson telling her what she should say or think?

As the noble Baroness, Lady Hayter, suggested, some thought is being given to putting 29 March 2019 in the Bill. Is that perhaps to do with the Brexiteers trying to pull the Prime Minister’s strings? Putting the date in the Bill is surely one of the worst things the Government could do. It would tie the Prime Minister’s hands and we should not support it.

In June, when we had the unnecessary general election that was supposed to be a Brexit election, the idea was that we would have a strong and stable Government leading the negotiations. How fanciful that now seems. Can the Minister assure us that the Prime Minister, the Secretary of State and the whole Cabinet are united in pushing, with one voice, for the best outcome for the United Kingdom? Do they have clarity of purpose? In getting the best deal for the United Kingdom, can they reassure in particular the citizens of Northern Ireland that the deal will be for the whole of the United Kingdom, and that our kingdom will remain united? It is not the European Commission that is jeopardising the integrity of the United Kingdom but Her Majesty’s Government’s unwillingness to have an agreement that will allow Ireland to remain without a closed border.

It is hugely important that the future relationship is clarified. That can be done only if Her Majesty’s Government have their own view of what that relationship should be. Can the Minister tell the House what the Government’s view is? Is there any clarity of purpose?

Finally, on citizens’ rights, many of us will welcome the idea that Her Majesty’s Government would like EU citizens to be able to vote in local elections. However, the Secretary of State points out that this is one of the rights of EU citizens that is enshrined in the treaties. Yes, it is—many of us passionately believe that we wanted to keep, still want to keep and do not want to throw away the rights of EU citizens. Does David Davis agree with us? Is he reluctant to see British citizens lose their citizenship rights? Would he prefer that the United Kingdom should remain part of the EU treaties? Have we made a huge mistake? Should we retain citizens’ rights by simply not leaving the European Union?

Lord Callanan Portrait Lord Callanan
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I thank the noble Baronesses, Lady Hayter and Lady Smith, for their questions. I will deal with them all in turn. Both noble Baronesses asked me about the amendment on the date, tabled in another place. The amendment was in response to amendments tabled by Members of the House of Commons—led by a Labour Member of Parliament, I think—saying that the Government should clarify the exact leaving date. That date was triggered also by the submission of the Article 50 notification letter—approved by both Houses—and will be two years from then. The noble Baroness, Lady Smith, is very keen to abide by EU treaties; as she well knows, the two-year date is set down in them, unless it is extended by the unanimous vote of the other 27 EU members. We are leaving the EU on 29 March 2019, implementing the result of the referendum that was also approved in both Houses.

We recognise the need for specific solutions to the unique circumstances of Northern Ireland and we have made good progress in the negotiations. We have proposed that the UK and EU seek to agree text for the withdrawal agreement that recognises the ongoing status of the common travel area and associated reciprocal arrangements. We have developed joint principles on this, and are drafting joint principles and commitments that will guide the solutions drawn up in the second phase. Both sides agree that the Good Friday agreement on citizenship rights must be upheld, and we are committed to working together on how that is best codified.

The noble Baroness, Lady Smith, asked me a number of questions. We have a good record: we have compromised in all the areas that the EU has thought to negotiate on. Now it is about time we saw some compromise from the EU side. We have compromised on both our budget offer and citizens’ rights. It would be nice to see some support from the parties opposite for the UK position. In terms of the budget, billions of pounds of taxpayers’ money are involved. Are the Opposition saying that we should just hand over a cheque and agree to whatever the European Commission demands? Of course we have to negotiate. The Prime Minister made a very generous offer in her Florence speech, involving considerable amounts of money. Now it is for the EU side to reciprocate with a budget offer of its own. We are very clear that, in all these areas, as set down in the EU negotiations, nothing is agreed until everything is agreed. These areas cannot all be sorted until there is a final agreement on the shape of the agreement and future customs arrangements, which will also help to enlighten our discussion on the border in Northern Ireland.

Lord Lamont of Lerwick Portrait Lord Lamont of Lerwick (Con)
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I thank my noble friend for the Statement. I welcome in particular what he said about the European Court of Justice. Can he clarify what exactly is meant in the Statement? He says that we will bring to an end the direct jurisdiction of the European Court of Justice but at the same time he says that our courts can take account of the rulings of the ECJ in this area to help to ensure consistent interpretation. Can he expand on that and explain how the Government think that will work? Secondly, can he say something about the timing of the withdrawal Bill: when does he expect it to be available to Parliament; when will the vote take place; and will that be closely linked to the vote on withdrawal, which I think is a separate matter?

Lord Callanan Portrait Lord Callanan
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On the issue of the ECJ, I do not want to go any further than the Statement. We will end the direct application of the European Court of Justice in the UK. That is entirely right—we would not expect a foreign court in any other country or organisation to have effect on UK citizens or the UK judicial process. We expect the debate and vote on the withdrawal Motion to take place before the withdrawal Bill—but of course we cannot have a withdrawal Bill until we have an agreement to withdraw from.

Lord Butler of Brockwell Portrait Lord Butler of Brockwell (CB)
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My Lords, I agree that the offer made by the Prime Minister in her Florence speech on the financial settlement was generous. Will the Minister confirm that any such settlement will be paid over a number of years, not as a capital sum, and must be contingent on satisfactory progress on other aspects of our future relationship?

Lord Callanan Portrait Lord Callanan
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The noble Lord makes a very good point from the benefit of his experience. These are matters that will be determined during the ongoing negotiation.

Lord Bridges of Headley Portrait Lord Bridges of Headley (Con)
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My Lords, I very much welcome the Statement. Will my noble friend clarify one small point on one word, “implementation”? My understanding is that we will not be able to negotiate the new relationship with the EU under Article 50. Therefore, when it comes to implementing measures via the Bill, those measures would refer solely to the transition.

Lord Callanan Portrait Lord Callanan
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We cannot conclude the final trade deal until we have left the EU, but we are very clear that we want to get the heads of agreement and its terms sorted before we leave.

Lord Lester of Herne Hill Portrait Lord Lester of Herne Hill (LD)
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My Lords, at present, European citizens resident in this country have their basic rights protected by the European Court of Justice. The Government intend to take that basic right away and, as I understand it, substitute our own courts, with a rather vague and difficult to understand obligation relating to the Luxembourg court. Will the Government accept that in doing all that, they are making the rights of European citizens in this country less well protected than at present?

Lord Callanan Portrait Lord Callanan
- Hansard - -

My Lords, no, I would not accept that. We have one of the finest judicial and court systems in the world. I, along with many other citizens, am perfectly happy for our rights to be guaranteed by our ancient and well-respected judicial system. We do not need to have the ECJ telling us how to do that.

Lord Hannay of Chiswick Portrait Lord Hannay of Chiswick (CB)
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My Lords, will the Minister clarify a point concerning the new primary legislation, which, if I understand correctly, will represent the entry into our domestic law of the commitments we reach on withdrawal? Would that have to be completed before the date the Government wish to put in for our exit? Otherwise, we would not be capable of ratifying the withdrawal agreement. Will he also clarify a point on the jurisdiction of the Court of Justice? Is he quite sure that what the Prime Minister wisely proposed in Florence for what was effectively close to a standstill for about two years will, in the eyes of our 27 negotiating partners, require us to accept the jurisdiction of the Court of Justice during that period?

Lord Callanan Portrait Lord Callanan
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My Lords, we cannot have a withdrawal Bill until we have a withdrawal agreement, so the date of the Bill will depend on when we can make a withdrawal agreement. As to the noble Lord’s second question, I cannot speak for what our partners expect us to want to do.

Lord Soley Portrait Lord Soley (Lab)
- Hansard - - - Excerpts

The Minister said we had given many concessions to the European Union. He is right, we have, but that is because we went into this ill-prepared and without a strategy. Listening him, it is very hard to be convinced that we have a strategy even now, because I cannot see how this process will lead to a successful outcome for the United Kingdom unless we are much clearer about money and the transition arrangements.

Lord Callanan Portrait Lord Callanan
- Hansard - -

I think we have made excellent progress on all those issues so far in the negotiation. We have made very generous offers on the three issues the EU said it wanted to talk about first: Ireland, citizens’ rights and the budget. We are waiting for our partners to reciprocate with the generous proposal we have made.

Lord Garel-Jones Portrait Lord Garel-Jones (Con)
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My Lords, I ask my noble friend the Minister to comment on the ruling of the Supreme Court in this matter:

“The 2016 referendum is of great political significance. However, its legal significance is determined by what Parliament included in the statute authorising it, and that statute simply provided for the referendum to be held without specifying the consequences. The change in the law required to implement the referendum’s outcome must be made in the only way permitted by the UK constitution, namely by legislation”.


Does that not mean that, while we obviously wish the Government well in the negotiations, the final outcome will be judged by Parliament?

Lord Callanan Portrait Lord Callanan
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Of course, we have said that Parliament will get a final vote on the withdrawal agreement, and we have just announced that there will be legislation to implement that. Parliament also voted for Article 50 to be implemented and the EU notified that we are leaving the organisation on 29 March 2019.

Lord Wallace of Tankerness Portrait Lord Wallace of Tankerness (LD)
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My Lords, the Statement refers to the negotiations regarding the right to stand and vote in local elections. Given that European Union citizens can also stand and vote in Scottish Parliament elections, and the franchise for Scottish Parliament and Scottish local government elections is wholly devolved to the Scottish Parliament, can the Minister clarify the Government’s position with regard to standing and voting in the devolved elections and whether the Scottish Government have been involved in this particular part of the negotiations?

Lord Callanan Portrait Lord Callanan
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We are having regular discussions with the devolved Administrations. The Scottish Government, the Welsh Government and civil servants in Northern Ireland were informed of our proposals to introduce the withdrawal Bill.

Viscount Ridley Portrait Viscount Ridley (Con)
- Hansard - - - Excerpts

My Lords, further to what my noble friend said about fixing the date of withdrawal and to what the noble Lord, Lord Garel-Jones, said, can he confirm that the judgment of the Supreme Court in the case brought by Gina Miller confirms in precise terms that Article 50 is irreversible, in contrast to what the noble Lord, Lord Kerr, has said?

Lord Callanan Portrait Lord Callanan
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I can confirm that. It is also stated by the European Commission that Article 50, once invoked, is irrevocable unless there is political agreement on it.

Lord Elystan-Morgan Portrait Lord Elystan-Morgan (CB)
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My Lords, does the Minister agree that the notice given in March this year in relation to Article 50 was not a notice of withdrawal but a notice of intention to withdraw? Does he appreciate that our distinguished colleague, the noble Lord, Lord Kerr, and the vast mass of distinguished legal authority are of the opinion, therefore, that such a notice can be withdrawn unilaterally? Will the Government, especially in the light of today’s Statement, no longer hide behind any artifice to try to delude the public into believing that they have no view on that matter? Will they come clean and state that they accept totally that that is the situation?

Lord Callanan Portrait Lord Callanan
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My Lords, no, I will not confirm that, because it has been stated by legal opinion on this side of the water and in the EU that Article 50 is not revocable. It all flies in the face of the results of the referendum. It is fine for Members of this House to say that we should just ignore the result, but 17.4 million people voted to leave the European Union in one of the largest democratic exercises that we have ever held. If we think that democracy is at a low ebb in this country, let us imagine what would happen if we ignored what happened in that referendum.

Lord Cormack Portrait Lord Cormack (Con)
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My Lords, my noble friend will of course acknowledge that 48% of people did not vote that way, but perhaps I may ask him one specific question. He has several times said today that good progress has been, or is being, made. If that is so, that is very good, but can he tell us one single thing on which there is now agreement?

Lord Callanan Portrait Lord Callanan
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We have made good progress on a number of issues. There are many areas of agreement; for instance, on proposals on citizens’ rights—I could read them all out if my noble friend wanted to stay for 20 minutes afterwards.

Lord Watts Portrait Lord Watts (Lab)
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My Lords, can the Minister explain the benefits of putting the date in the Bill, given that many noble Lords have raised the problems that may arise?

Lord Callanan Portrait Lord Callanan
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The Government are responding to many representations made from all sides in the other place—many amendments have been submitted. We have said that we will listen to opinion and we are doing precisely that.

Lord Wallace of Saltaire Portrait Lord Wallace of Saltaire (LD)
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My Lords, to the question asked earlier by the noble Lord, Lord Lamont, about the impact of leaving on our relationship with the European court—although the noble Lord could perhaps have altered his emphasis a little—the Statement says that we intend to bring an end to the “direct jurisdiction” of the European court. I presume that we will therefore have to find some way of having a court of arbitration which will mediate between the EU and the UK—incidentally, it will impact on the sovereignty and integrity of the British judicial system, because that is what courts of arbitration unavoidably do across a whole range of issues. Are the Government confident that they can square that circle, or do they think that taking ourselves out of the European Union and out of the European court, where we currently have a judge, will leave us stronger rather than weaker in our obedience to international law and our ability to negotiate it to our advantage? The US Commerce Secretary has suggested that when we leave the European Union, the Americans will simply expect us to accept US regulations without any say on a range of problems. Is that the sort of situation we will be in?

Lord Callanan Portrait Lord Callanan
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My Lords, of course, if our manufacturers export to the United States, they have to accept American legislation; if they export to China, they have to accept Chinese legislation. Once the agreement is made, there will have to be some form of arbitration, but that is to be negotiated.

Lord Birt Portrait Lord Birt (CB)
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My Lords, if we reach a successful accommodation, as we all must hope, in phase 1, we have to move phase 2—a negotiation of unparalleled complexity. The Prime Minister will have heard today a clamour from British and European business for clarity about what the endgame is, yet we understand that the Cabinet has yet to meet to discuss what it wants to achieve from this second-phase negotiation. When will the Cabinet meet, unite and decide?

Lord Callanan Portrait Lord Callanan
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My Lords, I shall not comment on internal government discussions, but it is very clear that we want a full and comprehensive free trade agreement with our European partners.

Lord Robathan Portrait Lord Robathan (Con)
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My Lords, does my noble friend think that the behaviour of the EU negotiators and the rather arrogant attitude of people such as Michel Barnier and Jean-Claude Juncker have led to a feeling among the population who voted to remain in the EU that they should perhaps leave instead? My impression is, and most commentators seem to think, that the British population is moving much more towards a position of leave rather than of remain. Perhaps people in this House should accept the decision of the British people and not try to revisit it.

Lord Callanan Portrait Lord Callanan
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I would certainly agree with that, although I do not hold out hope that they might. Yes, of course, there has to be compromise on both sides. We have made very reasonable proposals, including moving on some very sensitive issues. We are waiting for a reciprocal response from the other side of the negotiations.

Baroness Miller of Chilthorne Domer Portrait Baroness Miller of Chilthorne Domer (LD)
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My Lords, the Minister offered to read out a list of points where agreement has been reached. For UK citizens living abroad and EU citizens living here, it would be immensely useful if he did so, because they have serious planning to do.

Lord Callanan Portrait Lord Callanan
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Rather than detain the House, I would be happy to write to the noble Baroness and publish the response. We have been very open about the areas on which we have reached agreement. They have been well publicised, but I will write to her with further details.

Lord Hylton Portrait Lord Hylton (CB)
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My Lords, as regards Northern Ireland, will the Minister confirm or deny that the Commission has proposed to bring forward something analogous with China and Hong Kong or China and Macau? Is this true and, if so, is it helpful?

Lord Callanan Portrait Lord Callanan
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A number of proposals have been flying around and I am sure that the noble Lord would not expect me to comment on the basis of leaked documents, but we have been very clear about our objectives. Those objectives are shared by us, by the Irish Government and by the European Commission; we just need to find a practical and realistic way to bring that into effect.

Lord Gadhia Portrait Lord Gadhia (Non-Afl)
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My Lords, does my noble friend agree that CETA is not a “perfectly good starting point” for any trade agreement with the EU—to quote the words of the Secretary of State, David Davis? CETA has no chapter on services, which represent 80% of our GDP, and our trade with the EU is eight times larger than Canada’s. Surely we need to be much more ambitious in protecting the UK economy and jobs in any Brexit trade deal.

Lord Callanan Portrait Lord Callanan
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We have been very open that we do not want to copy any existing agreement. We want a bespoke, made-to-measure agreement that is suitable for both ourselves and the EU, because free trade benefits both sides. We think that an agreement is achievable. If both sides show commitment and willingness, we can work towards it and we should be able to achieve it.

Lord Beith Portrait Lord Beith (LD)
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My Lords, how many delegated powers, and indeed clauses, will now be removed from the existing withdrawal Bill to satisfy the indication given today that powers which should be in primary legislation will be in primary legislation under the Government’s revised approach?

Lord Callanan Portrait Lord Callanan
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I am sure there will be lots of discussions and negotiations on all the clauses in the withdrawal Bill in the other place, and I am sure that we might have one or two suggestions to make in this House also.

Lord Empey Portrait Lord Empey (UUP)
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My Lords, the Minister led with the discussions in Ireland. As the noble Lord, Lord Hylton, said, there was a paper floating around using a parallel with Hong Kong and Macau, as if we are some kind of colony. May I say to the Minister that I do not agree with his assessment that there is agreement between the UK Government and the Irish Government? The Irish Government are contradicting the position of the UK Government by saying that we need to remain in the single market and the customs union. Mr Verhofstadt, the European Parliament’s rapporteur, is saying the same thing. They are both wrong, and if that is where we are today, we have a lot of work to do. Will the Minister please confirm that our UK Government will make it absolutely clear that we will not allow an internal border to be created within the United Kingdom? If our time and effort, at this stage, is still being spent arguing about that fundamental point, we have a very long way to go.

Lord Callanan Portrait Lord Callanan
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The noble Lord speaks with great authority on this subject and I am happy to confirm to him that we will not agree to the imposition of an internal border in the UK.

Lord Mackenzie of Framwellgate Portrait Lord Mackenzie of Framwellgate (Non-Afl)
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My Lords, can the noble Lord help me? If we crash out of the EU without agreement, as is quite possible, where would that leave European citizens in this country and British citizens living in the EU? What would their legal position be?

Lord Callanan Portrait Lord Callanan
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My Lords, we hope that we will be able to get an agreement, but if we are not, they will be subject to the same rights as they are at the moment under the British courts.

Lord Marlesford Portrait Lord Marlesford (Con)
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My Lords, on the point raised a moment ago about Northern Ireland, surely we already have a perfectly satisfactory arrangement between the Republic of Ireland and Britain, on the one side but not on the other, in that anyone flying into the Republic of Ireland from Britain is required to show their passport. People flying from the Republic of Ireland into Britain are not required to show their passports. From Britain to Ireland, you are required to show your passport, but not from Ireland to Britain. Of course, as a lot of people travel who are not EU citizens, scrutiny of passports is desirable. The idea that scrutinising passports forms a hard border is nonsense: it is no more a hard border, or denying the rights of people in Northern Ireland, to ask them to show their passports than it would be if Members of your Lordships’ House refused to wear their passes on the grounds that they have the right to be here anyway, so why should they wear them?

Lord Callanan Portrait Lord Callanan
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My noble friend makes an important point. The UK and Ireland benefited from a common travel area long before we were both members of the European Union.

Baroness Hayter of Kentish Town Portrait Baroness Hayter of Kentish Town
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My Lords, before we finish I ask the noble Lord to look at the report in Hansard of what he actually said. If I heard him correctly he said that the Supreme Court ruled that Article 50 was not revocable. My recollection was that it did not opine on this, and that it took from both sides, as I think is being acknowledged around the House: the Government said this, Gina Miller’s side said that, and it did not opine on it. When he has looked at his actual words in Hansard, should they need correction, perhaps he would either make a Statement or write to the House.

Lord Callanan Portrait Lord Callanan
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I will certainly look at that, but I am also aware of a European Commission statement that Article 50 benefits from similar arrangements.